OSI Systems (NASDAQ:OSIS) Releases Earnings Results, Beats Estimates By $0.06 EPS

OSI Systems (NASDAQ:OSIS) posted its quarterly earnings results on Thursday. The technology company reported $2.58 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%.

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%

Shares of OSIS stock traded down $1.65 during mid-day trading on Thursday, hitting $269.74. 350,071 shares of the company’s stock were exchanged, compared to its average volume of 254,929. The stock has a market cap of $4.58 billion, a price-to-earnings ratio of 30.55, a PEG ratio of 2.30 and a beta of 1.35. The company has a quick ratio of 1.29, a current ratio of 1.87 and a debt-to-equity ratio of 0.46. OSI Systems has a fifty-two week low of $153.40 and a fifty-two week high of $294.93. The stock has a 50-day simple moving average of $270.10 and a two-hundred day simple moving average of $250.59.

Insider Buying and Selling at OSI Systems

In other news, insider Paul Keith Morben sold 416 shares of the company’s stock in a transaction dated Friday, November 7th. The shares were sold at an average price of $279.10, for a total transaction of $116,105.60. Following the completion of the transaction, the insider owned 8,540 shares of the company’s stock, valued at $2,383,514. This represents a 4.64% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director James B. Hawkins sold 1,500 shares of the stock in a transaction dated Friday, November 7th. The stock was sold at an average price of $283.15, for a total transaction of $424,725.00. Following the transaction, the director owned 5,036 shares in the company, 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. Insiders sold 21,916 shares of company stock worth $6,255,631 in the last 90 days. 4.30% of the stock is owned by company insiders.

Institutional Trading of OSI Systems

A number of institutional investors and hedge funds have recently made changes to their positions in OSIS. UBS Group AG boosted its holdings in OSI Systems by 63.8% in the 3rd quarter. UBS Group AG now owns 316,334 shares of the technology company’s stock worth $78,843,000 after acquiring an additional 123,212 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new position in shares of OSI Systems in the third quarter valued at $40,222,000. Cubist Systematic Strategies LLC acquired a new stake in OSI Systems during the 2nd quarter valued at $13,576,000. Two Sigma Investments LP increased its stake in OSI Systems by 107.6% during the 3rd quarter. Two Sigma Investments LP now owns 59,065 shares of the technology company’s stock worth $14,721,000 after buying an additional 30,617 shares during the period. Finally, Public Sector Pension Investment Board lifted its holdings in OSI Systems by 7.4% in the 2nd quarter. Public Sector Pension Investment Board now owns 53,236 shares of the technology company’s stock worth $11,971,000 after buying an additional 3,657 shares in the last quarter. 89.21% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on OSIS shares. Oppenheimer upped their price target on OSI Systems from $270.00 to $280.00 and gave the stock an “outperform” rating in a report on Friday, October 3rd. UBS Group set a $292.00 target price on OSI Systems in a report on Monday, December 1st. Weiss Ratings reaffirmed a “buy (b)” rating on shares of OSI Systems in a research note on Thursday, January 22nd. Bank of America increased their price objective on shares of OSI Systems from $265.00 to $315.00 and gave the company a “buy” rating in a research note on Wednesday, November 5th. Finally, JPMorgan Chase & Co. lifted their target price on shares of OSI Systems from $242.00 to $255.00 and gave the stock a “neutral” rating in a research report on Monday, November 3rd. Six investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $272.00.

About OSI Systems

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.