OSI Systems Posts Record Cash Flow and Backlog Despite Revenue Missing Estimates
OSI Systems reported record operating cash flow of $275.9 million for fiscal 2026, driven by strong working-capital movements and a large collection from its largest Mexican customer. The company also ended the year with a backlog of approximately $1.9 billion, up slightly from $1.8 billion in the prior year. However, fourth-quarter revenue came in at $484.1 million—$45.6 million below estimates—and full-year revenue fell short by about $39 million against its guidance floor. The underperformance was attributed to delays caused by Middle Eastern conflicts and site-access constraints that shifted around $50 million of Security division sales beyond the fiscal year-end, though these orders remain in backlog with revised delivery schedules. Despite this, shares closed lower due to concerns over revenue misses and cautious 2027 guidance calling for revenue between $1.875 billion and $1.930 billion. Non-GAAP diluted EPS of $3.78 was nearly aligned with estimates while GAAP EPS rose by 3% year-over-year.
Tickers: $OSIS
Topics: backlog cash_flow financial_results