OSI Systems Falls 13% After Hours on Fiscal Year Revenue Growth but Soft Guidance

OSI Systems, Inc. shares fell 13.41% in after-hours trading Thursday after the company reported fiscal 2026 results and announced an expanded share repurchase authorization.

The stock fell 1.28% to close at $218.09 in Thursday's regular trading session. It declined 13.41% to $188.84 in after-hours trading.

OSI Systems designs and manufactures specialized electronic systems and components for security, healthcare, aerospace, defense, and other critical applications.

Fiscal 2026 Revenue Growth

OSI Systems reported fiscal 2026 revenue of $1.79 billion, up 4% year over year.

The company reported GAAP diluted earnings per share of $8.95 for fiscal 2026, compared to $8.71 in the prior-year period. Non-GAAP diluted earnings per share rose 11% to $10.35.

The company ended fiscal 2026 with $359.8 million in cash and cash equivalents, compared to $106.4 million in the prior-year period.

OSI Systems also reported a record backlog of approximately $1.9 billion as of June 30.

Company Issues Fiscal 2027 Guidance

OSI Systems expects fiscal 2027 revenue of $1.875 billion to $1.93 billion, representing growth of 5% to 8.1%.

The company expects non-GAAP diluted earnings per share of $11.13 to $11.49 for fiscal 2027, representing growth of 7.5% to 11%.

President and CEO Ajay Mehra said the company delivered strong fiscal year results despite revenue headwinds from delivery delays related to the Middle East conflict.

"These delays do not reflect order cancellations; these orders remain in our backlog with updated delivery schedules," Mehra said.

OSI Systems Expands Share Repurchase Program

OSI Systems' board approved an additional 1 million shares for repurchase, bringing total remaining authorization to 1,078,731 shares.

The company repurchased 564,880 shares in the fourth fiscal quarter for a total of $123.6 million.

CFO Alan Edrick said the expanded authorization reflects the company's confidence in its business and cash flow generation while maintaining flexibility to invest in growth opportunities.

Stock Performance

OSI Systems has a market capitalization of approximately $3.6 billion.

The stock's 52-week high is $311.30, and its 52-week low is $197.27.

OSIS shares are up 0.09% over the past year. Investor's Edge stock ranking shows positive short-term price trends, while medium- and long-term price trends remain negative.