olivLaw · US equity research
OSI Systems, Inc. OSIS
Semiconductors & Related Devices · SIC 3674 · Vertical: Semiconductors & Related Devices (SIC 3674)
OSI Systems designs and manufactures specialized electronic systems and components for critical applications, mainly for security, healthcare and defense. It reported revenue of 1.79 billion USD in fiscal 2026 and a backlog of about 1.9 billion USD, while its fiscal 2027 guidance points to moderate revenue growth, making the company relevant to those following global security demand.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 05 Nov 2026, OSI Systems, Inc. (OSIS) stock was 191.61 USD (−5.57% on the day), with market capitalisation 3.0 bn USD, P/E 20.5 on diluted EPS of 9.33 USD over the last 12 months, beta 1.23, 52-week range 191.61–309.68 USD. Latest reported quarter (Q1 2027): revenue of 403.5 m USD (+4.9% YoY), net income of 24.6 m USD (+19.5% YoY), diluted EPS 1.51 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 41.0
- weak (30–45)
- Bollinger (20, 2)
- 190.02 – 205.40
- in the lower half of the band · %B 0.10 · band width 7.8%
- SMA 50 / 200
- 199.50 / 235.93
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.08 / -0.18
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −3.5% | −5.9% | +2.4 pp | — |
| 3 months | −19.2% | −4.6% | −14.6 pp | — |
| 6 months | −20.5% | +0.2% | −20.8 pp | — |
| Year to date | −24.9% | +7.4% | −32.3 pp | — |
| 1 year | −32.0% | +8.2% | −40.2 pp | +11.4% |
| 3 years | +75.8% | +68.4% | +7.4 pp | +65.9% |
| 5 years | +99.7% | +56.5% | +43.1 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q1 2027 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 419.8 m | 444.4 m | 505.0 m | 384.6 m | 464.1 m | 453.2 m | 484.1 m | 403.5 m |
| Cost of revenue | 272.7 m | 294.1 m | 336.7 m | 261.4 m | 312.4 m | 302.9 m | 316.1 m | 279.7 m |
| Gross profit | 147.2 m | 150.3 m | 168.2 m | 123.2 m | 151.6 m | 150.3 m | 168.0 m | 123.8 m |
| Research & development | 18.3 m | 18.6 m | 18.8 m | 20.4 m | 19.8 m | 19.5 m | 19.5 m | 19.4 m |
| SG&A | 70.7 m | 73.2 m | 74.7 m | 67.0 m | 70.2 m | 71.5 m | 69.7 m | 68.7 m |
| Operating income | 58.0 m | 56.2 m | 73.0 m | 33.1 m | 58.8 m | 53.2 m | 73.9 m | 33.6 m |
| Depreciation & amortisation | 10.6 m | 10.6 m | 10.9 m | 10.3 m | 9.6 m | 9.5 m | 13.3 m | 9.0 m |
| Interest expense | 8.6 m | 8.2 m | 7.2 m | 7.4 m | 10.7 m | 4.0 m | 4.1 m | 3.3 m |
| Pre-tax income | 49.3 m | 48.0 m | 65.8 m | 25.7 m | 48.1 m | 49.2 m | 69.8 m | 30.2 m |
| Income tax | 11.5 m | 6.9 m | 13.1 m | 5.1 m | 9.4 m | 9.0 m | 14.5 m | 5.7 m |
| Net income | 37.8 m | 41.1 m | 52.7 m | 20.6 m | 38.7 m | 40.2 m | 55.2 m | 24.6 m |
| Diluted EPS | 2.22 | 2.40 | 3.03 | 1.18 | 2.22 | 2.33 | 3.27 | 1.51 |
| Operating cash flow | 52.5 m ≈ | 81.6 m ≈ | 562.0 k | 17.1 m | 62.2 m ≈ | 14.5 m ≈ | 182.1 m | 37.1 m |
| Capex | 5.5 m ≈ | 4.5 m ≈ | 6.1 m | 7.0 m | 6.7 m ≈ | 7.6 m ≈ | 9.3 m | 7.7 m |
| Share repurchases | 0 ≈ | 0 ≈ | 0 | — | — | 0 ≈ | 124.9 m | 62.8 m |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 34 percentile of its own 32-quarter history (min 11.8, median 21.9, max 37.7; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.2 bn | 1.2 bn | 1.1 bn | 1.2 bn | 1.3 bn | 1.5 bn | 1.7 bn | 1.8 bn |
| Revenue YoY | +8.5% | −1.4% | −1.6% | +3.2% | +8.0% | +20.4% | +11.3% | +4.3% |
