OSI Systems Reports Fiscal 2027 First Quarter Financial Results

Ajay Mehra, President and Chief Executive Officer of OSI Systems

“We are pleased to begin fiscal 2027 with record first quarter revenues and earnings per share, led by the performance of our Security and Optoelectronics and Manufacturing divisions. Bookings of $583 million represented a book-to-bill ratio of 1.4 in the quarter, and backlog increased to a record of $2.1 billion from $1.9 billion as of June 30, 2026, providing meaningful visibility into future opportunities. We remain committed to disciplined execution and innovation, and converting our expanding opportunity pipeline into long-term growth.”

Ajay Mehra, President and Chief Executive Officer of OSI Systems

“The Security division delivered a solid quarter despite continued geopolitical headwinds. Strong bookings led to record divisional backlog and reflected robust customer demand for our security inspection and surveillance products, integrated solutions, and services. The operating margin was impacted by a less favorable mix of revenues; however, we expect this to improve over the remainder of the fiscal year as our revenue mix stabilizes and service revenues increase. We are enthusiastic about the outlook for this division over the balance of fiscal 2027 and beyond.”

Ajay Mehra, President and Chief Executive Officer of OSI Systems

“Our Optoelectronics and Manufacturing division delivered strong fiscal first-quarter results with revenues increasing 9% year-over-year including intersegment sales and 16% year-over-year from sales to external customers, while also achieving adjusted operating margin expansion. The division continued to benefit from its vertically integrated capabilities, broad customer relationships, and diversified manufacturing footprint leading to a strong book-to-bill ratio resulting in record backlog for this division. We remain focused on supporting growth while maintaining disciplined operational execution.”

Ajay Mehra, President and Chief Executive Officer of OSI Systems

“The performance of the Healthcare division was soft in the quarter, but we are focused on improving performance and anticipate a return to growth this fiscal year.”

Alan Edrick, Executive Vice President and Chief Financial Officer of OSI Systems

“Operating cash flow more than doubled in the first fiscal quarter over the prior year Q1 to $37 million, and we finished the quarter with approximately $302 million of cash, cash equivalents and short-term investments. In August 2026, our board of directors authorized an additional 1 million shares to the existing share repurchase program. The Company repurchased 305,559 shares during the first quarter of fiscal 2027 resulting in total capital returned to shareholders through repurchases of approximately $62 million. As of September 30, 2026, there are 773,172 shares remaining under our repurchase authorization.”