OSI Systems (NASDAQ:OSIS) Misses Q4 CY2025 Revenue Estimates

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at OSI Systems and its peers.

Companies in this sector, especially if they invest wisely, could see demand tailwinds as the world moves towards more IoT (Internet of Things), automation, and analytics. Enterprises across most industries will balk at taking these journeys solo and will enlist companies with expertise and scale in these areas. However, headwinds could include rising competition from larger technology firms, as digitization lowers barriers to entry in the space. Additionally, companies in the space will likely face evolving regulatory scrutiny over data privacy, particularly for surveillance and security technologies. This could make companies have to continually pivot and invest.

The 8 specialized technology stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.2% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.8% since the latest earnings results.

OSI Systems

With security scanners deployed at airports and borders worldwide and patient monitors used in hospitals across the globe, OSI Systems designs and manufactures specialized electronic systems for security screening, patient monitoring, and optoelectronic applications.

OSI Systems reported revenues of $384.6 million, up 11.8% year on year. This print exceeded analysts’ expectations by 4.9%. Overall, it was a strong quarter for the company with a solid beat of analysts’ revenue estimates and full-year revenue guidance slightly topping analysts’ expectations.

The stock is up 7.6% since reporting and currently trades at $262.42.

Read why we think that OSI Systems is one of the best specialized technology stocks, our full report is free.

Best Q3: Napco

Protecting everything from schools to government facilities since 1969, Napco Security Technologies manufactures electronic security devices, access control systems, and communication services for intrusion and fire alarm systems.

Napco reported revenues of $49.17 million, up 11.7% year on year, outperforming analysts’ expectations by 4.8%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.

The market seems unhappy with the results as the stock is down 6% since reporting. It currently trades at $41.51.

Is now the time to buy Napco? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Cognex

Founded in 1981 when computer vision was in its infancy, Cognex develops machine vision systems and software that help manufacturers and logistics companies automate quality inspection and tracking of products.

Cognex reported revenues of $276.9 million, up 18% year on year, exceeding analysts’ expectations by 5.2%. It was a satisfactory quarter as it also posted an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ full-year EPS guidance estimates.

As expected, the stock is down 26.3% since the results and currently trades at $34.95.

Read our full analysis of Cognex’s results here.

Mirion

With its technology protecting workers in over 130 countries and equipment used in 80% of cancer centers worldwide, Mirion Technologies provides radiation detection, measurement, and monitoring solutions for medical, nuclear energy, defense, and scientific research applications.

Mirion reported revenues of $223.1 million, up 7.9% year on year. This number was in line with analysts’ expectations. Overall, it was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.

The stock is down 3.3% since reporting and currently trades at $24.35.

Read our full, actionable report on Mirion here, it’s free for active Edge members.

Zebra

Taking its name from the black and white stripes of barcodes, Zebra Technologies provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.

Zebra reported revenues of $1.32 billion, up 5.2% year on year. This result met analysts’ expectations. It was a strong quarter as it also put up revenue guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

Zebra had the weakest performance against analyst estimates among its peers. The stock is down 15.4% since reporting and currently trades at $262.81.

Read our full, actionable report on Zebra here, it’s free for active Edge members.

OSI Systems trades at $259.45 and has moved in lockstep with the market. Its shares have returned 10.5% over the last six months while the S&P 500 has gained 14.4%.

Is OSIS a buy right now? Find out in our full research report, it’s free for active Edge members.

Why Are We Positive On OSI Systems?

With security scanners deployed at airports and borders worldwide and patient monitors used in hospitals across the globe, OSI Systems designs and manufactures specialized electronic systems for security screening, patient monitoring, and optoelectronic applications.

1. Skyrocketing Revenue Shows Strong Momentum

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, OSI Systems grew its sales at an impressive 9.2% compounded annual growth rate. Its growth surpassed the average business services company and shows its offerings resonate with customers.

2. Outstanding Long-Term EPS Growth

Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.

OSI Systems’s EPS grew at a spectacular 14.9% compounded annual growth rate over the last five years, higher than its 9.2% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

3. Increasing Free Cash Flow Margin Juices Financials

Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.

As you can see below, OSI Systems’s margin expanded by 2.4 percentage points over the last five years. We have no doubt shareholders would like to continue seeing its cash conversion rise as it gives the company more optionality. OSI Systems’s free cash flow margin for the trailing 12 months was 7.3%.

