Q1 2026 OSI Systems Inc Earnings Call Transcript

Oct 30, 2025 / 08:30 PM GMT

Release Date Price: $243.82 (-2.23%)

Transcript 10-Q8-K

Key Points

Positve

OSI Systems Inc (OSIS) reported a 12% year-over-year increase in revenues, reaching a Q1 record of $385 million.
The security division achieved a 13% revenue growth, driven by strong performance in aviation, cargo, and RF detection offerings.
Service revenues grew by 23% during the quarter, contributing to higher recurring revenue streams.
The company reported a record Q1 backlog of approximately $1.9 billion, providing good visibility for future quarters.
OSI Systems Inc (OSIS) raised its fiscal 2026 guidance for both revenues and adjusted earnings per share, indicating confidence in continued growth.

Negative

The gross margin for Q1 was 32%, down from the same quarter in the prior year due to a less favorable revenue mix on product sales.
Revenues related to large Mexico security contracts decreased significantly, impacting overall revenue growth.
The adjusted operating margin for the security division decreased to 13.5% from 14.4% a year ago, due to a less favorable mix of product sales.
The company faces a 60% headwind from a reduction of revenues from Mexico contracts in fiscal 2026.
The government shutdown poses potential risks for future orders and funding, although it has not significantly impacted fiscal 2026 so far.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

OSIS.OQ - OSI Systems Inc
Q1 2026 OSI Systems Inc Earnings Call
Oct 30, 2025 / 08:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good day and thank you for standing by. Welcome to the OSI Systems Inc. First quarter 2026 conference call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you need to press 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press 11 again. Please be advised today's conference is being recorded. I would not like to hand the conference over to your speaker today. Allan Edrick, Chief Financial Officer, please go ahead.

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Unidentified_2 [2]
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