Keysight Technologies (KEYS) has packed late September with product news and partnerships, from a new dual channel signal generator to a fresh 6G research tie up with Berkeley Wireless Research Center.
These announcements arrive at a time when Keysight Technologies has been on a strong run, with the share price at US$384.17 and a year-to-date share price return of 85.96%, alongside a 30-day share price return of 17.41%. The 1-year total shareholder return of 121.63% signals powerful momentum that extends beyond the latest 6G and RF headlines.
Capitalize on Keysight Technologies' momentum by scanning a curated set of RF, 6G, and AI testing peers in our 91 AI infrastructure stocks.After such a sharp move in Keysight Technologies, the market still prices the shares at a discount to analyst targets while implying a premium to some intrinsic estimates. Is that gap caution or mispricing as the valuation work begins?
Most Popular Narrative: 7% Undervalued
Keysight Technologies trades at $384.17 against a widely followed fair value estimate of $415.08, which leaves a modest implied upside that rests heavily on how the business leans into software, services and recent acquisitions.
Expansion of software, simulation and recurring service offerings is advancing, with software and services reaching roughly 33% of Q3 2026 revenue, annual recurring revenue at 24% of mix and the simulation business expected to exceed US$0.5b in 2026. This supports high gross margins near the upper 60s percentage range and contributes to operating margin strength.
See why 19 investors see Keysight Technologies as 7% undervalued.
Result: Fair Value of $415.08 (UNDERVALUED)
Still, supply constraints that shift about US$100m of Keysight Technologies revenue outside its normal cycle, along with any disappointment on Spirent cost synergies, could quickly pressure that undervaluation story.
Find out about the key risks to this Keysight Technologies narrative.
Another View on Keysight Technologies' Valuation
On the multiples side, Keysight Technologies screens expensive. The P/E of 51.1x sits well above the US Electronic industry at 30.3x, peers at 44.6x and even the fair ratio of 35.5x, which points to a rich setup if expectations slip at all.
That gap between current P/E and the fair ratio signals limited room for disappointment and places more weight on your conviction in Keysight Technologies' growth and margin story. See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Mixed signals on Keysight Technologies so far. If you want to move quickly and decide where you stand, start by weighing its 2 key rewards and 1 important warning sign.
Looking for more investment ideas beyond Keysight Technologies?
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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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