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OSI Systems (OSIS) Q3 FY26 earnings results (third quarter fiscal 2026)
10-Q filed May 4, 2026
OSI Systems (OSIS) reported revenue of $453M for the third quarter fiscal 2026 (Q3 FY26), +2% from a year earlier and -2% from the quarter before. Operating margin was 11.7%, net earnings $40.2M (8.9% of revenue).
OSI Systems, Q3 FY26: revenue $453M (+2% year over year), operating margin 11.7%, net earnings $40.2M, operating cash flow $14.5M. The chart follows the revenue to costs, profit and cash.
| Q3 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $453M | -2% | +2% |
| Gross profit | $150M | -0.9% | 0% |
| Operating profit | $53.2M | -9% | -5% |
| Net earnings | $40.2M | +4% | -2% |
| Operating cash flow | $14.5M | -77% | -82% |
| Free cash flow | $6.9M | -88% | -91% |
What changed
Revenue was $453.2M in Q3 FY26, up 2% year over year and down 2% from the previous quarter. Security Division was the largest line at 70% of revenue. Optoelectronics and Manufacturing Division added $7.6M year over year (up 9%), 85% of the total change. Healthcare Division declined 7%.
Gross margin was 33.2%, down 0.7 points from Q3 FY25. Operating profit was $53.2M, a 11.7% margin (down 0.9 points year over year). Operating profit fell $3.0M even though revenue rose $8.9M versus Q3 FY25, so costs grew faster than sales. Operating expenses grew 3% against revenue growth of 2%. The fastest-growing cost line was Other operating costs (+174%). Net earnings were $40.2M, down 2% year over year. The effective tax rate was 18.3%.
Operating cash flow was $14.5M (down 82% year over year), 36% of net earnings. Non-cash charges added back $9.5M of depreciation and amortization and $6.6M of share-based compensation. Working capital and other items used $41.9M. Capital expenditures of $7.6M left free cash flow of $6.9M.
Questions
What was OSI Systems' revenue in the third quarter fiscal 2026?
OSI Systems (OSIS) reported revenue of $453M for the third quarter fiscal 2026 (Q3 FY26), +2% from a year earlier and -2% from the quarter before.
Was OSI Systems profitable in the third quarter fiscal 2026?
Operating profit was $53.2M (11.7% of revenue) and net earnings $40.2M.
Source: OSI Systems 10-Q on SEC EDGAR.