Omnicell Raises Full-Year Profit Guidance as Margins Expand
The healthcare technology company reported GAAP net income of $24 million for the second quarter.
Omnicell (OMCL) reported second-quarter results that showed significant margin expansion and a rise in net income despite a slight sequential dip in revenue. The healthcare technology provider shifted its focus toward profitability and operational efficiency, raising its full-year earnings outlook while tightening revenue expectations.
Total revenues for the quarter were $312 million, up 7% from the same period last year. This represented a slight sequential decline from the $310 million reported in the first quarter of 2026. GAAP net income rose to $24 million, or $0.52 a diluted share, compared to $6 million, or $0.12 a diluted share, in the second quarter of 2025.
Profitability metrics showed a marked increase. Non-GAAP EBITDA reached $67 million, up from $45 million in the prior quarter and $38 million in the second quarter of 2025. The non-GAAP operating margin expanded to 17.0%, more than double the 8.3% margin recorded in the prior-year period.
Gross margins improved across both primary business lines. Non-GAAP product gross margin rose to 52.6% from 44.2% a year ago, while non-GAAP service gross margin increased to 47.2% from 45.3%. Results were positively impacted by $15 million in refunds for previously paid IEEPA tariffs, which reduced the cost of product revenues.
Omnicell increased its full-year 2026 non-GAAP EBITDA guidance to a range of $175 million to $185 million and raised non-GAAP EPS guidance to $2.15 to $2.30. The company tightened its full-year revenue guidance to between $1.225 billion and $1.245 billion.
Certain growth metrics were adjusted downward. Annual Recurring Revenue guidance for the year was updated to $660 million to $680 million, as growth opportunities took longer to develop than projected. Product bookings guidance was also updated to $425 million to $560 million, lowering the bottom end of the range from the $510 million to $560 million guidance provided in the first quarter.
Cash flows from operating activities rose to $68 million from $43 million in the prior-year quarter. The company also recorded new restructuring charges in the second quarter, including $1.76 million for Professional Services and $1.93 million for the Product organization.