Cardinal Health Earnings Beat, Raises Guidance

Cardinal Health reported earnings on Nov. 5, 2026, that exceeded expectations and raised its fiscal 2027 outlook, attributing the quarter’s performance to broad demand, the company said in a Form 8-K and press release.

Quarter Results and Outlook

For the quarter ended Sept. 30, 2026, Cardinal Health posted revenue of $67.5 billion, a 5.0% increase year over year. GAAP operating earnings rose 13.0% to $753 million, while GAAP diluted earnings per share climbed 27.0% to $2.38.

On a non-GAAP basis, operating earnings reached about $1.0 billion, up 17.0%, and diluted EPS rose 28.0% to $3.26. The company attributed these gains to higher operating earnings, a reduced share count, and a lower effective tax rate.

Cardinal Health raised its fiscal 2027 non-GAAP diluted EPS guidance to a range of $12.80 to $13.00 from $12.40 to $12.60. The new range implies 17.0% to 19.0% growth from the fiscal 2026 baseline excluding the IEEPA tariff-refund benefit, and 14.0% to 15.0% growth from reported fiscal 2026 results.

Capital Allocation and Demand Drivers

Pharmaceutical and Specialty Solutions revenue totaled $62.6 billion, up 6.0% year over year, while segment profit increased 17.0% to $783 million. Management credited the strength to brand and specialty pharmaceutical sales among existing customers and favorable results in its generics program.

Operating cash flow for the quarter was $1.4 billion, compared with $973 million a year earlier. Capital expenditures totaled $157 million. During the quarter, the company completed a $500 million share-repurchase program and paid $125 million in dividends.

The combination of stronger revenue and profit, ongoing cash generation, and the completed repurchase supported management’s decision to raise the fiscal 2027 non-GAAP EPS guidance and reflected broad demand across its pharmaceutical and specialty businesses.