| Metric | Value ($ M) | Q4 FY26 | Q1 FY26 |
|---|---|---|---|
| Revenue | 403.47 | 16.6% | 4.9% |
| Total Income | 403.47 | 16.6% | 4.9% |
| Expenditure | 369.90 | 9.8% | 5.2% |
| PBT | 30.25 | 56.6% | 17.8% |
| Net Profit | 24.57 | 55.5% | 19.5% |
| OPM | 8.32% | 6.94pp | 0.28pp |
| NPM | 6.09% | 5.32pp | 0.75pp |
| EPS | 1.55 | 54.4% | 27.1% |
OSI Systems Reports Record Q1 FY27 Revenues of $403 Million and Raises EPS Guidance
30 Oct 2026 · 2h ago
Summary
OSI Systems announced record financial results for the first quarter of fiscal year 2027, with revenues reaching $403 million, a 5% increase compared to the prior year. Both GAAP and non-GAAP diluted earnings per share saw significant year-over-year growth of 28% and 17%, respectively. The company achieved a strong book-to-bill ratio of 1.4, resulting in a record backlog of $2.1 billion, and reported a substantial increase in operating cash flow. Management expressed optimism about the company's performance and future outlook, leading to a reaffirmation of revenue guidance and an increase in non-GAAP EPS guidance for fiscal 2027.
Key Highlights
- 1
OSI Systems reported record first quarter revenues of $403 million, a 5% increase year-over-year.
- 2
Diluted earnings per share (EPS) on a GAAP basis grew 28% year-over-year to $1.51.
- 3
Non-GAAP diluted EPS increased by 17% year-over-year to $1.66.
- 4
The company achieved a book-to-bill ratio of 1.4, driving a record backlog of $2.1 billion.
- 5
Operating cash flow more than doubled year-over-year to $37 million.
- 6
The company reaffirmed its fiscal 2027 revenue guidance and raised its fiscal 2027 non-GAAP EPS guidance.
Management Comments
Ajay Mehra
We are pleased to begin fiscal 2027 with record first quarter revenues and earnings per share, led by the performance of our Security and Optoelectronics and Manufacturing divisions. Bookings of $583 million represented a book-to-bill ratio of 1.4 in the quarter, and backlog increased to a record of $2.1 billion from $1.9 billion as of June 30, 2026, providing meaningful visibility into future opportunities. We remain committed to disciplined execution and innovation, and converting our expanding opportunity pipeline into long-term growth. The Security division delivered a solid quarter despite continued geopolitical headwinds. Strong bookings led to record divisional backlog and reflected robust customer demand for our security inspection and surveillance products, integrated solutions, and services. The operating margin was impacted by a less favorable mix of revenues; however, we expect this to improve over the remainder of the fiscal year as our revenue mix stabilizes and service revenues increase. We are enthusiastic about the outlook for this division over the balance of fiscal 2027 and beyond. Our Optoelectronics and Manufacturing division delivered strong fiscal first-quarter results with revenues increasing 9% year-over-year including intersegment sales and 16% year-over-year from sales to external customers, while also achieving adjusted operating margin expansion. The division continued to benefit from its vertically integrated capabilities, broad customer relationships, and diversified manufacturing footprint leading to a strong book-to-bill ratio resulting in record backlog for this division. We remain focused on supporting growth while maintaining disciplined operational execution. The performance of the Healthcare division was soft in the quarter, but we are focused on improving performance and anticipate a return to growth this fiscal year.
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