OSI Systems Shares Slide on Mixed Q4 Results and Weak FY2027 Guidance

OSI Systems Inc. shares fell on Friday after the company reported mixed fourth-quarter results and issued fiscal 2027 sales guidance below Wall Street expectations.

OSI Systems shares declined. Why is OSIS stock falling?

OSI Systems Posts Record Adjusted Earnings, but Revenue Misses

OSI Systems reported fourth-quarter adjusted earnings per share of $3.78, roughly in line with analyst estimates of $3.77 and up nearly 17% from $3.24 in the same period last year. Revenue came in weaker, at approximately $484.06 million, well below analyst expectations of $529.67 million and down about 4% from roughly $504.99 million a year earlier.

Despite the quarterly revenue miss, OSI Systems closed out fiscal 2026 with record full-year revenue of $1.79 billion. Full-year adjusted EPS hit a record $10.35, up 11% from the prior year. The company also reported record quarterly operating cash flow of $182 million and $276 million for the full year, along with a record order backlog of $1.9 billion.

OSI Systems guided fiscal 2027 adjusted EPS in a range of $11.13 to $11.49, below analyst expectations of $11.44, with revenue of approximately $1.88 billion to $1.93 billion, below the analyst estimate of $1.94 billion.

OSI Systems Expands Share Buyback Program

Alongside the results, OSI Systems authorized the repurchase of an additional 1 million shares, bringing its total remaining repurchase authorization to 1,078,731 shares. Management described the larger authorization as a vote of confidence in the company's strategic direction and its ability to continue generating substantial free cash flow.

OSI Systems Chart Shows Stock in Deeply Oversold Territory

Today's decline comes on top of an already pressured chart. The stock is trading about 11.5% below its 20-day moving average of $225.25, roughly 9.5% below its 50-day average of $220.44, and over 21% below its 200-day average of $254.50—a gap large enough that any bounce attempt could face immediate selling pressure until prices recover to the $220 to $225 zone.

Momentum indicators tell a more extreme story. The relative strength index stands at 29.84, deep in oversold territory, indicating the recent decline has exceeded normal levels. Think of RSI as a gauge of the speed and magnitude of a stock's moves. Readings this low typically suggest the drop has been overdone, though that alone does not guarantee an imminent reversal.

The longer-term backdrop remains unfavorable. A death cross formed in June when the 50-day average crossed below the 200-day average, and the stock is down 8.48% over the past 12 months. Traders may watch whether the stock can hold near its early August lows, as a decisive break below that area would keep the broader downtrend intact.

Resistance sits at $225, a round number closely aligned with the 20-day average and a level where bounces have tended to lose momentum. Support is at $197.50, just above the 52-week low near $197.27, an area that could attract bargain hunters or, if broken, lead to further downside.

OSIS Shares Drop Sharply

OSIS Price Action: OSI Systems shares were down 8.75% to $199.00 at the time of writing on Friday. The stock was trading near its 52-week low of $197.27.