OSI Systems forecast fiscal 2027 revenue between $1.875 billion and $1.93 billion, implying 6.3% growth from the prior year as large Middle East contract deliveries move into the second half, the company said in a filing dated August 20.
Fiscal 2026 revenue closed at $1.79 billion. The guidance represents midpoint growth of 6.3%, or roughly $106 million in incremental revenue. OSI Systems, a security and inspection equipment manufacturer, attributed the timing shift to customer project schedules in the Middle East region, where the company has placed orders for checkpoint screening and cargo inspection systems.
OSI Systems serves airports, ports, border agencies and government inspection agencies globally. Its inspection systems division, which includes metal detection and baggage screening for aviation security, is a core revenue driver. The company has expanded its Middle East footprint over the past three years through direct sales and regional partnerships, targeting growth in airport modernization and border infrastructure projects across the Gulf Cooperation Council nations.
The second-half weighting stems from a common pattern in government procurement cycles: contracts are signed and funded in early fiscal periods, but equipment delivery and revenue recognition occur later as customers complete site preparation and staffing. OSI Systems noted in its earnings call that customer readiness delays, rather than supply chain constraints, account for the shift into H2.
FY2026 marked a 7.1% revenue increase from FY2025's $1.67 billion. The FY2027 guidance of 6.3% midpoint growth would slow that pace slightly, though within the company's historical range for years in which major regional deliveries are concentrated in a single half.
OSI Systems trades on the NASDAQ under ticker OSIS. The company has not revised guidance since the August 20 announcement. The number to watch is whether Middle East deliveries actually occur in H2 2027 as scheduled; any customer delays into fiscal 2028 would require updated guidance.
