OSI Systems IncOSIS
▼ NegativeCapitalrelevance
Q4 revenue miss and weak guidance drove shares down 10%
Impact on stocks 1
Smart City / Autonomous Infrastructure
OSI Systems IncOSI Systems shares fell nearly 10% to about $197.79 on Friday after the company reported fiscal fourth quarter 2026 revenue of $484.1 million, down 4% year over year and well below analysts' estimate of about $529.7 million. The shortfall was driven by roughly $50 million of planned security division deliveries pushed beyond the fiscal year-end due to Middle East conflicts and site-access constraints, which management stressed were delayed rather than canceled. Non-GAAP EPS rose 17% to $3.78, slightly ahead of the $3.77 estimate, and adjusted operating margin expanded to 17.7% from 15.7%. The company ended fiscal 2026 with record operating cash flow of $275.9 million and a record backlog of about $1.9 billion, while repurchasing $123.6 million of stock in the quarter. Management guided fiscal 2027 revenue of $1.875 billion to $1.93 billion and non-GAAP EPS of $11.13 to $11.49, with growth expected to be strongest in the second half and newer DHS-related business contributing from fiscal 2028 onward.
OSI Systems IncQ4 revenue miss and weak guidance drove shares down 10%