Option Care Health (NASDAQ:OPCH) Releases Earnings Results, Beats Estimates By $0.02 EPS

Option Care Health (NASDAQ:OPCH) announced its quarterly earnings results on Wednesday. The company reported $0.45 EPS for the quarter, topping the consensus estimate of $0.43 by $0.02, FiscalAI reports. Option Care Health had a net margin of 3.64% and a return on equity of 18.17%. The firm had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.42 billion. During the same period last year, the business earned $0.41 EPS. Option Care Health’s revenue for the quarter was up 1.9% compared to the same quarter last year. Option Care Health updated its FY 2026 guidance to 1.850-1.920 EPS.

Here are the key takeaways from Option Care Health’s conference call:

• Second-quarter results exceeded expectations: Revenue rose 2% year over year to $1.4 billion, adjusted EBITDA increased 3% to $117.5 million, adjusted EPS grew to $0.45, and operating cash flow reached $184 million.
• The acute therapy portfolio delivered another quarter of high-single-digit organic growth, while IG Neuro and rare-and-orphan therapies also posted sequential and year-over-year growth. The company added five ambulatory infusion facilities, with clinic visits up more than 20% year over year.
• Management reported stabilization and sequential patient-census growth in its chronic inflammatory disease portfolio after the first-quarter reset, and expects further improvement through the remainder of 2026. Commercial-team realignment, technology deployment, and AI-enabled workflow improvements are intended to support additional revenue and productivity gains into 2027.
• Option Care repurchased $150 million of stock during the quarter—nearly 5% of shares outstanding—while ending the period with a 2.1x net debt-to-leverage ratio and $525 million remaining under its authorization.
• Full-year revenue guidance was maintained at $5.675 billion–$5.775 billion, while adjusted EBITDA guidance narrowed to $480 million–$495 million and adjusted EPS to $1.85–$1.92. Management continues to expect approximately 600 basis points of revenue pressure and a $55 million gross-profit headwind from the chronic inflammatory disease portfolio in 2026.

Option Care Health Trading Up 7.5%

Option Care Health stock traded up $1.68 during midday trading on Wednesday, reaching $24.16. The stock had a trading volume of 2,304,072 shares, compared to its average volume of 2,522,313. The stock’s 50-day simple moving average is $21.39 and its 200 day simple moving average is $26.94. Option Care Health has a twelve month low of $18.01 and a twelve month high of $36.80. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.07 and a current ratio of 1.64. The stock has a market capitalization of $3.79 billion, a PE ratio of 18.70, a price-to-earnings-growth ratio of 1.21 and a beta of 0.65.

Insider Transactions at Option Care Health

In related news, Director Timothy P. Sullivan purchased 24,154 shares of the stock in a transaction that occurred on Thursday, May 7th. The stock was purchased at an average cost of $20.69 per share, for a total transaction of $499,746.26. Following the acquisition, the director owned 73,383 shares in the company, valued at approximately $1,518,294.27. This trade represents a 49.06% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Harry M. Jansen Kraemer, Jr. acquired 36,610 shares of Option Care Health stock in a transaction on Monday, May 4th. The shares were bought at an average price of $21.41 per share, for a total transaction of $783,820.10. Following the purchase, the director owned 450,000 shares of the company’s stock, valued at $9,634,500. This represents a 8.86% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last quarter, insiders bought 73,264 shares of company stock worth $1,548,316. 1.70% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Option Care Health

Hedge funds have recently modified their holdings of the stock. Royal Bank of Canada grew its position in Option Care Health by 20.7% in the first quarter. Royal Bank of Canada now owns 231,161 shares of the company’s stock valued at $8,078,000 after acquiring an additional 39,661 shares in the last quarter. AQR Capital Management LLC boosted its stake in shares of Option Care Health by 162.6% in the first quarter. AQR Capital Management LLC now owns 41,633 shares of the company’s stock valued at $1,450,000 after purchasing an additional 25,777 shares during the period. Empowered Funds LLC acquired a new stake in Option Care Health during the 1st quarter valued at $208,000. Invesco Ltd. grew its holdings in Option Care Health by 2.7% during the 2nd quarter. Invesco Ltd. now owns 294,363 shares of the company’s stock valued at $9,561,000 after purchasing an additional 7,678 shares in the last quarter. Finally, EverSource Wealth Advisors LLC increased its stake in Option Care Health by 528.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,407 shares of the company’s stock worth $46,000 after buying an additional 1,183 shares during the period. 98.05% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Bank of America cut shares of Option Care Health from a “buy” rating to a “neutral” rating and set a $22.00 price target for the company. in a research note on Friday, May 1st. Barrington Research reduced their target price on shares of Option Care Health from $42.00 to $32.00 and set an “outperform” rating for the company in a report on Friday, May 1st. JPMorgan Chase & Co. decreased their target price on shares of Option Care Health from $40.00 to $33.00 and set an “overweight” rating for the company in a research note on Monday, May 4th. Truist Financial set a $30.00 price objective on Option Care Health in a research note on Friday, May 1st. Finally, Stephens reaffirmed an “equal weight” rating and set a $24.00 price target (down from $30.00) on shares of Option Care Health in a report on Friday, July 17th. Eight investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $30.08.

About Option Care Health

Option Care Health (NASDAQ: OPCH) is a leading provider of home and alternate site infusion services in the United States. The company specializes in the administration of injectable therapies, including antibiotics, nutrition, hydration, immunoglobulin, pain management and specialty pharmaceuticals. Through its nationwide network of infusion pharmacies and nursing professionals, Option Care Health delivers customized care plans and in-home nursing visits to patients managing complex or chronic conditions outside of a hospital setting.

Option Care Health traces its current structure to the completion of its merger with BioScrip in early 2021, combining two of the industry’s most experienced home infusion businesses.