VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Thursday, January 1, 2026
Keysight Technologies, Inc.
KEYS · New York Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
Keysight Technologies, Inc. provides electronic design and test solutions spanning high-speed communications networks and aerospace/defense, as well as semiconductor, automotive/energy, and general electronics markets. It reports two segments: Communications Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG). The moat is primarily demand-side: software and automation integrate instruments into customer workflows, and long project/qualification cycles plus a large installed base support repeat purchases and switching costs. Supply-side support comes from deep measurement-science know-how, selective vertical technology integration in hardware, and a global services network (repair/calibration, support, training). Key risks include cyclical R&D/capex budgets, rapid technology transitions, and strong competition from other test-and-measurement incumbents and specialized software vendors.
Primary segment
Communications Solutions Group (CSG)
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
2 segments · 7 tags
Updated 2026-01-01
Segments
Communications Solutions Group (CSG)
Electronic design, test, and measurement solutions for communications networks and aerospace/defense/government systems
Revenue
69.3%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Electronic Industrial Solutions Group (EISG)
Electronic design, simulation, and test solutions for semiconductor, automotive/energy, and general electronics markets
Revenue
30.7%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Moat Claims
Communications Solutions Group (CSG)
Electronic design, test, and measurement solutions for communications networks and aerospace/defense/government systems
FY2025 segment revenue $3.726B (CSG) of $5.375B total; segment income from operations $986M.
Data Workflow Lockin
Demand
Data Workflow Lockin
Strength
Durability
Confidence
Evidence
Software platform integrates instruments into automated, data-managed workflows; customer test automation/scripts and data pipelines increase switching friction.
Erosion risks
- Customers standardize on open-source or vendor-neutral automation stacks
- Competitors improve interoperability and migration tooling
- Shift from lab-centric testing to cloud-based simulation reduces instrument-software coupling
Leading indicators
- Software & services mix and recurring revenue growth
- Net retention / renewal rates for software subscriptions
- Attach rate of software applications to instruments
Counterarguments
- Large customers can build vendor-agnostic test automation and swap instruments
- Procurement can force multi-vendor standardization to reduce lock-in
Service Field Network
Supply
Service Field Network
Strength
Durability
Confidence
Evidence
Global service organization (support centers + on-site teams) and accredited calibration/repair services improve uptime and reduce customer risk vs smaller vendors.
Erosion risks
- Third-party service providers expand calibration/repair coverage
- Hardware reliability improves, reducing service differentiation
- Customer in-sourcing of calibration and maintenance
Leading indicators
- Services revenue growth and gross margin
- Customer uptime metrics and NPS for support
- Calibration turnaround times and coverage expansion
Counterarguments
- Independent calibration labs can reduce dependence on OEM services
- Top competitors also run global service networks
Design In Qualification
Demand
Design In Qualification
Strength
Durability
Confidence
Evidence
Early, project-schedule-aligned engagement and solution integration can embed Keysight into long customer development and validation cycles (e.g., 5G/6G, high-speed networking, defense programs).
Erosion risks
- Standardized test interfaces reduce qualification barriers
- Customers redesign test stacks during technology transitions
- Budget cuts delay programs and weaken incumbent advantage
Leading indicators
- Win rates in next-generation programs (e.g., 800G/1.6T, 6G)
- Backlog and program milestone visibility
- Share of revenue tied to new product introductions
Counterarguments
- Qualification cycles can still be re-opened if competitors deliver better performance/cost
- Some customers dual-source test solutions to reduce dependency
De Facto Standard
Network
De Facto Standard
Strength
Durability
Confidence
Evidence
Active participation in standards bodies and delivering tools for widely adopted protocols can reinforce Keysight as the default choice in conformance/validation workflows.
Erosion risks
- Open conformance toolchains and lower-cost solutions gain acceptance
- Standards fragmentation increases need for multi-vendor tooling
- Regulatory/industry bodies endorse competing test platforms
Leading indicators
- Inclusion in official test plans / certification programs
- Share of design wins for new protocol generations
- Adoption of Keysight software in conformance labs
Counterarguments
- Standards are public; competitors can implement compliant tools
- Customers may pick tools based on price/performance, not incumbency
Electronic Industrial Solutions Group (EISG)
Electronic design, simulation, and test solutions for semiconductor, automotive/energy, and general electronics markets
FY2025 segment revenue $1.649B (EISG) of $5.375B total; segment income from operations $407M.
