OSI Systems, Inc. (OSIS)

In fiscal Q2 2026, OSI Systems reported record revenues of $464 million, an 11% year-over-year growth, and record non-GAAP diluted earnings per share of $2.58, increasing its fiscal 2026 non-GAAP EPS guidance. In fiscal Q3 2026, the company reported record revenues of $453 million and record non-GAAP diluted EPS of $2.60, with its backlog reaching a record $1.9 billion, fueled by a $235 million Homeland Defense contract. OSI Systems received a $235 million Homeland Defense contract on April 23, 2026. On January 26, 2026, the Security division was awarded a contract to deliver multiple screening technologies for a major global sporting event in Europe. As of April 27, 2026, the stock price was $291.34 per share, a 44.59% increase from April 28, 2025.

Demand for OSI Systems' products and services can experience some seasonality, particularly in its hardware-focused segments, but the company is working to mitigate this. Management expects that expanding its service offerings will help reduce revenue seasonality and improve margins. The company's pivot towards digitized security and remote healthcare services is a strategic move to smooth hardware cyclicality. Growth drivers like border modernization, rising global trade volumes, and an aging population are expected to contribute to sustained demand.

OSI Systems, Inc. is a designer and manufacturer of specialized electronic systems and components for security, healthcare, defense, and aerospace markets. The company operates through Security, Healthcare, and Optoelectronics and Manufacturing divisions, creating solutions for a safer and healthier world. The Security Division provides security and inspection systems, offering turnkey security screening solutions. The Healthcare Division offers patient monitoring, diagnostic cardiology, anesthesia delivery, and connected care systems. The Optoelectronics and Manufacturing Division develops optoelectronic components and provides advanced electronics manufacturing services.

OSI Systems has a significant global presence in North America, Europe, and Asia, with over 50% of its revenue generated outside the U.S. It serves a worldwide customer base through a distributor network and global operations across the Americas, the European Union, the Middle East, and Asia Pacific. The company is headquartered in Hawthorne, California, and has facilities in the U.S., Mexico, Canada, the United Kingdom, Germany, United Arab Emirates, Albania, Indonesia, Malaysia, Singapore, and India.

OSI Systems maintains a strong brand reputation through consistent financial performance, strategic growth, and leadership in specialized technology markets. The company's focus on innovation and delivering mission-critical solutions contributes to its positive standing. Recent achievements, such as record revenues and significant contract wins, reinforce its market position. Timing-related delays from a U.S. government shutdown and Middle East conflicts impacted bookings in the Security division in Q2 FY2026, but management clarified that these did not reflect changes in underlying demand.

OSI Systems Inc.'s ownership is predominantly institutional, with institutional investors holding between 77.36% and 89.90% of the company's stock as of 2025. Major institutional shareholders include BlackRock, Inc., Vanguard Group Inc., Fmr Llc, Janus Henderson Group Plc, Capital International Investors, and State Street Corp. Insider ownership ranges from 5.72% to 13.01%, with Deepak Chopra, the founder and Executive Chairman, holding 4.05% to 4.44% of the company's stock as of 2025.