Keysight Technologies, Inc. (KEYS) 10-Year Financial Performance & Capital Metrics

KEYS • • Industrial / General

TechnologyTech Hardware & EquipmentTest & Measurement EquipmentElectronic Test Equipment

AboutKeysight Technologies, Inc. provides electronic design and test solutions to commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, electronic, and education industries in the Americas, Europe, and the Asia Pacific. Its Communications Solutions Group segment provides electronic design automation (EDA) software; radio frequency and microwave test solutions, and related software; hardware and virtual network test platforms and software applications, including data center, routing and switching, software defined networking, security, and encryption; oscilloscopes, logic and serial protocol analyzers, logic-signal sources, arbitrary waveform generators, and bit error rate testers; and optical modulation analyzers, optical component analyzers, optical power meters, and optical laser source solutions, as well as resells refurbished used Keysight equipment. The company's Electronic Industrial Solutions Group segment offers design tools; design verification tools; and digital multimeters, function generators, frequency counters, data acquisition systems, audio analyzers, LCR meters, thermal imagers, source measure units, ultra-high precision device current analyzers, and test executive software platforms, as well as various power supplies comprising AC/DC modular supplies and electronically programmable loads. This segment also provides printed-circuit-board-assembly testers, integrated circuit parametric testers, and sub-nano-meter positioning sub-assemblies; and test and measurement products and software. The company offers product support, technical support, and training and consulting services. It sells its products through direct sales force, distributors, resellers, and manufacturer's representatives. Keysight Technologies, Inc. was founded in 1939 and is headquartered in Santa Rosa, California.Show more

Revenue $5.38B +8.0%
EBITDA $1.22B +10.9%
Net Income $846M +37.8%
EPS (Diluted) 4.88 +39.0%
Gross Margin 62.08% -1.3%
EBITDA Margin 22.75% +2.7%
Operating Margin 17.64% +5.4%
Net Margin 15.74% +27.6%
ROE 15.41% +22.4%
ROIC 11.55% -11.8%
Debt/Equity 0.51 +27.1%
Interest Coverage 9.88 -0.4%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓FCF machine: 26.2% free cash flow margin
✓High quality earnings: Operating CF exceeds net income
✓Good 3Y average ROE of 17.3%
✓Healthy 5Y average net margin of 17.2%
✓Trading near 52-week high

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y6.53%

5Y4.95%

3Y-0.28%

TTM7.95%

Profit (Net Income) CAGR

10Y5.13%

5Y6.17%

3Y-9.04%

TTM37.79%

EPS CAGR

10Y4.99%

5Y8.01%

3Y-7.57%

TTM39.43%

ROCE

10Y Avg11.64%

5Y Avg16.05%

3Y Avg14.29%

Latest10.97%

Peer Comparison

Electronic Test Equipment

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
KEYSKeysight Technologies, Inc.	36.85B	214.50	43.95	7.95%	15.74%	14.4%	3.82%	0.51
TDYTeledyne Technologies Incorporated	26.75B	569.72	33.10	0.61%	14.54%	8.27%	4.14%	0.29
FTVFortive Corporation	17.63B	55.51	23.52	2.75%	10.68%	9.25%	7.98%	0.38

