Cardinal Health's Earnings Beat Driven by One-Time Gains and Guidance for Slower Growth
On August 11, Cardinal Health (NYSE:CAH) reported strong fourth-quarter fiscal 2026 results with non-GAAP diluted EPS rising 40% year over year to $2.91 and full-year adjusted free cash flow reaching $5 billion. However, a significant portion of the earnings increase came from a one-time tariff refund, which complicates the sustainability of this performance. The company's revenue growth was broad-based across segments with total fourth-quarter revenue hitting $63.7 billion (up 6% year over year). The Pharmaceutical and Specialty Solutions segment drove much of this success, while smaller businesses like Nuclear PET and Theranostics showed strong double-digit growth. Despite these positives, the Global Medical Products and Distribution segment saw a decline in reported revenue for the quarter. Looking ahead to fiscal 2027, Cardinal Health has issued more conservative guidance with expected slower growth due to normalization of demand and impacts from new drug pricing regulations under the IRA. The company also warned that ongoing costs related to tariffs could negatively impact profits if not offset by other factors.
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