OSI Systems reported second quarter revenue of $484.1 million, missing analyst estimates of $529 million by 8.5%. The shortfall stemmed from deferred deliveries in the security division, primarily in the Middle East, where regional conflict and site access issues caused delays. CEO Ajay Mehra emphasised that orders remain in backlog rather than being lost. The company's backlog stood at $1.9 billion at quarter end, up 5.6% year on year. Adjusted earnings per share of $3.78 met analyst expectations. However, guidance for financial year 2027 of $11.31 per share at the midpoint missed estimates by 1.1%. CFO Alan Edrick said the company expects free cash flow to exceed net income. Management noted that only a portion of new contract awards is included in near-term guidance, with the majority expected in subsequent years.

OSI Systems reported fourth-quarter revenue of $484.06 million, slightly below the prior year, whilst net income grew to $55.24 million. The company highlighted record full-year earnings and a backlog of approximately $1.90 billion, alongside new multi-year security contracts with US Customs and Border Protection. Despite these achievements, shares declined 9.44% over seven days. The drop followed delivery delays attributed to conflict-related issues, even as the company maintained an active share repurchase programme that has retired nearly 22% of shares since 2020. Management issued new revenue guidance through fiscal 2027. The company's investment narrative now centres on converting its record backlog into cash whilst maintaining margins, though execution risk remains a concern for investors.

Matthews International and OSI Systems shares hit new 52-week lows on Friday following analyst downgrades and weak quarterly results. Matthews International fell to $21.17, marking its fifth consecutive session of decline. Truist initiated coverage with a "hold" rating and $24 price target, saying the company faces a "perfect storm" across its three main business segments. The firm cut its full-year adjusted EBITDA guidance to $158 million-$162 million after third-quarter sales dropped 30% and earnings per share plunged 78.6%. OSI Systems declined 9% after fourth-quarter revenue of $484 million missed Wall Street's $529.7 million estimate. Several analysts reduced price targets whilst maintaining buy ratings. Roth Capital cut its target to $274 from $310, citing the revenue miss and fiscal 2027 guidance below estimates.