OSI Systems slips on mixed Q4 results and weak guidance

OSI Systems Inc. (NASDAQ: OSIS ) shares are dipping on Friday after the company reported mixed fourth-quarter results and issued fiscal 2027 sales guidance below Wall Street’s estimates.

OSI Systems shares are sliding.

Why is OSIS stock dropping? OSI Systems Posts Record Adjusted Earnings Despite a Revenue Miss OSI Systems reported fourth-quarter adjusted earnings of $3.78 per share, essentially in line with the $3.77 analyst estimate and up nearly 17% from $3.24 a year earlier.

Revenue told a weaker story, coming in at almost $484.06 million, well short of the $529.67 million analysts expected and down about 4% from approximately $504.99 million in the same quarter last year.

Despite the quarterly revenue miss, OSI Systems closed out fiscal 2026 with record full-year revenue of $1.79 billion.

Full-year adjusted earnings hit a record $10.35 per share, up 11% from the prior year.

The company also posted record operating cash flow of $182 million for the quarter and $276 million for the full year, alongside a record backlog of $1.9 billion.

OSI Systems guided fiscal 2027 adjusted earnings to a range of $11.13 to $11.49 per share, versus the $11.44 analyst estimate, and revenue of nearly $1.88 billion to $1.93 billion, below the $1.94 billion analysts had modeled.

OSI Systems Expands its Share Buyback Program Alongside its results, OSI Systems authorized the repurchase of an additional 1 million shares, bringing its total remaining buyback authorization to 1,078,731 shares.

Management described the larger authorization as a vote of confidence in where the company is headed strategically and in its capacity to keep generating substantial free cash flow.

OSI Systems’ Chart Shows a Stock Deep in Oversold Territory The stock’s decline today comes on top of a chart that was already under pressure.

Shares are sitting roughly 11.5% beneath their 20-day moving average of $225.25, about 9.5% under their 50-day average of $220.44, and more than 21% below their 200-day average of $254.50, a spread wide enough that any bounce attempt risks running straight into sellers until price can climb back into the $220 to $225 zone.

Momentum readings tell an even more extreme story.

The relative strength index sits at 29.84, deep in oversold territory and a sign that the recent decline has stretched further than usual.

Think of RSI as a gauge for how fast and how far a stock has moved.

A reading this low typically suggests the drop has become overextended, though that alone doesn’t guarantee shares are about to turn around.

The longer-term backdrop remains unfavorable too.

A death cross formed back in June, when the 50-day average slipped below the 200-day average, and the stock is still down 8.48% over the past 12 months.

Traders will likely watch whether the stock can hold near its recent low from August, since a decisive break below that zone would keep the broader downtrend intact.

Resistance sits at $225, a round number that lines up closely with the 20-day average and a level where rebounds have tended to run out of steam.

Support sits at $197.50, just above the 52-week low near $197.27, a zone that could either draw in bargain hunters or give way to further selling if it breaks.

OSIS Shares Are Tumbling OSIS Price Action: OSI Systems shares were down 8.75% at $199.00 at the time of publication on Friday.

The stock is trading near its 52-week low of $197.27, according to Pro.

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