OSI Systems, Inc. (NASDAQ:OSIS) saw its stock climb 2.96% in pre-market trading Thursday after reporting fourth-quarter results and issuing a bullish fiscal 2026 outlook.
For the quarter, the security and healthcare technology company posted adjusted earnings of $3.24 per share, up 14% year-over-year, slightly below analysts’ estimate of $3.19. Revenue reached a record $504.99 million, a 5% increase from last year, driven mainly by higher service revenues in the Security division from a growing installed product base.
Investors were encouraged by the company’s fiscal 2026 guidance, which projects revenue between $1.805 billion and $1.850 billion, a 5.4% to 8.0% increase, well above the consensus estimate of $1.71 billion. Non-GAAP EPS is forecast at $10.11 to $10.39, exceeding analyst expectations of $9.31.
Ajay Mehra, President and CEO, commented: “We are pleased to report record-breaking Q4 and full-year 2025 revenues and non-GAAP earnings, led by excellent execution in our Security division. With strong bookings, a solid backlog, and high visibility into our pipeline, we are well-positioned for fiscal 2026.”
For the full fiscal year 2025, OSI Systems recorded record revenue of $1.71 billion, up 11% YoY, and non-GAAP earnings of $9.36 per share, a 15% increase from the prior year. The company ended the year with a backlog exceeding $1.8 billion.
Alan Edrick, EVP and CFO, noted that the company recently expanded its credit facility to $825 million, extending the maturity to 2030. “With this enhanced facility and expected strong cash flow in fiscal 2026, we are well-positioned to invest in strategic initiatives and create long-term value,” he said.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.