OSI SYSTEMS REPORTS FISCAL 2026 FOURTH QUARTER AND FISCAL YEAR FINANCIAL RESULTS

OSI SYSTEMS REPORTS FISCAL 2026 FOURTH QUARTER AND FISCAL YEAR FINANCIAL RESULTS · Record Fiscal Year 2026 Revenues of $1.79 billion · Q4 Earnings per Diluted Share o GAAP EPS of $3.27 o Record Non-GAAP EPS of $3.78 (17% growth year-over-year) · Fiscal Year 2026 Earnings per Diluted Share o GAAP EPS of $8.95 o Record Non-GAAP EPS of $10.35 (11% growth year-over-year) · Record Q4 Operating Cash Flow of $182 million · Record Fiscal Year 2026 Operating Cash Flow of $276 million · Record Backlog of $1.9 billion · Company Introduces Fiscal 2027 Revenues and Non-GAAP EPS Guidance HAWTHORNE, Calif. — (BUSINESS WIRE) — August 20, 2026 — OSI Systems, Inc. (the “Company” or “OSI Systems”) (NASDAQ: OSIS) today announced its financial results for the three months and fiscal year ended June 30, 2026. Ajay Mehra, OSI Systems’ President and Chief Executive Officer, stated, “Fiscal 2026 was a strong year for the Company, capped by record fourth quarter non-GAAP earnings per share and record operating cash flow, despite the impact of revenue headwinds from the Middle East conflicts which shifted the timing of certain planned deliveries. Our teams performed well across our three divisions, delivering solid bookings which led to substantial backlog. As we enter fiscal 2027, our opportunity pipeline, disciplined operating execution and continued focus on cash generation position us well to advance key strategic initiatives and drive long-term value.” Financial Summary Three Months Ended June 30, Fiscal Year Ended June 30, (Dollars in thousands, except per-share amounts) 2025 2026 % Change 2025 2026 % Change Revenues $ 504,985 $ 484,058 -4 % $ 1,713,166 $ 1,785,984 4 % Diluted earnings per share - GAAP $ 3.03 $ 3.27 8 % $ 8.71 $ 8.95 3 % Diluted earnings per share - non-GAAP $ 3.24 $ 3.78 17 % $ 9.36 $ 10.35 11 % Cash flow provided by operating activities $ 561 $ 182,110 $ 97,592 $ 275,904 Capital expenditures $ 6,119 $ 9,298 $ 23,832 $ 30,570 The Company’s backlog was approximately $1.9 billion as of June 30, 2026 compared to $1.8 billion a year ago. Mr. Mehra added, "The Security division continued to execute well during the fourth quarter, delivering strong profitability, outstanding cash generation and healthy bookings. While revenues were impacted by disruptions from the Middle East conflicts, underlying demand for our products and services remain encouraging. These delays do not reflect order cancellations and remain in our backlog with updated delivery schedules. The Security division ended the year with a substantial backlog, a significant opportunity pipeline and recent program wins that position the business well for the future.” Mr. Mehra continued, “The Optoelectronics and Manufacturing division delivered strong results for the quarter with revenues up about 5% year-over-year on broad-based demand across several key end markets. Our ability to support customers with highly engineered products, precision manufacturing capabilities and global operational reach continues to differentiate us in the marketplace. We are excited by the opportunities we see across our aerospace, defense, healthcare, technology and industrial Optoelectronics customer base.” Mr. Mehra further added, “The Healthcare division delivered an improved fourth quarter, with revenues up approximately 5% and an adjusted operating margin of 10% compared with 1% in the prior-year quarter, demonstrating the impact of operational improvements implemented throughout the year. We are focused on expanding our installed base, supporting healthcare providers with innovative clinical solutions and advancing product development initiatives designed to enhance patient care.” The Company repurchased 564,880 shares during the fiscal 2026 fourth quarter for an aggregate cash amount of $123.6 million. The Company ended fiscal 2026 with $359.8 million of cash and cash equivalents, up from $106.4 million a year earlier. During fiscal 2026, the Company refinanced and expanded its long-term debt, extended maturities, enhanced financial flexibility to fund growth initiatives, and reduced bank lines of credit to zero while continuing to return capital to shareholders through stock repurchases. Fiscal Year 2027 Outlook Guidance Revenues $1.875 billion - $1.930 billion YoY Growth Rate 5.0% - 8.1% Non-GAAP Diluted Earnings Per Share $11.13 - $11.49 YoY Growth Rate 7.5% - 11.0% The Company is introducing its fiscal 2027 guidance for revenues and non-GAAP diluted earnings per share, as indicated above. Actual revenues and non-GAAP diluted earnings per share could vary from this guidance due to factors discussed under “Forward-Looking Statements” or other factors. The Company’s fiscal 2027 diluted earnings per share guidance is provided on a non-GAAP basis only. The Company