OSI Systems (NASDAQ:OSIS) Posts Earnings Results, Beats Expectations By $0.07 EPS

OSI Systems (NASDAQ:OSIS) issued its quarterly earnings data on Monday. The technology company reported $2.60 earnings per share for the quarter, topping the consensus estimate of $2.53 by $0.07, FiscalAI reports. OSI Systems had a return on equity of 18.74% and a net margin of 8.42%.The company had revenue of $453.25 million for the quarter, compared to analysts’ expectations of $449.23 million. During the same period in the previous year, the firm posted $2.44 earnings per share. The firm’s revenue for the quarter was up 2.0% on a year-over-year basis. OSI Systems updated its FY 2026 guidance to 10.300-10.550 EPS.

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

• Company reported a fiscal Q3 record revenue of $453 million, record non‑GAAP EPS of $2.60, and finished the quarter with a record backlog of ~$1.9 billion and a 1.3 book‑to‑bill.
• Won a sizable Homeland Defense UCA with a not‑to‑exceed value of ~$235 million, showing traction for its RF‑engineered solutions (RF revenues were a Q‑record of ~$38 million) and positioning the company for opportunities under the SHIELD IDIQ and Golden Dome initiatives.
• Optoelectronics & Manufacturing posted another strong quarter with 10% revenue growth to a Q3 record (~$111 million) and a significant $40 million medical OEM award, driven by demand for vertically integrated, diversified manufacturing.
• Liquidity improved as the company generated $14 million of Q3 operating cash flow and collected approximately $74 million from its largest Mexico receivable after quarter end, leaving cash of $345 million and net leverage ~2.2x.
• Near‑term headwinds include timing delays from the recent DHS shutdown and Middle East conflict that affected bookings and project timelines, plus weak Healthcare sales and negligible Healthcare margins in Q3 that could pressure near‑term profitability if not reversed.

OSI Systems Trading Down 2.6%

Shares of NASDAQ OSIS traded down $6.07 during trading hours on Wednesday, reaching $228.67. The stock had a trading volume of 201,725 shares, compared to its average volume of 280,097. The company has a current ratio of 3.15, a quick ratio of 2.31 and a debt-to-equity ratio of 1.18. The firm has a market cap of $3.77 billion, a price-to-earnings ratio of 26.06, a P/E/G ratio of 2.31 and a beta of 1.31. The business’s fifty day moving average price is $283.23 and its two-hundred day moving average price is $273.20. OSI Systems has a 52-week low of $204.00 and a 52-week high of $311.72.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on OSIS shares. Citigroup started coverage on OSI Systems in a research note on Wednesday, April 15th. They set a “buy” rating and a $345.00 price objective on the stock. B. Riley Financial upped their target price on OSI Systems from $300.00 to $320.00 and gave the company a “buy” rating in a research note on Friday, January 30th. Weiss Ratings cut OSI Systems from a “buy (b+)” rating to a “buy (b)” rating in a research note on Wednesday, April 29th. Roth Mkm reaffirmed a “buy” rating and set a $310.00 target price on shares of OSI Systems in a research note on Tuesday. Finally, JPMorgan Chase & Co. upped their target price on OSI Systems from $255.00 to $262.00 and gave the company a “neutral” rating in a research note on Monday, February 2nd. Six analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $303.43.

Insiders Place Their Bets

In other OSI Systems news, Director Deepak Chopra sold 20,000 shares of the company’s stock in a transaction on Monday, May 4th. The stock was sold at an average price of $281.84, for a total transaction of $5,636,800.00. Following the completion of the sale, the director owned 253,044 shares in the company, valued at $71,317,920.96. This represents a 7.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.30% of the stock is currently owned by corporate insiders.

Institutional Trading of OSI Systems

Hedge funds have recently bought and sold shares of the stock. Danske Bank A S purchased a new stake in OSI Systems during the third quarter worth $25,000. Mcguire Capital Advisors Inc. purchased a new stake in OSI Systems during the fourth quarter worth $32,000. Caitong International Asset Management Co. Ltd lifted its holdings in OSI Systems by 119.5% during the fourth 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 during the period. Strs Ohio purchased a new stake in OSI Systems during the first quarter worth $97,000. Finally, CIBC Private Wealth Group LLC lifted its holdings in shares of OSI Systems by 6.4% during the 4th quarter. CIBC Private Wealth Group LLC now owns 815 shares of the technology company’s stock valued at $208,000 after purchasing an additional 49 shares during the last quarter. 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.