OSI Systems secured about $90 million in US government contracts for radio equipment. Fiscal 2026 results showed a record $1.9 billion backlog and $1.79 billion in revenue; fourth-quarter revenue fell 4% year over year to $484.1 million as Middle East conflicts delayed shipments.
The Sept. 16 award covers very-low-frequency (VLF) communication systems and high-frequency (HF) transmission equipment. Backlog rose to $1.9 billion from $1.8 billion a year earlier. Management said deliveries deferred amid Middle East conflicts were rescheduled, not canceled.
OSI generated record fiscal 2026 operating cash flow of $276 million and had $359.8 million in cash and equivalents, up from $106.4 million a year earlier. It repurchased $123.6 million of shares in Q4 and reduced bank credit lines to zero after refinancing debt. Management forecast fiscal 2027 revenue growth of 5%–8.1% and non-GAAP EPS growth of 7.5%–11%; fiscal 2026 diluted EPS was $10.35 non-GAAP versus $8.95 GAAP. The Healthcare division’s adjusted operating margin rose to 10% in Q4 from 1% a year earlier.
