OSI Systems Shares Sink 11.6% After Q4 Revenue Miss and Soft Fiscal 2027 Guidance

OSI Systems (NASDAQ: OSIS) reported fiscal fourth-quarter revenue of $484.1 million on August 20, missing analyst estimates of $529 million by 8.5% and falling 4.1% year over year. The shortfall was driven by conflict-related delays in the Middle East that pushed roughly $50 million of planned Security division deliveries past the company's June 30 fiscal year-end. Despite the quarterly revenue miss, the company posted record full-year fiscal 2026 results, including revenues of $1.79 billion, record non-GAAP earnings per share of $10.35 (up 11% year over year), and record operating cash flow of $276 million for the year, with Q4 alone generating $182 million in operating cash flow.

Backlog reached a record $1.9 billion, up 5.6% year over year. Fourth-quarter adjusted EPS of $3.78 was in line with the $3.77 consensus estimate and up 17% from a year earlier. For fiscal 2027, OSI Systems guided full-year revenue to approximately $1.90 billion at the midpoint, about 2% below analyst expectations, and non-GAAP EPS to a midpoint of $11.31, missing consensus by roughly 1.1%.

Shares fell 11.6% to $196.03 immediately following the results.