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About

OSI Systems, Inc. designs and manufactures specialized electronic systems and components for critical applications in the United States, Mexico, the rest of Americas, the United Kingdom, Europe, the Middle East, Africa, and the Asia-Pacific. The company offers security products, such as baggage and parcel inspection, cargo and vehicle inspection, hold baggage screening, people screening, radiation monitoring, explosive and narcotics trace detection, and optical inspection systems; turnkey security screening services for enterprise inspection process integration, operator training, and the staffing and operation of security screening checkpoints under the S2 brand. It also provides trace detection systems for trace amounts of explosives and narcotics and people screening products, including walk-through metal detectors for use at security checkpoints at airports, government buildings, sports arenas, and other venues; digital and analog high-power RF systems; and active components for detection of lights of different wavelengths and converts light into electrical signals. In addition, the company offers devices for emitting light in the form of lasers; passive components for amplifying, separating, and reflecting light under the OSI Optoelectronics brand; and printed circuit board assemblies, cable and harness assemblies, and complete systems. Further, it provides bedside monitors, such as the Xprezzon and Qube, as well as telemetry solutions; Spacelabs SafeNSound for assisting hospitals; predictive analytics clinical decision support solutions; Pathfinder SL and Lifescreen Pro analysis tools; and Eclipse Pro Holter recorders. Additionally, the company offers Eclipse Mini Ambulatory ECG recorders; ambulatory blood pressure monitors; Spacelabs OnTrak ambulatory blood pressure systems; Sentinel, a cardiology information management system; and multivendor compatible accessories. OSI Systems, Inc. was incorporated in 1987 and is headquartered in Hawthorne, California.

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

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🔍 Concall Decoded

🎙 Management Tone Tracker Confident Specific → Stable 4 quarters analysed

Q4 2025

Confident Specific

Management repeatedly emphasized 'record' revenues and EPS, 'exceptional year', 'tremendous momentum'. They provided specific growth numbers (e.g., Security ex-Mexico grew ~50%) and cited concrete catalysts like the Big Beautiful Bill Act. The language was positive and forward-looking, with no hedging or defensive postures.

Q1 2026

Confident Specific

Management repeatedly used terms like 'record-breaking first quarter', 'solid 12% revenue growth', 'record Q1 backlog', and 'strong Q1 bookings' to underscore a positive start to fiscal 2026. Specific figures (12% revenue growth, 1.1 book-to-bill, $1.9B backlog) were provided to back claims.

Q2 2026

Confident Specific

Management repeatedly used phrases like 'record-breaking quarter,' 'Q2 records across multiple metrics,' and 'strong earnings,' while also providing specific numbers (revenues $464M, non-GAAP EPS $2.58). They acknowledged specific headwinds (Mexico contract revenue down 50%, Security bookings lower than expected, Healthcare weakness) without glossing over them, and raised non-GAAP EPS guidance.

Q3 2026 latest

Confident Specific

Management repeatedly cites specific record metrics (revenue $453M, non-GAAP EPS $2.60, backlog $1.9B) and quantifies growth drivers (security ex-Mexico +25%, opto +10%), but tempers with cautious language about timing headwinds from DHS shutdown and Middle East conflict, framing them as short-term.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis appears slightly stronger given the record backlog and robust cash collection in Mexico, but near-term revenue timing risks from the DHS shutdown and Middle East disruptions keep guidance unchanged. The security division's 25% ex-Mexico growth and opto's consistent performance suggest underlying demand is intact. Key next quarter watch items include: conversion of the Homeland Defense UCA into defined orders, normalization of U.S. border procurement post-shutdown, and further Mexico receivable collections to improve free cash flow. Margins may remain pressured by mix and healthcare weakness, but a recovery in healthcare could provide an upside lever. Long-term catalysts like Golden Dome, SHIELD IDIQ, and major events (World Cup, Olympics) keep the growth narrative alive, making the call net neutral to slightly bullish for patient investors.

