OSI Systems (NASDAQ:OSIS) Announces Earnings Results

OSI Systems (NASDAQ:OSIS) announced its quarterly earnings data on Thursday. The technology company reported $1.66 earnings per share for the quarter, topping analysts’ consensus estimates of $1.65 by $0.01, FiscalAI reports. OSI Systems had a net margin of 8.66% and a return on equity of 20.33%. The company had revenue of $403.47 million during the quarter, compared to analyst estimates of $396.11 million. During the same period in the previous year, the business earned $1.42 EPS. The firm’s revenue for the quarter was up .0% on a year-over-year basis.

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 Trading Down 5.0%

NASDAQ:OSIS traded down $10.42 during midday trading on Friday, hitting $197.75. The stock had a trading volume of 99,707 shares, compared to its average volume of 263,424. The company has a market capitalization of $3.11 billion, a price-to-earnings ratio of 21.97, a PEG ratio of 1.51 and a beta of 1.21. The company has a quick ratio of 2.34, a current ratio of 3.15 and a debt-to-equity ratio of 1.20. OSI Systems has a one year low of $186.50 and a one year high of $311.72. The stock has a 50-day moving average of $200.50 and a 200 day moving average of $238.08.

Analyst Upgrades and Downgrades

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

More OSI Systems News

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

• Positive Sentiment: Quarterly results beat estimates: OSI Systems reported adjusted EPS of $1.66, up from $1.42 a year earlier and ahead of the approximately $1.64-$1.65 consensus. Revenue rose to $403.5 million, surpassing the $396.1 million FactSet estimate. OSI Systems First-Quarter Earnings Results
• Positive Sentiment: Raised outlook: Management increased its fiscal 2027 EPS outlook, while reporting growth in adjusted earnings and revenue. The improved guidance supports the company’s growth narrative and could help investor sentiment. OSI Systems Fiscal First-Quarter Outlook
• Neutral Sentiment: Investor reaction remains mixed: OSI Systems shares were reported higher before the market opened following the results, but subsequent trading has been weaker. The reaction suggests the earnings beat and outlook increase may already have been partly reflected in the stock price. OSI Systems Tops Earnings and Revenue Estimates
• Neutral Sentiment: Technical backdrop is cautious: The stock remains below its 200-day moving average and near its 12-month low, which may be limiting enthusiasm despite the solid quarterly report.
• Neutral Sentiment: Annual meeting scheduled: OSI Systems will hold its annual stockholders meeting on December 10, 2026, with several proposals to be presented to shareholders. OSI Systems Annual Stockholders Meeting

About OSI Systems

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.