OSI Systems hits record Q3 revenue and $1.9B backlog on strong security demand

OSI Systems (NASDAQ:OSIS) reported record-breaking financial results for the third quarter of fiscal 2026, underscored by significant growth in its security and healthcare divisions.

The Hawthorne-based company achieved record third-quarter revenues of $453 million, supported by a surge in new orders that pushed the company’s total backlog to a historic high of $1.9 billion.

The company’s bottom-line performance was equally strong, posting GAAP earnings per diluted share of $2.33.

On a non-GAAP basis, earnings reached a record $2.60 per diluted share.

A key highlight of the quarter was the company's book-to-bill ratio of 1.3x, indicating that OSI Systems is receiving new orders at a pace significantly faster than it is currently billing for finished products.

This momentum has led to the record $1.9 billion backlog, providing high visibility into the company’s revenue stream for the remainder of the fiscal year and beyond.

The growth in backlog is primarily attributed to large-scale international contracts in the security sector, as governments and private infrastructure operators continue to upgrade checkpoint technologies.