OSI Systems(OSIS) - 2026 Q2 - Quarterly Results

Financial Performance - Record Q2 revenues of $464 million, representing an 11% year-over-year growth[7] - Non-GAAP diluted earnings per share for Q2 reached a record $2.58, up 7% from the previous year[4] - Operating cash flow for Q2 was $62 million, reflecting strong operational performance[7] - The company raised its fiscal 2026 non-GAAP diluted earnings per share guidance to a range of $10.30 - $10.55, indicating a 10% - 13% year-over-year growth[8] - GAAP revenues for the three months ended December 31, 2024, were $419,820 million, while for the same period in 2025, revenues increased to $464,057 million, a growth of approximately 10.5%[20] - Total revenues for the six months ended December 31, 2024, were $763.827 million, with an operating income of $88.285 million, representing 11.6% of revenues[22] - For the same period in 2025, revenues increased to $848.680 million, with operating income of $91.868 million, accounting for 10.8% of revenues[22] - Non-GAAP net income for the six months ended December 31, 2024, was $62.521 million, with an EPS of $3.67[22] - In 2025, non-GAAP net income rose to $69.930 million, resulting in an EPS of $4.00[22] Segment Performance - The Security division reported a 15% increase in Q2 revenues year-over-year, with a focus on expanding recurring services revenue[5] - The Optoelectronics and Manufacturing division achieved 12% revenue growth in Q2, highlighting operational efficiency and customer demand[5] - The Security segment's GAAP revenues increased from $289,987 million in 2024 to $334,705 million in 2025, a growth of approximately 15.4%[20] - The Optoelectronics & Manufacturing segment's GAAP revenues increased from $100,743 million in 2024 to $112,552 million in 2025, a growth of about 11.5%[20] - The Healthcare segment's GAAP revenues decreased from $44,854 million in 2024 to $36,534 million in 2025, a decline of approximately 18.6%[20] - The Security segment generated revenues of $514.301 million in 2024, with an operating income of $82.909 million, which is 16.1% of revenues[22] - The Optoelectronics & Manufacturing segment reported revenues of $198.538 million in 2024, with an operating income of $22.891 million, representing 11.5% of revenues[22] - The Healthcare segment had revenues of $81.956 million in 2024, with an operating income of $2.522 million, accounting for 3.1% of revenues[22] Financial Position - The company's backlog stood at $1.8 billion as of December 31, 2025[4] - Total assets decreased from $2,522,241 million to $2,241,257 million, a decline of approximately 11.1%[18] - Total current assets decreased from $1,686,845 million to $1,422,861 million, a decline of about 15.6%[18] - Total liabilities increased from $1,676,751 million to $1,290,173 million, a decrease of approximately 23.1%[18] - Total stockholders' equity increased from $845,490 million to $951,084 million, an increase of about 12.5%[18] Operational Efficiency - Operating income as a percentage of revenues decreased from 13.8% in 2024 to 12.7% in 2025[20] - Non-GAAP operating income for the three months ended December 31, 2024, was $62,870 million, while in 2025, it increased to $65,147 million, reflecting a growth of about 3.6%[20] - Non-GAAP operating income for the Security segment was $90.096 million, or 17.5% of revenues, in 2024[22] - Non-GAAP operating income for the Optoelectronics & Manufacturing segment was $24.608 million, representing 12.4% of revenues in 2024[22] Strategic Initiatives - The company is well-positioned to capitalize on increasing industry demand and pursue strategic initiatives across key markets[3] - In November 2025, the company issued $575 million of convertible senior notes due in 2031 at an interest rate of 0.50%[5] - The company maintained its previous revenue guidance while increasing its earnings per share outlook[8] - The company incurred impairment, restructuring, and other charges of $1.393 million in 2024, which was 0.2% of revenues[22]