Loading...
•
Dec 31, 2025
Osi Systems Q2 2026 Earnings Report
OSI Systems reported record second quarter revenues and non-GAAP earnings per share, driven by strong year-over-year growth from its Security and Optoelectronics and Manufacturing divisions.
Key Takeaways
OSI Systems announced record second quarter revenues of $464 million, an 11% year-over-year increase, and record non-GAAP diluted earnings per share of $2.58. The company's Security and Optoelectronics and Manufacturing divisions were key drivers of this growth, with strong performance and expanding global demand. The company also completed a convertible notes financing, positioning it for future growth and interest savings.
Record Q2 revenues reached $464 million, an 11% increase year-over-year.
Record non-GAAP diluted EPS was $2.58, reflecting a 7% increase from the previous year.
The Security division's revenues increased by 15% year-over-year, with meaningful expansion in recurring services revenue.
The Optoelectronics and Manufacturing division achieved 12% revenue growth and operating margin expansion.
The company completed a $575 million convertible senior notes financing, which will support growth opportunities and lower the cost of capital.
Revenue by Segment
Forward Guidance
The company is raising its fiscal 2026 guidance for non-GAAP diluted earnings per share while maintaining its previous revenue guidance, anticipating higher non-GAAP adjusted earnings per diluted share in the range of $10.30 - $10.55, representing 10% - 13% year-over-year growth.
Positive Outlook
- Anticipated strong bookings in the second half of the fiscal year.
- Significant backlog and opportunity pipeline.
- Increasing industry demand across key markets.
- Vertically-integrated global structure enabling operational efficiency and innovation.
- Convertible notes financing positions the company to capture additional growth opportunities and lower overall cost of capital.
Challenges Ahead
- Bookings were softer than expected, partly due to the U.S. government shutdown delaying receipt of certain anticipated orders.
- Security division margins were lower given a difficult year-over-year comparison.
- Actual revenues and non-GAAP diluted earnings per share could vary due to factors discussed under 'Forward-Looking Statements'.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...