Keysight Technologies, Inc.
Keysight Technologies, Inc. provides electronic design and test solutions worldwide. The company operates through Communications Solutions Group and Electronic Industrial Solutions Group segments. It offers electronic design and test software, instrumentation, systems, and related services used in the design, simulation, validation, manufacturing, installation, and optimization of communication systems in wireless, data center ecosystem, enterprise, and aerospace, defense, and government end markets. The company also develops and deploys communications products and services; and operates communications networks. In addition, it provides electronic design, test and simulation software, instrumentation, systems, computer-aided engineering solutions, and related services used in the design, simulation, validation, manufacturing, installation, and optimization of electronic equipment in the automotive and energy, semiconductor solutions, and general electronics industries. Further, the company offers product support; technical and application support for hardware, software, and solutions; and professional services, such as installation, training, engineering, optimization of equipment and solution adoption, utilization, and integration services. Additionally, it provides oscilloscopes; generators, sources and power supplies; software products; analyzers; wireless products; network test and security; modular instruments; meters; network visibility; and other products, as well as KeysightCare support plans, calibration, repair, technology refresh, test as a service, network/security, consulting, financial alternatives, education, software testing, support, managed, device vulnerability analysis, support portal, and used equipment services. Keysight Technologies, Inc. was founded in 1939 and is headquartered in Santa Rosa, California.
What does it do?
Keysight makes the tools that engineers use to test whether electronics actually work. Think of it this way: before a 5G phone ships, someone has to verify the antenna works, the signal is clean, and the chip doesn't overheat. Keysight builds the expensive, specialized equipment that does that checking. Their customers include companies like Apple, Samsung, Boeing, and the US military.
Every major technology wave — 5G, electric vehicles, AI chips, satellite internet — requires new testing equipment before products can ship. Keysight sits at the front of the pipeline, meaning it gets paid before the end products even exist. As chip complexity explodes and defense budgets rise globally, the demand for Keysight's tools is structurally growing.
How does it make money?
Keysight generated $5.4 billion in revenue in its latest fiscal year, up from $5.0 billion the prior year — roughly 8% growth. Revenue comes from two main buckets: selling physical instruments like oscilloscopes and signal analyzers, and selling software and services that run on top of those tools. The software and services side is particularly valuable because it generates recurring revenue, meaning customers pay repeatedly rather than just once.
Why do investors care?
The growth story is that every new wireless standard (6G is already in research labs), every new chip architecture, and every new defense system needs new test equipment. Keysight has deep relationships and a switching cost moat — once engineers learn Keysight's tools and integrate them into workflows, they rarely switch. For the thesis to work, R&D spending by big tech and defense contractors needs to stay strong.
Deep Dive
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