Keysight Technologies Stock Outlook: Analysts Bullish on Tech Major Despite Underperformance

Keysight Technologies, a Santa Rosa, California-based company, provides electronic design and test solutions to various industries. Despite underperforming the broader market over the past year, analysts expect the company to deliver a 13.8% YoY growth in EPS for fiscal 2025. The stock has a "Strong Buy" rating overall, with a mean price target of $191, representing a 15.5% premium to current price levels.

Keysight Technologies (NYSE: KEYS) reported its third-quarter 2025 financial results, showcasing a mixed performance. The company reported revenues of $1.35 billion, up 11% year-over-year (YoY), but net income fell 51% to $191 million, primarily due to higher expenses. Earnings per share (EPS) dropped to $1.11, missing estimates by 19%. The company's shares are down 6.9% from last week.

The Communications Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG) segments both saw 11% YoY revenue growth, driven by strong demand in AI-driven technologies and semiconductor wafer testing. The aerospace, defense, and government segment achieved revenue of $296 million, an 8% increase YoY, driven by elevated defense spending and modernization priorities. Semiconductor and general electronics demand remained robust, with growth fueled by high-performance requirements in AI data centers and medical advancements [1].

Despite the strong revenue growth, the company's net income declined significantly due to higher research and development (R&D) and selling, general, and administrative expenses. The company's full-year outlook was revised upwards, with revenue expected to grow approximately 7% for fiscal year 2025. However, the company's EPS growth is expected to be around 13% at the midpoint of its fourth-quarter guidance, which is slower than the 8.1% growth forecast for the US electronic industry [2].

The company's shares have been impacted by the mixed results, with the stock down 6.9% from last week. The company's management remains optimistic about the future, citing strong demand and customer engagements. However, the company's performance in the third quarter highlights the challenges it faces in managing expenses and maintaining profitability.

References:
[1] https://www.ainvest.com/news/keysight-technologies-q3-2025-earnings-revenue-surpasses-expectations-eps-falls-short-2508/
[2] https://investor.keysight.com/investor-news-and-events/financial-press-releases/press-release-details/2025/Keysight-Technologies-Reports-Third-Quarter-2025-Results/default.aspx