OSI Systems Posts Record Non-GAAP EPS Amid Middle East Revenue Headwinds — OSI Systems, Inc.

Event summary

OSI Systems reported fiscal 2026 revenue of $1.79 billion, up 4% YoY, despite Middle East conflicts delaying deliveries.
Non-GAAP diluted earnings per share hit a record $3.78 in Q4, up 17% YoY.
Backlog grew to $1.9 billion, with strong bookings across all divisions.
Company repurchased $123.6 million in shares during Q4, ending fiscal 2026 with $359.8 million in cash.
Fiscal 2027 guidance projects 5-8% revenue growth and 7.5-11% EPS growth.

The big picture

OSI Systems delivered solid fiscal 2026 results despite geopolitical disruptions, showcasing resilience across its Security, Optoelectronics, and Healthcare divisions. The company's ability to maintain strong bookings and backlog growth positions it well for fiscal 2027, though geopolitical risks and operational execution remain key watchpoints. The strategic focus on cash generation and shareholder returns underscores its disciplined approach to capital allocation.

What we're watching

Geopolitical Risk: How Middle East conflicts will impact delivery schedules and revenue recognition in fiscal 2027.
Operational Efficiency: Whether the Healthcare division can sustain its improved margins and revenue growth.
Cash Flow Management: The pace at which OSI Systems can continue generating strong operating cash flow while funding growth initiatives.