Keysight Technologies KEYS is making waves in the tech sector, recently closing at $151.25, a +2.09% increase, signaling growing investor confidence. But beneath the surface of this positive movement lies a complex interplay of strategic initiatives, market dynamics, and financial realities that demand a closer look. The company's advancements in isolated probing technology, wide-bandgap semiconductor testing, and strategic alliances are critical pieces of the puzzle, but how do they translate into tangible, long-term value for investors?
This analysis dives deep into the heart of Keysight's recent developments, dissecting its strategic partnerships, technological advancements, and financial health to provide a comprehensive understanding of where the company stands and where it's headed.
Keysight's Isolated Probing Technology: Revolutionizing Semiconductor Testing#
Understanding Isolated Probing Technology#
KEYS recently launched a new optically isolated differential probing family, a significant leap in semiconductor testing. This technology enhances the efficiency and performance testing of fast-switching devices, such as wide bandgap (WBG) Gallium Nitride (GaN) and Silicon Carbide (SiC) semiconductors. This introduction addresses the need for accurate measurements in high-speed power device testing, potentially solidifying Keysight's leadership in this specialized area. These new voltage probes, showcased at the Applied Power Electronics Conference (APEC) 2025, are compatible with Keysight's MXR B and HD3 series of oscilloscopes. This integration validates floating half-bridge and full-bridge topologies, essential in modern power electronics applications. The isolated probing technology minimizes interference and ensures precise measurements, crucial for optimizing WBG semiconductors' performance.
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Applications in Fast-Switching Power Devices#
Keysight's isolated probing technology is particularly relevant in fast-switching power devices that use WBG materials like GaN and SiC. These devices outperform traditional silicon-based devices in switching speed, power efficiency, and thermal management. However, testing these devices requires specialized equipment that can handle high voltages and fast switching speeds without measurement errors. The new probing technology addresses these challenges by providing accurate and reliable measurements of dynamic characteristics. This is essential for optimizing the design and performance of power converters, inverters, and other power electronic systems that utilize WBG semiconductors. Applications include electric vehicles, renewable energy systems, and industrial power supplies.
Benefits of Keysight's Double-Pulse Testing#
Keysight's double-pulse testing is an essential method for evaluating the dynamic characteristics of power semiconductors. This technique involves applying two voltage pulses to the device under test and measuring its response. By analyzing the voltage and current waveforms, engineers can determine key parameters such as switching losses, on-resistance, and gate charge. This testing accurately characterizes the dynamic behavior of WBG semiconductors under realistic operating conditions, optimizing device performance and identifying potential failure mechanisms. The new isolated probing technology enhances the accuracy and reliability of double-pulse testing, making it an even more valuable tool for power electronics engineers. Keysight's enhanced double-pulse test portfolio enables accurate measurement of the dynamic characteristics of Wide-Bandgap (WBG) power semiconductor bare chips. The technologies implemented in the measurement fixture minimize parasitics and do not require soldering to the bare chip. The fixtures are compatible with both versions of Keysight's double pulse testers.
Advancing Wide-Bandgap Semiconductor Testing#
KEYS is at the forefront of advancing wide-bandgap semiconductor testing, which is crucial for the next generation of power electronics. The company's enhanced double-pulse test portfolio allows for precise measurement of the dynamic characteristics of WBG power semiconductor bare chips. These technologies minimize parasitics and eliminate the need for soldering directly to the bare chip, ensuring accurate and reliable results. WBG semiconductors, such as GaN and SiC, are increasingly used in applications requiring high efficiency and performance, including electric vehicles, renewable energy systems, and industrial power supplies. Keysight's testing solutions enable manufacturers to optimize the performance and reliability of these devices.
Keysight's Strategic Partnerships: Driving Innovation in 5G and Beyond#
Strategic Partnerships Driving Innovation#
KEYS has forged strategic partnerships with key players in the telecommunications and technology sectors to drive innovation in 5G and beyond. These collaborations aim to accelerate the development and deployment of advanced wireless technologies, ensuring optimal performance and user experience. By working closely with companies like Mavenir, Capgemini, and Siemens, Keysight is positioned at the forefront of 5G and industrial automation advancements.
