Cardinal Health raised fiscal 2026 EPS guidance three times in eight months

Cardinal Health raised its fiscal 2026 non-GAAP diluted EPS guidance three times between January and April 2026, starting from $9.65–$9.85 on January 13, 2026, lifting it to at least $10.00 on the same day, then narrowing and raising the range to $10.70–$10.80 by April 30, 2026. Cardinal Health ultimately reported fiscal 2026 non-GAAP diluted EPS of $11.26, a 37% increase that included $100 million in tariff refunds.

Revenue and Operating Performance

Fiscal 2026 revenues reached $254.2 billion, a 14% increase from $222.6 billion in fiscal 2025. Cardinal Health reported second-quarter revenues of $65.6 billion, up 19% from $55.3 billion a year earlier. Third-quarter revenues of $60.9 billion rose 11% from $54.9 billion, and fourth-quarter revenues of $63.7 billion increased 6% from $60.2 billion. Operating cash flow totaled $5.2 billion and adjusted free cash flow reached $5.0 billion in the year.

Specialty care revenues exceeded $50 billion in fiscal 2026, representing a 16% compound annual growth rate over three years. Cardinal Health's Sonexus Access and Patient Support business transitioned Sanofi and Regeneron's Dupixent My Way program, serving over 1 million patients across multiple programs. Publix Super Markets enrolled its entire pharmacy network of nearly 1,400 locations in the ContinuCare Pathway program, bringing total enrollment to over 11,000 retail and grocery pharmacies.

Capital Allocation and Balance Sheet

Cardinal Health returned $1.4 billion to shareholders through repurchases in fiscal 2026, including a $750 million baseline program completed in the second quarter, a $250 million repurchase in the third quarter, and an additional $350 million program in the fourth quarter. The Board approved a $5.0 billion increase to the share repurchase program in August 2026, bringing total authorization to $6.4 billion.

Cardinal Health achieved 3.2x leverage on December 31, 2025, within its targeted range of 2.75x to 3.25x Adjusted Debt to EBITDA. Cardinal Health reduced this to 3.0x by completing a $100 million term loan payment ahead of schedule in the third quarter. Cardinal Health simplified its credit facilities by consolidating three facilities into a single $4.0 billion revolving credit facility.

Strategic Positioning for 2027

Cardinal Health issued fiscal 2027 guidance of 13% to 15% non-GAAP diluted EPS growth, representing $12.40 to $12.60 per share, on diluted weighted average shares outstanding of approximately 233 million. Pharmaceutical and Specialty Solutions revenue is expected to grow 3% to 5%, with segment profit growth of 8% to 11%. Non-GAAP adjusted free cash flow guidance was set at $3.5 billion to $4.0 billion, with capital expenditures of approximately $700 million planned.

Cardinal Health completed the tuck-in acquisition of Strive Medical in August 2026 and announced a tuck-in acquisition of AdaptHealth's Diabetes Health business. The Specialty Alliance, its MSO platform, acquired Solaris Health, the leading urology MSO with over 750 providers, on November 3, 2025. Cardinal Health announced a new distribution center in Indianapolis set to open in 2027 featuring advanced robotics and automation, and expanded Actinium-225 production capabilities at its Nuclear and Precision Health Solutions Center for Theranostics Advancement in the same city.

Cardinal Health successfully transitioned manufacturer distribution service agreements for all branded pharmaceutical products affected by the 2026 Medicare Drug Price Negotiation Program prior to the January 1, 2026 implementation date. A long-term renewal of its wholesaler distribution contract with Kroger was announced in fiscal 2026. Cardinal Health declared a regular quarterly dividend of $0.5158 per share, payable on October 15, 2026.