Detailed financial statements for Keysight Technologies, Inc. (KEYS): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Keysight Technologies, Inc. specializes in providing advanced electronic design and testing solutions to a diverse array of global industries, spanning commercial communications, networking, aerospace, defense, government, automotive, energy, semiconductor manufacturing, general electronics, and education. The company's operations extend across the Americas, Europe, and the Asia Pacific region.
Analysis Summary
Keysight Technologies, Inc. reported revenue of $5.38B in the most recent fiscal year, growing at a 5-year CAGR of 5.0%. Net income reached $846.0M, with a 6.2% 5-year CAGR.
Trailing-twelve-month margins: gross margin 64.7%, operating margin 20.3%, net margin 19.1%. Free cash flow grew at 7.3% CAGR over 5 years.
At $307.20 (closing price, October 30, 2026), KEYS trades at a P/E of 42.31 and an ROE of 20.11%. Market capitalisation stands at $52.3B, placing it among large-cap names.
Balance sheet quality for KEYS: current ratio of 2.4, net debt of $1.10B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $1.28B represents 151% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $2.92B | $3.19B | $3.88B | $4.30B | $4.22B | $4.94B | $5.42B | $5.46B | $4.98B | $5.38B |
| Cost of Revenue | $1.29B | $1.49B | $1.77B | $1.77B | $1.69B | $1.87B | $1.97B | $1.93B | $1.85B | $2.04B |
| Gross Profit | $1.62B | $1.70B | $2.11B | $2.53B | $2.53B | $3.07B | $3.45B | $3.53B | $3.13B | $3.34B |
| Research & Development | $425.0M | $507.0M | $624.0M | $688.0M | $715.0M | $811.0M | $841.0M | $882.0M | $919.0M | $1.01B |
| Selling, General & Admin | $818.0M | $1.05B | $1.21B | $1.16B | $1.10B | $1.20B | $1.28B | $1.31B | $1.40B | $1.40B |
| Operating Expenses | $1.22B | $1.55B | $2.50B | $1.82B | $1.77B | $1.99B | $2.12B | $2.17B | $2.30B | $2.39B |
| Operating Income | $406.0M | $148.0M | -$394.0M | $711.0M | $765.0M | $1.08B | $1.33B | $1.36B | $833.0M | $948.0M |
| EBITDA | $547.0M | $484.0M | -$18.0M | $1.10B | $1.17B | $1.38B | $1.59B | $1.65B | $1.22B | $1.43B |
| Interest Expense | $47.0M | $80.0M | $83.0M | $80.0M | $78.0M | $79.0M | $79.0M | $78.0M | $84.0M | $96.0M |
| Pre-tax Income | $366.0M | $179.0M | -$411.0M | $715.0M | $761.0M | $1.01B | $1.28B | $1.36B | $865.0M | $1.08B |
| Income Tax | $31.0M | $77.0M | -$576.0M | $94.0M | $134.0M | $116.0M | $161.0M | $300.0M | $251.0M | $213.0M |
| Net Income | $335.0M | $102.0M | $165.0M | $621.0M | $627.0M | $894.0M | $1.12B | $1.06B | $614.0M | $846.0M |
| EPS | $1.97 | $0.57 | $0.88 | $3.30 | $3.35 | $4.83 | $6.24 | $5.94 | $3.53 | $4.90 |
| EPS (Diluted) | $1.95 | $0.56 | $0.86 | $3.25 | $3.32 | $4.78 | $6.18 | $5.91 | $3.51 | $4.88 |
| Shares Outstanding (Diluted) | 172.0 M | 182.0 M | 191.0 M | 191.0 M | 189.0 M | 187.0 M | 182.0 M | 179.0 M | 175.0 M | 173.0 M |
Income Statement (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Revenue | $1.42B | $1.60B | $1.72B | $1.85B |
| Gross Profit | $869.0M | $995.0M | $1.18B | $1.22B |
| Operating Income | $217.0M | $248.0M | $407.0M | $461.0M |
| EBITDA | $397.0M | $332.0M | $522.0M | $609.0M |
| Net Income | $229.0M | $281.0M | $349.0M | $397.0M |
