Keysight Technologies (NYSE:KEYS) Shares Gap Down - What's Next?

Key Points

• Keysight Technologies reported a strong fiscal Q2, beating EPS estimates at $2.87 on revenue of $1.72 billion, with sales up 31.5% year over year and the company calling it its strongest quarter ever.
• Management raised guidance for both Q3 and full-year fiscal 2026, signaling confidence that demand and momentum remain strong despite the stock's gap down at the open.
• Analysts remain broadly positive, with several price target increases and a consensus rating of Moderate Buy; meanwhile, insiders have sold shares and hedge funds continue to hold large positions.

Keysight Technologies Inc. (NYSE:KEYS - Get Free Report)'s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $344.11, but opened at $330.00. Keysight Technologies shares last traded at $345.8110, with a volume of 613,293 shares traded.

Keysight Technologies News Roundup

Here are the key news stories impacting Keysight Technologies this week:

• Positive Sentiment: Keysight reported Q2 EPS of $2.87, well above consensus estimates, with revenue of $1.72 billion also edging expectations and rising 31.5% year over year.
• Positive Sentiment: The company said it delivered the strongest quarter in its history, with all-time highs in orders, revenue, EPS, and free cash flow, highlighting broad momentum in the business. Keysight Technologies Reports Second Quarter 2026 Results
• Positive Sentiment: Management raised guidance for both Q3 and full-year fiscal 2026, signaling confidence that demand remains strong and performance can stay above analyst expectations.
• Positive Sentiment: Commentary around “powerful momentum in AI” and a new electronic warfare collaboration with SRC adds to the view that Keysight is benefiting from growth areas in test and measurement. Keysight Technologies Signals Powerful Momentum in AI Wave
• Neutral Sentiment: Unusually heavy call-option buying suggests some traders are positioning for more upside after the earnings beat, but it does not by itself change fundamentals.

Analysts Set New Price Targets

KEYS has been the subject of a number of research analyst reports. Bank of America raised shares of Keysight Technologies from a "neutral" rating to a "buy" rating and set a $340.00 target price for the company in a research report on Tuesday, February 24th. Truist Financial started coverage on shares of Keysight Technologies in a research report on Tuesday, March 31st. They set a "hold" rating and a $310.00 price target for the company. Citigroup upped their price target on shares of Keysight Technologies from $282.00 to $320.00 and gave the company a "buy" rating in a research report on Monday, March 23rd. Barclays upped their price target on shares of Keysight Technologies from $320.00 to $387.00 and gave the company an "overweight" rating in a research report on Wednesday. Finally, Robert W. Baird upped their price target on shares of Keysight Technologies from $375.00 to $385.00 and gave the company an "outperform" rating in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $357.58.

Keysight Technologies Trading Down 2.9%

The company has a quick ratio of 2.02, a current ratio of 2.60 and a debt-to-equity ratio of 0.41. The stock has a fifty day simple moving average of $317.96 and a 200 day simple moving average of $251.73. The firm has a market capitalization of $57.30 billion, a P/E ratio of 60.20, a PEG ratio of 2.47 and a beta of 1.26.

Keysight Technologies (NYSE:KEYS - Get Free Report) last posted its quarterly earnings results on Tuesday, May 19th. The scientific and technical instruments company reported $2.87 EPS for the quarter, beating analysts' consensus estimates of $2.32 by $0.55. The business had revenue of $1.72 billion for the quarter, compared to analysts' expectations of $1.71 billion. Keysight Technologies had a return on equity of 19.26% and a net margin of 16.84%.The business's quarterly revenue was up 31.5% on a year-over-year basis. During the same period last year, the firm earned $1.70 earnings per share. Keysight Technologies has set its Q3 2026 guidance at 2.430-2.490 EPS. As a group, research analysts forecast that Keysight Technologies Inc. will post 7.91 EPS for the current year.

Insider Buying and Selling at Keysight Technologies

In other Keysight Technologies news, CEO Satish Dhanasekaran sold 1,667 shares of the stock in a transaction that occurred on Tuesday, March 24th. The shares were sold at an average price of $300.00, for a total transaction of $500,100.00. Following the completion of the sale, the chief executive officer directly owned 122,398 shares of the company's stock, valued at $36,719,400. This trade represents a 1.34% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, SVP Jeffrey K. Li sold 2,000 shares of the stock in a transaction that occurred on Tuesday, March 24th. The shares were sold at an average price of $297.19, for a total transaction of $594,380.00. Following the sale, the senior vice president directly owned 34,499 shares of the company's stock, valued at approximately $10,252,757.81. This trade represents a 5.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 40,334 shares of company stock worth $11,533,230. Insiders own 0.40% of the company's stock.

Hedge Funds Weigh In On Keysight Technologies

Several hedge funds have recently bought and sold shares of the business. Western Wealth Management LLC bought a new position in Keysight Technologies in the 1st quarter valued at $58,000. Bank of America Corp DE increased its position in shares of Keysight Technologies by 17.2% during the first quarter. Bank of America Corp DE now owns 886,823 shares of the scientific and technical instruments company's stock worth $250,412,000 after acquiring an additional 129,907 shares during the period. Janus Henderson Group PLC increased its position in shares of Keysight Technologies by 42.5% during the first quarter. Janus Henderson Group PLC now owns 1,259,164 shares of the scientific and technical instruments company's stock worth $355,584,000 after acquiring an additional 375,521 shares during the period. Oddo BHF Asset Management Sas increased its position in shares of Keysight Technologies by 5.4% during the first quarter. Oddo BHF Asset Management Sas now owns 25,521 shares of the scientific and technical instruments company's stock worth $7,206,000 after acquiring an additional 1,308 shares during the period. Finally, Bull Harbor Capital LLC purchased a new position in shares of Keysight Technologies during the first quarter worth approximately $340,000. Institutional investors own 84.58% of the company's stock.

Keysight Technologies Company Profile

Keysight Technologies is a global provider of electronic design, test, measurement and optimization solutions for communications, electronics and related industries. The company was formed as a corporate spin-off from Agilent Technologies in 2014; its origins trace back to the electronic measurement business that was part of Hewlett‑Packard before Agilent. Keysight develops hardware and software used throughout the product development lifecycle, from design and simulation to prototype validation and manufacturing test.

Keysight's product portfolio includes electronic test and measurement instruments such as oscilloscopes, network and spectrum analyzers, signal generators, vector network analyzers and modular PXI-based systems, together with software platforms for simulation, automated test and data analysis.

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