Omnicell (OMCL) Stock Forecast & Price Target

Omnicell Inc has demonstrated a robust performance in recent months, with its stock rising 44% due to an approximately $40 million increase in fiscal year 2025 product revenue guidance, supported by a 2.3% year-over-year revenue growth in the fourth quarter, reaching $314.0 million. The company has provided a revenue guidance of $1,235 million for calendar year 2026, reflecting a 4.2% year-over-year increase that aligns with consensus expectations, while the XTExtend product has gained traction and contributed significantly to this upward revision. Additionally, projected metrics indicate a stable revenue growth rate of around 6% and an improvement in AEBITDA margins, suggesting anticipated operational efficiencies and increased profitability as Omnicell continues to capitalize on product expansions and enhanced sales strategies.

Omnicell Inc's stock outlook is negatively influenced by a significant decline in product gross margin, which decreased by 380 basis points quarter-over-quarter, primarily due to unfavorable product mix within the Connected Devices segment. The company's fourth-quarter results were mixed, with adjusted EBITDA of $36.8 million and adjusted EPS of $0.40 falling short of the lower end of guidance, leading to a muted outlook for the upcoming fiscal year, particularly with a projected flat booking of $535 million for CY26. Additionally, declining bookings and ongoing product challenges from recent launches suggest a difficult path ahead for growth, contributing to a revision in the company's earnings multiple and subsequent price target adjustments.