At a glance
OSI Systems Inc is worth $3.16B, about 22 times its fiscal 2026 earnings. Revenue grew 4.3% to $1.79B in fiscal 2026, with 8.7% kept as profit; over 5 years it has grown 9.3% a year. It pays no dividend; it spent $498.7M buying back its shares over FY2022–FY2026. The stock returned −20.0% over the past year with dividends reinvested and +16.4% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 40.4% in the 2020 crash (S&P 500: 33.7%) and 30.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 9 months and 6 months after the lows.
The business in plain English
OSI Systems, based in Hawthorne, California, designs and builds specialized electronic equipment and parts for security, healthcare, defense and aerospace. Its Security division is the largest, with 69.9% of the $1.79 billion in revenue for the fiscal year ended June 30, 2026. It sells scanners that show what is inside bags, parcels, cargo containers and vehicles. It also sells high-power radio systems such as over-the-horizon radar. Buyers include airports, border crossings, seaports, air cargo companies, government and military sites, prisons and event venues. OSI can also build, staff or run screening checkpoints for customers.
The Optoelectronics and Manufacturing division (21% of revenue) makes components that turn light into electrical signals. These are used in defense, medical, industrial and telecom products. The division also does contract electronics manufacturing, such as circuit board and cable assembly. It sells mainly to original equipment manufacturers (companies that build these parts into their own branded products) and also supplies OSI's other two divisions. The Healthcare division (9.1%) sells patient monitors, wearable heart recorders, electrocardiograph (ECG) machines and related software to hospitals, clinics and doctors' offices.
Most revenue comes from products, at 75.3% of fiscal 2026 revenue, with services at 24.7%. By region, the U.S. supplied 32.7% of revenue, the United Kingdom 28.2%, Asia Pacific 17.7%, the rest of the Americas 11.5% and Mexico 5.6%.
Price history
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OSIS -20.0% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Product | $1.34B | 75.3% |
| Service | $441.3M | 24.7% |
By business segment
| Security Division | $1.25B | 69.9% |
| Optoelectronics And Manufacturing Division | $375.3M | 21% |
| Healthcare Division | $162.7M | 9.1% |
By geography
| US | $583.2M | 32.7% |
| GB | $503.5M | 28.2% |
| Asia Pacific | $316.4M | 17.7% |
| Other Americas | $205.9M | 11.5% |
| MX | $99.1M | 5.6% |
| Other Europe Middle East And Africa | $77.9M | 4.4% |
Latest results
- In Q1 FY2027 (ended Sep 30, 2026), revenue was $403.5M, up 4.9% from a year earlier, and net income was $24.6M (+19.5%).
- For fiscal 2026, revenue was $1.79B (+4.3% year over year; +9.3% a year from FY2021 to FY2026) with a 8.7% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +9.3% good |
|---|---|
| Operating margin | 12.3% watch |
| Free cash flow margin | 13.7% good |
| Return on equity (FY2026) | 18.6% good |
| Return on assets (FY2026) | 6.2% watch |
| Net cash (cash minus debt) | $-697.6M weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $1.15B | $74.0M | $122.2M |
| FY2022 | $1.18B | $115.3M | $48.9M |
| FY2023 | $1.28B | $91.8M | $79.0M |
| FY2024 | $1.54B | $128.2M | $-109.6M |
| FY2025 | $1.71B | $149.6M | $73.8M |
| FY2026 | $1.79B | $154.7M | $245.3M |
Valuation snapshot
| Market value | $3.16B |
|---|---|
| P/E ratio | 22.4 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
OSI Systems’s market value went from $1.45B at the end of 2016 to $3.16B on Oct 28, 2026, about 2.2 times as much; since the end of 2025 it is down 27%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $3.16B | -27.1% |
| 2025 | $4.33B | +54.8% |
| 2024 | $2.80B | +27.6% |
| 2023 | $2.19B | +63.6% |
| 2022 | $1.34B | -19.8% |
| 2021 | $1.67B | +0.1% |
| 2020 | $1.67B | -9.7% |
| 2019 | $1.85B | +39.0% |
| 2018 | $1.33B | +9.0% |
| 2017 | $1.22B | -15.8% |
| 2016 | $1.45B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| OSIS price data to Oct 28, 2026 | -21.3% | -20.0% | +23.6% | +16.4% | +10.8% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -21.3% |
| 2025 | +52.3% |
| 2024 | +29.7% |
| 2023 | +62.3% |
| 2022 | -14.7% |
| 2021 | -0.0% |
| 2020 | -7.5% |
| 2019 | +37.4% |
| 2018 | +13.9% |
| 2017 | -15.4% |
| 2016 | -14.1% |
| 2015 | +25.3% |
| 2014 | +33.3% |
| 2013 | -17.1% |
| 2012 | +31.3% |
| 2011 | +34.2% |
| 2010 | +33.3% |
| 2009 | +97.0% |
| 2008 | -47.7% |
| 2007 | +26.5% |
| 2006 | +13.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 41.8% over that stretch · deepest drop along the way 61.4%, back to its old high 13.6 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 35% over that stretch · deepest drop along the way 40.4%, back to its old high 8.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 24.1% over that stretch · deepest drop along the way 30.4%, back to its old high 5.6 months after the low |
Insider activity
Form 4 filings from 2025-10-30 to 2026-10-30 (25 read): 0 open-market purchases and 0 sales ($0.00).
