OSI Systems, Inc. (OSIS) AI Stock Analysis

OSI Systems operates across three primary business segments: Security, Healthcare, and Optoelectronics and Manufacturing. Its Security segment develops baggage, cargo, vehicle, and passenger inspection systems under brands such as Rapiscan Systems, AS&E, and Gatekeeper, alongside radiation and trace detection equipment and turnkey security screening services through S2. The Healthcare segment designs patient monitoring and diagnostic cardiology solutions under the Spacelabs brand for hospital critical care and surgical environments. The Optoelectronics and Manufacturing division produces optoelectronic devices for aerospace, defense, medical, and industrial use under brands including OSI Optoelectronics and Advanced Photonix, while providing contract electronics manufacturing services.

Annual revenue expanded from $1.18B in FY2022 to $1.79B in FY2026, representing a 5-year revenue CAGR of 9.3%. Revenue growth slowed to 4.3% in FY2026 after expanding 11.3% in FY2025 and 20.4% in FY2024. Gross margin came in at 33.2% in FY2026, down slightly from 34.3% in FY2025, while operating margin held at 12.3%. Full-year net income reached $154.7M with EPS of $10.38. In the latest quarter ended June 30, 2026, quarterly revenue fell 4.1% year-over-year, while quarterly earnings grew 7.8% year-over-year.

As of June 30, 2026, OSI Systems held $359.8M in cash and short-term investments against total debt of $1.00B, resulting in net debt of $641.2M. Debt-to-equity stood at 1.20, while the current ratio was 3.15, supported by total assets of $2.50B and shareholders' equity of $833.0M. Operating cash flow improved sharply to $275.9M in FY2026 from $97.6M in FY2025. After capital expenditures of $30.6M, the company allocated $271.9M to share buybacks, helping lower its share count by 4.6% over five years.

At $194.98 per share, OSI Systems trades at a trailing P/E of 21.8x and a forward P/E of 17.8x, both below the median of its US-listed Technology peers at 28.1x and 18.8x, respectively. The company carries an enterprise value of $3.84B, an EV/EBITDA of 14.8x compared to the peer median of 16.6x, and a price-to-sales ratio of 1.7x versus 2.8x for peers. Over the past year, the stock fell 21.0%, lagging the S&P 500 (SPY) return of 16.8%, and currently trades 19.2% below its 200-day average.

Wall Street coverage includes 5 Strong Buy, 1 Buy, and 1 Hold ratings, with no Sell recommendations. The mean price target is $273.29, representing 40.2% upside compared to the last close of $194.98. For the fiscal year ending June 30, 2027, analysts estimate EPS of $11.37 on revenue of $1.91B. For the subsequent year, consensus projects EPS of $12.82 on revenue of $2.03B. OSI Systems topped earnings estimates in 3 of the last 4 quarters, with its next earnings report scheduled for October 29, 2026.

This page is an AI-written research summary of OSI Systems, Inc. (OSIS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: OSIS income statement, OSIS balance sheet, OSIS key metrics, OSIS analyst forecast, OSIS chart. See the OSIS stock overview for the latest quote and news.