AI-extracted from the 10-K filed 2026-08-21 — FY2026 (year ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Revenue grew 4.2% YoY to $1,786.0M on Security and Optoelectronics gains, but gross margin compressed to 33.2% from 34.3% as higher-margin Mexico security revenue fell $148.8M and mix shifted toward lower-margin businesses.
Biggest Revenue Drivers
Security$1,248.0M+4.3% YoY
Increase driven primarily by higher service revenues from a growing installed base of cargo/vehicle inspection and aviation/checkpoint inspection systems; product revenue was roughly flat as RF systems gains offset a decline in Mexico product sales
Optoelectronics / Manufacturing$375.3M+7.7% YoY
Increases in both the optoelectronics business ($8.2M) and contract manufacturing business ($18.5M)
Biggest Revenue Drivers
Total revenue: $1,786.0M+4.2% YoY
Security$1,248.0M+4.3% YoY
Increase driven primarily by higher service revenues from a growing installed base of cargo/vehicle inspection and aviation/checkpoint inspection systems; product revenue was roughly flat as RF systems gains offset a decline in Mexico product sales
Optoelectronics / Manufacturing$375.3M+7.7% YoY
Increases in both the optoelectronics business ($8.2M) and contract manufacturing business ($18.5M)
Healthcare$162.7M-3.4% YoY
Decline led by lower patient monitoring sales ($9.6M), service revenue ($1.9M) and supplies/accessories ($1.8M), partially offset by higher cardiology sales ($7.7M)
Largest Expense Items
Cost of goods sold$1,192.9M
Impacted by sales volume and manufacturing-related costs including raw materials, warranty, inventory provisions, freight and tariffs
Selling, general and administrative$278.4M-4.3% YoY
Decrease from favorable FX impact and lower employee compensation, including reduced stock-based comp tied to former CEO's retirement, partly offset by higher bad debt expense
Research and development$79.1M+7.8% YoY
Higher compensation costs to support new product development initiatives, primarily in Security and Healthcare divisions
Impairment, restructuring and other charges$16.6M+213.2% YoY
Included $5.1M employee terminations, $2.1M acquisition-related costs, $1.6M legal charges, and $2.2M/$4.2M non-recurring charges in Security/Healthcare divisions
Margins: Gross margin fell to 33.2% from 34.3% as higher-margin Mexico security revenue declined $148.8M while revenue grew in generally lower-margin businesses, and aviation/checkpoint margins weakened; RF systems partially offset the impact.
Watch Items from the Filing
Middle East conflicts affected Q4 FY2026 operating results through delays in shipment timing, customer acceptance procedures, project schedules and new orders.
Revenue from three significant international security contracts (>$800M awarded FY23-24) is winding down: $404M in FY24, $231M in FY25, and only $79M in FY26 as equipment deliveries are largely complete.
Total debt rose to $1,001.0M from $649.6M, driven by $575.0M of 0.50% convertible notes issued in November 2025, alongside the existing $350.0M 2.25% convertible notes due 2029.
Security division direct sales to the U.S. Government were approximately $207.3 million in fiscal 2026, exposing revenue to government contract termination-for-convenience risk.
Consolidated backlog grew to approximately $1.9 billion as of June 30, 2026, up from $1.8 billion a year earlier.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Bernard KelliReporting ownerShares withheld for tax or exercise price · Aug 20, 2026
About OSI SYSTEMS INC (OSIS): stock profile, AI score and financials
OSI SYSTEMS INC (OSIS) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores OSIS at 58.9/100 on a composite quality score built from its SEC filings, placing it at rank #970 of 2,925 stocks — the top half of the AI-ranked universe. OSIS scores in the top quartile across balance sheet strength (75.4). Areas of concern include institutional flow (32.9), which score below median versus the broader universe. Shareholder dilution risk is elevated at 45.5/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q4 2026), OSI SYSTEMS INC reports quarterly revenue of $484.1M, net income of $55.2M, an operating margin of 15.3%. Top institutional holders of OSIS by reported 13-F value include BlackRock, FMR, VANGUARD PORTFOLIO MANAGEMENT, based on the most recent SEC filings. OSIS trades on the Nasdaq exchange and files with the SEC under CIK 1039065. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate OSIS daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for OSI SYSTEMS INC directly from SEC EDGAR.