Final Judgment

These are just a few reasons OSI Systems is a rock-solid business worth owning, but at $259.45 per share (or 25× forward P/E), is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.

What Happened?

Shares of security and healthcare technology company OSI Systems jumped 2.8% in the afternoon session after Roth Capital increased its price target on the company's shares to $292 from $280. The investment firm also maintained its "buy" rating on the stock. An increased price target from an analyst often suggests a belief that the company's shares have more room to grow. This positive assessment likely boosted investor confidence, leading to the upward movement in the stock's price.

After the initial pop the shares cooled down to $273.46, up 2.7% from previous close.

Is now the time to buy OSI Systems? Access our full analysis report here.

What Is The Market Telling Us

OSI Systems’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 12 days ago when the stock gained 8.4% on the news that comments from a key Federal Reserve official hinted at a potential interest rate cut in December. John Williams, president of the Federal Reserve Bank of New York, signaled he was open to lowering the fed funds rate—the key interest rate that banks charge each other for overnight loans—to support the job market. Speaking at an event, Williams stated that he sees “room for a further adjustment” for interest rates, which immediately shifted market expectations. Following his remarks, the perceived likelihood of an interest rate cut at the Federal Reserve's December meeting flipped from unlikely to more likely than not. The prospect of lower borrowing costs sent a wave of optimism through the markets, leading to a rally in major indices like the S&P 500, Dow Jones Industrial Average, and the Nasdaq Composite.

OSI Systems is up 65.3% since the beginning of the year, and at $273.46 per share, it is trading close to its 52-week high of $286.96 from November 2025. Investors who bought $1,000 worth of OSI Systems’s shares 5 years ago would now be looking at an investment worth $3,118.

What Happened?

A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official hinted at a potential interest rate cut in December. 

John Williams, president of the Federal Reserve Bank of New York, signaled he was open to lowering the fed funds rate—the key interest rate that banks charge each other for overnight loans—to support the job market. Speaking at an event, Williams stated that he sees “room for a further adjustment” for interest rates, which immediately shifted market expectations. Following his remarks, the perceived likelihood of an interest rate cut at the Federal Reserve's December meeting flipped from unlikely to more likely than not. The prospect of lower borrowing costs sent a wave of optimism through the markets, leading to a rally in major indices like the S&P 500, Dow Jones Industrial Average, and the Nasdaq Composite.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Professional Staffing & HR Solutions company Robert Half jumped 6.4%. Is now the time to buy Robert Half? Access our full analysis report here, it’s free for active Edge members.
• Digital Media & Content Platforms company Rumble jumped 6.8%. Is now the time to buy Rumble? Access our full analysis report here, it’s free for active Edge members.
• Hardware & Infrastructure company Xerox jumped 10.9%. Is now the time to buy Xerox? Access our full analysis report here, it’s free for active Edge members.
• Advertising & Marketing Services company Magnite jumped 8.2%. Is now the time to buy Magnite? Access our full analysis report here, it’s free for active Edge members.
• Specialized Technology company OSI Systems jumped 8.4%. Is now the time to buy OSI Systems? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Xerox (XRX)

Xerox’s shares are extremely volatile and have had 42 moves greater than 5% over the last year. But moves this big are rare even for Xerox and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 1 day ago when the stock dropped 3.9% on the news that markets faded the Nvidia rally in the morning session, as investors remained uncertain about future rate cuts. 

While the trading day began with significant enthusiasm, pushing the Dow Jones Industrial Average up more than 700 points and the Nasdaq Composite up 2.6%, momentum quickly evaporated as the session wore on. The primary catalyst for this sharp reversal was a stronger-than-expected jobs report, which reduced the implied odds of a December interest rate cut to less than 40%.This macroeconomic anxiety overshadowed stellar corporate performance. Nvidia initially surged 5% on blockbuster earnings and CEO Jensen Huang's bullish outlook on "off the charts" demand for Blackwell chips. However, the stock eventually turned negative, acting as a heavy weight that dragged the broader indices into the red. The sell-off partly reflects a deepening caution regarding high-flying tech valuations in a "higher-for-longer" rate environment. 

Consequently, investors appeared to rotate capital away from volatile growth sectors and toward defensive staples, evidenced by Walmart's 6% gain following its own earnings beat. Ultimately, the market could not sustain the morning's euphoria, as traders prioritized rate realities over AI potential.

