OSI Systems (NASDAQ:OSIS) Issues Quarterly Earnings Results

by · The Markets Daily

OSI Systems (NASDAQ:OSIS – Get Free Report) announced its quarterly earnings results on Thursday. The technology company reported $2.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.52 by $0.06, FiscalAI reports. OSI Systems had a return on equity of 18.25% and a net margin of 8.68%.The firm had revenue of $464.06 million during the quarter, compared to the consensus estimate of $449.51 million.

Here are the key takeaways from OSI Systems’ conference call:

  • Record Q2 results — revenues rose 11% YoY to $464M, non‑GAAP EPS reached a Q2 record of $2.58, operating cash flow was $62M, and management raised fiscal 2026 non‑GAAP EPS guidance to $10.30–$10.55 while keeping revenue guidance unchanged.
  • Security momentum and program wins — security revenue grew 15% (31% ex‑Mexico), the company won a $20M radiological monitoring award, an ~ $30M international RF naval order, was named on the large Shield (Golden Dome) IDIQ, and is expanding RF capacity in Texas to support expected demand.
  • Optoelectronics strength — Opto posted another Q2 record with 12% sales growth, improved adjusted operating income, a book‑to‑bill >1, and added manufacturing capacity (Mexico, SE Asia, India, North America) to capture supply‑chain diversification tailwinds.
  • Mexico contract headwind — revenues tied to large Mexico security contracts fell 50% YoY to $27M, and management warns of a >$50M YoY revenue headwind in Q3 that will pressure near‑term comps and margins.
  • Healthcare softness and R&D step‑up — Healthcare division sales were weak, the company is intensifying sales and product investments, and R&D increased to $19.8M, actions that management says will take time to restore performance and may weigh on near‑term margins.

OSI Systems Trading Down 0.6%

NASDAQ:OSIS traded down $1.65 during mid-day trading on Thursday, hitting $269.74. The company had a trading volume of 350,071 shares, compared to its average volume of 254,929. The firm has a market cap of $4.58 billion, a P/E ratio of 30.55, a P/E/G ratio of 2.30 and a beta of 1.35. The business’s fifty day moving average is $270.10 and its two-hundred day moving average is $250.59. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.29 and a current ratio of 1.87. OSI Systems has a fifty-two week low of $153.40 and a fifty-two week high of $294.93.

Insider Buying and Selling at OSI Systems

In other news, Chairman Deepak Chopra sold 20,000 shares of the business’s stock in a transaction dated Monday, November 10th. The shares were sold at an average price of $285.74, for a total transaction of $5,714,800.00. Following the transaction, the chairman directly owned 292,969 shares in the company, valued at $83,712,962.06. The trade was a 6.39% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director James B. Hawkins sold 1,500 shares of the firm’s stock in a transaction that occurred on Friday, November 7th. The shares were sold at an average price of $283.15, for a total value of $424,725.00. Following the completion of the sale, the director directly owned 5,036 shares of the company’s stock, valued at approximately $1,425,943.40. The trade was a 22.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 21,916 shares of company stock valued at $6,255,631. 4.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On OSI Systems

A number of institutional investors have recently modified their holdings of the business. UBS Group AG raised its stake in OSI Systems by 63.8% in the third quarter. UBS Group AG now owns 316,334 shares of the technology company’s stock valued at $78,843,000 after purchasing an additional 123,212 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in shares of OSI Systems in the third quarter worth approximately $40,222,000. Cubist Systematic Strategies LLC acquired a new stake in OSI Systems during the 2nd quarter worth about $13,576,000. Two Sigma Investments LP increased its stake in shares of OSI Systems by 107.6% in the 3rd quarter. Two Sigma Investments LP now owns 59,065 shares of the technology company’s stock valued at $14,721,000 after acquiring an additional 30,617 shares in the last quarter. Finally, Public Sector Pension Investment Board increased its stake in OSI Systems by 7.4% in the second quarter. Public Sector Pension Investment Board now owns 53,236 shares of the technology company’s stock valued at $11,971,000 after purchasing an additional 3,657 shares in the last quarter. Institutional investors own 89.21% of the company’s stock.

Analysts Set New Price Targets

Several brokerages have weighed in on OSIS. JPMorgan Chase & Co. increased their target price on OSI Systems from $242.00 to $255.00 and gave the stock a “neutral” rating in a research report on Monday, November 3rd. Roth Mkm raised their price objective on shares of OSI Systems from $280.00 to $292.00 and gave the company a “buy” rating in a research report on Monday, December 1st. Bank of America raised their target price on shares of OSI Systems from $265.00 to $315.00 and gave the stock a “buy” rating in a report on Wednesday, November 5th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of OSI Systems in a research report on Thursday, January 22nd. Finally, UBS Group set a $292.00 target price on shares of OSI Systems in a research report on Monday, December 1st. Six research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $272.00.

Get Our Latest Stock Analysis on OSIS

About OSI Systems

(Get Free Report)

OSI Systems, Inc (NASDAQ: OSIS) is a publicly traded technology company founded in 1987 and headquartered in Hawthorne, California. The company designs, develops and manufactures advanced security and inspection systems, optoelectronic devices and medical imaging equipment. Over its history, OSI Systems has grown its product offerings through internal research and development as well as strategic acquisitions, expanding its capabilities in mission-critical sensing and inspection technologies.

OSI Systems operates three primary business segments.

Featured Stories