| Net income | 64.8 m | 75.3 m | 74.0 m | 115.3 m | 91.8 m | 128.2 m | 149.6 m | 154.7 m |
| Net income YoY | unavailable | +16.1% | −1.6% | +55.8% | −20.4% | +39.6% | +16.8% | +3.4% |
| Diluted EPS | 3.46 | 4.05 | 4.03 | 6.45 | 5.34 | 7.38 | 8.71 | 8.95 |
| Diluted EPS YoY | unavailable | +17.1% | −0.5% | +60.0% | −17.2% | +38.2% | +18.0% | +2.8% |
| net % | 5.5% | 6.5% | 6.5% | 9.7% | 7.2% | 8.3% | 8.7% | 8.7% |
| Free cash flow | 91.7 m | 108.1 m | 122.2 m | 48.9 m | 79.0 m | -109.6 m | 73.8 m | 245.3 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 30 Jun 2026
- Cash
- 359.8 m USD
- Financial debt
- 1.0 bn USD
- Net debt
- 641.2 m USD
- Equity
- 833.0 m USD
- Total assets
- 2.5 bn USD
- Debt / equity
- 1.20x
- Current ratio
- 3.15x
- ROE
- 17.3%
- ROA
- 6.5%
- FCF margin
- 13.7%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.1 bn | 1.2 bn | 1.3 bn | 1.5 bn | 1.7 bn | 1.8 bn | SEC (XBRL)· 21 Aug 2026verified |
| Cost of revenue | 727.0 m | 758.8 m | 847.9 m | 1.0 bn | 1.1 bn | 1.2 bn | SEC (XBRL)· 21 Aug 2026verified |
| Gross profit | 419.9 m | 424.4 m | 430.5 m | 530.5 m | 587.2 m | 593.1 m | SEC (XBRL)· 21 Aug 2026verified |
| Research & development | 53.7 m | 59.6 m | 59.4 m | 65.3 m | 73.4 m | 79.1 m | SEC (XBRL)· 21 Aug 2026verified |
| SG&A | 240.7 m | 235.6 m | 228.3 m | 269.7 m | 290.9 m | 278.4 m | SEC (XBRL)· 21 Aug 2026verified |
| Operating income | 115.4 m | 121.7 m | 135.3 m | 189.1 m | 217.5 m | 219.0 m | SEC (XBRL)· 21 Aug 2026verified |
| Depreciation & amortisation | 43.9 m | 38.7 m | 38.5 m | 42.2 m | 43.6 m | 42.7 m | SEC (XBRL)· 21 Aug 2026verified |
| EBITDA | 159.2 m ≈ | 160.4 m ≈ | 173.8 m ≈ | 231.3 m ≈ | 261.1 m ≈ | 261.6 m ≈ | SEC (XBRL)· 21 Aug 2026derived |
| Interest expense | — | — | — | 27.8 m | 31.4 m | 26.2 m | SEC (XBRL)· 21 Aug 2026verified |
| Pre-tax income | 98.6 m | 140.2 m | 115.2 m | 161.2 m | 186.1 m | 192.7 m | SEC (XBRL)· 21 Aug 2026verified |
| Income tax | 24.6 m | 24.8 m | 23.5 m | 33.1 m | 36.5 m | 38.0 m | SEC (XBRL)· 21 Aug 2026verified |
| Net income | 74.0 m | 115.3 m | 91.8 m | 128.2 m | 149.6 m | 154.7 m | SEC (XBRL)· 21 Aug 2026verified |
| Diluted EPS | 4.03 | 6.45 | 5.34 | 7.38 | 8.71 | 8.95 | SEC (XBRL)· 21 Aug 2026verified |
| Weighted average diluted shares | 18.4 m | 17.9 m | 17.2 m | 17.4 m | 17.2 m | 17.3 m | SEC (XBRL)· 21 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 80.6 m | 64.2 m | 76.8 m | 95.4 m | 106.4 m | 359.8 m | SEC (XBRL)· 21 Aug 2026verified |
| Receivables | 290.7 m | 308.0 m | 380.8 m | 648.2 m | 837.7 m | 764.6 m | SEC (XBRL)· 21 Aug 2026verified |
| Inventories | 294.2 m | 333.9 m | 338.0 m | 397.9 m | 407.2 m | 415.6 m | SEC (XBRL)· 21 Aug 2026verified |
| Current assets | 709.4 m | 746.1 m | 839.9 m | 1.2 bn | 1.4 bn | 1.6 bn | SEC (XBRL)· 21 Aug 2026verified |
| Property, plant & equipment, net | 118.0 m | 109.7 m | 108.9 m | 114.0 m | 126.7 m | 129.9 m | SEC (XBRL)· 21 Aug 2026verified |
| Goodwill | 320.3 m | 336.4 m | 349.5 m | 351.5 m | 387.4 m | 406.7 m | SEC (XBRL)· 21 Aug 2026verified |
| Intangibles (excl. goodwill) | 127.6 m | 138.4 m | 140.9 m | 139.5 m | 183.3 m | 192.4 m | SEC (XBRL)· 21 Aug 2026verified |
| Total assets | 1.4 bn | 1.4 bn | 1.6 bn | 1.9 bn | 2.2 bn | 2.5 bn | SEC (XBRL)· 21 Aug 2026verified |
