Keysight Technologies, Inc.

Keysight Technologies, Inc. is an American electronic test and measurement company that designs and manufactures instruments, software, and services used to design, validate, and deploy electronic systems, generating $5,375 million in revenue in fiscal 2025. The company traces its lineage to the 1939 founding of Hewlett-Packard in a Palo Alto garage, was spun from Agilent Technologies in 2014, and today counts most of the world's major communications, semiconductor, aerospace, and automotive companies among its roughly 40,000 annual customers.

This is a story about a dominant test-and-measurement franchise whose revenue cycle bottomed in 2024, just as the company made its largest-ever acquisition and positioned itself for an AI infrastructure build-out that could materially change the growth trajectory. The business throws off substantial cash across cycles — $1.3 billion of free cash flow in FY2025 — and management has deployed that cash aggressively into M&A, buying Spirent Communications, Synopsys' Optical Solutions Group, and Ansys' PowerArtist business in a single month. The file turns on a single question: whether the AI-driven step-up in demand is durable enough to justify the current valuation, or whether the market is pricing a supercycle that reverts to a mid-single-digit mean faster than the bulls expect.