OSI Systems, Inc
OSI Systems, Inc. is a U.S.-based designer and manufacturer of specialized electronic systems and components for critical applications. Through its Security, Optoelectronics and Manufacturing, and Healthcare divisions, it serves markets including homeland security, defense and aerospace, and patient monitoring and connected care.
Fiscal year 2026 · change from previous year
Development 2021–2026
Business
Share of revenueNon-intrusive screening, detection, and turnkey security solutions for critical infrastructure and transport.
Specialized electronic components, subsystems, and contract manufacturing services for OEM and industrial customers.
Patient monitoring, cardiology, and remote monitoring products sold under the Spacelabs Healthcare brand.
Installation, maintenance, depot repair, training, and after-market support across divisions.
Products
Reported · share of revenue- Products75.3 %
- Services24.7 %
Source: 10-K FY2026, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
OSI Systems sells primarily to end users in security and healthcare, while its optoelectronics and manufacturing division also serves OEM customers. Its customer base includes government and public-sector buyers, hospitals and healthcare providers, and industrial or defense customers that need specialized electronic subsystems and manufacturing support.
Buy cargo, vehicle, checkpoint, and trace-detection systems for border and facility security.
Buy patient monitoring, cardiology, and remote monitoring systems for clinical use.
Buy optoelectronic components, subsystems, and electronics manufacturing services.
Buy specialized electronic components and subsystems for mission-critical applications.
Buy screening and inspection systems for passenger, baggage, and cargo security.
Strategy
OSI Systems focuses on product development, installed-base service, and system integration across its security and healthcare platforms. It also uses its optoelectronics and manufacturing capabilities to support internal divisions and third-party customers, while maintaining global engineering and service reach.
Keeps the portfolio relevant in markets where performance and technology drive purchasing decisions.
Maintenance, repair, and support deepen customer retention and extend the life of deployed systems.
Turnkey delivery improves switching costs and supports larger project wins.
Vertical integration supports internal supply needs and third-party OEM demand.
Geography
2025OSI Systems operates globally, with product design and R&D centered in the United States and additional engineering presence in the United Kingdom, Australia, Germany, Singapore, and India. It also provides electronics design and manufacturing services in North America, the United Kingdom, and the Asia Pacific region, while selling healthcare products globally under the Spacelabs Healthcare brand.
Share of the revenue the company reports by geography.
Risks
OSI Systems faces product-performance, cybersecurity, and customer-concentration risks tied to mission-critical security and healthcare applications. It also faces exposure to healthcare purchasing consolidation, regulatory and reimbursement pressure, and execution risk in complex contracts, installations, and acquisitions.
- Security system failure or false negative detectionImpact: HighLikelihood: Medium
The company sells systems used to detect weapons, explosives, and contraband; failures can cause liability and reputational damage.
Exposure: Security and inspection systems
- Cybersecurity breaches and data lossImpact: HighLikelihood: Medium
Installed systems and internal networks may be targeted by cyberattacks, malware, or unauthorized access.
Exposure - Healthcare customer consolidation and pricing pressureImpact: MediumLikelihood: Medium
Large purchasing groups and integrated delivery networks can demand discounts and limit access to accounts.
Exposure: Healthcare division
- Contract execution and service obligationsImpact: MediumLikelihood: Medium
Turnkey projects, installation, training, and after-market service create delivery and performance obligations over time.
Exposure: Security projects and healthcare support
- Acquisition integration and restructuring chargesImpact: MediumLikelihood: Medium
Recent and future acquisitions or capacity changes can create integration costs, asset impairments, and operational disruption.
Exposure: All divisions
Accounting
Judgemental itemsDifferent timing for product sales versus installation, turnkey, and support services affects quarterly comparability.
Impact: Revenue and gross margin timing
Contracts may include equipment, civil works, training, and after-market service that must be separated and allocated.
Impact: Revenue allocation and margin recognition
Acquisitions require valuation of customer relationships, technology, trade names, and goodwill.
Impact: Goodwill, intangibles, and future impairment risk
The 2029 Notes create non-cash interest expense and potential dilution under the if-converted method.
Impact: Interest expense and diluted EPS
Workforce, facility, and asset actions can create non-recurring charges and affect comparability.
Impact: Operating income and asset values
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Last updated: 24/09/2026