Profit & Loss

	Oct 2016	Oct 2017	Oct 2018	Oct 2019	Oct 2020	Oct 2021	Oct 2022	Oct 2023	Oct 2024	Oct 2025
Sales/Revenue+	2.92B	3.19B	3.88B	4.3B	4.22B	4.94B	5.42B	5.46B	4.98B	5.38B
Revenue Growth %	0.02%	0.09%	0.22%	0.11%	-0.02%	0.17%	0.1%	0.01%	-0.09%	0.08%
Cost of Goods Sold+	1.29B	1.49B	1.77B	1.77B	1.69B	1.87B	1.97B	1.93B	1.85B	2.04B
COGS % of Revenue	0.44%	0.47%	0.46%	0.41%	0.4%	0.38%	0.36%	0.35%	0.37%	0.38%
Gross Profit+	1.62B	1.7B	2.11B	2.53B	2.53B	3.07B	3.45B	3.53B	3.13B	3.34B
Gross Margin %	0.56%	0.53%	0.54%	0.59%	0.6%	0.62%	0.64%	0.65%	0.63%	0.62%
Gross Profit Growth %	0.02%	0.04%	0.24%	0.2%	-0%	0.21%	0.12%	0.02%	-0.11%	0.07%
Operating Expenses+	1.22B	1.55B	2.5B	1.82B	1.77B	1.99B	2.12B	2.17B	2.3B	2.39B
OpEx % of Revenue	0.42%	0.49%	0.65%	0.42%	0.42%	0.4%	0.39%	0.4%	0.46%	0.44%
Selling, General & Admin	818M	1.05B	1.21B	1.16B	1.1B	1.2B	1.28B	1.31B	1.4B	1.4B
SG&A % of Revenue	0.28%	0.33%	0.31%	0.27%	0.26%	0.24%	0.24%	0.24%	0.28%	0.26%
Research & Development	425M	507M	624M	688M	715M	811M	841M	882M	919M	1.01B
R&D % of Revenue	0.15%	0.16%	0.16%	0.16%	0.17%	0.16%	0.16%	0.16%	0.18%	0.19%
Other Operating Expenses	-25M	-7M	676M	-20M	-44M	-17M	-8M	-15M	-14M	-16M
Operating Income+	406M	148M	-394M	711M	765M	1.08B	1.33B	1.36B	833M	948M
Operating Margin %	0.14%	0.05%	-0.1%	0.17%	0.18%	0.22%	0.25%	0.25%	0.17%	0.18%
Operating Income Growth %	-0.06%	-0.64%	-3.66%	2.8%	0.08%	0.41%	0.24%	0.02%	-0.39%	0.14%
EBITDA+	540M	373M	-84M	1.02B	1.09B	1.37B	1.56B	1.57B	1.1B	1.22B
EBITDA Margin %	0.19%	0.12%	-0.02%	0.24%	0.26%	0.28%	0.29%	0.29%	0.22%	0.23%
EBITDA Growth %	0.02%	-0.31%	-1.23%	13.13%	0.07%	0.26%	0.13%	0.01%	-0.3%	0.11%
D&A (Non-Cash Add-back)	134M	225M	310M	308M	326M	293M	223M	212M	270M	275M
EBIT	413M	259M	-328M	795M	839M	1.09B	1.36B	1.44B	949M	1.15B
Net Interest Income+	-44M	-73M	-71M	-57M	-67M	-76M	-63M	24M	-3M	6M
Interest Income	3M	7M	12M	23M	11M	3M	16M	102M	81M	102M
Interest Expense	47M	80M	83M	80M	78M	79M	79M	78M	84M	96M
Other Income/Expense	-40M	31M	-17M	4M	-4M	-70M	-49M	-1M	32M	134M
Pretax Income+	366M	179M	-411M	715M	761M	1.01B	1.28B	1.36B	865M	1.08B
Pretax Margin %	0.13%	0.06%	-0.11%	0.17%	0.18%	0.2%	0.24%	0.25%	0.17%	0.2%
Income Tax+	31M	77M	-576M	94M	134M	116M	161M	300M	251M	213M
Effective Tax Rate %	0.92%	0.57%	-0.4%	0.87%	0.82%	0.89%	0.87%	0.78%	0.71%	0.78%
Net Income+	335M	102M	165M	621M	627M	894M	1.12B	1.06B	614M	846M
Net Margin %	0.11%	0.03%	0.04%	0.14%	0.15%	0.18%	0.21%	0.19%	0.12%	0.16%
Net Income Growth %	-0.35%	-0.7%	0.62%	2.76%	0.01%	0.43%	0.26%	-0.06%	-0.42%	0.38%
Net Income (Continuing)	335M	102M	165M	621M	627M	894M	1.12B	1.06B	614M	869M
Discontinued Operations	0	0	0	0	0	0	0	0	0	-23M
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	1.95	0.56	0.86	3.25	3.32	4.78	6.18	5.91	3.51	4.88
EPS Growth %	-0.35%	-0.71%	0.54%	2.78%	0.02%	0.44%	0.29%	-0.04%	-0.41%	0.39%
EPS (Basic)	1.97	0.57	0.88	3.30	3.35	4.83	6.24	5.94	3.53	4.90
Diluted Shares Outstanding	172M	182M	191M	191M	189M	187M	182M	179M	175M	173M
Basic Shares Outstanding	170M	180M	187M	188M	187M	185M	180M	178M	174M	173M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	-	-

