OSI Systems Inc
NASDAQ:OSIS

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OSI Systems Inc
NASDAQ:OSIS
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Price: 266 USD -1.85% Market Closed
Market Cap: 4.5B USD

OSI Systems Inc
Investor Relations

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.

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Last Earnings Call
Fiscal Period
Q1 2026
Call Date
Oct 30, 2025
AI Summary
Q1 2026

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.

Key Financials
Revenue
$385 million
Security Division Revenue
$254 million
Optoelectronics and Manufacturing Division Revenue
$110 million
Adjusted EPS
$1.42
Book-to-Bill Ratio
1.1
Backlog
$1.9 billion
Gross Margin
32%
SG&A Expense
$67 million
SG&A as % of Sales
17.4%
R&D Expense
slightly above $20 million
R&D as % of Revenue
5.3%
Net Interest and Other Expense
$7.4 million
Tax Rate
19.9%
Adjusted Operating Margin
10.3%
Security Division Adjusted Operating Margin
13.5%
Optoelectronics Adjusted Operating Margin
11.9%
CapEx
$7 million
Depreciation and Amortization
$10.3 million
Net Leverage
1.9x
Credit Facility Borrowing Capacity
$825 million
Earnings Call Recording
Other Earnings Calls

Management

Mr. Deepak Chopra
Chairman, CEO & President
No Bio Available
Mr. Alan I. Edrick
Executive VP & CFO
No Bio Available
Mr. Victor S. Sze
Executive VP, General Counsel & Corporate Secretary
No Bio Available
Mr. Ajay Mehra
Executive VP & President of OSI Security Division
No Bio Available
Mr. Aliabadi Manoocher Mansouri
President of OSI Optoelectronics & Manufacturing Division
No Bio Available
Mr. Cary M. Okawa
Chief Accounting Officer
No Bio Available
Mr. Todd Weathersby
Senior VP & Chief Information Officer
No Bio Available
Mr. Glenn Grindstaff
Senior VP & Chief Human Resources Officer
No Bio Available
Mr. Shalabh Chandra
President of Healthcare Division
No Bio Available
Mr. Ted Alston
President of Rapiscan Detection Division
No Bio Available

Contacts

Address
CALIFORNIA
Hawthorne
12525 Chadron Ave
Contacts
+13109780516.0
www.osi-systems.com