Q3 FY2025 Financial Performance: Keysight Technologies reported Q3 FY2025 GAAP revenue of $1.35 billion, exceeding analyst expectations by $32 million, with non-GAAP EPS at $1.72, surpassing estimates by $0.05. Year-over-year, revenue increased by 11.1% and non-GAAP EPS rose by 9.6%.
Segment Growth and Revenue Sources: The Communications Solutions Group (CSG) saw an 11% sales increase, while the Electronic Industrial Solutions Group (EISG) reported a revenue rise of 11%. CSG's gross margins remained stable at 67%, despite EISG's slight decline.
Investment in R&D and Market Strategy: Keysight invested $919 million in R&D, representing 18.4% of revenue, focusing on innovation and customer relationships. The company aims to expand recurring revenue streams through software and services to enhance financial predictability.
Future Outlook and Guidance: Management raised full-year guidance for FY2025, projecting revenue growth of approximately 7% and non-GAAP EPS growth near 13%. They also indicated ongoing efforts to mitigate tariff impacts and emphasized the importance of expanding software and service revenue.
KEYS
$204.87+Infinity%1D
Analyst Views on KEYS
Wall Street analysts forecast KEYS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KEYS is 216.33 USD with a low forecast of 195.00 USD and a high forecast of 232.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
Wall Street analysts forecast KEYS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KEYS is 216.33 USD with a low forecast of 195.00 USD and a high forecast of 232.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Buy
2 Hold
0 Sell
Strong Buy
Current: 207.480
Low
195.00
Averages
216.33
High
232.00
Current: 207.480
Low
195.00
Averages
216.33
High
232.00
Jefferies
Saree Boroditsky
Hold
maintain
$195 -> $220
2025-12-10
Reason
Jefferies
Saree Boroditsky
Price Target
$195 -> $220
2025-12-10
maintain
Hold
Reason
Jefferies analyst Saree Boroditsky raised the firm's price target on Keysight Technologies to $220 from $195 and keeps a Hold rating on the shares. The firm's 2026 Multi-Industrials sector positioning is anchored on the three themes of exposure to power and data centers; margin expansion through internal productivity; and a cyclical recovery after two years of subdued volumes, the analyst tells investors.
Baird
Outperform
maintain
$205 -> $210
2025-11-26
Reason
Baird
Price Target
$205 -> $210
2025-11-26
maintain
Outperform
Reason
Baird raised the firm's price target on Keysight Technologies to $210 from $205 and keeps an Outperform rating on the shares. The firm updated its estimates following solid Q4 results and where they arenetering 2026 with AI-driven momentum and demand breadth.
JPMorgan
Samik Chatterjee
Overweight
maintain
$200 -> $207
2025-11-25
Reason
JPMorgan
Samik Chatterjee
Price Target
$200 -> $207
2025-11-25
maintain
Overweight
Reason
JPMorgan analyst Samik Chatterjee raised the firm's price target on Keysight Technologies to $207 from $200 and keeps an Overweight rating on the shares post the fiscal Q4 report. The firm says an order "inflection" led by artificial intelligence demand positions the company for strong earnings growth in fiscal 2026.
Morgan Stanley
Equal Weight
maintain
$180 -> $208
2025-11-25
Reason
Morgan Stanley
Price Target
$180 -> $208
2025-11-25
maintain
Equal Weight
Reason
Morgan Stanley raised the firm's price target on Keysight Technologies to $208 from $180 and keeps an Equal Weight rating on the shares after the company "surprised" with the strength of orders and margins in fiscal Q4 as well as "finally" breaking out its AI exposure. The breadth of upside across the businesses, and quicker tariff mitigation, positions the company better heading into FY26 than the firm previously contemplated, the analyst tells investors.
About KEYS
Keysight Technologies, Inc. specializes in the computing, communications and electronics market. Its portfolio of hardware, software, and services enables its customers’ engineering workflows as they design, manufacture, deploy, and optimize their products and solutions. Its segments include Communications Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG). CSG solutions consist of electronic design and test software, instrumentation, systems, and related services, serving customers across the global commercial communications and aerospace, defense, and government end markets. EISG solutions consist of electronic design, test and simulation software, optical design and photonics simulation tools, instrumentation, systems, and related services, serving customers across a diverse set of end markets focused on automotive and energy, semiconductor solutions, and general electronics. Its product categories include oscilloscopes, and digital multimeters, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
