Omnicell (NASDAQ:OMCL) reported what management described as a “solid finish” to fiscal year 2025, with fourth-quarter total revenue, bookings, and annual recurring revenue (ARR) all coming in above the midpoint of the company’s prior guidance ranges. Executives highlighted strength in the company’s core point-of-care business—particularly demand for its flagship connected devices, including XT—and pointed to customer wins at major health systems and government healthcare facilities.
On the call, Chairman, President and CEO Randall Lipps said Omnicell is continuing its shift toward an “end-to-end medication management platform technology company,” anchored by three growth pillars: expanding market presence, scaling recurring revenue, and accelerating its cloud-native OmniSphere platform. CFO Baird Radford added that the company enters 2026 with “strong momentum,” supported by what he characterized as resilient demand and solid execution.
Fourth-quarter results: revenue up modestly as margins fell
Profitability metrics declined versus prior periods. Non-GAAP gross margin was 43.2%, compared with 47.4% in the year-ago quarter and 44.2% in the prior quarter. GAAP earnings per share were a loss of $0.05, compared with GAAP EPS of $0.34 in the fourth quarter of 2024 and $0.12 in the third quarter of 2025. Non-GAAP EPS was $0.40, down from $0.60 a year earlier and $0.51 in the prior quarter. Non-GAAP EBITDA was $37 million, compared with $46 million in the year-ago quarter.
Radford attributed the year-over-year gross margin decline primarily to $7 million of tariff costs in the fourth quarter of 2025, along with shifts in product and customer mix. Sequentially, he said product margin pressure from mix was partially offset by improvement in service margins, which benefited from progress on customer software upgrades.
Full-year 2025: ARR rises 10% as revenue reaches $1.185 billion
For fiscal 2025, Omnicell reported total revenue of $1.185 billion, at the upper end of its guidance range and up from $1.112 billion in 2024. Product revenue increased to $666 million from $631 million, and service revenue rose to $519 million from $482 million. Within services, technical services revenue was $260 million and SaaS and expert service revenue was $259 million.
Product bookings for 2025 were $535 million, above the midpoint of the $500 million to $550 million guidance range, and compared with $558 million in 2024. Product backlog ended the year at $640 million, down 1% year over year; Radford said $435 million of that backlog is categorized as short-term and expected to convert to revenue in 2026.
ARR exited 2025 at an annualized run rate of $636 million, above guidance and up from $580 million exiting 2024. Management pointed to several drivers of ARR growth, including improved performance in technical services contract pricing, as well as continued contributions from consumables and specialty offerings.
For the full year, GAAP EPS was $0.04 versus $0.27 in 2024. Non-GAAP EPS was $1.62 versus $1.71 in 2024. Non-GAAP EBITDA was $140 million, up from $136 million a year earlier. Radford reiterated that 2025 non-GAAP EPS faced an approximate $0.21 per share headwind compared with 2024 due to lower interest income, following repurchases of convertible senior notes in the fourth quarter of 2024.
Balance sheet and cash flow: debt repayment and buybacks reduced cash
Cash and cash equivalents totaled $197 million at December 31, 2025, down from $369 million a year earlier. Radford said the decrease reflected repayment of $175 million of debt that matured in September 2025 and repurchases of approximately $78 million of common stock during 2025.
Fourth-quarter free cash flow was $18 million, compared with $43 million in the year-ago quarter and $14 million in the third quarter. Day sales outstanding improved to 65 days in the fourth quarter, compared with 77 days a year earlier. Inventories were $101 million at year-end, compared with $89 million at the end of 2024.
Strategy and product roadmap: Titan XT, OmniSphere, and a refresh opportunity
Management emphasized the company’s move toward a platform model. Lipps highlighted the December introduction of Titan XT, which he described as an enterprise-wide automated dispensing system designed to unify automation and intelligence, extend OmniSphere into inpatient nursing areas, and provide greater inventory control and nurse confidence.
OmniSphere, Omnicell’s cloud-based medication management platform, achieved HITRUST CSF i1 certification in 2025, which the company said underscores its cybersecurity focus. Lipps also noted that Omnicell was again named among the top 50 healthcare technology companies by The Healthcare Technology Report.
On customer activity, Lipps cited competitive “convergence” wins across multiple U.S. regions and Canada, and said the Department of Veterans Affairs selected Omnicell’s point-of-care dispensing and IV workflow solutions for a number of hospitals.
In Q&A, executives repeatedly framed Titan XT as part of a broader platform discussion rather than a hardware-only upgrade. Radford reiterated the company’s previously stated estimate that the hardware replacement cycle opportunity is in excess of $2.5 billion, and said the rollout could be similar to past refresh cycles in duration, though timing will vary by customer. Lipps said customers are increasingly focused on the platform and enterprise-wide management needs as health systems become more complex.
Management also discussed how XT Extend fits alongside Titan XT. Radford said customers that invested in XT Extend will still have a path to OmniSphere because the XT Extend consoles are “cloud-enabled,” allowing customers to access cloud capabilities once generally available.
2026 outlook: modest Titan revenue contribution, tariffs, and ERP investment
For the first quarter of 2026, Omnicell guided to total revenue of $300 million to $310 million, non-GAAP EBITDA of $27 million to $33 million, and non-GAAP EPS of $0.26 to $0.36. Radford said the first quarter typically carries seasonally higher expenses due to payroll taxes and benefit resets. He added that the company did not see anything material push from the fourth quarter into the first quarter and characterized the business as becoming more linear and predictable.
For full-year 2026, guidance included:
- Product bookings: $510 million to $560 million
- Total revenue: $1.215 billion to $1.255 billion
- Product revenue: $690 million to $710 million
- Service revenue: $525 million to $545 million
- Year-end ARR: $680 million to $700 million
- Non-GAAP EBITDA: $145 million to $160 million
- Non-GAAP EPS: $1.65 to $1.85
The outlook includes an estimated $15 million tariff impact in 2026, based on tariffs “in place as of today,” and a non-GAAP effective tax rate estimate of approximately 13%. Radford said Titan XT’s incremental revenue contribution in 2026 is expected to be “modest,” with Titan XT available for shipment in the second half of 2026 and enhanced OmniSphere software workflows expected to be available in the first half of 2027.
Executives also said Omnicell is making investments to support the Titan XT and OmniSphere transition, including in sales force and clinical field engagement. Guidance also reflects a multi-year ERP update and refresh that will result in approximately $10 million of associated expenses in 2026.
Looking ahead, Lipps said the company is encouraged by early signals from hospital fundamentals, while acknowledging uncertainties around regulations and tariffs. He closed by describing 2025 as a “pivot moment” marked by innovation efforts, including the opening of an innovation center in Austin, and reiterated the company’s focus on advancing toward autonomous medication management.
About Omnicell (NASDAQ:OMCL)
Omnicell, Inc is a healthcare technology company that specializes in medication management solutions for hospitals, clinics and pharmacies. The company’s offerings encompass automated dispensing cabinets, pharmacy automation systems, IV compounding devices, and software platforms designed to optimize medication usage, streamline workflow and improve patient safety. Omnicell’s analytics and inventory management tools provide real-time visibility into medication utilization, helping healthcare providers reduce waste, manage controlled substances and ensure regulatory compliance.
Founded in Mountain View, California in 1992, Omnicell has grown through both internal innovation and strategic acquisitions to broaden its portfolio across the medication management continuum.
