OSI Systems (NASDAQ:OSIS) Announces Quarterly Earnings Results

OSI Systems (NASDAQ:OSIS) issued its earnings results on Thursday. The technology company reported $2.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.52 by $0.06, FiscalAI reports. OSI Systems had a net margin of 8.68% and a return on equity of 18.25%.

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

• Record Q2 results — revenues rose 11% YoY to $464M, non‑GAAP EPS reached a Q2 record of $2.58, operating cash flow was $62M, and management raised fiscal 2026 non‑GAAP EPS guidance to $10.30–$10.55 while keeping revenue guidance unchanged.
• Security momentum and program wins — security revenue grew 15% (31% ex‑Mexico), the company won a $20M radiological monitoring award, an ~ $30M international RF naval order, was named on the large Shield (Golden Dome) IDIQ, and is expanding RF capacity in Texas to support expected demand.
• Optoelectronics strength — Opto posted another Q2 record with 12% sales growth, improved adjusted operating income, a book‑to‑bill >1, and added manufacturing capacity (Mexico, SE Asia, India, North America) to capture supply‑chain diversification tailwinds.
• Mexico contract headwind — revenues tied to large Mexico security contracts fell 50% YoY to $27M, and management warns of a >$50M YoY revenue headwind in Q3 that will pressure near‑term comps and margins.
• Healthcare softness and R&D step‑up — Healthcare division sales were weak, the company is intensifying sales and product investments, and R&D increased to $19.8M, actions that management says will take time to restore performance and may weigh on near‑term margins.

OSI Systems Trading Down 0.6%

Shares of OSIS stock traded down $1.65 during trading on Thursday, hitting $269.74. 350,071 shares of the stock traded hands, compared to its average volume of 254,929. OSI Systems has a 52-week low of $153.40 and a 52-week high of $294.93. The firm has a market capitalization of $4.58 billion, a P/E ratio of 30.55, a price-to-earnings-growth ratio of 2.30 and a beta of 1.35. The firm’s fifty day moving average price is $270.10 and its 200-day moving average price is $250.59. The company has a debt-to-equity ratio of 0.46, a current ratio of 1.87 and a quick ratio of 1.29.

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. Roth Mkm upped their price objective on shares of OSI Systems from $280.00 to $292.00 and gave the stock a “buy” rating in a research report on Monday, December 1st. UBS Group set a $292.00 price target on OSI Systems in a research note on Monday, December 1st. Weiss Ratings reiterated a “buy (b)” rating on shares of OSI Systems in a research report on Thursday, January 22nd. JPMorgan Chase & Co. upped their target price on OSI Systems from $242.00 to $255.00 and gave the stock a “neutral” rating in a research note on Monday, November 3rd. Finally, Bank of America increased their target price on OSI Systems from $265.00 to $315.00 and gave the company a “buy” rating in a research report on Wednesday, November 5th. Six equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $272.00.

Insider Activity at OSI Systems

In other news, Chairman Deepak Chopra sold 20,000 shares of the firm’s stock in a transaction on Monday, November 10th. The stock was sold at an average price of $285.74, for a total transaction of $5,714,800.00. Following the completion of the transaction, the chairman directly owned 292,969 shares in the company, valued at $83,712,962.06. This trade represents a 6.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director James B. Hawkins sold 1,500 shares of the stock in a transaction that occurred on Friday, November 7th. The stock was sold at an average price of $283.15, for a total transaction of $424,725.00. Following the sale, the director owned 5,036 shares in the company, valued at approximately $1,425,943.40. This trade represents a 22.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 21,916 shares of company stock worth $6,255,631. Company insiders own 4.30% of the company’s stock.

Institutional Investors Weigh In On OSI Systems

Several 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 in the third quarter valued at approximately $25,000. Strs Ohio purchased a new position in OSI Systems during the 1st quarter worth $97,000. Sherbrooke Park Advisers LLC purchased a new position in OSI Systems during the 3rd quarter worth $214,000. Algert Global LLC acquired a new stake in shares of OSI Systems in the 3rd quarter worth $277,000. Finally, Hancock Whitney Corp purchased a new stake in shares of OSI Systems in the third quarter valued at about $341,000. Hedge funds and other institutional investors own 89.21% of the company’s stock.

About OSI Systems

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.