| Metric | Value ($ M) | vs Q3 FY26 |
|---|---|---|
| Revenue | 484.06 | 6.8% |
| Total Income | 484.06 | 6.8% |
| Expenditure | 410.17 | 2.5% |
| PBT | 69.77 | 41.8% |
| Net Profit | 55.24 | 37.3% |
| OPM | 15.26% | 3.52pp |
| NPM | 11.41% | 2.54pp |
| EPS | 3.40 | 39.3% |
OSI Systems Reports Record Fiscal 2026 Fourth Quarter and Full Year Financial Results
21 Aug 2026 · 21 Aug, 1:37 am
Summary
OSI Systems announced record financial results for Fiscal Year 2026, highlighted by revenues of $1.79 billion and record non-GAAP earnings per share of $10.35 for the full year. The fourth quarter also saw record non-GAAP EPS of $3.78, up 17% year-over-year, and record operating cash flow of $182 million. Despite headwinds from Middle East conflicts impacting delivery timing, the company ended the year with a record backlog of $1.9 billion. Management expressed confidence in the opportunity pipeline and operational execution for Fiscal 2027, introducing guidance for revenues between $1.875 billion and $1.930 billion.
Key Highlights
- 1
OSI Systems reported record Fiscal Year 2026 revenues of $1.79 billion.
- 2
The company achieved record non-GAAP EPS of $3.78 for the fourth quarter of Fiscal 2026, representing 17% growth year-over-year.
- 3
Fiscal Year 2026 non-GAAP EPS reached a record $10.35, an 11% increase compared to the prior year.
- 4
Record operating cash flow of $182 million was generated in the fourth quarter of Fiscal 2026, and $276 million for the full fiscal year.
- 5
The company ended Fiscal Year 2026 with a record backlog of $1.9 billion.
- 6
The Healthcare division delivered an improved fourth quarter with revenues up approximately 5% and an adjusted operating margin of 10%.
Management Comments
Ajay Mehra
Fiscal 2026 was a strong year for the Company, capped by record fourth quarter non-GAAP earnings per share and record operating cash flow, despite the impact of revenue headwinds from the Middle East conflicts which shifted the timing of certain planned deliveries. Our teams performed well across our three divisions, delivering solid bookings which led to substantial backlog. As we enter fiscal 2027, our opportunity pipeline, disciplined operating execution and continued focus on cash generation position us well to advance key strategic initiatives and drive long-term value. The Security division continued to execute well during the fourth quarter, delivering strong profitability, outstanding cash generation and healthy bookings. While revenues were impacted by disruptions from the Middle East conflicts, underlying demand for our products and services remain encouraging. These delays do not reflect order cancellations and remain in our backlog with updated delivery schedules. The Security division ended the year with a substantial backlog, a significant opportunity pipeline and recent program wins that position the business well for the future. The Optoelectronics and Manufacturing division delivered strong results for the quarter with revenues up about 5% year-over-year on broad-based demand across several key end markets. Our ability to support customers with highly engineered products, precision manufacturing capabilities and global operational reach continues to differentiate us in the marketplace. We are excited by the opportunities we see across our aerospace, defense, healthcare, technology and industrial Optoelectronics customer base. The Healthcare division delivered an improved fourth quarter, with revenues up approximately 5% and an adjusted operating margin of 10% compared with 1% in the prior-year quarter, demonstrating the impact of operational improvements implemented throughout the year. We are focused on expanding our installed base, supporting healthcare providers with innovative clinical solutions and advancing product development initiatives designed to enhance patient care.
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