Healthcare tech company Omnicell (NASDAQ:OMCL) announced better-than-expected revenue in Q3 2026, but revenue was flat year on year at $307.9 million. On the other hand, next quarter's revenue guidance of $298 million was less impressive, coming in 4.3% below analysts' consensus estimates. Its non-GAAP profit of $0.58 per share was 38.9% above analysts' consensus estimates.
For more on Omnicell, read our full research report .
Omnicell (OMCL) Q3 2026 highlights:
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Revenue$307.9 million vs S&P analysts' consensus estimates of $305.9 million (flat year on year, 0.6% beat)
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Adjusted EPS$0.58 vs S&P analysts' consensus estimates of $0.42 (38.9% beat)
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Adjusted EBITDA$44.93 million vs analysts' consensus estimates of $36.1 million (14.6% margin, 24.5% beat)
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Revenue guidance$298 million at the midpoint for Q4 2026, below analysts' consensus estimates of $311.5 million
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Adjusted EPS guidanceManagement raised its full-year adjusted EPS guidance to $2.52 at the midpoint, a 13.3% increase
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EBITDA guidance$190 million at the midpoint for the full year, above analysts' consensus estimates of $180.6 million
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Operating margin4.9%, up from 2.7% in the same quarter last year
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Free cash flow margin6.5%, similar to the same quarter last year
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Market capitalization$1.64 billion
"At the same time, we continue to see strong momentum with our next-generation platform, backed by a growing pipeline," Lipps added. "Customers are validating the potential value of combining Titan XT with OmniSphere, our cloud-native platform, intended to improve productivity, efficiency, and workflow reliability. As we see health systems seek greater visibility and connectivity across the medication-use process, we believe Omnicell Titan XT and OmniSphere position us to capitalize on a significant long-term opportunity we see in autonomous medication management."
Revenue growth
A company's long-term performance is an indicator of its overall quality. Any business can deliver a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Omnicell's revenue grew at a tepid 3.1% compounded annual growth rate, falling short of the healthcare sector standard.
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Omnicell's annualized revenue growth of 8.1% over the last two years is above its five-year trend, suggesting some bright spots.
Omnicell also breaks out the revenue for its most important segment, Product. Over the last two years, Omnicell's Product revenue averaged 9.3% year-on-year growth.
This quarter, Omnicell's $307.9 million of revenue was flat year on year but beat Wall Street's consensus estimates by 0.6%. Company management is currently guiding for a 5.1% year-on-year decline in revenue next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 2.1% over the next 12 months, according to S&P, a deceleration versus the last two years. This underwhelming projection implies its products and services will see some demand headwinds.
Adjusted operating margin
Adjusted operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses, everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies because it excludes non-recurring expenses, interest on debt and taxes.
Omnicell was profitable over the last five years but held back by its large cost base. Its average adjusted operating margin of 8.9% was weak for a healthcare business.
Looking at the trend in its profitability, Omnicell's adjusted operating margin decreased by 2.2 percentage points over the last five years, but it rose by 5.5 percentage points on a two-year basis. Still, shareholders will want to see Omnicell become more profitable in the future.
This quarter, Omnicell generated an adjusted operating margin of 8.6%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable.
Earnings per share
Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth. For example, a company could inflate its revenue through excessive spending on advertising and promotions.
Omnicell's EPS declined by 8.2% annually over the last five years while its revenue grew by 3.1%. The company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes.
We can take a deeper look into Omnicell's earnings to better understand the drivers of its performance. As we mentioned earlier, Omnicell's adjusted operating margin was flat this quarter but declined by 2.2 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don't tell us as much about a company's fundamentals.
In Q3, Omnicell reported adjusted EPS of $0.58, up from $0.51 in the same quarter last year. EPS came in well above analysts' consensus estimates, a positive result for shareholders. Over the next 12 months, Wall Street expects Omnicell's full-year EPS to shrink by 24.9% from $2.47 to $1.85, according to S&P.
Key takeaways from Omnicell's Q3 results
An EPS beat and next-quarter EPS guidance well above Wall Street's consensus gave Omnicell's quarter some clear positives. The revenue outlook was less encouraging: next-quarter guidance missed expectations, and full-year revenue guidance fell slightly short of Wall Street's consensus. It was still a solid quarter overall. Shares rose 2.8% to $36.95 immediately after the results.
Omnicell had a solid quarterly earnings result, but the latest quarter is just one part of assessing its longer-term business quality. Quality, combined with valuation, can help determine whether the stock is a buy. For more on Omnicell, read our free full research report here .