AI-generated concall tone analysis · Updated 2026-06-08 · Not investment advice

🎙 Management Tone Confident Specific → Stable 4 quarters Full tone analysis in Intelligence →

📊 MIXED OSI Systems Q3 FY2026: Record revenue $453M, backlog $1.9B, non-GAAP EPS $2.60

Revenue & Profitability

Revenue hit a fiscal Q3 record of $453 million. Non-GAAP diluted EPS set a Q3 record of $2.60. Gross margin was 33%, slightly down year-over-year. Operating cash flow was $14 million in Q3, with $74 million collected shortly after quarter-end from Mexico. CapEx was $8 million; cash stood at $345 million; net leverage was approximately 2.2x.

Outlook

Management is optimistic for growth into FY2027, citing a robust backlog and opportunity pipeline. They note that the U.S. DHS shutdown has ended, which should normalize order patterns. The Middle East conflict has caused some program delays, but once stable, could drive stronger demand. The ~$1 billion allocated for NII equipment under the One Big Beautiful Bill is a significant growth opportunity.

Growth Drivers

Key growth levers include: Security division excluding Mexico (up 25% year-over-year), driven by international orders, service revenues, aviation, and RF; Opto with a 10% revenue increase and a book-to-bill above 1.0; the $235 million Homeland Defense award; potential from Golden Dome/FIFA World Cup 2026/2028 Olympics; and expanding recurring service and support agreements.

Balance Sheet & CapEx

CapEx in Q3 was $8 million, and depreciation/amortization was $9.5 million. The company is investing in R&D, which increased to $19.5 million (4.3% of revenues), and has ramped up production capacity for the RF business, including new facilities. These investments support growth in security and optoelectronics.

Margins

Non-GAAP adjusted operating margin was 14% in Q3, comparable sequentially. Security division adjusted operating margin expanded to 18.3% (from 18.1% last year), driven by higher-margin service revenues. Opto margin decreased to 13.5% due to less favorable mix. Healthcare margin was negligible. Management aims to couple top-line growth with operating margin expansion over the long term.

Key Risks

Risks include: timing impacts from the DHS shutdown (now ended) and Middle East conflicts potentially affecting Q4 revenues; delayed collections on Mexico receivables (though $74 million was collected post-quarter); supply chain disruptions, tariffs, FX fluctuations; and the possibility that backlog conversion or new bookings could be delayed.

Generated by AI · Q3 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q3 2026 Q3 2026 2026-05-04

Record Q3 revenues and EPS were achieved, with a record $1.9 billion backlog and strong international growth in Security and Optoelectronics. Cash flow improved with major Mexico receivable collections, while guidance remains unchanged despite near-term risks from geopolitical and government factors.

Q2 2026 Q2 2026 2026-01-29

Record Q2 revenue and EPS were driven by double-digit growth in Security and Optoelectronics, while Healthcare lagged. Guidance for fiscal 2026 non-GAAP EPS was raised, with Q3 facing a Mexico contract headwind but stronger Q4 growth expected.

Q1 2026 Q1 2026 2025-10-30

Record Q1 results with 12% revenue growth, strong bookings, and raised fiscal 2026 guidance. Security, Optoelectronics, and Healthcare divisions all posted double-digit growth, with robust service revenues and a solid backlog supporting future momentum.

Q4 2025 Q4 2025 2025-08-21

Record Q4 and full-year results were driven by Security and Optoelectronics, with strong backlog and double-digit core growth excluding Mexico. Fiscal 2026 guidance calls for 5.4%–8% revenue growth and 8%–11% EPS growth, supported by robust pipelines and anticipated strong cash flow.

Q3 2025 Q3 2025 2025-05-01

Q3 delivered record revenues, EPS, and cash flow, with all divisions growing and a record backlog over $1.8 billion. Fiscal 2025 guidance was raised for both revenue and EPS, and strong cash flow is expected to continue. Robust demand, diversified backlog, and strategic acquisitions support a positive outlook.

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