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OSI Systems Inc

OSI Systems Inc

OSIS
$212.66USD↓-1.65%-3.56 today

MARKET CAP

3.5B

P/E (TTM)

21.6x

FWD P/E

18.3x

DAY RANGE

$210 – $218

52W RANGE

$197
$312

AI Summary

Stalk
StalkMedium

OSIS is in an early Stage 1 consolidation forming a base after the mid-May capitulation. Post-Capitulation dynamics signal supply absorption and a medium-term bullish bias, but price trades below declining 9/21 EMAs with neutral momentum, so execution is deferred. We will stalk for a pullback into the consolidation support zone or a reclaim of the short EMAs before engaging.

  • ↑Q3 revenue hit $453M, security segment up 25% YoY excluding Mexico
  • ↑Backlog ~$1.9B supports fiscal ’26 guidance of $1.825–1.867B revenue
  • ↓Mexico contract revenues dropped ~50% YoY, straining topline growth
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

OSI Systems, Inc. (NASDAQ: OSIS) is a leading provider in multiple sectors, particularly focused on security, healthcare, and optoelectronics. The company offers innovative solutions, including security screening systems, border control technology, and advanced medical devices. OSI Systems has established a robust global presence and is well-regarded for its commitment to enhancing security technologies, particularly in response to increasing global threats and a rising demand for advanced systems amid geopolitical instability.

Bull says

  • ↑Q3 revenue hit $453M, security segment up 25% YoY excluding Mexico
  • ↑Backlog ~$1.9B supports fiscal ’26 guidance of $1.825–1.867B revenue
  • ↑Service revenues grew 23% YoY, boosting higher-margin recurring income
  • ↑$1.1B government funding proposal bolsters border security demand
  • ↑Q3 generated $14M cash flow; Q4 inflows from Mexico receivables expected
  • ↑Strong liquidity and solid institutional ownership underpin resilience

Bear says

  • ↓Mexico contract revenues dropped ~50% YoY, straining topline growth
  • ↓Gross margin at 33% and weak profitability factors risk earnings pressure
  • ↓Elevated short interest reflects investor doubts on future performance
  • ↓Service revenue growth likely volatile—double-digit one quarter, single-digit next
  • ↓Geopolitical and logistical delays may disrupt order fulfillment and cash flow
  • ↓Negative analyst revisions, low momentum factors, and poor earnings yield

Investment themes with OSIS

Defense Tech↓ -0.44%

LMT · RTX · GD

Earnings Call · Q3 2025 · Mgmt. Guidance

Updated 06-14-2026neutral

Transcript signals

Bull points

  • But what's really exciting out there is this budget reconciliation that, you know, the House and Senate are going through. And there's almost $1.1 billion in there for the borders, for NII equipment and associated works and integration. We feel good that, you know, we are in decent shape. It's not one year money. It's all repaired off, you know, probably three years. And this is on top of what we have. So you will give us visibility, not just for a year, but multi-year visibility.
  • Our third quarter financial results were strong with multiple Q3 records across different financial metrics.
  • revenues increased 10 percent year-over-year to a Q3 record of $444 million, with growth in each of the three divisions highlighted by a 10 percent year-over-year revenue increase in our security division and a 15 percent year-over-year increase in our opto division, including intercompany sales.

Bear points

  • as Mexico revenues were 69 million in Q3 of fiscal 25 compared to 137 million in the same quarter of the prior year.
  • While net interest and other expenses decreased sequentially in Q3, on a year-over-year basis, they increased to $8.2 million from $7.4 million in Q3 of fiscal 24, primarily due to a higher amount of borrowings associated with the investment in working capital and acquisition completed in Q1, and the stock buyback we did earlier this year as well.
  • as Mexico revenues were 69 million in Q3 of fiscal 25 compared to 137 million in the same quarter of the prior year.
Read full transcript analysis ›