What Happened?

Shares of security and healthcare technology company OSI Systems (NASDAQ: OSIS) jumped 14.6% in the afternoon session after the company reported third-quarter 2025 financial results that surpassed analyst expectations and raised its full-year guidance. The security and healthcare technology company posted revenue of $384.6 million, an 11.8% increase year on year that beat Wall Street's estimates by 4.9%. Adjusted earnings per share came in at $1.42, which was also 3.1% ahead of analysts' consensus. Following the strong quarter, OSI Systems lifted its full-year revenue guidance to a midpoint of $1.85 billion and slightly raised its earnings forecast, signaling management's confidence in the company's growth trajectory.

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What Is The Market Telling Us

OSI Systems’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. But moves this big are rare even for OSI Systems and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 9 days ago when the stock dropped 3.4% on the news that new trade tensions and disappointing earnings from major tech companies weighed heavily on investor sentiment. 

A key driver was the news that the White House is considering new restrictions on Chinese exports that use U.S. software, a move that could significantly impact technology companies. This uncertainty over escalating trade tensions created a broad sense of worry in the market. 

Simultaneously, shares of the semiconductor giant Texas Instruments dropped 6% after its latest earnings and future revenue forecast both came in weaker than expected, which is a big concern for the health of the tech industry. This poor performance from Texas Instruments immediately dragged down the entire semiconductor sector, causing other major chipmakers like Advanced Micro Devices and Micron Technology to also see significant declines. 

Compounding the bad news, streaming service Netflix saw its stock slump 9% after it missed its earnings targets, partly blaming a tax dispute in Brazil. The combined effect of renewed trade war fears and the direct evidence of underperformance from influential companies in the technology sector was enough to push the major market indexes lower.

OSI Systems is up 67.4% since the beginning of the year, and at $276.87 per share, has set a new 52-week high. Investors who bought $1,000 worth of OSI Systems’s shares 5 years ago would now be looking at an investment worth $3,449.

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