Xerox is down 68.4% since the beginning of the year, and at $2.61 per share, it is trading 73.5% below its 52-week high of $9.84 from January 2025. Investors who bought $1,000 worth of Xerox’s shares 5 years ago would now be looking at an investment worth $115.54.

What Happened?

Shares of security and healthcare technology company OSI Systems fell 1.1% in the afternoon session after the company announced the pricing of its upsized offering of $500 million in convertible senior notes due in 2031. 

The offering was increased from the previously announced size of $400 million. OSI Systems intended to use the funds to repay a portion of its outstanding revolving credit facility and for other general corporate purposes. Notably, the announcement also mentioned concurrent repurchases of the company's common stock. This action may have boosted investor confidence, as share buybacks can reduce the number of shares outstanding and signal that management believed the stock was a good value. The company's own filing stated these repurchases could result in its stock trading at higher prices than it otherwise would have.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy OSI Systems? Access our full analysis report here.

What Is The Market Telling Us

OSI Systems’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock dropped 3.7% on the news that investor anxiety grew over stretched valuations in the sector. Nvidia slid 3% ahead of its earnings report, dragging down fellow "Magnificent Seven" peers despite a major partnership announcement with Anthropic, as investors increasingly question the durability of the AI rally.Market sentiment was further dampened by Bitcoin dropping below $90,000, signaling reduced risk appetite, and growing anxiety that the Federal Reserve may pause rate cuts in December, with the implied probability of a cut falling to roughly 50%. Adding to the weakness, Home Depot shares declined following an earnings miss and a cut to its full-year outlook. This combination of continued de-risking and valuation skepticism put the S&P 500 on pace for its fourth consecutive daily decline.

OSI Systems is up 49.7% since the beginning of the year, but at $247.67 per share, it is still trading 13.7% below its 52-week high of $286.96 from November 2025. Investors who bought $1,000 worth of OSI Systems’s shares 5 years ago would now be looking at an investment worth $2,899.

What Happened?

A number of stocks fell in the afternoon session after investor anxiety grew over stretched valuations in the sector. 

Nvidia slid 3% ahead of its earnings report, dragging down fellow "Magnificent Seven" peers despite a major partnership announcement with Anthropic, as investors increasingly question the durability of the AI rally.Market sentiment was further dampened by Bitcoin dropping below $90,000, signaling reduced risk appetite, and growing anxiety that the Federal Reserve may pause rate cuts in December, with the implied probability of a cut falling to roughly 50%. Adding to the weakness, Home Depot shares declined following an earnings miss and a cut to its full-year outlook. This combination of continued de-risking and valuation skepticism put the S&P 500 on pace for its fourth consecutive daily decline.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Professional Staffing & HR Solutions company Alight fell 4.7%. Is now the time to buy Alight? Access our full analysis report here, it’s free for active Edge members.
• Specialized Technology company OSI Systems fell 3.7%. Is now the time to buy OSI Systems? Access our full analysis report here, it’s free for active Edge members.
• IT Services & Consulting company Kyndryl fell 3.2%. Is now the time to buy Kyndryl? Access our full analysis report here, it’s free for active Edge members.
• Business Process Outsourcing & Consulting company Concentrix fell 2.6%. Is now the time to buy Concentrix? Access our full analysis report here, it’s free for active Edge members.
• Specialized Technology company PAR Technology fell 3.3%. Is now the time to buy PAR Technology? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Alight (ALIT)

Alight’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock dropped 3.7% on the news that investors continued to the company's recent quarterly earnings report, which missed analyst expectations on both profit and revenue. 

The company posted earnings per share of $0.12, falling short of the consensus estimate of $0.13. Revenue for the quarter was $533 million, which was below the anticipated $539.43 million and represented a 4.0% decrease compared to the same period in the previous year. In the wake of the results, analysts at Wedbush and UBS Group lowered their price targets on the stock. Wedbush reduced its target to $5.00 from $7.00, and UBS Group cut its target to $4.00 from $6.50, signaling reduced confidence following the financial update.

Alight is down 69.4% since the beginning of the year, and at $2.07 per share, it is trading 74.5% below its 52-week high of $8.09 from November 2024. Investors who bought $1,000 worth of Alight’s shares at the IPO in July 2021 would now be looking at an investment worth $228.68.