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    Will a $26 Million RF Security Order Shift OSI Systems' (OSIS) Investment Narrative?

    Simply Wall St·09/21/2025 19:46:49
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    • On September 9, 2025, OSI Systems, Inc. announced that its Security division secured an order valued at approximately US$26 million to deliver radio frequency (RF) based critical systems designed to detect threats to public safety and infrastructure security.
    • This substantial order highlights sustained demand for advanced security technologies, reflecting OSI Systems' ability to address evolving public safety and infrastructure protection needs.
    • We will explore how this significant US$26 million contract for RF-based security solutions may impact OSI Systems' overall investment narrative.

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    OSI Systems Investment Narrative Recap

    To own OSI Systems stock, you need to believe in sustained government and global demand for advanced security and inspection solutions, supported by robust recurring contracts. While the new US$26 million RF-based systems order confirms ongoing relevance in critical infrastructure protection, its short-term impact is relatively small compared to the company’s total revenue and record backlog. The main near-term driver remains execution against large government contracts, while delays in customer payments or funding cycles still represent the key risk to cash flow and liquidity.

    Among recent announcements, OSI Systems’ earlier US$34 million contract win for international port and border inspection systems is most relevant. Both contracts reflect continued demand for its security platforms, reinforcing the importance of resilient government funding cycles as a core earnings catalyst for the business. OSI’s momentum in winning sizable public sector orders underlines the ongoing attractiveness of this segment, but also the exposure to contract concentration and timing risk for investors.

    However, while strong order flow supports the pipeline, investors should also consider the impact of delayed payments from government clients, especially during...

    Read the full narrative on OSI Systems (it's free!)

    OSI Systems' narrative projects $2.0 billion in revenue and $199.7 million in earnings by 2028. This requires 5.6% yearly revenue growth and a $50.1 million earnings increase from $149.6 million today.

    Uncover how OSI Systems' forecasts yield a $249.50 fair value, a 6% upside to its current price.

    Exploring Other Perspectives

    OSIS Community Fair Values as at Sep 2025
    OSIS Community Fair Values as at Sep 2025

    Retail estimates from the Simply Wall St Community range from US$196.95 to US$271.80 across 3 views. This diversity comes as persistent contract funding uncertainty remains central to OSI Systems’ growth outlook, highlighting the importance of examining several perspectives.

    Explore 3 other fair value estimates on OSI Systems - why the stock might be worth 16% less than the current price!

    Build Your Own OSI Systems Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.