Keysight Technologies is not a household name—but it sits at the heart of some of the most important transitions shaping the global economy. From 5G and advanced semiconductors to electric vehicles, aerospace, and energy-efficient networks, Keysight’s measurement and testing solutions help engineers design technologies that are faster, safer, and more sustainable. For investors, this creates a compelling return + impact opportunity.
A quality compounder at the intersection of innovation and responsibility
Keysight combines high-margin software-enabled instrumentation with deep customer relationships and long product cycles. While near-term growth has been uneven as customers digest prior investments, the long-term demand drivers remain firmly intact. With a Ziggma Score of 83 and a Profound Impact Score of 83, KEYS stands out as a “good stock”: one with durable value creation potential and a business model that supports a more efficient, lower-carbon economy.
The Return Case
Keysight benefits from structural growth in data traffic, electrification, and semiconductor complexity. As spending normalizes, margins and earnings power are positioned to rebound, supporting attractive medium-term upside.
The Impact Case
By enabling more energy-efficient networks, safer vehicles, and faster innovation cycles, Keysight plays a quiet but critical role in reducing waste, emissions, and system-level inefficiencies across industries.
Measuring what matters in a complex world
Keysight Technologies is a global leader in electronic design and test solutions. Spun out of Hewlett-Packard, the company provides hardware, software, and services that allow engineers to simulate, test, and validate complex electronic systems.
Its portfolio spans high-performance oscilloscopes, signal analyzers, network testers, and increasingly software-centric solutions for design validation. Customers include semiconductor manufacturers, telecom operators, aerospace and defense firms, automotive OEMs, and energy companies.
Market & moat
The market for advanced electronic measurement grows alongside complexity. As chip geometries shrink, data speeds rise, and systems integrate hardware with software, testing becomes mission-critical. Keysight’s moat is built on decades of domain expertise, switching costs embedded in customer workflows, and recurring software revenue. Industry growth is projected around the high single digits, with Keysight well positioned at the premium end of the market.
Strong margins, cyclical pauses, long-term strength
Over the past several years, Keysight has demonstrated impressive profitability. EBITDA margins have consistently hovered in the high-20% range, with a TTM EBITDA margin of 25.2% and a net profit margin of 15.8%. Cashflow generation remains robust, with a TTM cashflow margin of 26.2%, underscoring the capital-light nature of the business.
Growth has been volatile. Revenue expanded strongly in earlier years, slowed sharply in FY2024, and rebounded in FY2025 with ~8% revenue growth and nearly 40% EPS growth. This pattern reflects customer spending cycles rather than structural weakness. Importantly, Keysight maintained profitability and balance sheet strength throughout.
On valuation, KEYS trades at a TTM P/E of ~37x, above short-term earnings but closer to its 5-year average of ~33x. Price-to-sales of ~5.8x reflects premium margins and quality, while valuation metrics suggest the stock is not cheap—but justified for a high-return compounder.
Balance sheet risk is low. Debt-to-equity sits at ~0.4x, with net debt/EBITDA around 0.3x, giving Keysight ample flexibility for buybacks, R&D, and bolt-on acquisitions.
Analyst expectations point to improving fundamentals, with consensus targets implying mid-teens upside as demand normalizes. Over a 2–3 year horizon, a combination of earnings growth and modest multiple expansion could drive attractive total returns.
Enabling efficiency, not emissions
Keysight’s impact is indirect—but powerful. Its solutions help customers design systems that use less energy, waste fewer materials, and perform more reliably.
The company earns a Profound Impact Score of 83, placing it among the top performers in its industry.
Two impact pillars stand out:
Climate Action (92/100):
Keysights has set a target to reach net-zero by 2040.
Moreover, Keysight supports the transition to more energy-efficient networks and electronics. Its tools help optimize power consumption in 5G infrastructure, data centers, EV power electronics, and aerospace systems—areas where incremental efficiency gains translate into meaningful emissions reductions at scale. The following image shows Keysight’s EV charging test solution.
Sustainable Resource Use (79/100):
By enabling simulation and virtual testing, Keysight reduces the need for physical prototypes, cutting material use and waste. Strong waste recycling metrics and disciplined resource management further reinforce this profile.
Fair labor practices score a solid 77, supported by strong employee ratings (4.1/5), while accountability is more mixed—an area for continued improvement but not uncommon for global technology firms.
Patient investor’s quality play
Keysight’s investment case rests on three pillars. First, structural demand for advanced testing grows as electronics become more complex across semiconductors, EVs, aerospace, and communications. Second, operating leverage is significant: as revenue growth reaccelerates, margins and earnings can expand rapidly. Third, balance sheet strength and disciplined capital allocation support resilience and shareholder returns.
From an impact perspective, Keysight’s role in enabling cleaner, safer, and more efficient technologies strengthens its long-term relevance. This is not hype-driven innovation—it is infrastructure-level value creation.
Quiet impact, durable returns
Keysight Technologies exemplifies what a “good stock” can look like: a high-quality business with strong margins, a defensible moat, and a clear role in building a more efficient, lower-carbon economy. While short-term growth can fluctuate, the long-term trajectory remains compelling. For investors willing to look past near-term noise, KEYS offers an attractive blend of return potential and real-world impact.
Important Notice
This article is not investment advice. We cannot predict whether the stocks mentioned in this article will go up or down.
We believe the information contained in this text to be reliable but do not warrant its accuracy or completeness. Opinions, estimates, and investment strategies and views expressed in this document constitute our judgment based on current market conditions available data and are subject to change without notice. Please consider your full financial situation prior to making an investment decision.