OSI Systems (NASDAQ:OSIS) Announces Earnings Results

Posted by on Oct 29th, 2026

OSI Systems (NASDAQ:OSIS – Get Free Report) released its quarterly earnings results on Thursday. The technology company reported $1.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.65 by $0.01, FiscalAI reports. The company had revenue of $403.47 million during the quarter, compared to analysts’ expectations of $396.11 million. OSI Systems had a net margin of 8.66% and a return on equity of 20.33%. The business’s quarterly revenue was up .0% compared to the same quarter last year. During the same period in the prior year, the company earned $1.42 earnings per share.

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

  • Record first-quarter results included revenue of $403 million, up 5% year over year, adjusted EPS of $1.66, up 17%, and operating cash flow of $37 million. Bookings produced a 1.4 book-to-bill ratio, lifting backlog to a record $2.1 billion.
  • Security demand remained strong despite Middle East-related disruption, supported by new U.S. Customs and Border Protection contract vehicles, continued RF bookings, and a growing pipeline tied to homeland defense and Golden Dome-related initiatives.
  • Optoelectronics and Manufacturing revenue rose 9% including intercompany sales and 16% with third-party customers, while operating margins expanded. Management also expects Security service revenue to accelerate to strong double-digit growth, supporting margin expansion over time.
  • Healthcare revenue declined 14% as hospitals constrained capital spending, resulting in a -1.8% adjusted operating margin for the division. Consolidated gross margin fell to 30.7% from 32.0% due to Healthcare weakness and unfavorable business mix.
  • Fiscal 2027 revenue guidance was reaffirmed at $1.875 billion to $1.930 billion, with growth expected to be weighted toward the second half; second-quarter revenue is expected to decline modestly year over year due to difficult Middle East comparisons and the Mexico program transition. Non-GAAP EPS guidance was raised to $11.28-$11.64, primarily reflecting the benefit of share repurchases.

OSI Systems Stock Performance

Shares of NASDAQ OSIS traded up $7.50 during trading hours on Thursday, reaching $208.17. The stock had a trading volume of 366,737 shares, compared to its average volume of 180,000. The company has a market cap of $3.27 billion, a price-to-earnings ratio of 19.33, a PEG ratio of 1.51 and a beta of 1.21. OSI Systems has a twelve month low of $186.50 and a twelve month high of $311.72. The business’s fifty day moving average is $200.50 and its two-hundred day moving average is $238.08. The company has a debt-to-equity ratio of 1.20, a current ratio of 3.15 and a quick ratio of 2.34.

Key Stories Impacting OSI Systems

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

  • Positive Sentiment: OSI Systems reported non-GAAP earnings of $1.66 per share, ahead of the $1.64–$1.65 consensus range and up from $1.42 in the year-ago quarter. The earnings beat signals continued profitability improvement. OSI Systems Tops Q1 Earnings and Revenue Estimates
  • Positive Sentiment: Quarterly revenue totaled $403.47 million, exceeding the approximately $396.1 million analyst estimate by about $6.9 million. The company also reported an 8.66% net margin and 20.33% return on equity. OSI Systems Quarterly Earnings Report
  • Neutral Sentiment: Despite the revenue beat, sales were essentially unchanged from the same quarter last year, making the earnings improvement more dependent on profitability and execution than on top-line growth. Management’s earnings-call commentary may provide additional insight into demand and the outlook. OSI Systems Q1 2027 Earnings Call Transcript
  • Neutral Sentiment: OSI Systems announced that its annual stockholders meeting will take place on December 10, 2026, where shareholders will consider the company’s listed proposals. OSI Systems Announces Annual Stockholders Meeting

Wall Street Analyst Weigh In

Several research firms recently weighed in on OSIS. B. Riley Financial reissued a “buy” rating and set a $265.00 price objective (down from $320.00) on shares of OSI Systems in a research report on Friday, August 21st. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of OSI Systems in a report on Wednesday. Oppenheimer dropped their price target on OSI Systems from $300.00 to $265.00 and set an “outperform” rating on the stock in a research report on Thursday, October 8th. Bank of America cut their price target on OSI Systems from $315.00 to $300.00 and set a “buy” rating for the company in a report on Monday, July 20th. Finally, Roth Capital reissued a “buy” rating and issued a $274.00 price objective on shares of OSI Systems in a research report on Friday, August 21st. Five analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $276.71.

Read Our Latest Report on OSIS

About OSI Systems

(Get Free Report)

OSI Systems, Inc is a vertically integrated technology company that designs and manufactures specialized electronic systems and components for security, healthcare and aerospace and defense applications. Headquartered in Hawthorne, California, the company serves government agencies, transportation authorities, hospitals and commercial customers in the United States and international markets.

Through its security division, OSI Systems provides inspection and screening systems used at airports, borders, ports and other facilities.

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Earnings History for OSI Systems (NASDAQ:OSIS)

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