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Reasons to Add Omnicell Stock to Your Portfolio Right Now

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Key Takeaways

  • Omnicell's SaaS and Expert Services revenues rose year over year in the second quarter of 2025.
  • New launches like OmniSphere and Central Med Automation Service boost OMCL's growth pipeline.
  • Strong cash holdings and low debt highlight Omnicell's stable solvency amid competitive pressures.

Omnicell’s (OMCL - Free Report) strength in its SaaS and Expert Services offerings should help sustain growth in the upcoming quarters. Efforts to expand into overseas markets instill optimism. Additionally, a stable solvency looks encouraging. However, fierce rival pressure could hurt Omnicell’s performance.

Omnicell, carrying a Zacks Rank #2 (Buy) at present, has lost 29.1% against the industry's 30.4% growth over the past year. The S&P 500 composite has increased 18.8% in the said time frame.

The renowned healthcare technology company has a market capitalization of $1.38 billion. Omnicell’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 37.38%.

Tailwinds for OMCL Stock

Robust Pipeline for SaaS and Expert Services Portfolio: Omnicell’s suite of SaaS and Expert Services comprises a combination of robotics, smart devices, intelligent software, and expert services. These subscription-based offerings are key component of the company’s medication management infrastructure, helping drive improved clinical, operational, and financial outcomes across all care settings. In the second quarter of 2025, SaaS and Expert Services revenues increased year over year.

The company’s recently launched OmniSphere, a next-generation, cloud native, software workflow engine and data platform, became HITRUST CSF (Common Security Framework) i1 certified. Additionally, OMCL introduced Central Med Automation Service, a subscription-based solution designed to help health systems establish and continuously optimize centralized medication management for consolidated pharmacy services centers (CPSCs) and similar operations.

Within SaaS and Expert Services, the EnlivenHealth brand is gaining momentum with cross-selling and upselling communication solutions to existing customers. Further, Central Pharmacy Dispensing Services continue to gain market traction, with several health systems choosing to automate their central pharmacy inventory and dispensing operations.

Planned Geographic Expansion Could Unlock Further Growth: Outside the United States, healthcare providers are becoming increasingly aware of the benefits of automation. Additionally, there is a substantial demand for adherence packaging equipment outside the domestic market. The company’s international operations encompass its sales efforts, centered in Canada, Europe, the Middle East, and the Asia-Pacific regions, as well as its supply-chain efforts in Asia. Given that the international market is less than 1% penetrated, with very few hospitals adopting medication control systems, Omnicell intends to expand into new markets, which it views as strategic.

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Strong Liquidity and Capital Structure: Omnicell exited the second quarter of 2025 with cash and cash equivalents of $399 million, much higher than $175 million short-term debt on its balance sheet. This is indicative of a sound solvency position. Long-term debt remained unchanged at $167 million on a sequential basis. 

Headwind for OMCL Stock

Competitive Landscape: Omnicell faces intense competition in the medication management and supply-chain solutions market. Even though OMCL continues to gain market share from other traditional providers of medication management and supply-chain solutions, major players still pose threats as they spearhead several expansion programs. This increased competition could result in pricing pressure and a reduced margin, negatively impacting the company’s performance.

OMCL Estimate Trend

The Zacks Consensus Estimate for 2025 earnings per share has remained unchanged at $1.50 in the past 30 days. 

The Zacks Consensus Estimate for 2025 revenues is pegged at $1.15 billion, suggesting a 3.4% rise from the year-ago reported number.

Other Key Picks

Some other top-ranked stocks in the broader medical space are Phibro Animal Health (PAHC - Free Report) , Masimo (MASI - Free Report) and Boston Scientific (BSX - Free Report) .

Phibro has an estimated earnings growth rate of 17.2% for fiscal 2026 compared with the S&P 500 composite’s 10.9%. Shares of the company have rallied 101.1% compared with the industry’s 3% growth. PAHC’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 27.9%.

PAHC carries a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

Masimo, currently carrying a Zacks Rank #2, has an estimated long-term earnings growth rate of 12.5% compared with the industry’s 9.9%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 9.17%. MASI’s shares have rallied 18.9% against the industry’s 15.4% decline in the past year.

Boston Scientific, currently carrying a Zacks Rank #2, has an earnings yield of 3.1% compared with the industry’s 0.1%. Shares of the company have surged 76.5% compared with the industry’s 3.4% growth. BSX’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 8.1%.

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