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Santa Rosa, California-based Keysight Technologies, Inc. (KEYS) provides electronic design and test solutions to various industries, including energy, semiconductor, electronics, defense, and more. With a market cap of $28.7 billion, Keysight operates through Communications Solutions and Electronic Industrial Solutions segments.
The tech major has notably underperformed the broader market over the past year. KEYS stock has gained 6.7% over the past 52 weeks and 2.9% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 14.3% surge over the past year and 9.5% return in 2025.
Narrowing the focus, Keysight has also underperformed the sector-focused Technology Select Sector SPDR Fund’s (XLK) 16.9% surge over the past year and 12.6% gains in 2025.
Despite reporting better-than-expected results, Keysight Technologies’ stock prices dropped nearly 3% in the trading session following the release of its Q3 results on Aug. 19. Driven by the continued momentum in demand, the company’s revenues for the quarter increased 11.1% year-over-year to $1.4 billion, surpassing the Street expectations by 2.9%. Meanwhile, Keysight observed a notable contraction in adjusted net margin, leading to a much more modest 8% growth in adjusted net income to $297 million.
Nevertheless, its adjusted EPS of $1.72 surpassed the consensus estimates by a notable margin. Following the initial dip, KEYS stock prices rebounded more than 5% in the next two trading sessions.
For the full fiscal 2025, ending in October, analysts expect KEYS to deliver an EPS of $6.19, up 13.8% year-over-year. Further, the company has a solid earnings surprise history. It has surpassed the Street’s bottom-line projections in each of the past four quarters.
The stock has a consensus “Strong Buy” rating overall. Of the 11 analysts covering the KEYS stock, opinions include eight “Strong Buys,” one “Moderate Buy,” and two “Holds.”
This configuration is slightly less optimistic than a month ago, when nine analysts gave “Strong Buy” recommendations.
On Aug. 20, Barclays (BCS) analyst Tim Long maintained an “Overweight” rating on KEYS stock and lowered the price target from $200 to $195.
As of writing, KEYS’ mean price target of $191 represents a 15.5% premium to current price levels. Meanwhile, the Street-high target of $200 suggests a notable 21% upside potential.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
