OSI Systems (NASDAQ:OSIS) Issues Quarterly Earnings Results

OSI Systems (NASDAQ:OSIS) released its quarterly earnings data on Thursday. The technology company reported $3.78 EPS for the quarter, topping analysts’ consensus estimates of $3.77 by $0.01, FiscalAI reports. The company had revenue of $484.06 million for the quarter, compared to the consensus estimate of $529.72 million. OSI Systems had a return on equity of 18.84% and a net margin of 8.42%.The company’s quarterly revenue was up .1% compared to the same quarter last year. During the same period last year, the business posted $2.84 EPS. OSI Systems updated its FY 2027 guidance to 11.130-11.490 EPS.

Here are the key takeaways from OSI Systems’ conference call:

• Fiscal 2026 revenue fell below guidance; fourth-quarter revenue declined 4% year over year to $484 million, primarily because approximately $50 million of Middle East security deliveries were delayed by conflict and site-access constraints.
• Despite the revenue timing issues, OSI reported record profitability and cash generation, including fourth-quarter non-GAAP EPS of $3.78, up 17%, record quarterly operating cash flow of $182 million, and a record backlog of approximately $1.9 billion.
• Management introduced fiscal 2027 guidance for revenue of $1.875 billion to $1.93 billion and adjusted EPS of $11.13 to $11.49, with growth expected to be strongest in the second half as deferred Middle East deliveries and U.S. government orders begin contributing.
• Security demand remains strong, supported by two sole-awardee CBP IDIQ contracts with combined ceilings of roughly $285 million, a $235 million over-the-horizon radar award, and heightened engagement related to homeland defense and Golden Dome initiatives; most of the newer U.S. awards are expected to contribute from fiscal 2028 onward.
• Optoelectronics revenue grew 9% for the year with further margin expansion expected, while Healthcare’s fourth-quarter operating margin improved to 10% from 1%; management also expects double-digit service-revenue growth in fiscal 2027 and authorized an additional 1 million share repurchases.

OSI Systems Stock Performance

Shares of NASDAQ OSIS opened at $218.09 on Friday. OSI Systems has a 12-month low of $197.27 and a 12-month high of $311.72. The company has a market cap of $3.59 billion, a PE ratio of 24.90, a P/E/G ratio of 1.65 and a beta of 1.21. The stock has a 50 day simple moving average of $220.72 and a 200-day simple moving average of $247.30. The company has a current ratio of 3.25, a quick ratio of 2.42 and a debt-to-equity ratio of 1.12.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in OSIS. Danske Bank A S acquired a new position in shares of OSI Systems during the third quarter valued at $25,000. Mcguire Capital Advisors Inc. bought a new position in OSI Systems in the 4th quarter valued at about $32,000. Caitong International Asset Management Co. Ltd raised its position in shares of OSI Systems by 119.5% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 169 shares of the technology company’s stock worth $43,000 after buying an additional 92 shares in the last quarter. Strs Ohio acquired a new stake in shares of OSI Systems in the 1st quarter worth approximately $97,000. Finally, CIBC Private Wealth Group LLC boosted its holdings in shares of OSI Systems by 6.4% in the fourth quarter. CIBC Private Wealth Group LLC now owns 815 shares of the technology company’s stock valued at $208,000 after acquiring an additional 49 shares in the last quarter. Institutional investors and hedge funds own 89.21% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts have recently commented on the stock. Citigroup cut their target price on shares of OSI Systems from $345.00 to $279.00 and set a “buy” rating on the stock in a research note on Monday, May 18th. Roth Capital reissued a “buy” rating and set a $310.00 price target on shares of OSI Systems in a research report on Tuesday, May 5th. Weiss Ratings cut shares of OSI Systems from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday, July 30th. Finally, Bank of America dropped their price target on OSI Systems from $315.00 to $300.00 and set a “buy” rating on the stock in a research report on Monday, July 20th. Five equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, OSI Systems currently has an average rating of “Moderate Buy” and a consensus target price of $291.86.

Trending Headlines about OSI Systems

Here are the key news stories impacting OSI Systems this week:

• Positive Sentiment: OSI Systems reported fiscal 2026 revenue of approximately $1.79 billion, up 4% year over year, with full-year GAAP diluted EPS of $8.95 and net income of $154.7 million. Backlog increased to roughly $1.9 billion from $1.8 billion, supporting longer-term visibility. OSI Systems Reports Record Annual Revenue
• Positive Sentiment: Fourth-quarter adjusted EPS of $3.78 narrowly exceeded the approximately $3.77 consensus estimate and rose from $2.84 a year earlier, indicating continued earnings growth despite soft revenue. OSI Systems Q4 Earnings Top Estimates
• Positive Sentiment: The board authorized an additional 1 million shares for repurchase, bringing remaining authorization to 1,078,731 shares. The company also repurchased 564,880 shares for $123.6 million during the quarter, potentially supporting per-share value. OSI Systems Expands Stock Repurchase Program
• Positive Sentiment: OSI Systems won an $85 million contract from U.S. Customs and Border Protection for mobile X-ray inspection systems, adding to its government-security opportunity pipeline. OSI Systems Awarded $85 Million CBP Contract
• Neutral Sentiment: Fiscal 2027 guidance calls for revenue of $1.875 billion to $1.93 billion and non-GAAP EPS of $11.13 to $11.49. The range is broadly consistent with expectations, but management said Middle East deliveries are shifting into the second half, creating near-term execution and quarterly timing risk. OSI Systems Fiscal 2027 Forecast
• Negative Sentiment: Fourth-quarter revenue was about $484.1 million, well below the roughly $529.7 million analyst estimate and down year over year on a reported basis. The sizeable top-line miss overshadowed the modest EPS beat and raised concerns about demand conversion and delivery timing. OSI Systems After-Hours Market Reaction

OSI Systems Company Profile

OSI Systems, Inc (NASDAQ: OSIS) is a publicly traded technology company founded in 1987 and headquartered in Hawthorne, California. The company designs, develops and manufactures advanced security and inspection systems, optoelectronic devices and medical imaging equipment. Over its history, OSI Systems has grown its product offerings through internal research and development as well as strategic acquisitions, expanding its capabilities in mission-critical sensing and inspection technologies.

OSI Systems operates three primary business segments.