Cardinal Health Anticipates Normalized Growth as Specialty and At-Home Investments Expand
Cardinal Health (NYSE:CAH) expects growth to normalize in fiscal 2027 after experiencing unusually strong performance in fiscal 2026 driven by specialty business expansion, customer onboarding, acquisitions, and increased healthcare utilization. Management reported that all five operating segments delivered double-digit earnings growth during the year. The company is expanding its focus on managed services organizations (MSOs) across oncology, urology, and gastroenterology while investing in at-home care through recent acquisitions like Strive Medical and pending deals such as AdaptHealth's diabetes business. Cardinal Health plans to enhance automated distribution of high-value at-home products by adding three more centers. The company also highlighted strong cash flow generation during fiscal 2026, reaching approximately 90% toward its $10 billion target. CEO Jason Hollar emphasized that the prior year's performance was broad-based and not reliant on a single factor, though certain drivers like specialty growth are expected to moderate in fiscal 2027 as their effects annualize.
Topics: acquisitions distribution expansion growth strategy healthcare