Keysight TechnologiesKEYS -0.36%82 Operating Margin % is 23.70% as of Apr. 2026, which is 43% above its 10-year median of 16.63. GuruFocus rates KEYS with a GF Score™ of 82/100 and a GF Value™ of $197.72 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,472 Hardware companies, Keysight Technologies ranks better than 90.25% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Keysight Technologies Operating Margin % Related Terms
Keysight Technologies Operating Margin % Historical Data
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The historical data trend for Keysight Technologies's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
KEYS vs GRMN, COHR, TDY: Operating Margin % Comparison
For the Scientific & Technical Instruments subindustry, Keysight Technologies's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Keysight Technologies Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Keysight Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Keysight Technologies's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Keysight Technologies's Operating Margin % for the fiscal year that ended in Oct. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Keysight Technologies (KEYS) has a Operating Margin % of 23.70% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Keysight Technologies and its competitors. This is 43% above median its historical median of 16.63. Over the past decade, Keysight Technologies' Operating Margin % has ranged from 4.64 to 24.85. According to the industry distribution chart, Keysight Technologies ranks #241 out of 2472 companies in the Hardware industry, placing it in the top 9.7%.
Is Keysight Technologies' Operating Margin % too high?
Keysight Technologies' current Operating Margin % of 23.70% is 43% above median its 10-year median of 16.63. Over the past 10 years, this metric has ranged from a low of 4.64 to a high of 24.85. The Hardware industry median Operating Margin % is 3.80. Keysight Technologies' value of 23.70% is 523.7% above this industry median. Based on the distribution chart, Keysight Technologies ranks #241 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Keysight Technologies has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Keysight Technologies' Operating Margin % compare to GRMN and COHR?
According to the Hardware industry distribution chart, Keysight Technologies ranks #241 out of 2472 companies for Operating Margin %. This places Keysight Technologies in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Keysight Technologies' value of 23.70% is 523.7% above this benchmark. Historically, Keysight Technologies' own Operating Margin % has ranged from 4.64 to 24.85 over the past decade. While the company's 10-year median is 16.63 vs. the industry median of 3.80, Keysight Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,472 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Keysight Technologies's current Operating Margin % of 23.70% is 523.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Keysight Technologies and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Keysight Technologies's current Operating Margin % is 23.70%, which is 43% above median its own 10-year median of 16.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Keysight Technologies stock overvalued right now?
Based on GuruFocus' analysis, Keysight Technologies (KEYS) is currently considered Significantly Overvalued. The stock's GF Value™ is $197.72, compared to a current price of $351.30 — trading 77.7% above its estimated fair value. The current Operating Margin % is 23.70%, which is 43% above median its 10-year median of 16.63 and 523.7% above the Hardware industry median of 3.80. Keysight Technologies' overall GF Score™ is 82/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Keysight Technologies (KEYS), the current Operating Margin % is 23.70% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Keysight Technologies (KEYS) Overvalued in 2026?
Based on GuruFocus' analysis, Keysight Technologies stock appears to be overvalued.
The current stock price of $351.30 is trading 77.7% above its estimated GF Value™ of $197.72.
GuruFocus considers Keysight Technologies to be Significantly Overvalued.
Key valuation signals for KEYS:
Operating Margin %: 23.70% (43% above median its 10-year median of 16.63)
GF Value™: $197.72 vs. price of $351.30 (77.7% above fair value)
Industry Position: 523.7% above the Hardware median (#241 of 2472)
No single metric tells the full story. See the KEYS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Keysight Technologies is a leader in the field of testing and measurement, helping electronics OEMs and suppliers alike bring products to market to fit industry standards and specifications. Keysight specializes in the communications market, but also supplies into the government, automotive, industrial, and semiconductor manufacturing markets. Keysight's solutions include testing tools, analytical software, and services. The firm's stated objective is to reduce time to market and improve efficiency at its more than 30,000 customers.
82GF Score
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