Keysight Technologies Receives Strong Wall Street Endorsement

Shares of Keysight Technologies are currently buoyed by a confluence of favorable developments. Beyond robust quarterly earnings and a substantial share repurchase authorization, the electronics testing specialist is now gaining notable support from Wall Street analysts, raising questions about the sustainability of its recent upward momentum.

The company's strong fundamentals are driving the positive sentiment. For the fourth quarter, Keysight reported earnings per share (EPS) of $1.91 on revenue of $1.42 billion, representing a year-over-year increase of 10.1% and surpassing market expectations. In a significant move, the board of directors has also approved a new share repurchase program authorizing the buyback of up to $1.5 billion in stock. This amount equates to approximately 4.9% of the company's outstanding shares, a move typically interpreted as management's belief that the stock is undervalued.

Analyst Confidence Remains Firm

Market experts continue to express strong confidence in Keysight's outlook. On Wednesday, Jefferies analyst Saree Boroditsky reaffirmed a $220 price target for the company. This aligns with the median target from eleven analysts over the past six months, which also stands at $220. This confirmation follows another major vote of confidence earlier in the week, when Goldman Sachs added Keysight to its prestigious "Conviction List"—a selection of stocks in which the investment bank holds particularly high conviction.

Should investors sell immediately? Or is it worth buying Keysight?

Diverging Moves Among Major Shareholders

Activity among key investors presents a mixed picture. While some institutional players, such as the California pension fund CalPERS, increased their stake by 5.2% in the second quarter, others reduced their holdings. The fund 2Xideas AG, for instance, cut its position by 18.5%. Furthermore, CEO Satish Dhanasekaran sold shares worth approximately $2.46 million on December 1. However, the company's ongoing billion-dollar buyback initiative often counterbalances such selling pressure, as it signals leadership's view that the shares are priced below their intrinsic value.

Forward-Looking Guidance and Strategic Positioning

Management's guidance suggests the positive trend is expected to continue. For the first quarter of fiscal 2026, the company forecasts EPS in the range of $1.95 to $2.01. Strategically, Keysight is positioning itself for future growth markets with new product introductions like its AI-enabled FieldFox handheld analyzers, targeting the evolving 6G and AI sectors. This focus could provide the company with a defensive growth perspective within a volatile technology landscape. The coming period will reveal whether the stock can leverage these recent positive catalysts to advance further toward the analysts' price targets.