A Fresh Look at Keysight Technologies’s (KEYS) Valuation Following Raised 2025 Outlook and New Product Launches

Keysight Technologies (KEYS) just raised its full-year 2025 earnings outlook, now expecting revenue to land at the top end of its 5% to 7% target range. For investors wondering what sparked the shift, management cites upbeat demand and momentum across its end markets. This guidance hike comes on the heels of several new product launches aimed at high-growth areas like RF, mmWave, and HDMI testing. This reinforces the idea that the company is riding broader industry tailwinds rather than relying on one-off wins. It is a material set of moves that puts Keysight squarely in the conversation for investors tracking tech leaders with staying power.

Looking at the bigger picture, Keysight shares are up 16% over the past year, signaling resurgence after drifting in recent periods. In the shorter term, the stock has notched steady gains each month, with the most recent bump likely tied to both operational updates and consistent product news. The pace of these launches, along with a recently completed share buyback, suggests momentum is building rather than fading. All of this is backed by healthy annual revenue and net income growth, underlining that this is not just a story about sentiment shifts.

So now the question is front and center: is Keysight undervalued given its business trajectory, or is the market already factoring in every bit of future growth?

Most Popular Narrative: 9.8% Undervalued

According to the most closely watched market narrative, Keysight Technologies currently trades at a sizable discount to its estimated fair value. This suggests potential upside for investors if analyst projections hold true.

Early engagement and leadership in next-generation wireless technologies, such as ongoing 5G-Advanced deployments, direct-to-cell, non-terrestrial networks, and active participation in 6G research, position Keysight to capture significant share as new wireless standards roll out globally. This supports future revenue growth and a stable order outlook.

You are just one click away from unlocking the secrets behind this valuation. There is a bold growth thesis built on pivotal shifts across key sectors. What are the crucial assumptions powering this fair value? Discover the key earnings, margin, and revenue forecasts hidden beneath the headline estimate. The drivers might surprise you.

Result: Fair Value of $187.60 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, shifting tariffs and the cyclical nature of AI investments could undermine Keysight’s growth trajectory and pressure margins if conditions change unexpectedly.

Find out about the key risks to this Keysight Technologies narrative.

Another View: Industry Comparison Raises a Flag

Compared to its US industry peers, Keysight's price tag looks steep on the earnings metric, suggesting it could be more expensive than the market narrative indicates. This raises the question of whether it is truly undervalued.

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Keysight Technologies to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Keysight Technologies Narrative

If you want a closer look or believe you have a different angle, it is quick and easy to dig into the numbers yourself and shape your perspective. Do it your way.

A great starting point for your Keysight Technologies research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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