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The Medical Information Systems industry continues to expand, supported by rapid digitization across global healthcare ecosystems and sustained investment in data-driven care delivery. Innovations in healthcare resource management, patient data integration and interoperable platforms remain central, with advanced technologies like machine learning and generative AI increasingly embedded in electronic health records (EHRs), diagnostics and workflow automation tools. These capabilities are enhancing clinical decision support, streamlining administrative tasks and improving care coordination across providers and payers.
Industry growth remains robust. According to Markets and Markets, the AI in healthcare market is projected to witness a 38.6% CAGR through 2030, driven by demand for improved diagnostic precision, operational efficiency and personalized treatment pathways. Recent updates from industry bodies indicate continued prioritization of digital transformation, particularly around AI copilots for clinicians, ambient documentation tools and predictive analytics.
At the same time, regulatory scrutiny around AI governance, data privacy and model transparency has intensified in 2026, shaping deployment strategies. Cybersecurity also remains a critical concern as healthcare organizations face rising threats to cloud-based infrastructure.
Against this backdrop, companies like Veeva Systems, Doximity and Omnicell are well-positioned to benefit from sustained demand for digital health, cloud-enabled platforms and AI-powered solutions, despite ongoing risks tied to system reliability and data security.
Industry Description
The Zacks Medical Info Systems industry comprises companies that develop and market healthcare information systems. These companies offer software and hardware solutions to healthcare providers with secure access to real-time clinical, administrative and financial data in a time-efficient manner. Focus on patient satisfaction, security of patient data and administrative cost control has increased the need for big data, 3D printing, blockchain and AI. Industry players like Omnicell and Allscripts are raking in millions from the sale of software and related hardware, professional services and IT outsourcing services and recurring service contracts for software maintenance and transaction processing services.
3 Trends Shaping the Future of the Medical Information Industry
Growing Demand for Remote Healthcare: Remote patient monitoring continues to expand rapidly, supported by the rising adoption of wearable devices, connected sensors and telehealth platforms. The key driver is the growing recognition of continuous monitoring in improving outcomes, particularly for chronic disease management and post-acute care.
This shift has increasingly led to the utilization of value-based care models, helping reduce hospitalizations and overall costs while improving patient engagement. At the same time, health tech solutions are advancing diagnostics and streamlining hospital workflows through robotics, AI-powered virtual assistants and automated triage systems.
Generative AI-enabled tools are also being deployed for real-time documentation and care coordination. According to Custom Market Insights, the global Smart Healthcare Products market was valued at $164.55 billion in 2023 and is projected to reach $485.71 billion by 2032, reflecting a CAGR of 12.78%, highlighting sustained demand for connected, data-driven care solutions.
AI and Health: The medical sector remains a leading adopter of artificial intelligence, with use cases expanding across drug discovery, diagnostics, clinical workflows and patient care. In 2026, the focus has shifted from experimentation to scaled deployment, particularly in high-ROI areas such as clinical documentation, imaging analysis and decision support.
Generative AI, especially ambient clinical assistants, is being increasingly integrated into electronic health records to automate note-taking and reduce physician burnout. AI models are also advancing multimodal data integration, combining imaging, genomics and real-world data to improve diagnostic accuracy and personalize treatment pathways.
In diagnostics, deep learning tools continue to enhance detection across radiology and pathology, while predictive analytics enables earlier intervention for high-risk patients. At the same time, stricter regulatory oversight around AI safety, transparency and bias is shaping adoption strategies.
Rising Instances of Cyber Attacks: As healthcare systems become more digital and interconnected, cybersecurity risks continue to intensify in 2026. The sector remains the top target for cybercrime, with the Federal Bureau of Investigation reporting 642 cyber incidents in healthcare in 2025, including 460 ransomware attacks. Ransomware and large-scale breaches are becoming more disruptive, with incidents increasingly targeting service providers and supply chains, amplifying system-wide impact.
While the total number of breaches has slightly moderated, the scale and severity per attack have increased, with tens of millions of records exposed in 2025 alone (The HIPAA Journal). High-profile incidents, including major vendor breaches and hospital shutdowns, highlight operational vulnerabilities and risks to patient care.
Zacks Industry Rank
The Zacks Medical Info Systems industry falls within the broader Zacks Medical sector. It carries a Zacks Industry Rank #85, which places it in the top 35% of 244 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
We will present a few stocks with the potential to outperform the market based on a strong earnings outlook. However, it’s worth considering the industry’s shareholder returns and current valuation first.
Industry Underperforms S&P 500 and Sector
The industry has underperformed the Zacks S&P 500 composite as well as the sector over the past year.
