OSI Systems (OSIS) Fiscal Q4 2026 Earnings Call: $50M Delivery Delay and FY2027 Guidance
Source Tradingkey
Key Takeaways
- Fiscal Q4 2026 revenue fell approximately 4% year over year to $484 million, mainly because about $50 million of planned Security deliveries shifted beyond June 30 due to conflict-related delays and site-access constraints in the Middle East. The company said the deliveries remain in backlog and were not lost.
- Full-year revenue rose 4% to a record $1.79 billion, while non-GAAP diluted EPS increased 11% to a record $10.35. Q4 non-GAAP EPS grew 17% to $3.78.
- Adjusted operating margin expanded 200 basis points to 17.7% in Q4. All three divisions improved, including Healthcare, where adjusted operating margin rose to 10% from 1%.
- OSI Systems ended fiscal 2026 with record backlog of approximately $1.9 billion. Full-year book-to-bill was slightly above 1, while Q4 book-to-bill was just below 1.
- Management guided fiscal 2027 revenue to $1.875 billion-$1.93 billion and adjusted EPS to $11.13-$11.49. Growth is expected to be strongest in the second half.
- Operating cash flow reached a record $182 million in Q4 and $276 million for the year. Management expects fiscal 2027 free cash flow to exceed 100% of net income.
Key Financial Data
| Metric | Fiscal Q4 2026 / FY2026 | Change or context |
|---|---|---|
| Q4 revenue | $484 million | Down approximately 4% year over year |
| FY2026 revenue | $1.79 billion | Up 4%; record annual revenue |
| Q4 non-GAAP diluted EPS | $3.78 | Up 17%; record Q4 result |
| FY2026 non-GAAP diluted EPS | $10.35 | Up 11%; record annual result |
| Q4 gross margin | 34.7% | Up from 33.3% |
| Q4 adjusted operating margin | 17.7% | Up from 15.7% |
| Q4 operating cash flow | $182 million | Record quarterly cash flow |
| FY2026 operating cash flow | $276 million | Record annual cash flow |
| FY2026 service revenue | $441 million | Up 13% |
| Backlog | Approximately $1.9 billion | Record fiscal year-end backlog |
| Cash | $360 million | Up from $106 million a year earlier |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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