does not provide a reconciliation of guidance for non-GAAP diluted EPS to GAAP diluted EPS (the most directly comparable GAAP financial measure) on a forward-looking basis because the Company is unable to provide a meaningful or accurate compilation of reconciling items and certain information is not available. This is due to the inherent difficulty and complexity in accurately forecasting the timing and amounts of various items included in the calculation of GAAP diluted EPS but excluded in the calculation of non-GAAP diluted EPS, such as acquisition costs and other non-recurring items that have not yet occurred, are out of the Company’s control or cannot otherwise reasonably be predicted. For the same reasons, the Company is unable to address the significance of unavailable information which may be material and therefore could result in GAAP diluted EPS being materially different from projected non-GAAP diluted EPS. Conference Call Information The Company will host a conference call and simultaneous webcast beginning at 1:30 pm PT (4:30 pm ET) today to discuss its financial results for the 2026 fourth fiscal quarter and full fiscal year. To listen, please visit the Investor Relations section of the OSI Systems website at http://investors.osi-systems.com/index.cfm and follow the link that will be posted on the front page. A replay of the webcast will be available beginning shortly after the conclusion of the conference call for approximately three months thereafter. The replay can be accessed through the Company’s website at www.osi-systems.com. About OSI Systems OSI Systems designs and manufactures specialized electronic systems and components for critical applications. The Company operates through three business segments: Security, Optoelectronics and Manufacturing, and Healthcare. Its Security division delivers advanced inspection systems, turnkey screening solutions, and comprehensive support services to protect people and infrastructure. The Optoelectronics and Manufacturing segment serves as a global supplier of high-performance optoelectronic solutions and precision manufacturing services for leading OEMs. The Healthcare segment focuses on patient monitoring, diagnostic cardiology, and related services with the goal of enhancing clinical care and patient outcomes. Serving customers in over 170 countries, OSI Systems strategically positions its sales, service, R&D, and manufacturing capabilities worldwide to provide fast and efficient delivery and support. For more information on OSI Systems or any of its subsidiary companies, visit www.osi-systems.com. News Filter: OSIS-E 2 Presentation of Non-GAAP Financial Measures This earnings release includes a presentation of non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP operating income (loss) by segment and non-GAAP operating margin, all of which are non-GAAP financial measures. The presentation of these non-GAAP figures is provided to allow for the comparison of the underlying performance of the Company, excluding the impact of impairment, restructuring and other charges (including certain legal costs), amortization of intangible assets acquired through business acquisitions, and associated tax effects, and discrete income tax items. Although we exclude amortization of acquired intangible assets from our non-GAAP figures, revenue generated from such intangibles is included in determining non-GAAP financial performance of the Company. Management believes that the non-GAAP financial measures presented in this earnings release provide (i) enhanced insight into the ongoing operations of the Company, (ii) meaningful information regarding the Company’s financial results (excluding amounts management does not view as reflective of ongoing operating results) for purposes of planning, forecasting and assessing the performance of the Company’s businesses, (iii) a meaningful comparison of financial results of the current period against results of past periods and (iv) financial results that are generally more comparable to financial results of peer companies than are GAAP figures. Non-GAAP financial measures should not be assessed in isolation or as a substitute for measures of financial performance prepared in accordance with GAAP. Our non-GAAP financial measures may not be the same as measures used by other companies due to possible differences in methods and in the items or events for which adjustments are made. Reconciliations of GAAP financial information to non-GAAP financial information are provided in the accompanying tables. The financial results calculated in accordance with GAAP and reconciliations from those financial results should be carefully evaluated. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to the Company's current expectations, beliefs, and projections concerning matters that are not historical facts. Forward-looking statements are not guarantees of future performance and involve uncertainties, risks, assumptions, and contingencies, many of which are outside the Company's control and which may cause actual results to differ materially from those described in or implied by any forward-looking statement. Forward-looking statements include, but are not limited to, information provided regarding expected revenues, earnings, growth, cash flow generation, and operational performance in fiscal 2027 and beyond. The Company could be exposed to a variety of negative consequences as a result of delays related to the award of domestic and international contracts; failure to secure the renewal of key customer contracts; delays in customer programs; government shutdowns; delays in revenue recognition related to the timing of customer acceptance; the impact of potential information technology, cybersecurity or data security breaches; changes in domestic and foreign government spending and budgetary, procurement and trade policies adverse to the Company's businesses; the impact of the Russia-Ukraine conflict or conflicts in the Middle East, including the potential for broad economic disruption, increased global tensions, or potential disruptions to customer operations, procurement activities, transportation networks and project timing; global economic uncertainty, including the impact of tariffs; material delays and cancellations of orders or deliveries thereon, supply chain and transportation networks disruptions, plant closures, or other adverse impacts on the Company’s ability to execute business plans; unfavorable currency exchange rate fluctuations; unfavorable interest rate fluctuations; effect of changes in tax legislation; market acceptance of the Company's new and existing technologies, products, and services; the Company's ability to win new business and convert orders received to sales within the current fiscal year; contract and regulatory compliance matters, or actions which, if brought, could result in judgments, settlements, fines, injunctions, debarment, or penalties; and other risks and uncertainties, including, but not limited to, those detailed herein and from time to time in the Company's Securities and Exchange Commission filings, which could have a material and adverse impact on the Company's business, financial condition, and results of operations. For additional information on these and other factors that could cause the Company's future results to differ materially from those in any forward-looking statements, see the section titled "Risk Factors" in the Company's most recently filed Annual Report on Form 10-K and other risks described therein and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, which are based on currently available information and speak only as of the date on which they are made. The Company assumes no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information, or otherwise, except to the extent required to do so under federal securities laws. For Additional Information, Contact: OSI Systems, Inc. Ajay Vashishat Vice President Telephone: (310) 349-2237 avashishat@osi-systems.com 3 OSI SYSTEMS, INC. AND SUBSIDIARIES UNAUDITED CONDENSED Consolidated Statements of Operations (in thousands, except per share data) Three Months Ended June 30, Fiscal Year Ended June 30, 2025 2026 2025 2026 Revenues: Products $ 392,633 $ 373,240 $ 1,323,291 $ 1,344,733 Services 112,352 110,818 389,875 441,251 Total net revenues 504,985 484,058 1,713,166 1,785,984 Cost of goods sold: Products 277,821 251,156 908,997 944,797 Services 58,926 64,948 216,987 248,095 Total cost of goods sold 336,747 316,104 1,125,984 1,192,892 Gross profit 168,238 167,954 587,182 593,092 Operating expenses: Selling, general and administrative 74,685 69,747 290,879 278,390 Research and development 18,844 19,500 73,444 79,141 Impairment, restructuring and other charges, net 1,687 4,819 5,335 16,591 Total operating expenses 95,216 94,066 369,658 374,122 Income from operations 73,022 73,888 217,524 218,970 Interest and other expense, net (7,224 ) (4,118 ) (31,430 ) (26,224 ) Income before income taxes 65,798 69,770 186,094 192,746 Provision for income taxes (13,050 ) (14,530 ) (36,457 ) (38,035 ) Net income $ 52,748 $ 55,240 $ 149,637 $ 154,711 Diluted earnings per share $ 3.03 $ 3.27 $ 8.71 $ 8.95 Weighted average shares outstanding – diluted 17,412 16,910 17,178 17,280 4 OSI SYSTEMS, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) June 30, 2025 June 30, 2026 Assets Cash and cash equivalents $ 106,405 $ 359,832 Accounts receivable, net 837,743 764,626 Inventories 407,174 415,562 Prepaid expenses and other current assets 71,539 71,671 Total current assets 1,422,861 1,611,691 Property and equipment, net 126,747 129,942 Goodwill 387,393 406,677 Intangible assets, net 183,290 192,355 Other