OSI Systems shares jump 3% as fiscal 2026 outlook tops estimates

Published 21/08/2025, 13:40
 OSI Systems shares jump 3% as fiscal 2026 outlook tops estimates

HAWTHORNE, Calif. - On Thursday, OSI Systems , Inc. (NASDAQ:OSIS) issued a strong fiscal 2026 outlook that exceeded analyst expectations, despite missing fourth-quarter earnings estimates.

The security and healthcare technology company’s shares rose 2.96% in pre-market trading after the results.

The company reported fourth-quarter adjusted earnings of $3.24 per share, up 14% YoY but below the analyst estimate of $3.19. Revenue for the quarter reached a record $504.99 million, representing a 5% increase from the previous year, driven primarily by growth in the Security division’s service revenues from an expanding installed base of products.

OSI Systems’ stock climbed 2.96% following the announcement, as investors focused on the company’s optimistic fiscal 2026 guidance. The company expects revenue between $1.805 billion and $1.850 billion, representing growth of 5.4% to 8.0%, well above the consensus estimate of $1.71 billion. Non-GAAP earnings per share are projected to be $10.11 to $10.39, exceeding analyst expectations of $9.31.

"We are pleased to report record-breaking fourth quarter and 2025 fiscal year revenues and non-GAAP earnings per share, led by excellent execution in our Security division," said Ajay Mehra, OSI Systems’ President and Chief Executive Officer. "With robust bookings, solid backlog and high visibility into our opportunity pipeline, we are poised for success in fiscal 2026."

For the full fiscal year 2025, OSI Systems reported record revenue of $1.71 billion, up 11% YoY, and record non-GAAP earnings of $9.36 per share, a 15% increase from the previous year. The company ended the year with a backlog exceeding $1.8 billion.

Alan Edrick, Executive Vice President and CFO, noted that the company recently expanded its credit facility to increase total borrowing capacity to $825 million, extending the maturity to July 2030. "With this enhanced facility coupled with our expected strong cash flow generation in fiscal 2026, we are well-positioned to invest in strategic initiatives and drive long-term value," Edrick said.

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