OSIS Q4 2025 Earnings Report: Revenue Surge Beats Wall Street Consensus

OSI Systems delivered impressive financial results for the fourth quarter of 2025, demonstrating solid momentum across its key business segments. The company reported $464.06 million in revenue, marking a robust 10.5% increase year-over-year and surpassing the Zacks Consensus Estimate of $451.8 million by 2.71%. Earnings per share reached $2.58, compared to $2.42 in the same period last year, also exceeding analyst projections of $2.52 by 2.38%. These results provide investors with a clearer picture of OSIS’s operational health and growth trajectory.

Revenue Performance and Segment Breakdown

The revenue beat demonstrates that OSIS is executing well across multiple fronts. The total revenue of $464.06 million reflects consistent demand for the company’s solutions and services. To understand the strength of these results, it’s essential to examine how different business segments contributed to this performance.

The Security division emerged as OSIS’s growth engine, generating $334.71 million in revenue—a 15.4% year-over-year increase that significantly outpaced analyst expectations of $318.69 million. This segment’s strength indicates robust demand for security solutions in the current market environment.

The Optoelectronics and Manufacturing division delivered $112.55 million, up 11.7% from the prior year and exceeding the consensus estimate of $107.46 million. Meanwhile, the Healthcare division posted $36.53 million in revenue, falling short of the three-analyst average estimate of $44.79 million and declining 18.6% year-over-year. This decline suggests OSIS is navigating headwinds in the healthcare sector that warrant investor attention.

Operating Profitability Across Divisions

Beyond the top-line revenue figures, examining non-GAAP operating income across segments reveals the underlying operational efficiency of OSIS’s business units. The Security division achieved $59.64 million in operating income, essentially in line with analyst expectations of $59.53 million, demonstrating consistent profitability in this core business. The Optoelectronics and Manufacturing division generated $14.49 million, slightly surpassing the $13.88 million estimate, while the Healthcare division posted just $0.53 million against an estimated $2.34 million, highlighting the profitability pressure in this unit.

Investment Outlook and Market Performance

OSIS shares have appreciated 6.4% over the past month, outperforming the S&P 500 composite’s 0.8% return during the same period. The company currently holds a Zacks Rank #2 (Buy) rating, suggesting it has the potential to outperform the broader market in the near term. Investors monitoring OSIS should focus on whether the company can reverse the Healthcare division’s weakness while maintaining the strong momentum in its Security and Optoelectronics segments. The mixed divisional performance reflects a company in transition, with its legacy healthcare business facing pressure while newer security-focused solutions drive growth.