Option Care Health Inc. experienced a sharp decline on Thursday, with shares plummeting approximately 28% to $19.44 after the company revised its 2026 revenue forecast downward and reported first-quarter revenue that fell short of analyst expectations. The stock touched an intraday low of $18.04 before recovering slightly.
The home and alternate-site infusion provider now expects 2026 revenue in the range of $5.675 billion to $5.775 billion, a reduction from its prior guidance of $5.8 billion to $6.0 billion provided just two months ago. The company attributed the cut to ongoing challenges within its chronic inflammatory disease (CID) portfolio, which it said is expected to reduce full-year revenue growth by approximately 600 basis points and impact gross profit by roughly $55 million.
First-quarter net revenue came in at $1.3507 billion, representing a modest 1.3% increase year-over-year but missing the consensus estimate of approximately $1.40 billion. Net income slipped 3.0% to $45.3 million, while adjusted EBITDA fell 6.3% to $104.8 million. Adjusted diluted earnings per share held steady at $0.40, which did top analyst forecasts. The company maintained its full-year adjusted diluted EPS guidance of $1.82 to $1.92 and adjusted EBITDA outlook of $480 million to $505 million.
Chief Executive John C. Rademacher characterized the quarter as “mixed” and expressed dissatisfaction with the company’s revenue growth momentum. He stated that Option Care is “taking decisive actions” to reinvigorate growth, though investors may require tangible progress before rewarding the stock. The company’s chronic therapy segment, which includes treatments for Crohn’s disease, plaque psoriasis, psoriatic arthritis, rheumatoid arthritis, and ulcerative colitis, faces headwinds from shifting reimbursement policies, evolving insurance plans, and drug mix adjustments.
On a more positive note, management reported high-single-digit gains in acute therapy revenue and solid growth in the immunoglobulin (IG) and neurology portfolio. IG therapies are antibody-based treatments used for certain immune and neurological disorders. The company also expanded its revolving credit facility to $850 million from $400 million and repurchased $17.5 million in shares during the quarter.
The competitive landscape remains intense, with rivals including Optum Infusion Pharmacy (part of UnitedHealth Group), Coram CVS/specialty infusion services, Amerita Specialty Pharmacy, and other regional players. Option Care must navigate referral dynamics, payer contracts, pricing pressures, and service differentiation to maintain its market position.
Investors are interpreting the guidance reduction as a signal of slowing growth rather than a temporary volatility. While the company has maintained its adjusted profit forecasts, the revenue cut leaves management with limited flexibility. To stay on track, Option Care must revive chronic therapy growth, sustain acute therapy gains, and control costs to support earnings.