The EPS miss on a GAAP basis and the soft Healthcare segment are offset by strong bookings, record backlog, and raised non-GAAP EPS guidance. Monitor the Security division's operating margin trajectory and Healthcare segment recovery in coming quarters.
Price Chart
Executive Summary
OSI Systems reported record Q1 FY2027 revenue of $403.5M (up 5% YoY) and GAAP EPS of $1.51 (up 28% YoY), slightly below the consensus EPS estimate of $1.65. The company reaffirmed its FY2027 revenue guidance of $1.875B-$1.930B and raised its non-GAAP EPS guidance to $11.28-$11.64 from $11.13-$11.49, driven by strong bookings (book-to-bill of 1.4) and a record backlog of $2.1B.
Key Financial Metrics
Key Facts
- Record Q1 revenue of $403.5M, up 5% YoY from $384.6M
- GAAP EPS of $1.51, up 28% YoY from $1.18
- Non-GAAP EPS of $1.66, up 17% YoY from $1.42
- Book-to-bill ratio of 1.4, record backlog of $2.1B
- Operating cash flow of $37.1M, more than doubled YoY from $17.1M
- FY2027 revenue guidance reaffirmed at $1.875B-$1.930B
- FY2027 non-GAAP EPS guidance raised to $11.28-$11.64 from $11.13-$11.49
- Board authorized additional 1M shares to repurchase program; 305,559 shares repurchased in Q1 for ~$62M
- Healthcare segment GAAP operating loss of $2.4M vs income of $1.8M a year ago
Financial Impact
Revenue of $403.5M vs consensus $396.1M; GAAP EPS $1.51 vs consensus $1.65 (miss); non-GAAP EPS $1.66 vs consensus $1.65 (in-line). Guidance raised for non-GAAP EPS.
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Security | $264.1M | +3.9% |
| Optoelectronics & Manufacturing | $119.7M | +9.4% |
| Healthcare | $35.1M | -13.8% |
Risk Factors
- GAAP EPS of $1.51 missed consensus of $1.65 by 8.5%
- Healthcare segment posted a GAAP operating loss of $2.4M vs income of $1.8M a year ago
- Security division operating margin declined to 11.6% from 11.3% on a GAAP basis and to 12.6% from 13.5% on a non-GAAP basis
- Geopolitical headwinds and government shutdown risks cited
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-120184 |
| Document: tm2626560d2_8k.htm | 0001104659-26-120184 |
| Document: 0001104659-26-120184-index-headers.html | 0001104659-26-120184 |
| Document: 0001104659-26-120184-index.html | 0001104659-26-120184 |
| Document: 0001104659-26-120184.txt | 0001104659-26-120184 |
| 8-K Data (Synthetic) | 0001104659-26-120184 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | $213.21 | awaiting T+20 | awaiting T+20 | $199.44 (−6.46%) |
Oct 27, 2026 5d ago | SC 13G/A | $200.67 | awaiting T+20 | awaiting T+20 | $199.44 (−0.61%) |
Oct 26, 2026 6d ago | DEFA14A | $200.90 | awaiting T+20 | awaiting T+20 | $199.44 (−0.73%) |
Oct 26, 2026 6d ago | DEF 14A | $200.90 | awaiting T+20 | awaiting T+20 | $199.44 (−0.73%) |
US Market Status
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