non-current assets 120,966 161,787 Total Assets $ 2,241,257 $ 2,502,452 Liabilities and Stockholders' Equity Bank lines of credit $ 178,000 $ - Current portion of long-term debt 8,130 2,531 Accounts payable 205,181 168,981 Accrued payroll and related expenses 49,535 51,819 Advances from customers 68,184 42,391 Deferred revenue 77,788 91,036 Other current liabilities 110,120 154,377 Total current liabilities 696,938 511,135 Long-term debt 463,504 998,518 Other long-term liabilities 129,731 159,838 Total liabilities 1,290,173 1,669,491 Total stockholders’ equity 951,084 832,961 Total Liabilities and Stockholders’ Equity $ 2,241,257 $ 2,502,452 5 NON-GAAP FINANCIAL MEASURES AND SEGMENT INFORMATION Three Months Ended June 30, 2025 2026 (Dollars in thousands, except Operating % of Net Diluted Operating % of Net Diluted per-share amounts) Revenues Income Revenues Income EPS Revenues Income Revenues Income EPS OSI Consolidated GAAP basis $ 504,985 $ 73,022 14.5 % $ 52,748 $ 3.03 $ 484,058 $ 73,888 15.3 % $ 55,240 $ 3.27 Impairment, restructuring and other charges, net 1,687 0.3 % 1,687 0.10 4,819 1.0 % 4,819 0.29 Amortization of acquired intangible assets 4,770 0.9 % 4,770 0.27 6,793 1.4 % 6,793 0.40 Tax effect of non-GAAP adjustments (1,380 ) (0.08 ) (2,453 ) (0.15 ) Discrete tax benefit (1,373 ) (0.08 ) (485 ) (0.03 ) Non-GAAP basis $ 79,479 15.7 % $ 56,452 $ 3.24 $ 85,500 17.7 % $ 63,914 $ 3.78 Operating % of Operating % of Revenues Income Revenues Revenues Income Revenues Revenue and Operating Income by Segment Security GAAP basis $ 366,971 $ 70,538 19.2 % $ 339,733 $ 63,422 18.7 % Impairment, restructuring and other charges, net - 0.0 % 1,919 0.6 % Amortization of acquired intangible assets 4,174 1.2 % 5,306 1.5 % Non-GAAP basis 74,712 20.4 % 70,647 20.8 % Optoelectronics & Manufacturing GAAP basis 112,667 14,999 13.3 % 117,806 15,874 13.5 % Impairment, restructuring and other charges, net - 0.0 % 184 0.2 % Amortization of acquired intangible assets 327 0.3 % 1,216 1.0 % Non-GAAP basis 15,326 13.6 % 17,274 14.7 % Healthcare GAAP basis 42,684 (1,368 ) -3.2 % 44,751 1,584 3.5 % Impairment, restructuring and other charges, net 1,467 3.4 % 2,620 5.9 % Amortization of acquired intangible assets 269 0.7 % 271 0.6 % Non-GAAP basis 368 0.9 % 4,475 10.0 % Corporate/Elimination GAAP basis (17,337 ) (11,147 ) (18,232 ) (6,992 ) Impairment, restructuring and other charges, net 220 96 Non-GAAP basis (10,927 ) (6,896 ) OSI Consolidated GAAP basis $ 504,985 73,022 14.5 % $ 484,058 73,888 15.3 % Impairment, restructuring and other charges, net 1,687 0.3 % 4,819 1.0 % Amortization of acquired intangible assets 4,770 0.9 % 6,793 1.4 % Non-GAAP basis $ 79,479 15.7 % $ 85,500 17.7 % 6 NON-GAAP FINANCIAL MEASURES AND SEGMENT INFORMATION Fiscal Years Ended June 30, 2025 2026 (Dollars in thousands, except Operating % of Net Operating % of Net per-share amounts) Revenues Income Revenues Income EPS Revenues Income Revenues Income EPS OSI Consolidated GAAP basis $ 1,713,166 $ 217,524 12.7 % $ 149,637 $ 8.71 $ 1,785,984 $ 218,970 12.3 % $ 154,711 $ 8.95 Impairment, restructuring and other charges, net 5,335 0.3 % 5,335 0.31 16,591 0.9 % 16,591 0.97 Amortization of acquired intangible assets 17,996 1.1 % 17,996 1.05 17,751 1.1 % 17,751 1.03 Non-recurring retirement expense for former CEO - - 4,359 0.25 Tax effect of non-GAAP adjustments (5,413 ) (0.32 ) (8,803 ) (0.51 ) Discrete tax benefit (6,717 ) (0.39 ) (5,806 ) (0.34 ) Non-GAAP basis $ 240,855 14.1 % $ 160,838 $ 9.36 $ 253,312 14.2 % $ 178,803 $ 10.35 Operating % of Operating % of Revenues Income Revenues Revenues Income Revenues Revenue and Operating Income by Segment Security GAAP basis $ 1,196,180 $ 204,952 17.1 % $ 1,247,949 $ 201,463 16.1 % Impairment, restructuring and other charges, net 1,882 0.2 % 7,006 0.6 % Amortization of acquired intangible assets 14,882 1.2 % 14,448 1.2 % Non-GAAP basis 221,716 18.5 % 222,917 17.9 % Optoelectronics & Manufacturing GAAP basis 412,065 51,540 12.5 % 450,817 57,146 12.7 % Impairment, restructuring and other charges, net 619 0.2 % 445 0.1 % Amortization of acquired intangible assets 1,862 0.4 % 2,220 0.5 % Non-GAAP basis 54,021 13.1 % 59,811 13.3 % Healthcare GAAP basis 168,362 2,462 1.5 % 162,729 (33 ) 0.0 % Impairment, restructuring and other charges, net 2,246 1.3 % 6,945 4.3 % Amortization of acquired intangible assets 1,252 0.7 % 1,083 0.6 % Non-GAAP basis 5,960 3.5 % 7,995 4.9 % Corporate/Elimination GAAP basis (63,441 ) (41,430 ) (75,511 ) (39,606 ) Impairment, restructuring and other charges, net 588 2,195 Non-GAAP basis (40,842 ) (37,411 ) OSI Consolidated GAAP basis $ 1,713,166 217,524 12.7 % $ 1,785,984 218,970 12.3 % Impairment, restructuring and other charges, net 5,335 0.3 % 16,591 0.9 % Amortization of acquired intangible assets 17,996 1.1 % 17,751 1.0 % Non-GAAP basis $ 240,855 14.1 % $ 253,312 14.2 % 7