| Accounts payable | 141.3 m | 125.2 m | 139.0 m | 191.1 m | 205.2 m | 169.0 m | SEC (XBRL)· 21 Aug 2026verified |
| Short-term debt | 846.0 k | 244.6 m | 8.1 m | 8.2 m | 8.1 m | 2.5 m | SEC (XBRL)· 21 Aug 2026verified |
| Long-term debt | 276.4 m | 48.7 m | 136.5 m | 129.4 m | 463.5 m | 998.5 m | SEC (XBRL)· 21 Aug 2026verified |
| Current liabilities | 344.8 m | 614.0 m | 571.7 m | 814.6 m | 696.9 m | 511.1 m | SEC (XBRL)· 21 Aug 2026verified |
| Total liabilities | 744.5 m | 804.7 m | 829.5 m | 1.1 bn | 1.3 bn | 1.7 bn | SEC (XBRL)· 21 Aug 2026verified |
| Equity | 639.8 m † | 638.4 m † | 726.2 m † | 863.5 m † | 951.1 m † | 833.0 m † | SEC (XBRL)· 21 Aug 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 139.1 m | 63.8 m | 94.8 m | -87.5 m | 97.6 m | 275.9 m | SEC (XBRL)· 21 Aug 2026verified |
| Capex | 16.9 m | 14.9 m | 15.8 m | 22.1 m | 23.8 m | 30.6 m | SEC (XBRL)· 21 Aug 2026verified |
| Free cash flow | 122.2 m ≈ | 48.9 m ≈ | 79.0 m ≈ | -109.6 m ≈ | 73.8 m ≈ | 245.3 m ≈ | SEC (XBRL)· 21 Aug 2026derived |
| Investing cash flow | -34.7 m | -12.7 m | -40.5 m | -37.6 m | -117.9 m | -68.3 m | SEC (XBRL)· 21 Aug 2026verified |
| Financing cash flow | -103.9 m | -64.0 m | -37.2 m | 144.3 m | 30.8 m | 46.7 m | SEC (XBRL)· 21 Aug 2026verified |
| Share repurchases | 37.5 m | 111.6 m | 34.7 m | 0 | 80.4 m | 271.9 m | SEC (XBRL)· 21 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 55 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 3.0 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet50
- Returns100
- Quality34
- Growth39
- Valuation84
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 95.34 – 1,428.05 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)271.49 – 485.09 (Mid 350.26)WACC 8.2% · starting FCFF 282.5 m USD · terminal value share of EV 77%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -9.8%
- Peers: EV/Sales141.14 – 1,428.05 (Mid 537.75)27 companies used · median multiple 5.1x · quartiles 1.7x – 12.9xAAOI, ADI, AMAT, AMD, AMKR, ARRY, AVGO, AXTI, FSLR, GCTS, INTC, LEDS, LSCC, MCHP, MRVL, MTSI, MU, NVDA, NXPI, ON, PENG, Q, SPCB, SUNE, TE, TXN, TYGO
- Peers: EV/EBITDA95.34 – 288.63 (Mid 170.47)10 companies used · median multiple 13.2x · quartiles 8.7x – 20.3xAMAT, AMKR, FSLR, MCHP, MU, NVDA, NXPI, ON, PENG, SPCB
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 55/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 32.9% | 0 (on a fixed band) | 11% |
| EBIT margin · Quality | 12.2% | 51 (vs peers) | 9% |
| FCF margin · Quality | 14.7% | 59 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 11.8% | 47 (on a fixed band) | 17% |
| Revenue growth (YoY) · Growth | 4.3% | 24 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | 2.9x | 0 (vs peers) | 6% |
| Current ratio · Balance sheet | 2.9x | 100 (on a fixed band) | 6% |
| EV/Sales · Valuation | 2.1x | 71 (vs peers) | 17% |
| FCF yield · Valuation | 8.8% | 100 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 9.0% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet50/100 · 2/2 factors with a value
- Growth39/100 · 2/2 factors with a value
- Quality34/100 · 3/3 factors with a value
- Returns100/100 · 1/1 factors with a value
- Valuation84/100 · 2/2 factors with a value
Memo
OSI SYSTEMS, INC. (OSIS). Latest full fiscal year: 2026; data up to 2026-09-30.
