In early July 2026, Keysight Technologies introduced two major innovations: the APS-ONE-400 modular network cybersecurity test platform for hyperscale, encrypted, and Elephant Flow traffic, and the Eggplant Find by Description AI tool that automates UI element identification without fragile screenshot matching.
Together, these launches highlight Keysight’s push deeper into AI-driven software and high-performance cybersecurity testing, reinforcing its role in validating complex digital and data center infrastructure.
Next, we’ll examine how the new AI-powered Eggplant capability shapes Keysight’s investment narrative around software growth and automation.
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Keysight Technologies Investment Narrative Recap
To own Keysight, I think you need to believe that testing and validation stay essential as AI data centers, high speed networking and complex software keep getting harder to verify. The near term catalyst is whether AI infrastructure and wireline orders stay healthy enough to support recent revenue and earnings momentum, while the biggest risk remains margin pressure from new tariffs and any slowdown in AI-led spend. The latest APS-ONE-400 and Eggplant AI launches do not materially change those near term drivers yet.
Among the recent updates, the Eggplant Find by Description launch looks most relevant, because it reinforces Keysight’s push into higher margin, recurring software and automation. If customers adopt this AI based test automation at scale, it could support the catalyst around expanding software mix and more resilient revenue, while also partially offsetting risks tied to hardware cyclicality and concentrated AI infrastructure demand.
Yet, despite the product momentum, investors should be aware that reliance on a relatively narrow group of AI data center customers could…
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 earnings increase of about $0.8 billion from $1.1 billion today.
Uncover how Keysight Technologies’ forecasts yield a $383.08 fair value, a 19% upside to its current price.
Exploring Other Perspectives
Some of the most optimistic analysts were already assuming revenue could reach about US$9.4 billion and earnings US$2.1 billion by 2029, so if you see tools like APS ONE 400 and Eggplant AI as proof that AI networking and software test intensity will keep rising, you may lean closer to that view, while others worry that any slowdown in AI data center build outs could leave those forecasts looking too aggressive.
