Shares of Omnicell OMCL have rallied 52.6% over the past year, significantly outperforming the industry’s 20.8% fall and the S&P 500 composite’s 23.9% gain.
Sporting a Zacks Rank #1 (Strong Buy) at present, the healthcare technology company continues to pursue the vision of the autonomous pharmacy, designed to improve medication management outcomes. Growth in SaaS and Expert Services, rising adoption among health systems and international expansion further strengthen its outlook.
Headquartered in Mountain View, CA, Omnicell develops and markets end-to-end automation solutions for the medication-use process. These automation solutions contain medication and supply dispensing systems, central pharmacy storage, retrieval and packaging solutions, a bedside automation solution, a physician order management solution, a decision support application and a Web-based procurement application. The products offered by the company enable care providers to improve patient safety and increase efficiency by lowering costs.
Factors Favoring OMCL’s Growth
Omnicell continues to advance toward its goal of achieving the industry-defined vision of autonomous medication management, which is a roadmap to improving operational efficiencies and ultimately targeting zero-error medication management. Over the past several years, Omnicell has evolved from offering a single-point solution to a platform of products and services and has also secured several wins with major health systems and government health care facilities. OMCL’s ongoing R&D investments across Points of Care, Central Pharmacy and IV Compounding, Specialty Pharmacy and 340B Program and Ambulatory Care market categories are expected to deliver solutions that drive positive medication management outcomes for customers.
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The company derives an increasing portion of revenues from its subscription-based SaaS and Expert Services offerings, which include a combination of robotics, smart devices and intelligent software, all optimized by expert services. In recent years, Omnicell has integrated three key acquisitions, such as Specialty Pharmacy Services (formerly ReCept), FDS Amplicare and MarkeTouch Media, LL (merged into EnlivenHealth, Inc), to broaden the offerings. In 2025, SaaS and Expert Services revenues were $259 million.
In the first quarter of 2026, several health systems committed to using Omnicell's inventory optimization service, alongside central pharmacy automation and point-of-care dispensing solutions. The company announced OmniSphere in late 2024, a cloud-native platform designed to unify all Omnicell products under a single, secure infrastructure to make it simpler, safer and more connected to manage medications within a growing health system. EnlivenHealth also continues to gain traction with cross-selling and upselling communication solutions to existing customers.
Healthcare providers outside the United States are becoming increasingly aware of the benefits of automation. There is a substantial demand for adherence packaging equipment outside the domestic market. Omnicell’s international operations include its sales efforts centered in Canada, Europe, the Middle East and the Asia-Pacific regions and supply-chain efforts in Asia. Given the fact that the international market is less than 1% penetrated, with very few hospitals adopting medication control systems, this creates a solid long-term growth opportunity.
Risks for OMCL
Similar to its health-care system partners, Omnicell’s operations continue to be affected by persisting labor shortages as well as increased inflationary costs related to components’ raw materials and freight. The company’s 2026 guidance incorporates an updated estimate of approximately $12 million in tariff-related costs impacting profitability.
A Glance at OMCL’s Estimates
The Zacks Consensus Estimate for Omnicell's earnings per share (EPS) is pegged at $1.97 for 2026 and $2.23 for 2027, implying year-over-year growth of 21.6% and 13.2%, respectively. Over the past 60 days, the consensus estimate for 2026 EPS has moved up 5.3%, while the 2027 estimate has increased 2.3%.
Revenues for 2026 are projected to grow 4.9% to $1.24 billion, and another 4.2% to $1.30 billion in 2027.
Other Key Stocks
Some other top-ranked stocks in the broader medical space are Illumina ILMN, Align Technology ALGN and Integra LifeSciences IART.
Illumina has an earnings yield of 2.8% compared to the industry’s negative 14.6% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 12.2%. ILMN shares have rallied 95.8% compared with the industry’s 25.6% growth over the past year.
ILMN carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology, carrying a Zacks Rank #2, has an estimated long-term earnings growth rate of 10.3% compared with the industry’s 5.5% growth. Shares of the company have dipped 6.3% against the industry’s 9.6% growth. ALGN’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 7.8%.
Integra LifeSciences, carrying a Zacks Rank #2, has an earnings yield of 13.7% against the industry’s negative 3% yield. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 16.7%. IART shares have rallied 33.8% against the industry’s 10.5% decline over the past year.
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This article originally published on Zacks Investment Research (zacks.com).