Omnicell Q3 Revenue Slips 1% as Non-GAAP Profitability Improves

Omnicell Inc. (NASDAQ: OMCL) reported lower third-quarter revenue but stronger non-GAAP profitability, as gross-margin expansion and reduced operating expenses helped offset the sales decline. The medication-management technology company also projected approximately 4% full-year revenue growth at the midpoint of its 2026 guidance range, with recurring revenue accounting for a growing share of its business.

Third-quarter revenue was $308 million, down 1% from a year earlier. Non-GAAP gross margin increased 120 basis points to 45.4%, while non-GAAP operating expenses declined 2% to $108 million. Those changes contributed to a 9% increase in non-GAAP EBITDA to $45 million and a 14% rise in non-GAAP diluted earnings per share to $0.58.

Recurring revenue reaches 53% of quarterly sales

Connected devices and software licenses generated $146 million in the quarter, compared with $149 million in each of the first two quarters of 2026. Technical services revenue was $68 million, SaaS and Expert Services revenue totaled $67 million, and consumables contributed $27 million.

Recurring products and services represented 53% of third-quarter revenue, up from 52% in each of the first two quarters. SaaS and Expert Services remained at 22% of total revenue.

Omnicell is investing in SaaS and Expert Services as it seeks to expand its predictable recurring revenue base. The company also aims to deepen its presence among existing customers and increase adoption of its medication-management products and services. Its installed base includes more than half of the top 300 U.S. health systems, as defined by Definitive Healthcare.

The company identified its OmniSphere cloud-native platform and Titan XT automated dispensing system as central to its longer-term strategy. OmniSphere is designed to connect Omnicell products and provide medication visibility, actionable insights and a unified user experience, while Titan XT is intended to support medication management on nursing floors.

Omnicell outlines fourth-quarter and full-year guidance

For the fourth quarter, Omnicell expects revenue of $295 million to $301 million, including product revenue of $161 million to $164 million and service revenue of $134 million to $137 million. It projects non-GAAP EBITDA of $30 million to $36 million and non-GAAP earnings per share of $0.41 to $0.49.

For full-year 2026, the company expects revenue of $1.225 billion to $1.231 billion, representing approximately 4% year-over-year growth at the midpoint. Product revenue is projected at $684 million to $687 million, while service revenue is expected to reach $541 million to $544 million.

Within services, Omnicell forecasts technical services revenue of $272 million to $273 million and SaaS and Expert Services revenue of $269 million to $271 million. SaaS and Expert Services are expected to account for 22% of annual revenue. The company also projects annual recurring revenue of $660 million to $670 million and product bookings of $425 million to $560 million.

Full-year non-GAAP EBITDA is expected to be between $187 million and $193 million, with non-GAAP earnings per share of $2.48 to $2.56. Omnicell did not provide GAAP reconciliations for its forward-looking non-GAAP measures because excluded items, including potential restructuring costs, acquisition-related expenses and certain tax or litigation outcomes, are uncertain and difficult to estimate.

Key uncertainties include longer customer purchasing cycles, weaker capital-equipment demand, installation delays, variability in product bookings and the potential effect of the Titan XT announcement on purchasing decisions. Omnicell also cited product-development and commercialization risks, customer retention challenges in SaaS and Expert Services, cybersecurity threats, competition, tariffs, supply constraints, regulatory changes, substantial debt and risks associated with its shift toward subscription-based offerings.