Balance Sheet

	Oct 2016	Oct 2017	Oct 2018	Oct 2019	Oct 2020	Oct 2021	Oct 2022	Oct 2023	Oct 2024	Oct 2025
Total Current Assets+	1.85B	2.18B	2.38B	3.21B	3.37B	3.83B	4.23B	4.81B	4.26B	4.35B
Cash & Short-Term Investments	783M	818M	913M	1.6B	1.76B	2.05B	2.04B	2.47B	1.8B	1.87B
Cash Only	783M	818M	913M	1.6B	1.76B	2.05B	2.04B	2.47B	1.8B	1.87B
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	437M	547M	624M	668M	606M	735M	905M	944M	995M	939M
Days Sales Outstanding	54.66	62.61	58.73	56.66	52.4	54.3	60.95	63.06	72.94	63.76
Inventory	474M	588M	619M	705M	757M	777M	858M	985M	1.02B	1.05B
Days Inventory Outstanding	133.7	143.85	127.86	145.46	163.69	151.5	158.97	186.09	202.07	188.05
Other Current Assets	160M	224M	222M	244M	255M	270M	149M	124M	157M	486M
Total Non-Current Assets+	1.95B	3.76B	3.45B	3.41B	3.84B	3.95B	3.86B	3.87B	5.01B	6.95B
Property, Plant & Equipment	512M	530M	555M	576M	777M	877M	910M	987M	1.01B	1.03B
Fixed Asset Turnover	5.70x	6.02x	6.99x	7.47x	5.43x	5.63x	5.96x	5.54x	4.94x	5.21x
Goodwill	736M	1.88B	1.17B	1.21B	1.54B	1.63B	1.58B	1.64B	2.39B	3.44B
Intangible Assets	208M	855M	645M	490M	361M	272M	189M	155M	607M	1.28B
Long-Term Investments	55M	63M	46M	46M	61M	70M	62M	81M	110M	211M
Other Non-Current Assets	43M	240M	279M	332M	368M	389M	454M	340M	521M	610M
Total Assets+	3.8B	5.93B	5.82B	6.62B	7.22B	7.78B	8.1B	8.68B	9.27B	11.29B
Asset Turnover	0.77x	0.54x	0.67x	0.65x	0.58x	0.64x	0.67x	0.63x	0.54x	0.48x
Asset Growth %	0.08%	0.56%	-0.02%	0.14%	0.09%	0.08%	0.04%	0.07%	0.07%	0.22%
Total Current Liabilities+	644M	819M	1.46B	1B	1.08B	1.31B	1.41B	2.05B	1.43B	1.85B
Accounts Payable	189M	211M	242M	253M	224M	287M	348M	286M	313M	355M
Days Payables Outstanding	53.31	51.62	49.99	52.2	48.44	55.96	64.48	54.03	61.89	63.58
Short-Term Debt	0	10M	499M	0	0	0	0	599M	0	0
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	183M	217M	276M	278M	289M	355M	333M	304M	125M	792M
Current Ratio	2.88x	2.66x	1.63x	3.21x	3.12x	2.93x	3.01x	2.35x	2.98x	2.35x
Quick Ratio	2.14x	1.94x	1.20x	2.50x	2.42x	2.34x	2.40x	1.87x	2.27x	1.78x
Cash Conversion Cycle	135.05	154.84	136.61	149.92	167.65	149.84	155.44	195.12	213.13	188.24
Total Non-Current Liabilities+	1.65B	2.8B	1.93B	2.62B	2.84B	2.69B	2.53B	1.98B	2.74B	3.57B
Long-Term Debt	1.09B	2.04B	1.29B	1.79B	1.79B	1.79B	1.79B	1.2B	1.79B	2.73B
Capital Lease Obligations	0	0	4M	4M	149M	191M	186M	192M	197M	193M
Deferred Tax Liabilities	1M	0	0	0	0	0	0	0	0	0
Other Non-Current Liabilities	474M	665M	511M	648M	727M	519M	354M	377M	544M	414M
Total Liabilities	2.29B	3.62B	3.39B	3.62B	3.92B	4B	3.94B	4.03B	4.16B	5.42B
Total Debt+	1.09B	2.05B	1.79B	1.79B	1.98B	2.02B	2.02B	2.03B	2.03B	2.97B
Net Debt	317M	1.23B	877M	190M	225M	-29M	-24M	-446M	234M	1.1B
Debt / Equity	0.72x	0.89x	0.74x	0.60x	0.60x	0.53x	0.48x	0.44x	0.40x	0.51x