Figures computed from the financial statements: revenue 1.8 bn USD in 2026; YoY growth 4.3%; net margin 8.8%; ROE 18.4%; net debt/EBITDA 2.9x.
The estimated value range is 141.14–485.09 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 350.26 USD, the price of 191.61 USD leaves a potential of 82.8% (value / price − 1) and a margin of safety of 45.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 55/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Current ratio: 2.9x
- EV/Sales: 2.1x
- FCF yield: 8.8%
- Shareholder yield (distributions): 9.0%
What contradicts it
- Gross margin: 32.9%
- Revenue growth (YoY): 4.3%
- Net debt / EBITDA: 2.9x
- The valuation methods diverge
Versus the vertical median
Semiconductors & Related Devices (SIC 3674) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| NVDANvidia Corp | 4,376.6 bn | 23.0 | 117.2% | 63.7% | +65.5% | +3% / +288% |
| AVGOBroadcom Inc. | 1,391.7 bn | 37.2 | 44.2% | 42.9% | +23.9% | −28% / +215% |
| MUMicron Technology, Inc. | 742.7 bn | 8.8 | 88.3% | 63.8% | +256.3% | +178% / +762% |
| AMDAdvanced Micro Devices, Inc | 663.3 bn | 88.0 | 11.8% | 16.8% | +34.3% | +86% / +234% |
| INTCIntel Corporation | 277.7 bn | — | -10.9% | -20.1% | −0.5% | +29% / +17% |
| TXNTexas Instruments Inc | 254.2 bn | 36.0 | 39.7% | 34.3% | +13.0% | +65% / +82% |
| AMATApplied Materials Inc | 253.4 bn | 27.5 | 41.1% | 30.1% | +4.4% | +27% / +113% |
| ADIAnalog Devices Inc | 174.9 bn | 42.8 | 12.2% | 29.8% | +16.9% | +36% / +97% |
| MRVLMarvell Technology, Inc | 117.1 bn | 44.1 | 16.5% | 27.9% | +42.1% | +49% / +140% |
| NXPINXP Semiconductors N.V. | 61.6 bn | 19.2 | 29.2% | 23.4% | −2.7% | +25% / +20% |
| MPWRMonolithic Power Systems, Inc. | 55.2 bn | 62.4 | 25.1% | 23.9% | +26.4% | +22% / +106% |
| MCHPMicrochip Technology Inc | 35.3 bn | 47.2 | 12.6% | 15.0% | +7.1% | +21% / −22% |
| ALABAstera Labs, Inc. | 31.4 bn | 71.6 | 28.2% | 29.6% | +115.1% | +14% / unavailable |
| IMOSChipMOS TECHNOLOGIES INC. | 29.7 bn | 676.0 | 5.6% | 6.3% | −0.8% | +55% / +64% |
| ONOn Semiconductor Corp | 24.5 bn | 36.6 | 8.9% | 10.8% | −15.3% | +25% / −12% |
| QQnity Electronics, Inc. | 23.0 bn | 38.9 | 7.6% | 11.5% | +9.7% | +36% / unavailable |
| CRDOCredo Technology Group Holding Ltd | 21.1 bn | 40.0 | 30.7% | 33.8% | +205.7% | −37% / +527% |
| FSLRFirst Solar, Inc. | 21.0 bn | 11.3 | 18.7% | 37.1% | +24.1% | −28% / +24% |
| MTSIMACOM Technology Solutions Holdings, Inc. | 14.5 bn | 60.9 | 17.2% | 20.7% | +32.6% | +9% / +127% |
| LSCCLattice Semiconductor Corp | 13.9 bn | 301.7 | 4.2% | 5.5% | unavailable | +40% / +67% |
| AMKRAmkor Technology, Inc. | 7.6 bn | 12.3 | 13.6% | 8.3% | +6.2% | −16% / +8% |
| CRUSCirrus Logic, Inc. | 5.5 bn | 13.9 | 19.5% | 20.2% | +5.3% | −8% / +45% |
| AAOIApplied Optoelectronics, Inc. | 4.3 bn | — | -2.3% | -4.4% | +82.8% | +75% / +254% |
| OSISOsi Systems, Inc. | 3.0 bn | 20.5 | 18.4% | 8.8% | +4.3% | −32% / +76% |
| AXTIAxt Inc | 2.4 bn | 1,792.4 | 0.8% | 3.2% | −11.1% | +243% / +1,745% |
1- and 3-year price returns: for OSIS from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 131.48 Total return -31% · Per year -31% | 231.69 Total return 21% · Per year 21% | 347.95 Total return 82% · Per year 82% |
| 3 years | 146.99 Total return -23% · Per year -8% | 289.54 Total return 51% · Per year 15% | 474.60 Total return 148% · Per year 35% |
