OSI Systems Inc
NASDAQ:OSIS
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OSI Systems Inc
Deep in the heart of California, OSI Systems Inc. stands as a diverse, innovative force in the electronics and security industries. Founded in 1987, OSI has crafted a reputation as a reliable creator of high-technology solutions for three distinct sectors: security, healthcare, and optoelectronics. At its core, OSI Systems orchestrates a symphony of specialized equipment and software, delivering products that cater to a variety of niche markets. Whether you are traveling through a bustling airport and your luggage passes seamlessly through an advanced scanning system, or a patient in a hospital undergoing a critical diagnostic exam with cutting-edge medical imaging devices, OSI’s fingerprints are evident.
The company's business model is anchored in its ability to produce and integrate complex systems, boosted by a commitment to innovation and quality. Revenues are primarily driven by its Security segment, which focuses on providing essential inspection systems, detection devices, and infrastructure—capabilities greatly in demand amid rising global security concerns. Meanwhile, its Healthcare division offers diagnostic cardiology, patient monitoring, and anesthesia systems across the globe. The lesser-known Optoelectronics segment feeds the relentless push for miniaturization and precision with components that serve multiple industries, enhancing other businesses' capabilities and forming a critical part of the supply chain. Through strategic acquisitions and robust R&D investments, OSI Systems continues to expand its footprint, embracing both organic growth and technological advancements to sustain its revenue streams.
Deep in the heart of California, OSI Systems Inc. stands as a diverse, innovative force in the electronics and security industries. Founded in 1987, OSI has crafted a reputation as a reliable creator of high-technology solutions for three distinct sectors: security, healthcare, and optoelectronics. At its core, OSI Systems orchestrates a symphony of specialized equipment and software, delivering products that cater to a variety of niche markets. Whether you are traveling through a bustling airport and your luggage passes seamlessly through an advanced scanning system, or a patient in a hospital undergoing a critical diagnostic exam with cutting-edge medical imaging devices, OSI’s fingerprints are evident.
The company's business model is anchored in its ability to produce and integrate complex systems, boosted by a commitment to innovation and quality. Revenues are primarily driven by its Security segment, which focuses on providing essential inspection systems, detection devices, and infrastructure—capabilities greatly in demand amid rising global security concerns. Meanwhile, its Healthcare division offers diagnostic cardiology, patient monitoring, and anesthesia systems across the globe. The lesser-known Optoelectronics segment feeds the relentless push for miniaturization and precision with components that serve multiple industries, enhancing other businesses' capabilities and forming a critical part of the supply chain. Through strategic acquisitions and robust R&D investments, OSI Systems continues to expand its footprint, embracing both organic growth and technological advancements to sustain its revenue streams.
Record Quarter: OSI Systems delivered record Q1 revenue of $385 million, up 12% YoY, with all three divisions achieving double-digit growth.
Service Revenue Strength: Recurring service revenues grew 23% YoY, driving higher margins and contributing to growth across the business.
Backlog & Bookings: Bookings were strong with a book-to-bill ratio of 1.1, and backlog reached a record Q1 level of nearly $1.9 billion.
Guidance Raised: Management increased fiscal 2026 guidance for both revenue and adjusted EPS, expecting $1.825–$1.867 billion in revenue and $10.20–$10.48 in EPS.
Mexico Headwinds Managed: A 60% YoY revenue reduction from large Mexico contracts was more than offset by growth in other areas.
Cash Flow Outlook: Strong cash flow is expected in fiscal 2026, with Mexico collections set to drive free cash flow above net income.
Margin Commentary: Security division margins were impacted by product mix but are expected to expand after the December quarter.