New York, January 13, 2026, 12:13 PM EST — Regular session
- Shares of Option Care Health jumped roughly 10% by midday following the company’s early release of preliminary fourth-quarter results
- The board boosted its share buyback limit to $1.0 billion, opening up new spending room
- A Citizens analyst noted the Stelara-related impact is expected to ease post-2026, shifting attention back to cash returns and margins
Option Care Health shares jumped nearly 10% Tuesday following the release of preliminary fourth-quarter results, a first look at its 2026 forecast, and an increase in its share buyback plan. The stock last traded up 9.7% at $35.16.
The update arrives as investors scramble to gauge the year ahead for healthcare services companies reliant on volume, payer conditions, and drug mix. Option Care’s figures come out weeks before its official earnings report, with management scheduled to present at the J.P. Morgan Healthcare Conference later Tuesday.
The buyback plays a role as well. A bigger authorization can help steady the stock when fundamentals look shaky — and it reveals the board’s view on the stock’s valuation.
Option Care projects fourth-quarter net revenue between $1.46 billion and $1.47 billion, with adjusted diluted EPS ranging from $0.46 to $0.49. Adjusted EBITDA is expected to land between $123.7 million and $127.7 million. Looking ahead to 2026, the company forecasts net revenue of $5.8 billion to $6.0 billion, with adjusted EPS of $1.82 to $1.92. More specifics will come during the February earnings call. The board also bumped the share repurchase authorization from $500 million up to $1.0 billion. 1
Adjusted EBITDA and adjusted EPS are non-GAAP metrics companies use to exclude specific items, aiming to show a clearer picture of core operations. Investors often compare adjusted figures with GAAP results, keeping a sharper eye on cash flow, especially when buybacks are involved.
Citizens analyst Constantine Davides nudged up his price target on the stock to $38 from $36, maintaining a Market Outperform rating. He highlighted what he sees as diminishing risk from Stelara-related pressure alongside greater potential for capital returns. “We remain constructive on OPCH given its diversified portfolio, solid cash flows, and potential upside from capital deployment,” Davides noted. 2
Stelara remains a blockbuster autoimmune drug, but biosimilars—cheaper close copies—can erode profits as branded sales decline. Davides flagged 2026 as likely the last year for significant Stelara-related pressure, with investors focused on how fast those shifts impact gross profit and margins.
Option Care operates in a tough segment of healthcare, where payers are shunting care away from hospitals toward homes or cheaper venues. It goes head-to-head with infusion services backed by insurers and pharmacies, plus hospital systems determined to hold onto lucrative treatments internally.
Still, details remain in flux. The company’s numbers are preliminary and unaudited, with operating cash flow forecasted under $320 million for 2025 — a figure that could unsettle investors focused on capital returns.
Management will present at the J.P. Morgan Healthcare Conference Tuesday at 10:30 a.m. PT. Investors are focused on updates about 2026 demand, margin trends, and how quickly buybacks will proceed ahead of the February earnings call that will finalize the numbers. 1
