EarningsQ4 2026 Earnings Report

OSI Systems (OS2) Q4 2026 Earnings Report

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Previous Report: Q3 2026

DE:OS2 Q4 2026 EPS Results

Actual EPS€3.37

Consensus EPS€3.37

Beat/MissBeat by +<€0.01

One Year Ago EPS€2.89

DE:OS2 Q4 2026 Revenue Results

Actual Revenue€431.96M

Expected Revenue€472.71M

Beat/MissMissed by -€40.75M

YoY Revenue Growth-4.14%

Earnings Announcement Details

QuarterQ4 2026

Date08/20/2026

TimeAfter Close

Conference CallThursday, August 20, 2026

DE:OS2 Upcoming Earnings

OSI Systems's next earnings date is estimated for October 22, 2026, based on past reporting schedules.

Q4 2026 Earnings Call Audio

DE:OS2 Q4 2026 Earnings Call

0:00 / 0:00

Q4 2026 Earnings Slide Deck

No slide deck is available for this earnings event.

Q4 2026 Earnings Call Summary

Q4 2026

Earnings Call Date:Aug 20, 2026|

% Change Since:

Earnings Call Sentiment|Positive

The call conveyed multiple strong financial achievements — record backlog, record operating cash flow, record adjusted EPS, margin expansion, robust service and optoelectronics growth, and significant RF and CBP wins — that underpin a positive outlook and raised FY27 guidance. Offsetting these positives are notable near-term headwinds: geopolitically driven delivery delays in the Middle East (≈$50M deferred) and lower Mexico-related revenues (~$150M year-over-year impact), plus modest leverage from refinancing and buybacks. Management emphasized that delayed orders remain in backlog and expects much of the benefit to materialize in FY28 and beyond. On balance, the highlights materially outweigh the lowlights, though some near-term revenue timing risk remains.

Company Guidance

For fiscal 2027 OSI guided revenues of $1.875–$1.93 billion (up 5.0%–8.1% YoY) and non‑GAAP diluted EPS of $11.13–$11.49 (up 7.5%–11.0% YoY), noting growth will be strongest in the second half and that the outlook assumes timing delays from the Middle East (≈$50M of deliveries deferred, not lost) and only a portion of recently awarded CBP IDIQ ceilings (a $21M task order has been received) will convert in FY27; management also expects the prior Mexico headwind to moderate to < $25M (concentrated in H1). The company expects strong double‑digit service revenue growth in FY27, believes free cash flow could exceed 100% of net income with continued strong operating cash flow (Q4 operating cash flow $182M; FY26 operating cash flow $276M), finished FY26 with a record ~$1.9B backlog, $360M cash and net leverage of ~2.1, and noted the guidance excludes impairments, restructuring, amortization of acquired intangibles, discrete tax items and other nonrecurring items; the board authorized an additional 1.0M share repurchase after Q4 repurchases of ~565k shares (avg ~$219; $123.6M) and ~1.1M shares repurchased/retired in the year.

Record Annual Revenue and Backlog

Full-year revenue of $1.79B (record) up 4% year-over-year; quarter revenue $484M. Ended fiscal 2026 with a record backlog of approximately $1.9B, providing strong visibility into FY27 and beyond.

Outstanding Cash Generation

Record Q4 operating cash flow of $182M and record full-year operating cash flow of $276M. Cash balance of $360M at year-end vs $106M a year ago. Management expects strong free cash flow in FY27 and anticipates free cash flow could exceed 100% of net income.

Strong Earnings and EPS Growth

Q4 non-GAAP EPS of $3.78, up 17% year-over-year (record Q4); full-year adjusted EPS $10.35, up 11% year-over-year (record). FY27 adjusted EPS guidance of $11.13–$11.49, up 7.5%–11% year-over-year.

Margin Expansion

Q4 adjusted operating margin expanded to 17.7% (up 200 bps vs prior-year Q4). Q4 gross margin 34.7% (vs 33.3% prior-year Q4). Divisional Q4 adjusted operating margin improvements: Security 20.8% (from 20.4%), Optoelectronics 14.7% (from 13.6%), Healthcare 10% (from 1%).

Optoelectronics Momentum

Optoelectronics full-year revenues grew 9% to $451M with strong margins and improved booking activity across diversified end markets; management expects trends to continue in FY27.

Services Revenue Growth and Opportunity

Full-year service revenues grew 13% to $441M. Excluding prior-year Mexico installation revenues, security service revenues rose 9% in Q4. Company expects strong double-digit service revenue growth in FY27, with services contributing higher-margin revenue.

Significant RF and Homeland Defense Wins

Awarded an undefinitized RF contract (production/integration of homeland defense over-the-horizon radar transmit subsystems) with not-to-exceed value of approximately $235M (largest RF award to date). Also won two CBP IDIQs (ceilings ~ $200M and $85M) and already received a $21M task/delivery order under those IDIQs.

Balance Sheet Strength and Capital Return

Generated strong collections (collected $159M from largest Mexico customer in Q4; AR from that customer declined from $345M at end Q3 to $190M at end Q4). Repurchased ~565k shares in Q4 for ~$123.6M and retired ~1.1M shares in the fiscal year; board authorized an additional 1M-share repurchase. Refinance added low-cost long-term debt while preserving liquidity.

FY27 Revenue Guidance

Revenue guidance of $1.875B–$1.93B representing 5%–8.1% year-over-year growth, with expectation that growth will be stronger in the second half of FY27.

DE:OS2 Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Oct 22, 2026	2027 (Q1)	1.47 / -	1.267	―
Aug 20, 2026	2026 (Q4)	3.37 / 3.37	2.891	16.67% (+0.48)
May 04, 2026	2026 (Q3)	2.27 / 2.32	2.177	6.56% (+0.14)
Jan 29, 2026	2026 (Q2)	2.25 / 2.30	2.16	6.61% (+0.14)
Oct 30, 2025	2026 (Q1)	1.23 / 1.27	1.115	13.60% (+0.15)
Aug 21, 2025	2025 (Q4)	2.85 / 2.89	2.534	14.08% (+0.36)
May 01, 2025	2025 (Q3)	2.14 / 2.18	1.928	12.96% (+0.25)
Jan 23, 2025	2025 (Q2)	2.08 / 2.16	1.972	9.50% (+0.19)
Oct 24, 2024	2025 (Q1)	0.96 / 1.12	0.812	37.36% (+0.30)
Aug 22, 2024	2024 (Q4)	2.49 / 2.53	2.374	6.77% (+0.16)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed