Q2 2026 OSI Systems Inc Earnings Call Transcript
Key Points
- OSI Systems Inc (OSIS) reported a record Q2 revenue of $464 million, marking an 11% year-over-year increase.
- The Security division achieved a 15% revenue growth, driven by higher service revenues and increased aviation product sales.
- Optoelectronics division saw a 12% revenue growth, with strong demand across diversified product and customer bases.
- The company generated $62 million in operating cash flow, indicating solid financial health.
- OSI Systems Inc (OSIS) raised its fiscal 2026 non-GAAP EPS guidance, reflecting confidence in future performance.
- The Healthcare division faced challenges in Q2, impacting overall performance.
- Gross margin decreased to 33% due to a less favorable revenue mix on product sales.
- Security bookings were lower than expected due to delays from the US government shutdown and international customers.
- The Mexico security contracts saw a significant revenue decrease, impacting year-over-year comparisons.
- Operating expenses included a $4.4 million non-recurring cost related to a retirement plan amendment for the former CEO.
Good day and welcome to the OSI Systems Inc second quarter 2026 conference call. (Operator Instructions)
Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Allan Edrick, Chief Financial Officer. Please go ahead.
Good afternoon, and thank you for joining us. I'm Alan Edrick, Executive Vice President and CFO of OSI Systems. And I'm here today with Ajay Mehra, OSI's President and CEO. Welcome to the OSI Systems fiscal 2026 second quarter conference call. We are pleased that you can join us as we review our financial and our operational results.
Earlier today, we issued a press release announcing our fiscal '26 second quarter finance results. Before we discuss these results, I would like to remind everyone that today's discussion will include forward-looking statements and the company wishes to take advantage of the Safe Harbor provisions of the Private Securities Litigation Reform Act of
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