OSIS
OSI Systems, Inc.262.65
+0.27+0.1%
Dec 16, 4:00:00 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q2 '26
Bookings delayed; Golden Dome upside.
Q&A chalked Security's sub-1x book-to-bill up to U.S. government shutdown delays and intl pushouts, but insisted high-probability deals fuel H2 strength with backlog steady at $1.8B. Golden Dome emerged as a multi-year RF blockbuster—potentially hundreds of millions—prompting Texas expansions, though timing stays vague. Mexico receivables promise outsized FCF into FY27; buybacks join M&A on capex menu amid strong cash. Service surge sets up Q4 margin expansion as comps ease. Analysts poked at CBP civil works and aviation pipelines; management brushed off hurdles bullishly. Bookings slipped. Watch H2 bookings-to-revenue conversion.
Key Stats
Market Cap
4.46BP/E (TTM)
29.68Basic EPS (TTM)
8.85Dividend Yield
0%Recent Filings
10-Q
Q2 FY2026 results
OSI Systems posted Q2 revenue of $464M, up 10.5% y/y from $420M, with Security division jumping 15% to $335M on aviation and RF product strength plus service growth, while gross margin slipped to 32.7% from 35.0% on mix shift. Operating income held steady at $58M despite $2.9M restructuring charges; diluted EPS flat at $2.22 as 2029 Notes dilution offset gains, reconciling to 17,469K shares. Cash soared to $337M on $79M operating cash flow (up from $15M y/y), funding $147M buyback after $575M 2031 Notes issuance, with $611M revolver availability. Debt climbed to $1.0B yet covenants met. Security stays dominant. Supply chain snags linger.
8-K
Record Q2 revenues, raised guidance
OSI Systems posted record Q2 fiscal 2026 revenues of $464M, up 11% year-over-year, with non-GAAP EPS hitting $2.58. Security revenues surged 15% on services growth, yet bookings softened from U.S. government shutdown delays. Cash flow topped $62M. Company raised FY2026 non-GAAP EPS guidance to $10.30-$10.55.
8-K
Annual meeting elects directors
OSI Systems elected all six director nominees at its December 11, 2025 annual meeting, with Deepak Chopra and Ajay Mehra securing the strongest support while James B. Hawkins faced notable opposition. Stockholders ratified Grant Thornton as auditors for fiscal 2026 with near-unanimous approval. Executive comp earned 81% backing. Board continuity intact.
8-K
Issued $500M convertible notes
OSI Systems issued $500 million of 0.50% Convertible Senior Notes due 2031 on November 20, 2025, with initial purchasers holding a $75 million greenshoe option. Senior unsecured, they carry a low 0.50% interest rate, convertible initially at $353.82 per share into up to 2.15 million shares. Cheap capital secured. Yet redemption starts only after 2029 if stock outperforms.
8-K
Prices $500M notes offering
OSI Systems priced an upsized $500 million private offering of 0.50% Convertible Senior Notes due 2031 on November 17, 2025, settling November 20. Net proceeds of ~$489.4 million fund $146.1 million common stock repurchases, revolver repayment, and general purposes. Low-rate debt bolsters balance sheet. Buyers can convert at $353.82/share, a 32.5% premium.
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