OSI Systems, Inc. OSIS
OSI Systems delivered mixed fiscal 2026 results — Q4 EPS of $3.78 beat the $3.76 consensus but revenue missed, FY2027 sales guidance came in below Wall Street estimates, and the stock fell roughly 9.5% to $197.29 on August 21, 2026. Full-year revenue growth decelerated to 4.25% from 11.33% in FY2025, gross margin compressed to 33.21% from 34.27%, and EPS growth slowed to 2.76% from 18.02%, while total debt jumped to $1.0 billion from $682 million.
A record $1.90 billion backlog and strong free cash flow of $275.9 million support the downside case, and the 23.6x P/E trades at a roughly 23% discount to the peer median of 30.5x, but weak forward guidance and deteriorating margin trends argue for patience before adding.
What could go wrong
- Margin compression. Gross margin declined to 33.21% in FY2026 from 34.27% in FY2025 and 34.47% in FY2024, suggesting pricing pressure or mix shift that could further erode profitability.
- Leverage increase. Total debt rose to $1.0 billion as of June 30, 2026 from $682 million a year earlier, while stockholders' equity fell to $833 million from $951 million, increasing balance-sheet risk.
- Weak FY2027 guidance. Management issued fiscal 2027 sales guidance below Wall Street estimates, and analysts cut forecasts after the Q4 print, signaling near-term revenue uncertainty tied to Middle East delivery delays.
- Insider net selling. Over the trailing 24 months insiders net sold 95,297 shares for $16.4 million, with no cluster buy detected; recent acquisitions were compensation-related (code A) rather than open-market purchases.
What would change my mind
Where this comes from: Zacks news article, 2026-08-20 · The Fly news article, 2026-08-21 · Benzinga news article, 2026-08-21 · Zacks news article, 2026-08-21. Orin's read on OSIS; not advice.
Twelve months actual closes to 2026-09-23 · actual filings
50-day average 200-day average · volume below
On file
All OSIS filings| Form | Filed | What it says | Read |
|---|---|---|---|
| 10-K | 21 Aug | OSI Systems, Inc. designs and manufactures specialized electronic systems and components for homeland security, healthcare, defense, and aerospace markets. The company operates… | read |
| 8-K | 20 Aug | OSI Systems reported record fiscal 2026 revenues of $1.79 billion, a 4% increase year-over-year, and record non-GAAP diluted EPS of $10.35, up 11%. | read |
| 13G | 13 Aug | — | on file |
| 13G/A | 6 Aug | — | on file |
| 13G | 31 Jul | — | on file |
| 13G/A | 15 May | — | on file |
| 13G/A | 6 May | — | on file |
| 10-Q | 4 May | OSI Systems, Inc. reported net income of $40.2 million for the three months ended March 31, 2026, a decrease from $41.1 million in the same period of the prior year. Diluted EPS… | read |
Largest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Fmr | $380.1M | 0.0% of fund |
| Vanguard Portfolio Management | $278.2M | 0.0% of fund |
| Vanguard Capital Management | $153.8M | 0.0% of fund |
| State Street | $147.4M | 0.0% of fund |
| Geode Capital Management | $101.4M | 0.0% of fund |
| Price T Rowe Associates /Md/ | $68.8M | 0.0% of fund |
58 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 165 Form 4 filings, net −$31.1M. Of the 50 on hand, none was an open-market trade— the rest are grants, option exercises and tax withholding.
Ask Orin about OSIS
Orin answers questions about OSIS from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 22.0× | — | 53.3× |
| EV/EBITDA | 18.2× | — | — |
| P/S | 1.87× | — | — |
| P/B | 4.2× | — | — |
2.5%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.2B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$287
$274 – $300 · +41% against today's price
- 16 buy or overweight
- 2 hold
- 0 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| OSISOSI Systems, Inc. | $3B | 22.0× | 18.2× | 33.2% | 8.7% | 18% |
| BDCBelden Inc. | $4B | 18.3× | 12.0× | 36.5% | 8.5% | 19% |
| BMIBadger Meter, Inc. | $4B | 31.0× | 19.0× | 41.3% | 14.3% | 18% |
| ESEESCO Technologies Inc. | $7B | 21.9× | 24.9× | 42.0% | 24.4% | 20% |
| ITRIItron, Inc. | $4B | 15.0× | 8.5× | 39.9% | 11.9% | 17% |
| NOVTNovanta Inc. | $5B | 90.8× | 33.7× | 42.5% | 6.0% | 5% |
| PLXSPlexus Corp. | $7B | 38.1× | 28.3× | 10.0% | 4.0% | 12% |
| STSensata Technologies Holding plc | $6B | 65.9× | 11.0× | 28.5% | 2.4% | 3% |
| VICRVicor Corporation | $13B | 88.8× | 97.1× | 56.6% | 30.6% | 20% |
| VNTVontier Corporation | $4B | 12.9× | 10.4× | 46.6% | 11.3% | 28% |
The median is of the 9 peers listed above and nothing else — check it against the column. This company trades 29.1% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.