Debt / EBITDA	2.02x	5.49x	-	1.75x	1.82x	1.47x	1.30x	1.29x	1.84x	2.43x
Net Debt / EBITDA	0.59x	3.30x	-	0.19x	0.21x	-0.02x	-0.02x	-0.28x	0.21x	0.90x
Interest Coverage	8.64x	1.85x	-4.75x	8.89x	9.81x	13.67x	16.89x	17.41x	9.92x	9.88x
Total Equity+	1.51B	2.31B	2.43B	3B	3.3B	3.78B	4.16B	4.65B	5.11B	5.88B
Equity Growth %	0.16%	0.53%	0.05%	0.23%	0.1%	0.15%	0.1%	0.12%	0.1%	0.15%
Book Value per Share	8.77	12.69	12.74	15.73	17.44	20.24	22.86	26.00	29.17	33.97
Total Shareholders' Equity	1.51B	2.31B	2.43B	3B	3.3B	3.78B	4.16B	4.65B	5.11B	5.88B
Common Stock	2M	2M	2M	2M	2M	2M	2M	2M	2M	2M
Retained Earnings	949M	1.04B	1.21B	1.91B	2.54B	3.43B	4.55B	5.61B	6.22B	7.07B
Treasury Stock	-62M	-62M	-182M	-342M	-752M	-1.43B	-2.27B	-2.98B	-3.42B	-3.8B
Accumulated OCI	-622M	-457M	-488M	-578M	-599M	-442M	-454M	-466M	-364M	-248M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Oct 2016	Oct 2017	Oct 2018	Oct 2019	Oct 2020	Oct 2021	Oct 2022	Oct 2023	Oct 2024	Oct 2025
Cash from Operations+	416M	313M	555M	998M	1.02B	1.32B	1.14B	1.41B	1.05B	1.41B
Operating CF Margin %	0.14%	0.1%	0.14%	0.23%	0.24%	0.27%	0.21%	0.26%	0.21%	0.26%
Operating CF Growth %	0.11%	-0.25%	0.77%	0.8%	0.02%	0.3%	-0.13%	0.23%	-0.25%	0.34%
Net Income	335M	102M	165M	621M	627M	894M	1.12B	1.06B	614M	846M
Depreciation & Amortization	134M	225M	310M	308M	326M	293M	223M	212M	126M	131M
Stock-Based Compensation	49M	56M	59M	82M	92M	103M	125M	135M	137M	162M
Deferred Taxes	1M	-47M	-789M	-2M	41M	-53M	7M	-3M	268M	-112M
Other Non-Cash Items	16M	-38M	730M	24M	-13M	49M	69M	133M	178M	305M
Working Capital Changes	-119M	15M	80M	-35M	-57M	36M	-404M	-126M	-271M	77M
Change in Receivables	-42M	-11M	-89M	-26M	75M	-122M	-204M	14M	71M	23M
Change in Inventory	-22M	-4M	-61M	-92M	-73M	-43M	-125M	-148M	35M	43M
Change in Payables	-8M	15M	22M	13M	-33M	53M	56M	-62M	26M	26M
Cash from Investing+	-90M	-1.72B	-116M	-196M	-442M	-353M	-251M	-288M	-819M	-1.73B
Capital Expenditures	-91M	-72M	-132M	-120M	-117M	-174M	-185M	-196M	-154M	-128M
CapEx % of Revenue	0.03%	0.02%	0.03%	0.03%	0.03%	0.04%	0.03%	0.04%	0.03%	0.02%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	10M	8M	27M	5M	32M	-1M	-216M	0	27M	507M
Cash from Financing+	-25M	1.44B	-335M	-122M	-413M	-671M	-861M	-687M	-913M	385M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-5M	494M	-19M	-26M	-53M	-57M	-75M	-52M	-511M	699M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	325M	241M	423M	878M	899M	1.15B	959M	1.21B	898M	1.41B
FCF Margin %	0.11%	0.08%	0.11%	0.2%	0.21%	0.23%	0.18%	0.22%	0.18%	0.26%
FCF Growth %	0.14%	-0.26%	0.76%	1.08%	0.02%	0.28%	-0.16%	0.26%	-0.26%	0.57%
FCF per Share	1.89	1.32	2.21	4.60	4.76	6.14	5.27	6.77	5.13	8.14
FCF Conversion (FCF/Net Income)	1.24x	3.07x	3.36x	1.61x	1.62x	1.48x	1.02x	1.33x	1.71x	1.67x
Interest Paid	0	0	0	76M	75M	75M	75M	75M	75M	0
Taxes Paid	0	0	0	103M	84M	130M	191M	343M	146M	0