| EPS | $1.32 | $1.63 | $2.02 | $2.29 |
| EPS (Diluted) | $1.32 | $1.63 | $2.02 | $2.29 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $783.0M | $818.0M | $913.0M | $1.60B | $1.76B | $2.05B | $2.04B | $2.47B | $1.80B | $1.87B |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $437.0M | $547.0M | $624.0M | $668.0M | $606.0M | $735.0M | $905.0M | $944.0M | $995.0M | $939.0M |
| Inventory | $474.0M | $588.0M | $619.0M | $705.0M | $757.0M | $777.0M | $858.0M | $985.0M | $1.02B | $1.05B |
| Total Current Assets | $1.85B | $2.18B | $2.38B | $3.21B | $3.37B | $3.83B | $4.23B | $4.81B | $4.26B | $4.35B |
| Property, Plant & Equipment | $512.0M | $530.0M | $555.0M | $576.0M | $777.0M | $877.0M | $910.0M | $987.0M | $1.01B | $1.03B |
| Goodwill | $736.0M | $1.88B | $1.17B | $1.21B | $1.54B | $1.63B | $1.58B | $1.64B | $2.39B | $3.44B |
| Intangible Assets | $208.0M | $855.0M | $645.0M | $490.0M | $361.0M | $272.0M | $189.0M | $155.0M | $607.0M | $1.28B |
| Total Assets | $3.80B | $5.93B | $5.82B | $6.62B | $7.22B | $7.78B | $8.10B | $8.68B | $9.27B | $11.29B |
| Accounts Payable | $189.0M | $211.0M | $242.0M | $253.0M | $224.0M | $287.0M | $348.0M | $286.0M | $313.0M | $355.0M |
| Short-term Debt | 0 | $10.0M | $499.0M | 0 | 0 | 0 | 0 | $599.0M | 0 | 0 |
| Total Current Liabilities | $644.0M | $819.0M | $1.46B | $1.00B | $1.08B | $1.31B | $1.41B | $2.05B | $1.43B | $1.85B |
| Long-term Debt | $1.09B | $2.04B | $1.29B | $1.79B | $1.79B | $1.79B | $1.79B | $1.20B | $1.79B | $2.73B |
| Total Liabilities | $2.29B | $3.62B | $3.39B | $3.62B | $3.92B | $4.00B | $3.94B | $4.03B | $4.16B | $5.42B |
| Retained Earnings | $949.0M | $1.04B | $1.21B | $1.91B | $2.54B | $3.43B | $4.55B | $5.61B | $6.22B | $7.07B |
| Total Equity | $1.51B | $2.31B | $2.43B | $3.00B | $3.30B | $3.78B | $4.16B | $4.65B | $5.11B | $5.88B |
| Total Debt | $1.09B | $2.05B | $1.79B | $1.79B | $1.98B | $2.02B | $2.02B | $2.03B | $2.03B | $2.97B |
| Net Debt | $310.0M | $1.23B | $877.0M | $190.0M | $225.0M | -$29.0M | -$24.0M | -$446.0M | $234.0M | $1.10B |
| Working Capital | $1.21B | $1.36B | $916.0M | $2.21B | $2.29B | $2.52B | $2.83B | $2.76B | $2.83B | $2.50B |
Balance Sheet (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Cash & Equivalents | $1.87B | $2.18B | $2.41B | $2.60B |
| Total Assets | $11.29B | $11.48B | $11.74B | $11.92B |
| Total Liabilities | $5.42B | $5.28B | $5.41B | $5.35B |
| Total Equity | $5.88B | $6.21B | $6.33B | $6.57B |
| Total Debt | $2.97B | $2.96B | $2.76B | $2.75B |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $335.0M | $102.0M | $165.0M | $621.0M | $627.0M | $894.0M | $1.12B | $1.06B | $614.0M | $846.0M |
| Depreciation & Amortization | $134.0M | $225.0M | $310.0M | $308.0M | $326.0M | $293.0M | $223.0M | $212.0M | $270.0M | $276.0M |
| Stock-based Compensation | $49.0M | $56.0M | $59.0M | $82.0M | $92.0M | $103.0M | $125.0M | $135.0M | $137.0M | $162.0M |
| Change in Working Capital | -$119.0M | $15.0M | $80.0M | -$35.0M | -$57.0M | $36.0M | -$404.0M | -$126.0M | -$271.0M | $77.0M |
| Operating Cash Flow | $416.0M | $313.0M | $555.0M | $998.0M | $1.02B | $1.32B | $1.14B | $1.41B | $1.05B | $1.41B |
| Capital Expenditure | -$91.0M | -$72.0M | -$132.0M | -$120.0M | -$117.0M | -$174.0M | -$185.0M | -$196.0M | -$154.0M | -$128.0M |
