OSI Systems (NASDAQ:OSIS) Announces Quarterly Earnings Results, Beats Expectations By $0.01 EPS

OSI Systems (NASDAQ:OSIS) released its quarterly earnings data on Thursday. The technology company reported $3.78 earnings per share for the quarter, beating analysts’ consensus estimates of $3.77 by $0.01, FiscalAI reports. The business had revenue of $484.06 million during the quarter, compared to analyst estimates of $529.72 million. OSI Systems had a net margin of 8.66% and a return on equity of 19.97%. OSI Systems’s revenue was up .1% compared to the same quarter last year. During the same period last year, the business earned $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 OSIS stock opened at $206.73 on Friday. The company has a quick ratio of 2.42, a current ratio of 3.25 and a debt-to-equity ratio of 1.12. The company has a 50 day moving average price of $220.35 and a 200-day moving average price of $247.02. OSI Systems has a 52 week low of $186.50 and a 52 week high of $311.72. The firm has a market capitalization of $3.41 billion, a PE ratio of 22.97, a P/E/G ratio of 1.63 and a beta of 1.21.

Institutional Investors Weigh In On OSI Systems

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Mcguire Capital Advisors Inc. purchased a new stake in OSI Systems during the 4th quarter valued at $32,000. Wellington Management Group LLP bought a new position in shares of OSI Systems during the 4th quarter valued at $12,718,000. Susquehanna Fundamental Investments LLC purchased a new position in shares of OSI Systems in the 4th quarter worth $364,000. Odyssean LLC purchased a new position in shares of OSI Systems in the 4th quarter worth $700,000. Finally, Gotham Asset Management LLC boosted its stake in shares of OSI Systems by 86.5% in the 4th quarter. Gotham Asset Management LLC now owns 8,759 shares of the technology company’s stock worth $2,234,000 after buying an additional 4,063 shares during the last quarter. Hedge funds and other institutional investors own 89.21% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on OSIS shares. Roth Capital reiterated a “buy” rating and issued a $274.00 target price on shares of OSI Systems in a research note on Friday. Oppenheimer decreased their price objective on shares of OSI Systems from $320.00 to $300.00 and set an “outperform” rating for the company in a report on Friday. Bank of America lowered their price objective 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. B. Riley Financial reiterated a “buy” rating and set a $265.00 target price (down from $320.00) on shares of OSI Systems in a research note on Friday. Finally, Weiss Ratings lowered OSI Systems from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday, July 30th. Five investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $281.71.

More OSI Systems News

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

• Positive Sentiment: Adjusted fourth-quarter EPS of $3.78 exceeded the roughly $3.77 consensus estimate, supported by margin expansion. Full-year fiscal 2026 revenue reached a record $1.79 billion, while the company ended the year with an approximately $1.9 billion backlog. OSIS Q4 Earnings Beat on Margin Gains, Revenues Miss Estimates
• Positive Sentiment: The board expanded OSI Systems’ share-repurchase authorization by 1 million shares, leaving 1,078,731 shares available for repurchase. The move signals management’s confidence in long-term cash generation and may provide support for the stock. OSI Systems Announces Expansion of Stock Repurchase Program
• Neutral Sentiment: Oppenheimer maintained an “outperform” rating but lowered its price target from $320 to $300, reflecting reduced near-term expectations while retaining a constructive long-term view. These Analysts Cut Their Forecasts On OSI Systems After Q4 Results
• Negative Sentiment: Quarterly revenue of approximately $484 million missed expectations near $530 million and was pressured by about $50 million of Security-segment deliveries delayed by Middle East conflict-related disruptions and site-access constraints.
• Negative Sentiment: Initial fiscal 2027 revenue guidance of $1.875 billion to $1.93 billion came in below Wall Street expectations, raising concerns about shipment timing and growth. Although adjusted EPS guidance of $11.13 to $11.49 was broadly near consensus, analysts responded by cutting forecasts and price targets. OSI Systems forecasts fiscal 2027 revenue as Middle East deliveries shift

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.