NEW YORK, April 30, 2026, 15:02 EDT
- Option Care Health shares plunged roughly 28% following a reduction to its 2026 revenue forecast and first-quarter sales that missed Wall Street’s targets.
- The company cited challenges in its chronic inflammatory disease portfolio, and management is now projecting an estimated $55 million hit to gross profit this year.
- The company stuck to its adjusted profit outlook, shifting attention to management’s ability to revive revenue gains while holding the line on margins.
Shares of Option Care Health Inc slid Thursday, after the home and alternate-site infusion provider lowered its full-year revenue outlook—a move that renewed doubts about growth for a business investors had been valuing with expectations of more consistent expansion.
The stock slid roughly 28% to $19.44, having earlier hit a session low of $18.04, market data showed. This sharp drop came after first-quarter revenue came in at $1.35 billion, missing analyst estimates of around $1.40 billion, though adjusted earnings per share topped forecasts.
The timing stands out. Just two months back, Option Care Health was telling investors to expect $5.8 billion to $6.0 billion in 2026 revenue. Now, on Thursday, that top-line guidance is down—revised to a range of $5.675 billion to $5.775 billion. Adjusted diluted EPS remains unchanged at $1.82 to $1.92. Same for adjusted EBITDA, still parked at $480 million to $505 million. Adjusted EBITDA, for reference, excludes interest, taxes, depreciation, amortization, and certain other items.
Investors shrugged off the EPS beat, zeroing in on the company’s explanation for the guidance cut—a sharper reset in chronic therapies. In its presentation, the company pointed to its chronic inflammatory disease (CID) portfolio as a key drag, projecting roughly a 600-basis-point hit to full-year revenue growth and a gross-profit impact of about $55 million. (A basis point equals one one-hundredth of a percentage point.)
Option Care’s first-quarter net revenue came in at $1.3507 billion, a 1.3% increase on the prior year. Net income slipped 3.0% to $45.3 million. Adjusted EBITDA landed at $104.8 million, down 6.3%. Adjusted diluted EPS held steady at 40 cents. The company used $12.1 million in cash from operations, repurchased $17.5 million in shares, and more than doubled its revolving credit facility to $850 million from $400 million.
Chief Executive John C. Rademacher described the quarter as “mixed,” noting he’s “not satisfied with our revenue growth momentum.” Option Care is “taking decisive actions” to get growth back on track, he said, but it’s likely investors will need to see more progress before they reward the stock for that effort.
This pressure falls on a segment that matters both medically and to the bottom line. In its annual filing, Option Care says its chronic inflammatory disorder services cover treatments for Crohn’s disease, plaque psoriasis, psoriatic arthritis, rheumatoid arthritis, and ulcerative colitis. Therapies here aren’t immune to shifting reimbursement policies, evolving insurance plans, or adjustments in the drug mix.
Some resilience showed up. Management reported high-single digit gains in acute therapy revenue, and the IG/neuro portfolio also delivered solid growth. IG, or immunoglobulin therapies, are antibody-based treatments used in certain immune and neurological disorders.
The risk on the downside is pretty clear: if ongoing patient losses and pressure from the therapy mix in chronic care keep up, it could take longer than a single quarter to close the revenue gap. The company itself highlights potential trouble tied to losing payer relationships, shifting dynamics in the drug industry, legal battles, and changes in laws or regulations.
The competition isn’t idle. Option Care is up against a patchwork of players in the home and alternate-site infusion business, where everything from who sends referrals to which payers sign contracts, plus pricing and service, comes into play. In its latest annual report, the company names Optum Infusion Pharmacy—part of UnitedHealth Group—Coram CVS/specialty infusion services, Amerita Specialty Pharmacy, and other regional or niche pharmacy outfits as rivals.
Right now, investors are reading the update as a signal of slowing growth, rather than simply a volatile period. Option Care is sticking with its adjusted EBITDA and adjusted EPS guidance, but after cutting its revenue forecast, management doesn’t have much room to maneuver. To stay on track, they’ll need to reignite growth in chronic therapies, maintain gains in acute, and all the while keep the cost controls that have supported earnings so far.