The industry has lost 25.5% in the past year compared with the Zacks Medical sector’s 0.8% drag and the S&P 500’s rise of 32.8%.
Industry's Current Valuation
On the basis of forward 12-month price-to-sales (P/S), which is commonly used for valuing medical stocks, the industry is currently trading at 3.47X compared with the S&P 500’s 5.21X and the sector’s 2.37X.
Over the last five years, the industry has traded as high as 15.29X, as low as 3.23X and at the median of 5.86X.
3 Medical Info Systems Stocks to Bet On
Omnicell is positioning itself for long-term growth by addressing the healthcare challenges with enhanced medication management solutions. These automation solutions contain medication and supply dispensing systems and central pharmacy storage, among others. The products offered by the company enable care providers to improve patient safety and increase efficiency by lowering costs.
Omnicell currently holds a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for 2026 earnings indicates 22.2% growth from the 2025 projected level.
Veeva Systems remains well-positioned as a long-term winner in life sciences digitalization, supported by strong execution, deep customer trust and a broad, integrated product portfolio. Vault CRM adoption continues to scale, while growth is increasingly driven by newer R&D solutions like Randomization and Trial Supply Management (RTSM), Safety and Laboratory Information Management Systems (LIMS), alongside strong Crossix performance.
Veeva Systems currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for fiscal 2027 earnings indicates a 8.8% improvement from the fiscal 2026 level.
Doximity stands out as a market leader in physician engagement, covering over 85% of U.S. doctors and over two-thirds of NPs and PAs on its platform. Doximity’s model is primarily subscription-based, driving most fiscal 2026 revenue. Marketing Solutions monetize via targeted pharma content, Hiring Solutions enable clinician recruiting and Workflow Solutions serve hospitals with tools for clinical communication, coordination and productivity, expanding the platform’s role in daily healthcare operations.
Doximity currently carries a Zacks Rank #2. The Zacks Consensus Estimate for fiscal 2026 earnings (to be reported on May 13, 2026) indicates an 8.5% improvement from the fiscal 2025 level.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Industry Outlook Highlights Veeva Systems, Doximity and Omnicell
For Immediate Release
Chicago, IL – May 5, 2026 – Today, Zacks Equity Research discusses Veeva Systems (VEEV - Free Report) , Doximity (DOCS - Free Report) and Omnicell (OMCL - Free Report) .
Industry: Medical Info Systems
Link: https://www.zacks.com/commentary/2913986/3-medical-info-systems-stocks-riding-the-genai-wave-in-a-tough-market
The Medical Information Systems industry continues to expand, supported by rapid digitization across global healthcare ecosystems and sustained investment in data-driven care delivery. Innovations in healthcare resource management, patient data integration and interoperable platforms remain central, with advanced technologies like machine learning and generative AI increasingly embedded in electronic health records (EHRs), diagnostics and workflow automation tools. These capabilities are enhancing clinical decision support, streamlining administrative tasks and improving care coordination across providers and payers.
Industry growth remains robust. According to Markets and Markets, the AI in healthcare market is projected to witness a 38.6% CAGR through 2030, driven by demand for improved diagnostic precision, operational efficiency and personalized treatment pathways. Recent updates from industry bodies indicate continued prioritization of digital transformation, particularly around AI copilots for clinicians, ambient documentation tools and predictive analytics.
At the same time, regulatory scrutiny around AI governance, data privacy and model transparency has intensified in 2026, shaping deployment strategies. Cybersecurity also remains a critical concern as healthcare organizations face rising threats to cloud-based infrastructure.
Against this backdrop, companies like Veeva Systems, Doximity and Omnicell are well-positioned to benefit from sustained demand for digital health, cloud-enabled platforms and AI-powered solutions, despite ongoing risks tied to system reliability and data security.
Industry Description
The Zacks Medical Info Systems industry comprises companies that develop and market healthcare information systems. These companies offer software and hardware solutions to healthcare providers with secure access to real-time clinical, administrative and financial data in a time-efficient manner. Focus on patient satisfaction, security of patient data and administrative cost control has increased the need for big data, 3D printing, blockchain and AI. Industry players like Omnicell and Allscripts are raking in millions from the sale of software and related hardware, professional services and IT outsourcing services and recurring service contracts for software maintenance and transaction processing services.
3 Trends Shaping the Future of the Medical Information Industry
Growing Demand for Remote Healthcare: Remote patient monitoring continues to expand rapidly, supported by the rising adoption of wearable devices, connected sensors and telehealth platforms. The key driver is the growing recognition of continuous monitoring in improving outcomes, particularly for chronic disease management and post-acute care.
