Healthcare tech company Omnicell (NASDAQ: OMCL) reported Q1 CY2026 results exceeding the market’s revenue expectations, with sales up 14.9% year on year to $309.9 million. Guidance for next quarter’s revenue was better than expected at $310 million at the midpoint, 1.5% above analysts’ estimates. Its non-GAAP profit of $0.55 per share was 66% above analysts’ consensus estimates.

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“We delivered a strong start to 2026, driven by solid execution and sustained demand for our points of care solutions,” said Randall Lipps, chairman, president, chief executive officer, and founder of Omnicell.

Company Overview

Driven by the vision of an "Autonomous Pharmacy" with zero medication errors, Omnicell (NASDAQ: OMCL) provides medication management automation and adherence tools that help healthcare systems and pharmacies reduce errors and improve efficiency.

Revenue Growth

A company’s long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Regrettably, Omnicell’s sales grew at a mediocre 6% compounded annual growth rate over the last five years. This fell short of our benchmark for the healthcare sector and is a rough starting point for our analysis.

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 5.4% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak.

We can dig further into the company’s revenue dynamics by analyzing its most important segment, Product. Over the last two years, Omnicell’s Product revenue averaged 11.6% year-on-year growth. This segment has outperformed its total sales during the same period, lifting the company’s performance.

This quarter, Omnicell reported year-on-year revenue growth of 14.9%, and its $309.9 million of revenue exceeded Wall Street’s estimates by 1.8%. Company management is currently guiding for a 6.7% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 2.3% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and implies its products and services will see some demand headwinds.

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Adjusted Operating Margin

Omnicell was profitable over the last five years but held back by its large cost base. Its average adjusted operating margin of 9.2% was weak for a healthcare business.

Looking at the trend in its profitability, Omnicell’s adjusted operating margin decreased by 7.7 percentage points over the last five years, but it rose by 1.6 percentage points on a two-year basis. Still, shareholders will want to see Omnicell become more profitable in the future.

In Q1, Omnicell generated an adjusted operating margin profit margin of 5.4%, up 2 percentage points year on year. This increase was a welcome development and shows it was more efficient.

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 sales through excessive spending on advertising and promotions.

Sadly for Omnicell, its EPS declined by 6.8% annually over the last five years while its revenue grew by 6%. This tells us the company became less profitable on a per-share basis as it expanded.

Diving into the nuances of Omnicell’s earnings can give us a better understanding of its performance. As we mentioned earlier, Omnicell’s adjusted operating margin expanded this quarter but declined by 7.7 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 Q1, Omnicell reported adjusted EPS of $0.55, up from $0.26 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Omnicell’s full-year EPS of $1.91 to shrink by 5.2%.

Key Takeaways from Omnicell’s Q1 Results

We were impressed by Omnicell’s optimistic EBITDA guidance for next quarter, which blew past analysts’ expectations. We were also glad its revenue and EPS outperformed Wall Street’s estimates. Zooming out, we think this quarter featured some important positives. The stock remained flat at $37.50 immediately after reporting.

Should you buy the stock or not? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).