OMNICELL, INC. Q1 FY2026 earnings call

• Started 2026 with solid execution, delivering results at high end of Q1 2026 guidance ranges. - Core businesses have continued momentum, with constructive demand environment and competitive conversion opportunities. - Strategy anchored in driving autonomous medication management with three priorities: expanding market presence, scaling predictable recurring revenue, and advancing Omnisphere platform. - Examples of customer engagements like VA expanding use of solutions, academic medical center expanding footprint, etc. - Introduced OmniCell Titan XT automated dispensing system at ASHP, with positive customer response on workflow efficiency and compatibility.

Total revenue for the quarter was $310 million. Product revenue was $175 million, up 20% year over year. Service revenue was $135 million, increasing 8% year over year. Non-GAAP EBITDA was $45 million. Non-GAAP earnings per share was $0.55. Non-GAAP gross margin was approximately 46% in Q1 2026 compared to 42% in Q1 2025 and 44% for fiscal year 2025.

• Q2 2026 total revenue expected to be in range of $307 million to $313 million. - Full year 2026: product bookings expected in range of $510 to $560 million; total revenues expected to be $1.215 billion to $1.255 billion; product revenue between $690 million and $710 million; service revenue between $525 million and $545 million; ARR expected to be between $680 million to $700 million; non-GAAP EBITDA now expected to be between $153 million and $168 million; non-GAAP earnings per share now expected to be between $1.80 and $2. - Guidance includes ~$12 million tariff-related costs and estimated non-GAAP effective tax rate of ~15%.

Q: Update on retail segment, enliven health progress and headwinds; A: Challenging time in retail segment, but key players looking forward, volumes increasing, and enlivened solutions playing role.

Q: Sources of gross margin upside in 1Q and durability; A: Product side: favorable product and customer mix in connected devices; Service side: lapped 2025 field-based software upgrades; Margins will fluctuate based on mix.

Q: Size Titan deal and future environment impact; A: Positive response to Titan XT and Omnisphere, favorable in medication management, system-wide visibility, migration flexibility, workflow benefits resonating.

Q: Product bookings, XT Extend vs Titan XT cancellations; A: More optionality for customers, reevaluating configurations, conversations upsizing deals, but XT extend still part of mix.

Q: Leasing/financing opportunities progress; A: Continuing to offer both leasing and capital purchase options, helpful in conversations and pipeline.

Q: Competitive conversion in bookings guidance; A: Assumed modest increase in competitive wins in guidance, consistently taking share over time.

Q: Increase in demand for sole source from new customers; A: No material shift in sole source volume yet, but innovation culture plays into dialogue with customers.

Q: Fiscal 26 EBITDA guidance, planned investments shift; A: Some costs shifted to Q2 and Q3, focus on spend discipline and balance between growth and profitability, early signs of initiatives taking traction.