OSI Systems Reports Record Revenues and EPS

By Philip Seaworth • Thursday, August 21 10:32 • Permanent Link

OSI Systems, Inc. has reported its financial results for the fourth quarter and full fiscal year ending June 30, 2025. The company achieved record-breaking revenues, with fourth-quarter revenues reaching $505 million and full fiscal year revenues totaling $1.713 billion, reflecting an 11% year-over-year increase.

In terms of earnings per share (EPS), OSI Systems reported a fourth-quarter GAAP EPS of $3.03 and a record non-GAAP EPS of $3.24. For the full fiscal year, the company's GAAP EPS was $8.71, while the non-GAAP EPS reached a record high of $9.36, marking a 15% increase compared to the previous year.

The year-end backlog stood at over $1.8 billion, indicating strong demand for the company's products and services. The operating income also demonstrated healthy growth, with GAAP operating income increasing by 16% for the fourth quarter and 15% for the full fiscal year. Non-GAAP operating income also showed double-digit growth, rising by 12% for the fourth quarter and 13% for the full fiscal year.

The effective tax rate for GAAP and the normalized tax rate for non-GAAP remained relatively stable year-over-year. Additionally, the company's cash flow provided by operating activities improved significantly, with a positive cash flow of $561 thousand for the fourth quarter, compared to a negative cash flow of $29.04 million in the same period the previous year. For the full fiscal year, cash flow from operating activities amounted to $97.59 million, marking a substantial improvement from the negative cash flow of $87.50 million in the prior year.

Looking ahead to fiscal year 2026, OSI Systems provided guidance for revenues in the range of $1.805 billion to $1.850 billion, with a year-over-year growth rate of 5.4% to 8.0%. The company also expects non-GAAP diluted earnings per share to be in the range of $10.11 to $10.39, with a projected year-over-year growth rate of 8.0% to 11.0%.

In terms of strategic initiatives and financial flexibility, OSI Systems expanded its credit facility post-fiscal year end, increasing its total borrowing capacity to $825 million and extending the maturity to July 2030. The company anticipates strong cash flow generation in fiscal 2026, positioning it well to invest in strategic initiatives and drive long-term value.

Following these announcements, the company's shares moved -1.55%, and are now trading at a price of $223.39. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.