| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 19 | 46.6x | 17.8x | Bottom tier | |
Growth | 81 | 25.5% | 7.1% | Top tier | |
Quality | 87 | 13.5% | 4.5% | Top tier | |
Safety | 84 | 0.1x | 2.6x | Top tier | |
Capital Return | 65 | — | 2.12% | Around median | |
Momentum | 83 | 98.1% | 2.9% | Top tier | |
Sentiment | 63 | 8 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Keysight Technologies provides electronic design, simulation, measurement, and testing solutions used by customers from pre-silicon design through chip and component validation, system simulation, and manufacturing testing. Its applications include AI infrastructure, semiconductors, wired and wireless communications, aerospace and defense, automotive, and energy, and its revenue benefits from sales of hardware, software, and services; software and services represented approximately 33% of revenue in Q3 FY2026, while annual recurring revenue accounted for 24% of the mix.
In Q3 FY2026, revenue reached $1.846 billion, growing 36% on a reported basis and 31% organically, while orders rose 56% to a record $2.091 billion. Gross margin was 69% and operating margin was 33.2%, an increase of 820 basis points, and the company recorded net income of $531 million and earnings per share of $3.07, up 79%. By comparison, EDGAR data for Q2 FY2026 show revenue of $1.7 billion, gross profit of $1.2 billion, net income of $349 million, and earnings per share of $2.02.
Communications Solutions Group generated $1.345 billion, or approximately 73% of Q3 FY2026 revenue, growing 43% and achieving an operating margin of 34%. Within the group, Commercial Communications revenue exceeded $1 billion for the first time, reaching $1.006 billion, up 56%, while the aerospace, defense, and government business recorded $339 million, up 14%. Electronic Industrial Solutions Group posted record revenue of $501 million, up 21%, and an operating margin of 31%, with growth in general electronics, semiconductors, automotive, and energy.
The average analyst price target is $416.63, within a range extending from $384 to $440, with the consensus rated “Buy”; the average is approximately 11% above the 52-week high of $374.963, while the lowest target is approximately 2% above it. In contrast, the price-to-earnings multiple of 43 times cited in news dated August 21, 2026 and the wide 52-week range between $158.79 and $374.963 indicate that the rerating was linked to accelerating AI activity and growth in orders and margins, so the valuation remains sensitive to supply constraints or any slowdown in converting orders into revenue.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Keysight revenue increased 36% to $1.846 billion, and orders rose 56% to $2.091 billion. The acceleration came primarily from Commercial Communications, where revenue reached $1.006 billion, up 56%, supported by wired communications and AI infrastructure. Net income was $531 million and earnings per share were $3.07, with operating margin expanding to 33.2%.
Keysight sells tools for design validation before silicon manufacturing, chip and component testing, optical interconnect measurement, and network and data center load emulation. Wired communications orders more than doubled in Q3 FY2026 as customers scaled production of 800-gig and 1.6 tera optical transceivers. Switch companies, chip designers, and interconnect producers also use products such as 224-gig digital communications analyzers and a 220 gigahertz optical component analyzer.
The company expects revenue between $1.930 billion and $1.950 billion and earnings per share between $3.34 and $3.40. The midpoint of the range represents year-over-year growth of 37% in revenue and approximately 76% in earnings per share. Accordingly, management expects FY2026 revenue growth of 32% and earnings-per-share growth of approximately 60% at the midpoint of the guidance.
Automated analysis for informational purposes only — not investment advice.
Management said on the August 18, 2026 call that demand is not the limiting factor, but supply constraints will continue to govern the conversion of orders into revenue for several quarters. The company’s internal ability to increase production of new products has improved, but the challenge has shifted more heavily toward incoming components for which several participants in the AI ecosystem are competing. Keysight is operating with a planning horizon exceeding 18 months, including adding alternative sources and redesigning certain products when needed.
Software and services together represented approximately 33% of Q3 FY2026 revenue, and annual recurring revenue accounted for 24% of the mix. Both businesses grew at double-digit rates and reached record values, but hardware grew faster during the same period. The company links this expansion to its strategy of providing integrated solutions throughout the customer lifecycle instead of limiting itself to standalone measurement instruments.
The immediate risk is that component constraints may delay the conversion of $2.091 billion in orders into revenue despite the strength of the sales pipeline. A significant part of growth is tied to the AI spending cycle, while hyperscale cloud computing companies directly represent approximately 10% of the business and have a larger influence on the rest of the ecosystem. The price-to-earnings multiple of 43 times cited in news dated August 21, 2026 adds sensitivity to a slowdown, while the one-time tariff benefit that increased FY2026 profitability will not recur in FY2027.
