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    Is AI-Driven Siemens Partnership and Earnings Beat Altering The Investment Case For Keysight Technologies (KEYS)?

    Simply Wall St·06/23/2026 09:18:32
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    • Earlier this month, Siemens Digital Industries Software announced that Keysight Technologies’ AI-driven Eggplant Test automation tool has joined its Technology Partner Program, giving Teamcenter users the ability to validate digital engineering and PLM workflows before production.
    • These developments, alongside recently reported quarterly results that outpaced analyst expectations on revenue growth and earnings guidance, highlight how software-centric test automation is becoming more important within Keysight’s broader solutions mix.
    • We’ll now explore how this AI-focused Siemens partnership, combined with recent earnings outperformance, affects Keysight Technologies’ broader investment narrative.

    Find 44 companies with promising cash flow potential yet trading below their fair value.

    Keysight Technologies Investment Narrative Recap

    To own Keysight, you need to believe that rising test complexity in AI, data centers and advanced wireless will keep pulling more value toward its software rich platforms. The Siemens Eggplant partnership supports that thesis by embedding Keysight’s AI test into a widely used PLM stack, but it does not change the near term picture that tariffs and AI cycle normalization remain the key swing factors for margins and demand.

    Among recent announcements, the mixed Q2 2026 results are most relevant here. Earnings beat expectations while revenue fell short, highlighting both the benefits of higher value solutions and the sensitivity of hardware centric orders. The Siemens AI test integration fits this pattern: it reinforces the software and recurring revenue catalyst, but sits alongside ongoing exposure to contract manufacturing costs and potential demand swings in AI infrastructure and defense programs.

    Yet beneath the AI and software momentum, there is a less obvious risk investors should be aware of if tariffs and supply chain plans do not…

    Read the full narrative on Keysight Technologies (it's free!)

    Keysight Technologies' narrative projects $8.7 billion revenue and $1.9 billion earnings by 2029. This requires 12.6% yearly revenue growth and an $0.8 billion earnings increase from $1.1 billion today.

    Uncover how Keysight Technologies' forecasts yield a $383.08 fair value, a 3% upside to its current price.

    Exploring Other Perspectives

    KEYS 1-Year Stock Price Chart
    KEYS 1-Year Stock Price Chart

    Some analysts were already expecting revenue to reach about US$8.3 billion and earnings near US$1.6 billion by 2029, which is far more optimistic than consensus, and the Siemens AI testing tie up could either support that bullish view or underline how dependent those forecasts are on continued AI data center spending and successful software adoption.

    Explore 3 other fair value estimates on Keysight Technologies - why the stock might be worth 50% less than the current price!

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.