| 5 years | 164.32 Total return -14% · Per year -3% | 361.84 Total return 89% · Per year 14% | 647.34 Total return 238% · Per year 28% |
- Exit P/E± 72.39
- Net margin± 50.67
- Annual revenue growth± 38.88
- Annual dilution± 4.26
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 21 Aug 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
In brief
OSI Systems designs and manufactures specialized electronic systems and components for critical applications, mainly for security, healthcare and defense. It reported revenue of 1.79 billion USD in fiscal 2026 and a backlog of about 1.9 billion USD, while its fiscal 2027 guidance points to moderate revenue growth, making the company relevant to those following global security demand.
SWOT
Strengths
- Vertical integration gives control over costs and deliveries, and expertise in critical systems is recognized by institutional customers 1.
- The company reported record operating cash flow and a substantial backlog 2.
- Global presence and manufacturing capacity in several countries help the company serve international customers 1.
Weaknesses
- Revenue is concentrated in the Security division, and delays in large projects can weigh on quarterly results 12.
- The Healthcare division performed weaker in fiscal 2026, with lower revenues 1.
- The company depends on large government customers that can modify or terminate contracts more easily than commercial customers 1.
Opportunities
- New air defense and airspace surveillance programs could open additional demand for high-power radio frequency systems 1.
- Demand for cloud software platforms that integrate inspection data could grow as customers modernize their procedures 1.
- Population ageing and healthcare infrastructure growth in emerging regions could support demand for remote monitoring 1.
Risks
- Detection liabilityhigh
If an inspection system fails to detect a threat, the company could face liability claims, and insurance coverage might be insufficient 1.
- Dependence on government contractshigh
Loss of large institutional customers or non-renewal of key contracts could weigh on reputation and revenues 1.
- Conflict-related delaysmedium
If tensions in the Middle East escalate, shipments and acceptances could be delayed, affecting quarterly revenues 12.
- Currency riskmedium
Exchange rate fluctuations could affect results, since a significant part of sales is made outside the United States 1.
- Government budget disruptionslow
Delays in approving the US federal budget could postpone procurements and contract awards 1.
Investment thesis
What would need to be true (bull case)
- If the fiscal 2027 guidance is delivered, the company could show steady profit growth supported by a large backlog and solid cash flow 2.
- Security demand could stay strong amid geopolitical tensions, and large international contracts could provide multi-year visibility 1.
- If vertical integration and operating efficiency hold, the company could keep attractive margins even under competitive pressure 12.
What would break the thesis
- If Middle East delays extend, quarterly revenues could fall short of expectations even though orders remain in backlog 12.
- If the Healthcare and Optoelectronics divisions do not improve, the company could depend too heavily on the Security division 1.
- Pricing pressure and component cost increases could reduce margins if competition intensifies 1.
