OSI Systems' Q4 Results Exceed Expectations, Price Target Raised to $260

B. Riley analyst Josh Nichols raised OSI Systems' price target to $260 from $255 and maintains a Buy rating. The company reported better-than-expected Q4 results and guidance that exceeded estimates. Nichols believes the One Big Beautiful Bill will bring substantial catalysts for OSI in fiscal 2027 and beyond.

OSI Systems Inc. (NASDAQ:OSIS), a security and healthcare technology company, reported its fourth-quarter fiscal 2025 earnings, revealing a miss on both earnings per share (EPS) and revenue forecasts. The company announced an EPS of $2.84, falling short of the $3.19 forecast, marking a 10.97% negative surprise. Revenue also missed expectations, coming in at $480.91 million against the forecasted $496.46 million. The market reacted with a 5.1% drop in OSI Systems’ stock price, trading at $222 in pre-market sessions, down from the previous close of $223.39 [1].

Despite the earnings miss, OSI Systems achieved a record non-GAAP adjusted EPS of $3.24, the highest in its history. Revenue grew by 5% year-over-year to $504 million, driven by strong performance in the Security Division and Optoelectronics. The company reported impressive year-over-year revenue growth of 14.93% and a strong financial health score of GOOD, suggesting robust underlying business fundamentals [1].

Analyst Josh Nichols from B. Riley raised OSI Systems' price target to $260 from $255 and maintains a Buy rating. Nichols believes the One Big Beautiful Bill will bring substantial catalysts for OSI in fiscal 2027 and beyond. Nichols highlighted the company's strong returns and solid liquidity position, noting that the earnings miss was a one-time event [2].

OSI Systems' Q4 2025 EPS and revenue both missed forecasts. The stock price declined by 5.1% in pre-market trading. The company achieved a record Q4 non-GAAP adjusted EPS of $3.24. Security Division revenues increased by 7% year-over-year. Strong demand was observed in aviation, cargo, and border security markets. Despite the earnings miss, the company projects non-GAAP EPS growth of 8-11% for fiscal 2026, with revenues expected to grow between 5.4% and 8%. Strategic investments in R&D and expansion of the CertScan platform are expected to drive future growth [1].

References:

[1] https://www.investing.com/news/transcripts/earnings-call-transcript-osi-systems-q4-2025-results-miss-forecasts-stock-dips-93CH-4205241

[2] B. Riley Investments