Keysight Technologies (KEYS)
NYSEInformation TechnologyHardware, Equipment & PartsSnapshot 2026-09-04
$327.21+1.42%
Close 2026-09-04 · 1-day change
NYSEInformation TechnologyHardware, Equipment & PartsSnapshot 2026-09-04
Warn: Primary pillar under pressure — Revenue growth reaching about $1.74 billion in Q3 FY2026: Q3 FY26 revenue $1.85B vs $1.74B target; YoY +36.0%.
Keysight grows revenue about 19% a year, hitting $1.74 billion next quarter. Profit per share is rising, with EPS near $2.46 next quarter. The company beat earnings by 24% last quarter and raised guidance. It is expanding its product range through acquisitions, supporting lasting growth.
The recent 17% drop from highs shows investor caution. Profit margins could thin if costs rise. Leadership changes and credit agreements may pressure execution. Growth might slow below analyst expectations.
The price is about 25% above our fair value near $250, reflecting roughly 19% revenue growth. Our fair value is 35% below the Street median, indicating the market prices in stronger growth than we expect.
Breaks if: EPS falls below $2.43 in Q3 FY2026
Achieve non-GAAP EPS growth for fiscal year 2025.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a strong emphasis on revenue and earnings growth. The current thesis state is intact, supported by recent earnings beats and management's commitment to growth initiatives.
The market currently prices KEYS with a low expectations gap, suggesting that investors have a neutral view on its future performance. Valuation is aligned with peers, indicating that the stock is neither particularly cheap nor expensive compared to similar companies.
Management is on track to sustain strong revenue growth and drive non-GAAP earnings per share growth. Recent financial performance has been strong, but there is a moderate risk due to the potential for earnings guidance cuts.
The long-term thesis hinges on whether the Federal Reserve cuts interest rates, which could benefit tech stocks like KEYS. Additionally, the performance of sector leaders may influence KEYS' momentum, as positive results from peers could provide a favorable backdrop.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this view. Keysight raised its revenue guidance for Q4, indicating strong growth ahead. Stronger demand for AI infrastructure also boosts expectations for the sector. There are no new threats to the thesis at this time.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Acquisition fails to contribute to revenue or profit growth by FY26 end
Breaks if: revenue falls below $1.69B in Q3 FY2026
Focus on achieving revenue growth for fiscal year 2025.
Overall, KEYS is positioned well for the next few years, supported by solid management priorities and recent performance. Not investment advice.