Keysight Technologies named Global Company of the Year in 6G test and measurement.

Keysight Technologies has been recognized as the 2025 Global Company of the Year by Frost & Sullivan for its leadership in the 6G test and measurement industry. The company's exceptional performance in innovation, strategic execution, and market leadership has solidified its role as a trusted partner in the global shift from 5G to 6G. Keysight's solutions align with emerging market needs and deliver scalable, high-performance solutions.

Keysight Technologies, Inc. (NYSE: KEYS), a global leader in test and measurement equipment, has been recognized as the 2025 Global Company of the Year by Frost & Sullivan for its leadership in the 6G test and measurement industry. The company's exceptional performance in innovation, strategic execution, and market leadership has solidified its role as a trusted partner in the global shift from 5G to 6G.

Keysight Technologies reported $5 billion in revenue for fiscal year 2024, demonstrating its significant market presence. The company's business is segmented into three main areas: mobile infrastructure and wireline networks (46% of revenue), defense (23%), and electronics/semiconductor/automotive (31%). In the second quarter of fiscal year 2025, Keysight delivered a slight earnings beat, with top-line guidance increased marginally. This positive performance was accompanied by an 8% year-over-year growth in orders and a book-to-bill ratio of approximately 1, indicating a healthy demand for the company’s products and services.

Analysts note that Keysight’s valuation metrics show the stock trading at a P/E ratio of 39x and an EV/EBITDA multiple of 24.6x. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading slightly above its intrinsic value. This positioning suggests potential upside for investors if the company can capitalize on emerging opportunities and maintain its competitive edge [1].

The wireline segment, particularly in relation to AI investments, has emerged as a strong performer for Keysight. Analysts highlight the growing demand from AI-related projects, extending beyond traditional data centers. This trend aligns with the broader industry shift towards AI technologies and presents a significant growth opportunity for Keysight [1].

The Aerospace, Defense, & Government sector has shown an uptick in orders, driven by international reinvestment in defense capabilities. This segment’s strength contributes to Keysight’s diversified revenue stream and provides a buffer against fluctuations in other markets [1].

The semiconductor sector within Keysight’s Electronic Industrial Solutions Group (EISG) has shown signs of recovery. This improvement comes at a crucial time, as the global semiconductor industry faces both challenges and opportunities amidst supply chain disruptions and increasing demand for advanced chips [1].

Keysight’s future prospects are closely tied to several key factors that are expected to drive growth in the coming years. 6G Prospects Analysts anticipate that 6G orders will begin in earnest by the second half of 2027, aligning with historical patterns of order timing versus finalized specifications. While the full benefits of the 6G rollout may not materialize for several years, Keysight’s early positioning in this space could provide a significant competitive advantage [1].

The increasing focus on AI across various industries presents a substantial opportunity for Keysight. The company’s test and measurement solutions are crucial for the development and implementation of AI technologies, from data centers to edge computing applications [1].

Strategic Acquisitions Keysight’s pending acquisitions are expected to drive modest upward earnings revisions. These strategic moves could enhance the company’s product offerings, expand its market reach, and contribute to overall growth [1].

Analysts project earnings per share (EPS) of $7.06 for fiscal year 2025, with growth continuing into 2027, reaching an estimated $9.03. The company has demonstrated strong profitability with a gross margin of 61.9% and return on equity of 14% over the last twelve months. Free Cash Flow is expected to increase from $1,145 million in fiscal year 2025 to $1,335 million in fiscal year 2027, indicating strong financial health and potential for reinvestment or shareholder returns [1].

The anticipated rollout of 6G technology presents a significant opportunity for Keysight. As a leader in test and measurement solutions, the company is well-positioned to capitalize on the development and implementation of 6G networks. Analysts expect 6G orders to begin in earnest by the second half of 2027, which aligns with historical patterns of order timing versus finalized specifications. The transition to 6G is likely to drive demand for advanced testing equipment and software solutions across the entire ecosystem, from network infrastructure to device manufacturers. Keysight’s expertise in previous wireless generations positions it as a trusted partner for companies developing 6G technologies. This could lead to long-term contracts, increased market share, and substantial revenue growth as the 6G rollout gains momentum in the latter part of the decade [1].

References:
[1] https://www.investing.com/news/swot-analysis/keysights-swot-analysis-test-firms-stock-poised-for-6g-ai-growth-93CH-4155819