Should I Buy KEYS? KEYS 2026 Analysis

Should You Buy Keysight Technologies Inc (KEYS) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

230.950

1 Day change

4.26%

52 Week Range

232.920

Analysis Updated At

2026/02/05

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Buy now: Trend is bullish (SMA_5 > SMA_20 > SMA_200) and price is sitting near the pivot (~221.36), offering a reasonable entry without “waiting for the perfect dip.”
Near-term upside is supported by AI/data-center test demand narrative and multiple recent price-target hikes; technical setup suggests a push toward 229–234 if momentum re-accelerates.
Main near-term risk to the call is that momentum is cooling (MACD histogram still >0 but contracting) and options positioning shows heavier put OI; however, intraday option flow is more call-leaning.
Intellectia Proprietary Trading Signals
- AI Stock Picker: no signal on given stock today.
- SwingMax: No signal on given stock recently.

Technical Analysis

Trend: Bullish structure with SMA_5 > SMA_20 > SMA_200, indicating an established uptrend.
Momentum: MACD histogram 0.478 (>0) but positively contracting → bullish momentum is still present but slowing; a consolidation/pullback risk exists.
RSI: RSI_6 56.03 (neutral) → not overbought; room to run if buyers return.
Key levels: Pivot 221.36 (current area). Resistance 229.36 (R1) then 234.31 (R2). Support 213.36 (S1) then 208.41 (S2).
Pattern-based odds (provided): ~60% chance of gains: +0.91% next day, +2.4% next week, +8.58% next month.

Options Data

Bearish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Sentiment split: Open Interest P/C 1.19 suggests more outstanding puts than calls (more hedging / cautious positioning), while Volume P/C 0.26 suggests today’s flow is call-skewed (more bullish near-term trading).
Volatility: 30D IV 36.11 vs HV 23.11 → options are pricing elevated moves; IV percentile 76.89 indicates relatively expensive options vs its history.
Activity: Today’s volume 221 and volume vs 30D average 21.33% (not a “crowded” options day), while open interest looks elevated vs average (130.89%) → positioning is meaningful even if today’s trading is moderate.

Technical Summary

Sell

Buy

Positive Catalysts

- AI/Data-center demand: Analysts cite continued AI/DC strength and an order inflection driven by AI, supporting a constructive FY26 setup.
- Partnership catalyst: Keysight + Point2 Technology collaboration to validate multi-terabit interconnects for AI data centers (e-Tube™), reinforcing relevance to next-gen DC interconnect upgrades.
- Upcoming event: Earnings on 2026-02-23 (after hours) can act as a catalyst if guidance/AI exposure continues to surprise positively.

Neutral/Negative Catalysts

- Profitability shock in latest quarter: Despite revenue growth, Net Income and EPS dropped sharply YoY (likely includes one-time items, but headline is still a sentiment drag).
- Momentum cooling: MACD is still positive but contracting, increasing the odds of a near-term pause/pullback rather than a straight-line rally.
- Positioning caution: Put-heavy open interest (P/C 1.19) implies notable hedging/caution into upcoming catalysts.
- Macro headline noise: Broader “crash caution” commentary can intermittently pressure sentiment even if company-specific fundamentals remain intact.

Financial Performance

Latest quarter: 2025/Q4
Revenue: $1.419B, +10.26% YoY → solid top-line growth.
Net Income: $233M, -419.18% YoY → major decline (suggests unusual items/step-down in profitability vs prior year).
EPS: 1.35, -421.43% YoY → mirrors the net income drop.
Gross margin: 61.24%, -1.73% YoY → slight compression, not a collapse, but not expanding either.
Takeaway: Business demand (revenue) is improving, but reported earnings trend is currently a weak spot versus the prior-year comparison.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Trend: Clear upward drift in price targets from late Nov 2025 through early Feb 2026, largely tied to stronger orders/margins and expanding AI/DC visibility.
Recent actions:
- Baird (2026-02-02): PT $230 (from $221), Outperform.
- Barclays (2025-11-25): PT $232 (from $195), Overweight.
- Susquehanna (2025-11-25): PT $225 (from $215), Positive.
- Citi (2025-11-25): PT $220 (from $215), Buy.
- JPMorgan (2025-11-25): PT $207 (from $200), Overweight.
- Morgan Stanley (multiple): PT up to $227, Equal Weight (more valuation/selectivity caution despite AI tailwinds).
- Jefferies: PT $220 (Hold) and earlier $195 (Hold) → constructive but more neutral stance.
Wall Street pros: AI/DC-driven order inflection, potential networking upgrade cycle (e.g., higher-speed interconnect themes), and FY26 earnings growth narrative.
Wall Street cons: Some caution on valuation/multiples and selectivity; not all firms are outright bullish (some Holds/Equal Weight).

KEYS Should I Buy