Key Ratios

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Return on Equity (ROE)	23.83%	5.34%	6.96%	22.84%	19.9%	25.25%	28.29%	23.98%	12.58%	15.41%
Return on Invested Capital (ROIC)	16.3%	4.14%	-8.63%	16.4%	17.09%	22.26%	25.35%	24.41%	13.09%	11.55%
Gross Margin	55.65%	53.21%	54.44%	58.89%	60.01%	62.11%	63.65%	64.64%	62.92%	62.08%
Net Margin	11.48%	3.2%	4.25%	14.43%	14.85%	18.09%	20.74%	19.34%	12.33%	15.74%
Debt / Equity	0.72x	0.89x	0.74x	0.60x	0.60x	0.53x	0.48x	0.44x	0.40x	0.51x
Interest Coverage	8.64x	1.85x	-4.75x	8.89x	9.81x	13.67x	16.89x	17.41x	9.92x	9.88x
FCF Conversion	1.24x	3.07x	3.36x	1.61x	1.62x	1.48x	1.02x	1.33x	1.71x	1.67x
Revenue Growth	2.17%	9.29%	21.61%	10.96%	-1.91%	17.06%	9.69%	0.81%	-8.88%	7.95%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Communications Solutions Group	-	1.75B	1.74B	2.04B	2.69B	3.13B	3.52B	3.8B	3.69B	3.42B
Communications Solutions Group Growth	-	-	-0.80%	17.20%	31.96%	16.52%	12.48%	7.95%	-3.10%	-7.19%
Electronic Industrial Solutions Group	-	776M	836M	965M	1.14B	1.09B	1.42B	1.62B	1.78B	1.56B
Electronic Industrial Solutions Group Growth	-	-	7.73%	15.43%	17.62%	-4.05%	30.21%	14.03%	10.02%	-12.37%
Segment Total	5.72B	-	-	-	-	-	-	-	-	-
Segment Total Growth	-	-	-	-	-	-	-	-	-	-
Measurement Solutions	4.92B	-	-	-	-	-	-	-	-	-
Measurement Solutions Growth	-	-	-	-	-	-	-	-	-	-
Customer Support & Services	802M	-	-	-	-	-	-	-	-	-
Customer Support & Services Growth	-	-	-	-	-	-	-	-	-	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Americas	-	-	-	-	1.72B	1.64B	2B	2.2B	2.21B	2.06B
Americas Growth	-	-	-	-	-	-4.81%	21.63%	10.37%	0.09%	-6.80%
Asia Pacific	-	-	-	-	1.87B	1.9B	2.15B	2.33B	2.3B	1.99B
Asia Pacific Growth	-	-	-	-	-	2.04%	12.92%	8.60%	-1.37%	-13.59%
Europe	-	-	-	-	713M	676M	795M	882M	956M	934M
Europe Growth	-	-	-	-	-	-5.19%	17.60%	10.94%	8.39%	-2.30%
Rest Of World	1.02B	1.01B	1.19B	1.43B	-	-	-	-	-	-
Rest Of World Growth	-	-0.88%	17.26%	20.10%	-	-	-	-	-	-
UNITED STATES	991M	1.01B	1.05B	1.4B	-	-	-	-	-	-
UNITED STATES Growth	-	1.82%	4.46%	32.64%	-	-	-	-	-	-
CHINA	531M	572M	608M	710M	-	-	-	-	-	-
CHINA Growth	-	7.72%	6.29%	16.78%	-	-	-	-	-	-
JAPAN	311M	323M	338M	342M	-	-	-	-	-	-
JAPAN Growth	-	3.86%	4.64%	1.18%	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Keysight Technologies, Inc. (KEYS) has a price-to-earnings (P/E) ratio of 44.0x. This suggests investors expect higher future growth.

Growth & Financials

Keysight Technologies, Inc. (KEYS) reported $5.38B in revenue for fiscal year 2025. This represents a 62% increase from $3.31B in 2012.

Keysight Technologies, Inc. (KEYS) grew revenue by 8.0% over the past year. This is steady growth.

Yes, Keysight Technologies, Inc. (KEYS) is profitable, generating $846.0M in net income for fiscal year 2025 (15.7% net margin).

Dividend & Returns

Keysight Technologies, Inc. (KEYS) has a return on equity (ROE) of 15.4%. This is reasonable for most industries.

Keysight Technologies, Inc. (KEYS) generated $1.41B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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