OSI Systems
OSISNASDAQUSD
- Source valuation snapshot. Not a live recalculation.
- Latest filed annual earnings; price snapshot date unavailable. Not forward P/E.
- Diluted earnings per share from the latest filed annual.
- $197.00 Prior regular-session close from the quote source.
- $194.69–$198.88 Regular-session low and high so far today.
- 124.6K Regular-session shares traded · Nov 11, 4:00 PM ET.
- Not yet confirmed The company has not confirmed its next report date. Reported quarters are available in the chart’s Earnings view.
- $186.50–$311.72 52-week trading low and high returned by the quote source.
Understand the Business
Why the Stock Moved
Period-matched expectations history is not yet available. Current metrics are not a substitute for a historical explanation.
The core investment thesis
Own OSIS if OSI Systems converts regulatory-driven, mission-critical security and aerospace/medical demand into recurring, higher-margin revenue by combining approved screening systems with in‑house optoelectronics and manufacturing, and improving cash flow through project execution and collections.
OSIS price history
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Investment thesis
What must happen next
Regulation- and mandate-driven demand for security and inspection systems will continue to underpin OSI's top-line growth because governments and transportation regulators require approved screening equipment and mandate cargo/port/airline screening.StrengtheningMateriality: High
Revenues increased year-over-year to $1,785,984,000 in FY2026 (revenue). If true, OSI can grow revenue organically and sustain pricing power; if false, a large chunk of revenue (70% segment share) risks stagnation or decline.
Watch: Government budget cuts or removal/relaxation of screening mandates (e.g., reduced air cargo/port scan mandates) that materially reduce procurement.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
Revenues increased year-over-year to $1,785,984,000 in FY2026 (revenue).
Open source ↗OSI's vertical integration (optoelectronics + in-house manufacturing) supports above-industry gross margins by capturing component value and enabling turnkey solutions to OEMs and internal divisions.HoldingMateriality: High
Gross profit rose to $593,092,000 in FY2026 from $530,458,000 in FY2024 and $587,182,000 in FY2025 (gross_profit). If maintained, gross-margin advantage funds operating profit and cash conversion; if lost (outsourcing or price competition), margins compress and free cash falls.
Watch: Large OEM customers decide to insource or consolidate suppliers to lower-cost contract manufacturers, reducing OSI's volumes.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
Gross profit rose to $593,092,000 in FY2026 from $530,458,000 in FY2024 and $587,182,000 in FY2025 (gross_profit).
Open source ↗Improved project execution and collections will sustain materially stronger operating cash flow conversion versus the prior cyclical trough, reducing financing risk and enabling reinvestment or buybacks.StrengtheningMateriality: Medium
Operating cash flow improved to $275,904,000 in FY2026 from $97,592,000 in FY2025 and negative $87,501,000 in FY2024 (operating_cash_flow). Sustained high operating cash flow turns accounting earnings into real cash for shareholders; if cash conversion reverses, earnings become less valuable and leverage or equity issuance may rise.
Watch: Delays in milestone payments or customer payment disputes on large security programs, especially from international government customers.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
Operating cash flow improved to $275,904,000 in FY2026 from $97,592,000 in FY2025 and negative $87,501,000 in FY2024 (operating_cash_flow).
Open source ↗Operational leverage (mix shift to Security, margin improvement, working-capital gains) plus limited, accretive M&A can continue to drive EPS expansion absent large dilutive acquisitions.HoldingMateriality: Medium
Diluted EPS rose from $5.34 (FY2023) to $8.95 (FY2026) (eps_diluted), showing multi-year expansion. EPS growth sustains valuation multiples and funds capital return; dilution or margin shocks would remove that support.
Watch: A large, transformational acquisition financed with equity that meaningfully dilutes EPS or shifts capital to low-return projects.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
Diluted EPS rose from $5.34 (FY2023) to $8.95 (FY2026) (eps_diluted), showing multi-year expansion.