Mavenir: Advancing Mobility and MIMO Testing#
KEYS and Mavenir have partnered to advance mobility and multi-user MIMO (mMIMO) testing. This collaboration involves testing and validating Mavenir's 32TRX massive MIMO technology using Keysight's comprehensive Beam MIMO Detect solution. The goal is to ensure efficient beamforming with massive antenna element next-generation Node B (gNBs). This partnership helps ensure the robustness of Mavenir's solution, delivering an optimal user experience through a comprehensive and efficient testing process. The collaboration focuses on enhancing the performance and reliability of 5G networks, particularly in scenarios with high user density and mobility. The Keysight and Mavenir partnership aims to create a robust 5G network that is able to meet the needs of modern users. This is particularly important as the demand for faster and more reliable wireless communication continues to grow.
Capgemini: Validating Non-Terrestrial Networks#
KEYS is collaborating with Capgemini to integrate and validate 5G new radio (NR) non-terrestrial networks (NTN) in both transparent and regenerative modes. This collaboration aims to accelerate Capgemini's development of its 5G NR NTN ready radio access network (RAN) framework. A demonstration of this achievement was showcased at Keysight's booth (#5F41 Hall 5) and Capgemini's booth (#2K21 Hall 2) during Mobile World Congress. This partnership positions Keysight at a critical validation checkpoint in the satellite communications development pipeline. The integration of Keysight's testing solutions into satellite communications projects by Capgemini could accelerate technology adoption. This could lead to new revenue streams and market opportunities for Keysight as the demand for satellite-based communication increases.
Siemens: Industrial 5G Network Performance Assurance#
KEYS and Siemens are collaborating to demonstrate performance assurance of industrial 5G networks at Mobile World Congress 2025. The demonstration features Keysight's Nemo Cloud solution monitoring Siemens' Scalance devices, ensuring unbroken 5G performance. This partnership highlights the importance of 24/7 network monitoring for critical applications in industries such as smart manufacturing, process industry, and smart grids. The industrial 5G market is projected to reach $210.98 billion by 2029, with a CAGR of +46.7%, indicating substantial growth potential. This collaboration positions Keysight to capitalize on the growing demand for industrial 5G solutions and services.
CyPerf and the U.S. Army: Securing Networks for Multi-Domain Operations#
CyPerf's Role in Cyber Quest '25#
KEYS's CyPerf solution has been selected by the U.S. Army to validate the performance, resiliency, and zero-trust security of its Unified Network Program. This program is a key driver for achieving Multi-Domain Operations (MDO) by 2028, creating a seamless and secure network across all domains. The selection of CyPerf underscores Keysight's expertise in cybersecurity and its commitment to supporting critical government infrastructure. The Army will use CyPerf during Cyber Quest '25 (CQ25) to ensure the network can withstand the demands of MDO, which integrate land, sea, air, space, and cyberspace operations.
Impact on Government Sector Revenue#
The adoption of CyPerf by the U.S. Army is expected to positively affect Keysight's government sector revenue and brand reputation in the long term. This win positions Keysight as a trusted provider of cybersecurity solutions for critical government infrastructure. The contract with the U.S. Army will directly increase Keysight's government sector revenue. Successfully validating the Army's Unified Network will significantly enhance Keysight's reputation as a reliable and innovative cybersecurity provider. This successful implementation could lead to further contracts with the U.S. Army and other government agencies. This is particularly important as governments around the world are increasing their investments in cybersecurity to protect critical infrastructure and sensitive data.
Expanding the RF and Microwave Frontier: Keysight's Portfolio Boost#
New Analog and Vector Signal Generators#
KEYS is expanding its RF and Microwave portfolio with new analog and vector signal generators, RF synthesizers, and signal source analyzers with capabilities up to 54 GHz. These tools are designed to meet the testing needs in radar, defense electronics, wireless communication systems, and consumer electronics. The new signal generators are noted for their low phase noise, high spectral purity, and fast switching speeds. This expansion is expected to positively impact Keysight's market share in the test and measurement equipment industry.
Market Share in Test and Measurement Equipment#
KEYS holds a significant position in the test and measurement equipment market. The expansion of its RF and Microwave portfolio is expected to further increase its market share. The RF test equipment market is estimated at $2.76 billion in 2023 and is projected to grow at a CAGR of +8.6% from 2024 to 2030, indicating a strong growth trajectory for Keysight's expanded portfolio. This growth is driven by the increasing demand for testing solutions in various industries, including telecommunications, aerospace, and defense.