This shift has increasingly led to the utilization of value-based care models, helping reduce hospitalizations and overall costs while improving patient engagement. At the same time, health tech solutions are advancing diagnostics and streamlining hospital workflows through robotics, AI-powered virtual assistants and automated triage systems.
Generative AI-enabled tools are also being deployed for real-time documentation and care coordination. According to Custom Market Insights, the global Smart Healthcare Products market was valued at $164.55 billion in 2023 and is projected to reach $485.71 billion by 2032, reflecting a CAGR of 12.78%, highlighting sustained demand for connected, data-driven care solutions.
AI and Health: The medical sector remains a leading adopter of artificial intelligence, with use cases expanding across drug discovery, diagnostics, clinical workflows and patient care. In 2026, the focus has shifted from experimentation to scaled deployment, particularly in high-ROI areas such as clinical documentation, imaging analysis and decision support.
Generative AI, especially ambient clinical assistants, is being increasingly integrated into electronic health records to automate note-taking and reduce physician burnout. AI models are also advancing multimodal data integration, combining imaging, genomics and real-world data to improve diagnostic accuracy and personalize treatment pathways.
In diagnostics, deep learning tools continue to enhance detection across radiology and pathology, while predictive analytics enables earlier intervention for high-risk patients. At the same time, stricter regulatory oversight around AI safety, transparency and bias is shaping adoption strategies.
Rising Instances of Cyber Attacks: As healthcare systems become more digital and interconnected, cybersecurity risks continue to intensify in 2026. The sector remains the top target for cybercrime, with the Federal Bureau of Investigation reporting 642 cyber incidents in healthcare in 2025, including 460 ransomware attacks. Ransomware and large-scale breaches are becoming more disruptive, with incidents increasingly targeting service providers and supply chains, amplifying system-wide impact.
While the total number of breaches has slightly moderated, the scale and severity per attack have increased, with tens of millions of records exposed in 2025 alone (The HIPAA Journal). High-profile incidents, including major vendor breaches and hospital shutdowns, highlight operational vulnerabilities and risks to patient care.
Zacks Industry Rank
The Zacks Medical Info Systems industry falls within the broader Zacks Medical sector. It carries a Zacks Industry Rank #85, which places it in the top 35% of 244 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
We will present a few stocks with the potential to outperform the market based on a strong earnings outlook. However, it’s worth considering the industry’s shareholder returns and current valuation first.
Industry Underperforms S&P 500 and Sector
The industry has underperformed the Zacks S&P 500 composite as well as the sector over the past year.
The industry has lost 25.5% in the past year compared with the Zacks Medical sector’s 0.8% drag and the S&P 500’s rise of 32.8%.
Industry's Current Valuation
On the basis of forward 12-month price-to-sales (P/S), which is commonly used for valuing medical stocks, the industry is currently trading at 3.47X compared with the S&P 500’s 5.21X and the sector’s 2.37X.
Over the last five years, the industry has traded as high as 15.29X, as low as 3.23X and at the median of 5.86X.
3 Medical Info Systems Stocks to Bet On
Omnicell is positioning itself for long-term growth by addressing the healthcare challenges with enhanced medication management solutions. These automation solutions contain medication and supply dispensing systems and central pharmacy storage, among others. The products offered by the company enable care providers to improve patient safety and increase efficiency by lowering costs.
Omnicell currently holds a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for 2026 earnings indicates 22.2% growth from the 2025 projected level.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Veeva Systems remains well-positioned as a long-term winner in life sciences digitalization, supported by strong execution, deep customer trust and a broad, integrated product portfolio. Vault CRM adoption continues to scale, while growth is increasingly driven by newer R&D solutions like Randomization and Trial Supply Management (RTSM), Safety and Laboratory Information Management Systems (LIMS), alongside strong Crossix performance.
Veeva Systems currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for fiscal 2027 earnings indicates a 8.8% improvement from the fiscal 2026 level.
Doximity stands out as a market leader in physician engagement, covering over 85% of U.S. doctors and over two-thirds of NPs and PAs on its platform. Doximity’s model is primarily subscription-based, driving most fiscal 2026 revenue. Marketing Solutions monetize via targeted pharma content, Hiring Solutions enable clinician recruiting and Workflow Solutions serve hospitals with tools for clinical communication, coordination and productivity, expanding the platform’s role in daily healthcare operations.
Doximity currently carries a Zacks Rank #2. The Zacks Consensus Estimate for fiscal 2026 earnings (to be reported on May 13, 2026) indicates an 8.5% improvement from the fiscal 2025 level.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.