OSIS · OSI Systems, Inc.

OSI Systems delivered fiscal 2026 Q3 results with revenues of $453.2 million, a 2% increase from $444.4 million in the prior year quarter, driven by growth in both products ($344.9 million, +1%) and services ($108.3 million, +5%). Gross profit remained stable at $150.3 million despite higher cost of goods sold, reflecting pricing discipline and efficiency. Operating income dipped to $53.2 million (11.7% margin) from $56.2 million (12.7%), impacted by elevated impairment, restructuring, and other charges of $6.2 million versus $2.3 million last year, alongside higher R&D spend. Non-GAAP operating income of $62.9 million (13.9% margin) and EPS of $2.60 marked records, excluding amortization and one-time items. CEO Ajay Mehra highlighted strength in Security division bookings and margins (excluding prior Mexico contracts, revenues up 25% YoY) and 10% growth in Optoelectronics and Manufacturing with robust book-to-bill. Backlog expanded to a record $1.9 billion from $1.8 billion, signaling sustained demand. Nine-month performance showed 8% revenue growth to $1.302 billion and non-GAAP EPS up 8% to $6.60. The company reiterated FY2026 guidance amid risks like government shutdowns and Middle East conflicts, underscoring confidence in its diversified portfolio across Security, Optoelectronics, and Healthcare segments serving global OEMs and infrastructure protection.