Omnicell (OMCL)
NASDAQHealth CareMedical - Healthcare Information ServicesSnapshot 2026-09-04
$34.37-1.29%
Close 2026-09-04 · 1-day change
NASDAQHealth CareMedical - Healthcare Information ServicesSnapshot 2026-09-04
Broken: Primary pillar broken — EPS at or above $1.9 per share for FY26: FY26 EPS guidance $2.23 vs $1.9 target.
Omnicell grows revenue about 5% yearly, with Q1 2026 revenue up 15% to $310 million. Operating income improved sharply to $17 million in Q1 2026 from $0.4 million in Q4 2025. Cash from operations rose to $55 million in Q1 2026, supporting growth. The company’s EPS guidance for 2026 is raised to $1.9 per share.
Revenue growth could slow below 5% as competition intensifies. Operating income may fail to sustain gains, risking margin pressure. Cash flow might weaken if new platforms like Titan XT and OmniSphere do not scale as planned.
The price sits about 20% below our fair value near $56, reflecting justified expectations for roughly 5% revenue growth. Our fair value is slightly below the Street median of $60, indicating moderate valuation caution.
Breaks if: Cash from operations falls below $30 million quarterly
Increase cash generated from operating activities to support financial flexibility and investments.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
OMCL is positioned as a durable compounder with a focus on revenue growth and improving profitability. The current thesis state is stable, supported by strong recent financial performance, although confidence has shifted to medium.
The market seems to have priced in a neutral valuation compared to peers, with expectations slightly below average. There is a low level of fragility in the current setup, indicating that the stock is not overly sensitive to negative news.
Management is on track with priorities to increase revenue, improve operating income, and enhance cash flow. Recent financial results show strong growth, but there is an elevated risk due to potential economic downturns affecting cyclical names like OMCL.
The long-term thesis hinges on management's ability to maintain revenue growth and profitability while navigating potential economic challenges. Key forward scenarios include the impact of guidance changes and sector performance from peers.
The most important moves since the prior daily snapshot.
Confidence changed from 'high' to 'medium'.
Yes, our read has strengthened. The latest earnings beat supports this improved outlook. There are no new threats to the thesis at this time.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 4 of last 4 quarters. Cash from operating activities rose from $42.8 million in 2025-Q2 to $68.3 million in 2026-Q2, and from $25.9 million in 2025-Q1 to $54.5 million in 2026-Q1. This reflects delivering improved cash flow generation consistent with management's stated focus.
“Cash flows provided by operating activities in Q2 2026 totaled $68 million.”
“Cash flows provided by operating activities in Q1 2026 totaled $55 million.”
“Cash flows provided by operating activities in Q4 2025 totaled $30 million.”
“Cash flows provided by operating activities in Q3 2025 totaled $28 million.”
Breaks if: EPS guidance falls below $1.8 per share for FY26
Breaks if: Operating income falls below $8 million quarterly
Breaks if: YoY revenue growth falls below 5% in FY26
Drive top-line growth through connected devices, SaaS, Expert Services, and technical services expansion.
Stated as a priority in 4 of last 4 quarters. Revenue grew from $269.7 million in 2025-Q1 to $312.2 million in 2026-Q2, a 7% increase year-over-year in Q2 and 15% in Q1. Management consistently emphasized growth driven by connected devices and SaaS offerings, and the financials show delivering top-line growth.
“Total revenues for the second quarter of 2026 were $312 million, up $22 million, or 7%, from the second quarter of 2025.”
“Total revenues for the first quarter of 2026 were $310 million, up $40 million, or 15%, from the first quarter of 2025.”
“Total revenues for the fourth quarter of 2025 were $314 million, up $7 million, or 2%, from the fourth quarter of 2024.”
“Revenue was $310.6 million in Q3 2025, reflecting steady execution.”
Overall, OMCL's fundamentals appear solid, but external factors could influence its trajectory. Not investment advice.