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what it is
Omnicell sells hardware and software that help hospitals and pharmacies store, dispense, and track medications.
how it gets paid
Last year Omnicell made $1.2B in revenue. Automated dispensing systems was the main engine at $0.50B, or 42% of sales.
why it's growing
Revenue grew 6.5% last year. Revenue was $871M, up 180% from a year earlier.
what just happened
$0.40 EPS missed the $0.48 estimate, even with $871M in revenue.
At a glance
B+ balance sheet — decent shape, but not bulletproof
60/100 earnings predictability — reasonably predictable
29.6x trailing p/e — priced about right
7.0% return on capital — nothing to write home about
xvary composite: 63/100 — average
What they do
Omnicell sells hardware and software that help hospitals and pharmacies store, dispense, and track medications.
Omnicell gets 91% of 2024 sales from the U.S. and only 9% from abroad. If you run a hospital, ripping out medication systems means retraining staff and risking errors. R&D → product development → so what: 8.1% of sales went back into the product in 2024, so the moat is maintained, not free.
How they make money
$1.2B
annual revenue · their business grew +6.5% last year
Automated dispensing systems
$0.50B
+6.0%
Software & SaaS
$0.29B
+8.0%
Supply automation & analytics
$0.18B
+5.0%
Services & implementation
$0.14B
0.0%
Adherence tools
$0.09B
+4.0%
The products that matter
hospital medication workflow systems
Medication Management Solutions
$1.2B companywide revenue base
this is the core operating story behind the $1.2B revenue base on the page — hardware and software sitting inside hospital pharmacy workflows, where downtime is not an option.
core platform
patient adherence and pharmacy tools
Adherence Tools
part of the same $1.2B mix
these tools broaden the platform, but this snapshot gives no separate revenue figure. so you should treat them as support for the thesis, not the thesis itself, until the numbers get more specific.
supporting layer
Key numbers
$2.05
fy2027 eps est
$2B
fy2029 rev est
29.6x
trailing p/e
42.8%
gross margin
Gross profit kept about 42.8% of each revenue dollar.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 30 / 100
- long-term debt $167M (7% of capital)
- net profit margin 8.1% — keeps 8 cents of every dollar in revenue
- return on equity 8% — $0.08 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in OMCL 3 years ago → it's now worth $9,020.
The index would have given you $14,770.
source: institutional data · total return
What just happened
missed estimates
$0.40 EPS missed the $0.48 estimate, even with $871M in revenue.
Revenue was $871M, up 180% from a year earlier. Gross margin was 42.8%, so the quarter grew fast but still left thin profit.
$300M
revenue
$0.40
eps
42.8%
gross margin
the number that mattered
42.8% gross margin mattered because less than half of sales became gross profit.
-
omnicell likely delivered a flat earnings performance in 2025.recent comparisons have been challenged by a myriad of headwinds, including budget/labor constraints across the broader healthcare industry and ongoing supply chain/tariff-related pressures.
-
increased competition, higher operating costs, and slower adoption of its software-as-a-service (SaaS) offerings have also represented drags on the bottom line.for full-year 2025, leadership was targeting adjusted earnings in the range of $1.63-$1.73 a share, on total sales of $1.18 billion-$1.19 billion.
-
omnicell was scheduled to release its fourth-quarter results just as this issue was going to press.
-
in our view, the company appears better positioned for growth this year.hospital budget constraints put a significant damper on the adoption of new healthcare technology solutions in 2025. unexpected tariff impacts and intensifying competitive headwinds across several core markets also seemed to catch omnicell off guard. while some of these pressures are likely to persist in 2026, the roadmap to growth seems much more defined, thanks in part to a series of efficiency/cost management initiatives implemented last year.
-
all in all, our model calls for earnings to reach $1.85 a share in 2026, representing growth of 9% versus our 2025 estimate.
source: company earnings report, 2026
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What could go wrong
the core risk here is simple: OMCL sells into hospitals that spent 2025 under budget and labor pressure. when those customers pause projects, this company's thin margin profile feels it fast.
med
hospital capex delays
omnicell sells into hospitals and health systems that already spent much of 2025 managing labor and budget pressure. when customers delay installations, revenue timing gets messy fast.
with 100% of the $1.2B revenue base tied to healthcare customers, a spending freeze hits the whole story, not one side business.
med
slow SaaS adoption
software adoption was already flagged as slower than expected. that matters because recurring software revenue should smooth results and support better margins over time.
at a 7.1% net margin, OMCL does not have much room for the higher-value mix shift to keep slipping.
med
competition and cost pressure
higher operating costs and intensifying competition were both called out as drags in 2025. that is a bad combination for a company earning just 6% return on equity.
this is the risk that turns a 36.1% revenue rebound into mediocre shareholder returns again.
with all $1.2B of revenue tied to medication-management spend from healthcare customers, any capex freeze or pricing pressure goes straight at the core business.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next guide versus the $1.85 EPS setup
the next earnings report matters because the current 2026 EPS expectation is only $1.85. you want guidance that clearly supports that number, not another cautious reset.
metric
revenue versus the $1B estimate
this page shows a $1B fy2026 revenue estimate against a current $1.2B revenue base. that gap needs an explanation, because either expectations are conservative or demand still looks uneven.
trend
margin recovery from the 7.1% base
net margin is 7.1% and return on capital is 6.0%. if those numbers do not move up, the case for a richer valuation gets thin fast.
risk
hospital budget commentary
budget pressure was a central 2025 problem. if customers keep delaying projects, backlog quality matters more than any headline about orders.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak, they like the next 12 months more than the long-term target framework does.
risk profile
average
stability score 3 — this is a middle-of-the-pack risk profile, not a bunker and not a rollercoaster.
chart momentum
average
technical score 3 — the chart is not flashing anything dramatic right now. the next business update matters more than the tape.
earnings predictability
60 / 100
results are only moderately predictable. if you own this, leave room for earnings noise.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 125 buyers vs. 120 sellers in 3q2025. total institutional holdings: 45.3M shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$17
$68
$50
current price
$43
target midpoint · 15% from current · 3-5yr high: $65 (+30% · 7% ann'l return)
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The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
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