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 15.2% | Sep 30, 2026 |
| FMR LLC | 10.8% | Jun 30, 2026 |
| Vanguard Portfolio Management | 7.66% | Mar 31, 2026 |
| JANUS HENDERSON GROUP Ltd. | 5.5% | Jun 30, 2026 |
| Vanguard Capital Management | 5% | Jun 30, 2026 |
| Mawer Investment Management Ltd. | 4.73% | Dec 31, 2025 |
| JANUS HENDERSON GROUP PLC | 4.7% | Mar 31, 2026 |
ETFs with the most weight in OSIS
| GUNZ Tuttle Capital Self Defense Index ETF | 6.4% |
| PSCT Invesco S&P SmallCap Information Technology ETF | 2.11% |
| FITE SPDR S&P Kensho Future Security ETF | 1.85% |
| XITK SPDR FactSet Innovative Technology ETF | 1.25% |
| KOMP SPDR S&P Kensho New Economies Composite ETF | 1.19% |
| RZG Invesco S&P SmallCap 600® Pure Growth ETF | 0.55% |
| QSML WisdomTree U.S. SmallCap Quality Growth Fund | 0.48% |
| VIOG Vanguard S&P Small-Cap 600 Growth ETF | 0.47% |
What could go wrong
- Missed threats could bring huge liability claims. If a scanner, its detection software or an operator misses a weapon or explosive later used in an attack, OSI could face large liability claims that insurance may not fully cover.
- Government customers can cut or cancel contracts. Many buyers are government agencies, which can change or end contracts more easily than businesses. U.S. budget disruptions, competitive bidding and protests by losing bidders can delay or reduce revenue.
- Large, lumpy orders make results uneven. Big security and healthcare systems have long, unpredictable sales cycles, so revenue can swing between quarters. Revenue for the quarter ended June 30, 2026 fell 4.1% from a year earlier.
- Heavy debt and possible share dilution. Total debt was about $1.0 billion against $360 million in cash and investments as of June 30, 2026. Convertible notes due 2029 and 2031 can turn into shares, which could dilute shareholders.
- Most sales come from outside the U.S. About two-thirds of fiscal 2026 revenue came from outside the U.S. Currency swings, export controls, anti-bribery laws, Middle East conflict, low crude oil prices and operations in Mexico all add risk.
- Hospital cost pressure and medical device rules. Hospitals face cost pressure and are consolidating, which can squeeze prices for OSI's monitors. Medical devices also face FDA and EU regulation, possible recalls and product liability claims.
Recent events
- Quarterly results released
- Quarterly results released; Other company announcement
- Quarterly results released
- Quarterly results released
- Shareholder vote results
- Major agreement signed; New debt or financial obligation; Unregistered sale of shares
- Other company announcement
- Quarterly results released
For income and retirement investors
OSI Systems paid no dividends from fiscal 2022 through fiscal 2026 (years ending June 30), so it has offered no regular income. An investor who needs cash from it would have to sell shares. The company returns cash through buybacks instead. It spent $498.7 million on them over those five years, including $271.9 million in fiscal 2026. That year's buybacks were more than its free cash flow (cash left after capital spending) of $245.3 million, and free cash flow was negative in fiscal 2024. Shares outstanding fell 10.9% between August 2021 and August 2026.
The share price has fallen sharply in past downturns. It dropped 61.4% from peak to low in the 2008 financial crisis, 40.4% in the 2020 COVID crash and 30.4% in the 2022 bear market. It then needed about 14, 9 and 6 months from the low to regain its earlier peak. Over the year to October 28, 2026, its deepest drop was 37.9%. Single stocks carry more risk than diversified funds.
Questions investors ask
Does OSI Systems pay a dividend?
No. OSI Systems paid no dividends from fiscal 2022 through fiscal 2026 (its fiscal year ends June 30). Instead, the company buys back its own shares. It spent $498.7 million on buybacks over those five years, and its share count fell 10.9% from August 2021 to August 2026. Income-focused investors would need to sell shares to draw cash from it.
How does OSI Systems make money?
Mainly by selling security screening equipment. In the fiscal year ended June 30, 2026, its Security division produced 69.9% of $1.79 billion in revenue, from baggage and cargo scanners, high-power radio systems and screening services. Optoelectronics and Manufacturing, which makes light-sensing components and offers contract manufacturing, added 21%. Healthcare, which sells patient monitors and heart-testing equipment, added 9.1%. Products made up 75.3% of revenue and services 24.7%. The U.S. supplied 32.7% of revenue.
How much debt does OSI Systems have?
About $1.0 billion of total debt as of June 30, 2026, against $359.8 million in cash and investments. That left net debt (debt minus cash) of about $641 million. Shareholders' equity was $833 million. Part of the debt is convertible notes: 2.25% notes due 2029 and 0.50% notes due 2031. These can convert into shares, which could dilute existing holders. The company's credit facility also has terms that could limit some future financing and business decisions.
How has OSI Systems stock performed?
It depends on the period. As of October 28, 2026, the share price was down 20% over one year and down 21.3% for 2026 to date. Longer periods were better: about 16.4% a year over five years and 10.8% a year over ten years. The stock gained 52.3% in calendar 2025 and 62.3% in 2023. Because it paid no dividends, price returns are essentially its whole return. Past returns do not predict future results.
What is OSI Systems' P/E ratio?
About 22.4 as of October 28, 2026, based on fiscal 2026 diluted earnings per share of $8.95. The P/E (price-to-earnings) ratio shows how much investors pay for each dollar of yearly profit. The company's market value was about $3.2 billion on that date. In fiscal 2026, revenue grew 4.3% and net income grew 3.4%. That is slower than its 9.3% average yearly revenue growth since fiscal 2021. The ratio is worth comparing with other security and defense-technology companies.