Keysight Technologies, Inc.KEYS
Keysight Technologies, Inc. Financial Overview 2021–2025
Updated Jul 10, 2026After seeing net income plunge 42% during a cyclical downturn in FY2024, Keysight Technologies engineered a rapid turnaround with earnings surging 38% to $850 million in FY2025. This sharp recovery demonstrates the core investment thesis for the stock: the company’s aggressive acquisition strategy and heavy research investments allow it to effectively monetize next-generation electronics cycles across AI, 6G, and defense networks.
Keysight’s long-term trajectory highlights steady top-line expansion, with total revenue growing from $4.94 billion in FY2021 to $5.375 billion in FY2025. The company navigated supply chain disruptions and geopolitical headwinds by pivoting toward higher-margin software and services. This operational leverage became highly visible in the first half of FY2026, when revenue jumped 27% to $3.317 billion and gross margins expanded to 65.5%. Keysight fueled this momentum by completing major buyouts, including Spirent Communications, while maintaining organic commitments like its massive $919 million R&D spend in FY2024. Backed by strong liquidity, including $942 million in operating cash flow during the first six months of FY2026, the board authorized a new $1.5 billion stock repurchase program to return capital to shareholders.
The market rewarded this financial resilience and strategic M&A expansion. At the close of FY2025, Keysight traded at 37.3x earnings, with the stock priced at $182.96 as investors priced in the ongoing AI and communications testing upcycle.
Recent Developments (Q1 and Q2 2026)
Keysight sustained its top-line momentum in Q1 2026, with revenue rising 23% year-over-year to $1.6 billion and net income expanding to $281 million. Over the first half of the year, net income grew 48% to $630 million, aided by an $87 million tax benefit. This operational growth coincided with strategic maneuvers, including the integration of Synopsys' Optical Solutions Group and the establishment of a new $750 million revolving credit facility maturing in 2031. Corporate governance also evolved, as shareholders approved board declassification and SVP of Global Services John Page announced his upcoming retirement.
Bulls highlight the company's ability to drive outsized bottom-line expansion through targeted acquisitions and a favorable product mix. Conversely, bears can argue the stock is richly valued at 69.9x earnings as of the Q2 2026 reporting date, leaving little margin for error if demand softens.
What to watch: leadership transition in the Global Services division; integration progress of the Synopsys Optical Solutions unit.
Rev
$5.38B
FY2025
NI
$850.0M
FY2025
EPS
$4.93
FY2025
OCF
$1.41B
FY2025
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
Keysight Technologies, Inc. 8-K Report, Financial Results (May 19, 2026)
Keysight Technologies, Inc. has filed an 8-K report on May 19, 2026, to announce its financial results for the second fiscal quarter ended April 30, 2026. The filing primarily comprises a press release (Exhibit 99.1) detailing these results. The company emphasizes its use of non-GAAP financial measures alongside GAAP to offer investors a more comprehensive view of its operational performance and future prospects. Management utilizes these non-GAAP figures, which exclude items like amortization, share-based compensation, and acquisition-related costs, to assess core financial performance and facilitate comparisons with historical results and competitors.
Keysight Technologies, Inc. 8-K Report, Financial Obligation (Apr 23, 2026)
Keysight Technologies, Inc. (KEYS) has filed an 8-K to report the execution of an Amended and Restated Credit Agreement on April 21, 2026. This agreement replaces their previous credit facility from July 2021. The primary focus for investors is the establishment of a new $750 million, five-year unsecured revolving credit facility maturing on April 21, 2031. This facility provides significant liquidity and flexibility for the company's ongoing operations and strategic initiatives. Furthermore, the agreement includes an accordion feature allowing Keysight to potentially increase the total commitments under the facility by up to an additional $350 million, subject to customary conditions. While the agreement contains standard covenants, including restrictions on liens and subsidiary indebtedness, and requires compliance with specified financial ratios, the unsecured nature of the facility suggests a strong financial standing. Investors should note that breaches of these covenants could lead to the acceleration of outstanding debt.
Keysight Technologies, Inc. 8-K Report, Shareholder Vote Results (Mar 24, 2026)
Keysight Technologies, Inc. (KEYS) filed an 8-K on March 24, 2026, detailing the results of its Annual Meeting of Stockholders held on March 19, 2026. The meeting saw strong participation, with approximately 91% of outstanding shares represented, indicating significant stockholder engagement. Key outcomes include the election of three directors, the ratification of PricewaterhouseCoopers LLP as the independent auditor, and the approval of executive compensation for fiscal year 2025. Furthermore, stockholders approved a significant governance change: the amendment of the Company's Certificate of Incorporation to declassify the Board of Directors. This move will transition the board to annual elections, a common trend favored by many investors for enhanced accountability. Additionally, a stockholder proposal enabling shareholders to call for special meetings was also approved, granting shareholders more direct influence over corporate governance.
Keysight Technologies, Inc. 8-K Report, Executive Changes (Mar 13, 2026)
Keysight Technologies, Inc. (KEYS) announced on March 13, 2026, the upcoming retirement of John Page, Senior Vice President, Global Services. Mr. Page intends to step down before the end of the company's fiscal year on October 31, 2026, after a long tenure since November 2015. The company has stated that his retirement is for personal reasons and is not related to any disputes or disagreements with Keysight. This departure represents a change in leadership within the Global Services division, a key segment for Keysight's service revenue and customer support. Investors will be looking for clarity on the transition plan and the appointment of a successor to ensure continuity and continued growth in this vital area of the business. The company's communication regarding this transition will be crucial for maintaining investor confidence.
Keysight Technologies, Inc. 8-K Report, Financial Results (Feb 23, 2026)
Keysight Technologies, Inc. has filed an 8-K report on February 23, 2026, announcing its financial results for the first fiscal quarter ended January 31, 2026. The report primarily consists of a press release (Exhibit 99.1) detailing these results and explaining the company's use of non-GAAP financial measures. Management emphasizes that these non-GAAP figures are provided to offer investors a clearer view of operational performance and future prospects, supplementing the standard GAAP reporting. The company uses non-GAAP measures to assess performance, facilitate internal and external comparisons, and provide greater transparency into management's financial decision-making. These metrics exclude items such as amortization of acquisition-related balances, share-based compensation, acquisition and integration costs, and restructuring charges, which are deemed to have a material effect on GAAP expenses and income but are not considered reflective of ongoing operating performance. Investors are advised to refer to Exhibit 99.1 for a comprehensive explanation of these non-GAAP disclosures.
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