What to watch
- Timing of delayed Middle East deliveries and their conversion from backlog into revenueQ1 2027
- Delivery against fiscal 2027 guidance for revenues and non-GAAP earnings per sharefiscal 2027
- Revenue and operating margin trends in the Healthcare divisionfiscal 2027
- New government security contracts and renewal of key existing contractsnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 21 Aug 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
The business
OSI Systems, Inc. is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications, selling into homeland security, healthcare, defense and aerospace markets 1. It operates through three divisions: Security, Optoelectronics and Manufacturing, and Healthcare 1. The company describes vertical integration, lower production costs and direct control over components as its main competitive advantage 1.
In fiscal 2026 revenues rose to approximately 1.8 billion USD, driven by the Security and Optoelectronics divisions and partly offset by lower Healthcare revenues 1. Operating cash flow increased significantly, supported by improved working capital and collections on large Security projects 1. The company reported record non-GAAP earnings per share in the fourth quarter 2.
Customers include government agencies, airports, seaports, hospitals and military contractors, and the company serves customers in over 170 countries 2. Some large contracts, particularly international Security contracts, have revenue recognition schedules that can vary from one year to the next 1.
Segments
Security
The Security division supplies inspection and security systems, including X-ray, computed tomography and radiation detection technologies, along with turnkey screening solutions and software platforms 1. It accounted for 70% of consolidated revenues in fiscal 2026 1.
Market context
Demand for inspection equipment is influenced by terrorist threats, drug and human trafficking, border security and new government mandates, and the international market keeps expanding as countries upgrade their security infrastructure 1. In healthcare, population ageing and infrastructure growth in developing regions support long-term demand, while cost pressures limit hospital budgets 1.
Fiscal 2027 guidance calls for revenues between 1.875 and 1.930 billion USD and non-GAAP earnings per share between 11.13 and 11.49 USD 2. If delivery delays caused by Middle East conflicts continue to shift the revenue timing, quarterly results could remain volatile compared with the annual guidance 2.
Trends
- Geopolitical demand for securitytailwind
Regional conflicts and terrorist threats could increase government spending on inspection and detection systems, which supports demand for Security division products 1.
- Middle East conflict delaysheadwind
Conflicts in the Middle East delayed shipments, acceptance procedures and projects in the fourth quarter of fiscal 2026, and the company says these delays do not reflect order cancellations 12.
- Pressure on healthcare budgetsheadwind
Hospitals face higher operating costs and more expensive credit, which could reduce capital spending on medical equipment 1.
- Memory component shortagesmixed
Global demand for memory from data center and AI infrastructure has tightened supply and raised costs for certain components, which could affect execution 1.
Competitive position
The company faces aggressive competition in all three divisions, based on product performance, government certification, price and local presence 1. In optoelectronics and electronics manufacturing, competition turns on expertise, quality and the ability to provide integrated services from design to production 1.
The company warns that it may have to lower product prices to stay competitive and that new technologies could reduce the value of existing product lines 1.
- Security and inspection competitors
The sources do not name individual competitors, only general competition in the Security division 1.
- Patient monitoring competitors
The sources describe competition in patient monitoring and cardiology without naming companies 1.
- Electronics manufacturing service providers
The sources refer to competition in electronics manufacturing without naming companies 1.
- Other optoelectronics suppliers
The sources mention competition in optoelectronics without naming companies 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- OSI Systems (OSIS) Posted Record Cash Flow and Backlog but Revenue Missed EstimatesYahoo Finance — News · 27 Aug 2026 · EN
- OSI Systems (OSIS) Rides Record Profits Through A Middle East StormYahoo Finance — News · 27 Aug 2026 · EN
The latest news item in our archive is from 27 Aug 2026; the newest SEC filing is from 29 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report29 Oct 2026
- Current report29 Oct 2026Results of operations · Financial statements and exhibits
- Proxy statement26 Oct 2026
- Annual report21 Aug 2026
- Current report20 Aug 2026Results of operations · Other events · Financial statements and exhibits
- Quarterly report04 May 2026
- Current report04 May 2026Results of operations · Financial statements and exhibits
- Quarterly report29 Jan 2026
- Current report29 Jan 2026Results of operations · Financial statements and exhibits
- Current report11 Dec 2025Shareholder vote
Sources
- [1] Form 10-K, fiscal year ended 2026-06-30 · SEC / OSI Systems, Inc. · 21 Aug 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / OSI Systems, Inc. · 20 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.