OSI Systems (OSIS) Stock Drops 13% After Hours: Here’s What’s Going On?

OSI Systems, Inc. (NASDAQ:OSIS) shares fell 13.41% in after-hours trading Thursday after the company reported fiscal 2026 results and announced an expansion of its stock repurchase authorization.

The stock closed Thursday’s regular session down 1.28% at $218.09. It fell 13.41% to $188.84 in after-hours trading.

OSI Systems designs and manufactures specialized electronic systems and components for security, healthcare, aerospace, defense and other critical applications.

Fiscal 2026 Revenue Rises

OSI Systems reported fiscal 2026 revenue of $1.79 billion, up 4% year-over-year.

The company reported fiscal 2026 GAAP diluted EPS of $8.95, compared with $8.71 a year earlier. Non-GAAP diluted EPS rose 11% to $10.35.

The company ended fiscal 2026 with $359.8 million in cash and cash equivalents, compared with $106.4 million a year earlier.

OSI Systems also reported a record backlog of approximately $1.9 billion as of June 30.

Company Issues Fiscal 2027 Guidance

OSI Systems expects fiscal 2027 revenue of $1.875 billion to $1.93 billion, representing growth of 5% to 8.1%.

The company expects fiscal 2027 non-GAAP diluted EPS of $11.13 to $11.49, representing growth of 7.5% to 11%.

President and CEO Ajay Mehra said the company delivered a strong fiscal year despite revenue headwinds from Middle East conflicts that affected the timing of certain deliveries.

"These delays do not reflect order cancellations and remain in our backlog with updated delivery schedules," Mehra said.

OSI Systems Expands Stock Repurchase

OSI Systems’ board approved an additional authorization to repurchase 1 million shares, bringing the total remaining authorization to 1,078,731 shares.

The company repurchased 564,880 shares during the fiscal fourth quarter for an aggregate $123.6 million.

Chief Financial Officer Alan Edrick said the expanded authorization reflects the company’s confidence in its business and cash-flow generation while maintaining flexibility to invest in growth opportunities.

Price Action

OSI Systems has a market capitalization of approximately $3.60 billion.

The stock has a 52-week high of $311.30 and a 52-week low of $197.27.

OSIS shares are up 0.09% over the past year.

Benzinga’s Edge Stock Rankings indicate a positive short-term price trend, while the medium- and long-term price trends remain negative.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors

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