Omnicell Inc.: BofA conference takeaways: Margin expansion a priority as Titan cycle ramps

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Omnicell Inc.: BofA conference takeaways: Margin expansion a priority as Titan cycle ramps

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Omnicell Inc.

BofA conference takeaways: Margin

expansion a priority as Titan cycle ramps

Reiterate Rating: BUY | PO: 70.00 USD | Price: 44.06 USD

Titan cycle progressing as expected, 2026 a bridge year 12 May 2026

We hosted Omnicell’s CFO Baird Radford, Executive Vice President and CFO for a Equity

fireside chat at our Healthcare Conference in Las Vegas. We come away with continued

Allen Lutz, CFA

optimism on OMCL’s ability to accelerate revenue growth and drive margin expansion in Research Analyst

2027. OMCL is at the very early stages of new product cycle, with 2026 positioned as a BofAS +1 646 855 4380

transition year where legacy XT remains relevant, XTExtend bridges mid-cycle customers allen.lutz@bofa.com

to OmniSphere, and Titan XT bookings build into 2H’26. Management expects the mix of Dev Weerasuriya

bookings to increasingly shift toward Titan XT in 2027/2028 as older XT customers Research Analyst BofAS

approach replacement age. A younger install base versus the prior cycle could moderate +1 646 855 5707

the pace early in the cycle, but cabinets up for replacement market wide have improved dev.weerasuriya@bofa.com

given a concurrent competitor product cycle, which could help with share gains. OMCL is HannaResearchLeeAnalyst

leaning into differentiation around reliability, workflow efficiency, pharmacy tech BofAS

+1 646 855 3682

productivity, and enterprise-wide medication visibility as key selling points for Titan. hanna.y.lee@bofa.com

Meanwhile, the end-market looks to be steady and OMCL is flexing purchasing options

(providing leasing options) to help with adoption. Barring a pullback in the end-market,