| Acquisitions | -$10.0M | -$1.70B | -$11.0M | -$88.0M | -$357.0M | -$178.0M | -$33.0M | -$85.0M | -$681.0M | -$2.02B |
| Stock Repurchased | -$62.0M | 0 | -$120.0M | -$159.0M | -$411.0M | -$673.0M | -$849.0M | -$702.0M | -$443.0M | -$377.0M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | $325.0M | $241.0M | $423.0M | $878.0M | $899.0M | $1.15B | $959.0M | $1.21B | $898.0M | $1.28B |
Cash Flow (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Operating Cash Flow | $225.0M | $441.0M | $501.0M | $437.0M |
| Capital Expenditure | -$38.0M | -$34.0M | -$29.0M | -$34.0M |
| Free Cash Flow | $187.0M | $407.0M | $472.0M | $403.0M |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Stock-based Compensation | $33.0M | $76.0M | $58.0M | $47.0M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +9.3% | +21.6% | +11.0% | -1.9% | +17.1% | +9.7% | +0.8% | -8.9% | +8.0% | |
| Net Income Growth (YoY) | -69.6% | +61.8% | +276.4% | +1.0% | +42.6% | +25.7% | -6.0% | -41.9% | +37.8% | |
| EPS Growth (YoY) | -71.1% | +54.4% | +275.0% | +1.5% | +44.2% | +29.2% | -4.8% | -40.6% | +38.8% | |
| Shares Change (YoY) | +5.8% | +4.9% | +0.0% | -1.0% | -1.1% | -2.7% | -1.6% | -2.2% | -1.1% | |
| FCF Growth (YoY) | -25.8% | +75.5% | +107.6% | +2.4% | +27.7% | -16.5% | +26.4% | -25.9% | +42.7% | |
| Gross Margin | 55.7% | 53.2% | 54.4% | 58.9% | 60.0% | 62.1% | 63.7% | 64.6% | 62.9% | 62.1% |
| Operating Margin | 13.9% | 4.6% | -10.2% | 16.5% | 18.1% | 21.9% | 24.6% | 24.9% | 16.7% | 17.6% |
| EBITDA Margin | 18.7% | 15.2% | -0.5% | 25.6% | 27.6% | 28.0% | 29.3% | 30.1% | 24.5% | 26.5% |
| Net Margin | 11.5% | 3.2% | 4.3% | 14.4% | 14.9% | 18.1% | 20.7% | 19.3% | 12.3% | 15.7% |
| FCF Margin | 11.1% | 7.6% | 10.9% | 20.4% | 21.3% | 23.2% | 17.7% | 22.2% | 18.0% | 23.8% |
| Effective Tax Rate | 8.5% | 43.0% | 140.1% | 13.1% | 17.6% | 11.5% | 12.5% | 22.1% | 29.0% | 19.7% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $1.89 | $1.32 | $2.21 | $4.60 | $4.76 | $6.14 | $5.27 | $6.77 | $5.13 | $7.40 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | 170.0 M | 180.0 M | 187.0 M | 188.0 M | 187.0 M | 185.0 M | 180.0 M | 178.0 M | 174.0 M | 173.0 M |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Profitability
| Return on Equity | 20.11% |
| Return on Invested Capital | 11.97% |
| Return on Assets | 10.54% |
| Gross Margin | 64.69% |
| Operating Margin | 20.25% |
| Net Margin | 19.08% |
Financial Health
| Debt / Equity | 0.42 |
| Current Ratio | 2.02 |
| Piotroski F-Score | 5 |
| Altman Z-Score | 5.40 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 16.65 | 78.37 | 64.86 | 30.58 | 31.30 | 37.48 | 27.91 | 20.55 | 42.21 | 37.34 |
| P/B | 3.70 | 3.48 | 4.39 | 6.32 | 5.95 | 8.85 | 7.53 | 4.67 | 5.08 | 5.39 |
| P/S | 1.91 | 2.52 | 2.75 | 4.41 | 4.65 | 6.78 | 5.78 | 3.98 | 5.21 | 5.89 |
| Gross Margin | 55.7% | 53.2% | 54.4% | 58.9% | 60.0% | 62.1% | 63.7% | 64.6% | 62.9% | 62.1% |
| Operating Margin | 13.9% | 4.6% | -10.2% | 16.5% | 18.1% | 21.9% | 24.6% | 24.9% | 16.7% | 17.6% |
| Net Margin | 11.5% | 3.2% | 4.3% | 14.4% | 14.9% | 18.1% | 20.7% | 19.3% | 12.3% | 15.7% |
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