Open source ↗
Full investment case & evidence
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Original research
Regulation- and mandate-driven demand for security and inspection systems will continue to underpin OSI's top-line growth because governments and transportation regulators require approved screening equipment and mandate cargo/port/airline screening. If true, OSI can grow revenue organically and sustain pricing power; if false, a large chunk of revenue (70% segment share) risks stagnation or decline.
OSI's vertical integration (optoelectronics + in-house manufacturing) supports above-industry gross margins by capturing component value and enabling turnkey solutions to OEMs and internal divisions. If maintained, gross-margin advantage funds operating profit and cash conversion; if lost (outsourcing or price competition), margins compress and free cash falls.
Improved project execution and collections will sustain materially stronger operating cash flow conversion versus the prior cyclical trough, reducing financing risk and enabling reinvestment or buybacks. Sustained high operating cash flow turns accounting earnings into real cash for shareholders; if cash conversion reverses, earnings become less valuable and leverage or equity issuance may rise.
Operational leverage (mix shift to Security, margin improvement, working-capital gains) plus limited, accretive M&A can continue to drive EPS expansion absent large dilutive acquisitions. EPS growth sustains valuation multiples and funds capital return; dilution or margin shocks would remove that support.
All standing thesis claims
Original report summary
OSI Systems converts regulatory-driven, mission-critical security and aerospace/medical demand into recurring, higher-margin revenue by combining approved screening systems with in‑house optoelectronics and manufacturing, and improving cash flow through project execution and collections.
Bull case and bear case
Bull case and bear case for Osi Systems
Where the evidence on Osi Systems stands: Holding on the latest evidence (Nov 12, 2026). Of its 4 thesis points, 2 strengthening and 2 holding.
Bull case: what the evidence supports
Regulation- and mandate-driven demand for security and inspection systems will continue to underpin OSI's top-line growth because governments and transportation regulators require approved screening equipment and mandate cargo/port/airline screening.
OSI's vertical integration (optoelectronics + in-house manufacturing) supports above-industry gross margins by capturing component value and enabling turnkey solutions to OEMs and internal divisions.
Improved project execution and collections will sustain materially stronger operating cash flow conversion versus the prior cyclical trough, reducing financing risk and enabling reinvestment or buybacks.
Operational leverage (mix shift to Security, margin improvement, working-capital gains) plus limited, accretive M&A can continue to drive EPS expansion absent large dilutive acquisitions.
Bear case: what would count against it
Government budget cuts or removal/relaxation of screening mandates (e.g., reduced air cargo/port scan mandates) that materially reduce procurement.
Large OEM customers decide to insource or consolidate suppliers to lower-cost contract manufacturers, reducing OSI's volumes.
Delays in milestone payments or customer payment disputes on large security programs, especially from international government customers.
Thesis-Break Engine
Thesis-break watch · Osi Systems
Loading the break-condition record for Osi Systems.
MARKET + FINANCIAL SNAPSHOT
The numbers behind the thesis
What Changed
- MixedReported results of operations (earnings release).
Osi Systems filed an SEC 8-K on 2026-10-29: Reported results of operations (earnings release). It is a dated development that tests the current thesis.
- MixedReported results of operations (earnings release).
Osi Systems filed an SEC 8-K on 2026-08-20: Reported results of operations (earnings release). It is a dated development that tests the current thesis.
- MixedReported results of operations (earnings release).
Osi Systems filed an SEC 8-K on 2026-05-04: Reported results of operations (earnings release). It is a dated development that tests the current thesis.
Risks / falsifiers
What could break the thesis
- Government budget cuts or removal/relaxation of screening mandates (e.g., reduced air cargo/port scan mandates) that materially reduce procurement.
- Large OEM customers decide to insource or consolidate suppliers to lower-cost contract manufacturers, reducing OSI's volumes.
- Delays in milestone payments or customer payment disputes on large security programs, especially from international government customers.
- A large, transformational acquisition financed with equity that meaningfully dilutes EPS or shifts capital to low-return projects.
OSIS news
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Financial statements
OSIS income statement
Annual filed results · USD · Oldest to newest. Margins are calculated from the reported figures.