Data Workflow Lockin
Demand
Data Workflow Lockin
Strength
Durability
Confidence
Evidence
Design/simulation/test automation software and data management embed into engineering workflows; migration costs rise with custom models, scripts, and process integration.
Erosion risks
- EDA/CAE consolidation strengthens competing platforms
- Customer preference shifts to cloud-native simulation stacks
- Interoperability standards reduce switching barriers
Leading indicators
- Growth in software subscription revenue and renewals
- Expansion of software seats within top accounts
- Usage metrics for automation/data tools
Counterarguments
- Software buyers multi-home; best-of-breed tools can displace point solutions
- Large accounts can pressure pricing and demand portability
Learning Curve Yield
Supply
Learning Curve Yield
Strength
Durability
Confidence
Evidence
Long-lived expertise in measurement science plus proprietary semiconductor/packaging and an in-house fab support differentiated high-frequency/precision performance.
Erosion risks
- Competitors achieve parity in key performance specs
- Component commoditization reduces differentiation
- Talent retention challenges in specialized RF/semiconductor domains
Leading indicators
- Benchmark performance leadership in flagship instruments
- Gross margin stability vs peers
- R&D efficiency and new product cadence
Counterarguments
- Best-in-class performance can be competed away with sustained R&D by large incumbents
- Some measurement categories commoditize quickly
Brand Trust
Demand
Brand Trust
Strength
Durability
Confidence
Evidence
In mission-critical validation and production test, buyers value accuracy, reliability, and vendor credibility; Keysight positions itself as a trusted partner/supplier.
Erosion risks
- Quality issues or product recalls damage reputation
- Competitors win trust via superior service or roadmap execution
- Geopolitical/export controls limit availability in key regions
Leading indicators
- Win rates in top-tier semiconductor and automotive accounts
- Customer satisfaction and service renewal rates
- Field quality metrics and return rates
Counterarguments
- Procurement may prioritize cost and standardized specs over brand
- In some categories, performance is easily benchmarked and brand matters less
Service Field Network
Supply
Service Field Network
Strength
Durability
Confidence
Evidence
Global services (repair, calibration, technical/application support, training/installation) reinforce product adoption and reduce downtime for production/test environments.
Erosion risks
- Third-party service ecosystems expand capabilities
- Customers build internal service organizations
- Remote/automated diagnostics reduce need for local presence
Leading indicators
- Services attach rate on new instrument sales
- Service contract renewal rates
- Time-to-repair and calibration turnaround
Counterarguments
- Services are replicable; competitors can scale with investment or partners
- For some customers, third-party support is sufficient
Evidence
"...integrate our instruments into connected workflows with automation, data management, and analytics."
Direct evidence that Keysight's software is designed to embed instruments into customer workflows.
"...support that includes parts, repair, and accredited calibrations..."
Shows a scaled, accredited service capability that is hard to replicate quickly.
"...regional support centers located near customers or on-site teams."
Supports the claim of a distributed field/support footprint.
"...work at our customers' pace... with first-to-market timing."
Supports the idea that Keysight aligns engineering deliverables to customer project schedules, aiding design-in.
"...engagement with top standards bodies and industry consortia..."
Suggests early alignment with evolving standards, supporting a 'default toolchain' dynamic.
Showing 5 of 13 sources.
Risks & Indicators
Erosion risks
- Customers standardize on open-source or vendor-neutral automation stacks
- Competitors improve interoperability and migration tooling
- Shift from lab-centric testing to cloud-based simulation reduces instrument-software coupling
- Third-party service providers expand calibration/repair coverage
- Hardware reliability improves, reducing service differentiation
- Customer in-sourcing of calibration and maintenance
Leading indicators
- Software & services mix and recurring revenue growth
- Net retention / renewal rates for software subscriptions
- Attach rate of software applications to instruments
- Services revenue growth and gross margin
- Customer uptime metrics and NPS for support
- Calibration turnaround times and coverage expansion
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.