Keysight's Path to Growth: Strategic Initiatives and Financial Outlook#
Strategic Focus on Innovation and Partnerships#
KEYS is implementing strategic initiatives focused on innovation, partnerships, and acquisitions to drive future growth. The company is focusing on high-growth areas like AI, 5G, and industrial automation. Keysight is also aiming to achieve a sustainable annual operating margin of 31-32% by fiscal year 2026. This focus on high-growth areas and improved profitability is expected to drive long-term value for shareholders.
Q1 2025 Results and FY2025 Outlook#
KEYS reported revenue of $1.30 billion for Q1 2025, a +3% increase from $1.26 billion in Q1 2024. The management projects a gradual recovery with an estimated base case of approximately +5% top-line growth for fiscal year 2025. Analysts estimate revenue growth to $5.25 Billion in 2025 and $5.59 Billion in 2026. EPS forecasts for fiscal year 2026 have been revised upwards, from $7.75 to $8.20. This positive outlook reflects the company's strong market position and the growing demand for its products and services.
Key Financial Metrics#
To provide a clearer picture of Keysight's financial health, let's examine some key metrics:
| Metric | Value |
|---|---|
| Market Cap | $26.15B |
| Price | $151.25 |
| EPS (TTM) | $3.51 |
| P/E Ratio (TTM) | 43.07x |
| Revenue Growth | -8.88% |
| Net Income Growth | -41.91% |
| Free Cash Flow Growth | -25.91% |
| Debt-to-Equity Ratio (TTM) | 38.94% |
| Return on Equity (TTM) | 11.97% |
Source: Monexa AI
Historical Financial Performance#
The table below summarizes Keysight's financial performance over the past four fiscal years:
| Year | Revenue (USD) | Gross Profit (USD) | Operating Income (USD) | Net Income (USD) |
|---|---|---|---|---|
| 2021 | 4.94B | 3.07B | 1.08B | 894MM |
| 2022 | 5.42B | 3.45B | 1.33B | 1.12B |
| 2023 | 5.46B | 3.53B | 1.36B | 1.06B |
| 2024 | 4.98B | 3.53B | 833MM | 614MM |
Source: Monexa AI
Navigating the Competitive Landscape: Keysight's Market Position#
Competitive Analysis: Rohde & Schwarz and Anritsu#
KEYS operates in a competitive landscape with key players such as Rohde & Schwarz and Anritsu. Keysight's competitive advantage lies in its focus on high-value products, continuous innovation, and strategic partnerships. The company's expanded RF and Microwave portfolio, along with its expertise in 5G, AI-RAN, and cybersecurity, positions it well to maintain and grow its market share.
Keysight's Market Opportunities#
KEYS has significant market opportunities in the industrial 5G market, the RF test equipment market, and the cybersecurity sector. The company's partnerships with Mavenir, Capgemini, and Siemens provide access to new markets and customers. The adoption of CyPerf by the U.S. Army opens up further opportunities in the government sector. Keysight's focus on innovation and strategic initiatives positions it well to capitalize on these opportunities and drive future growth.
Key Takeaways and Strategic Implications#
- Strategic Partnerships: Keysight's collaborations with Mavenir, Capgemini, and Siemens are pivotal for driving innovation in 5G and industrial automation. These partnerships enhance Keysight's market position and provide access to new growth opportunities.
- Technological Advancements: The introduction of isolated probing technology and the enhanced double-pulse test portfolio for WBG semiconductors demonstrate Keysight's commitment to technological innovation. These advancements enable more accurate and reliable testing, which is crucial for the development of next-generation power electronics.
- Cybersecurity Focus: The selection of Keysight's CyPerf solution by the U.S. Army highlights the company's expertise in cybersecurity. This win positions Keysight as a trusted provider of cybersecurity solutions for critical government infrastructure.
- Financial Outlook: While Keysight reported a revenue decline in fiscal year 2024, analysts are optimistic about the company's future growth prospects. Revenue is projected to increase in 2025 and 2026, driven by the growing demand for Keysight's products and services in high-growth areas like AI, 5G, and industrial automation.
Despite a revenue decline in fiscal year 2024, Keysight's strategic initiatives, technological advancements, and strong market position suggest a positive outlook for future growth. Investors should closely monitor the company's progress in integrating new technologies, expanding its market share, and capitalizing on opportunities in the industrial 5G and cybersecurity sectors.