Keysight's Next Challenge: Converting Growth Into Sustained Margin Gains

Keysight boasts strong competitive moats, resilient demand, and stable margins, but has shown little long-term improvement in profitability or capital efficiency. Revenue growth is supported by attractive end markets and organic expansion, yet profit growth has lagged due to flat margins and a high fixed cost base. Peer comparisons highlight Keysight's sector-leading EBIT margins, free cash flow, and returns, but also reveal limited structural margin expansion over time.