OSI Systems (OSIS) investor relations material

Executive summary

• Achieved record Q1 revenues of $384.6 million, up 12% year-over-year, with all divisions contributing to growth and robust bookings leading to a record backlog.

• Net income rose to $20.6 million from $17.9 million in the prior year, with diluted GAAP EPS at $1.18 and non-GAAP EPS at $1.42, up 14% year-over-year.

• Service revenues grew 23% as installed products generated recurring revenue, supporting confidence in the outlook.

• Increased fiscal 2026 revenue and non-GAAP EPS guidance, reflecting confidence in continued demand and strategic execution.

Financial highlights

• Security division revenues grew 13.4% year-over-year to $254.3 million, accounting for 66% of total revenues, with strong service and RF product sales.

• Optoelectronics and Manufacturing division revenues increased 12% to $110 million, a new Q1 record.

• Healthcare division sales increased 10% year-over-year, rebounding from a difficult Q4.

• Q1 gross margin was 32%, down from the prior year due to less favorable product mix.

• Q1 GAAP operating margin was 8.6%; non-GAAP adjusted operating margin was 10.3%.

Outlook and guidance

• Fiscal 2026 revenue guidance raised to $1.825–$1.867 billion (6.5%–9.0% growth), up from prior 5.4%–8%.

• Non-GAAP adjusted EPS guidance increased to $10.20–$10.48, representing 9%–12% year-over-year growth.

• Guidance excludes impacts from impairments, restructuring, amortization of acquired intangibles, and other non-recurring items.

• Management expects available funds, credit facilities, and cash flow from operations to be sufficient for operational needs for at least the next 12 months.

• Anticipates strong cash flow and financial strength to invest in strategic areas.