Cardinal Health Inc. (NYSE:CAH) shares advanced in pre-market trading on Tuesday after the healthcare company delivered better-than-expected fourth-quarter earnings and issued fiscal 2027 profit guidance above Wall Street forecasts.
Adjusted earnings per share came in at $2.60, exceeding the analyst consensus of $2.41. Revenue reached $63.7 billion, below expectations of $65.22 billion but up 6% from $60.2 billion in the prior-year quarter.
Cardinal Health shares gained 3.72% before the opening bell as investors focused on the earnings beat and stronger outlook for the new fiscal year.
Cardinal Health forecasts double-digit EPS growth in 2027
For fiscal 2027, Cardinal Health expects adjusted earnings per share of between $12.40 and $12.60, representing growth of 13% to 15%.
The midpoint of $12.50 stands above the analyst consensus of $12.05, providing a positive forward-looking catalyst alongside the fourth-quarter earnings beat.
Excluding a one-time $0.31 benefit from IEEPA tariff refunds, fourth-quarter adjusted EPS increased 25%.
“Fiscal 2026 was a standout year for Cardinal Health and I am pleased with our strong fourth quarter results,” said Jason Hollar, CEO. “The broad-based operational strength for the year, with all five of our operating segments growing profit double-digits, even before recognition of IEEPA tariff recoveries in GMPD, reflects the disciplined execution of our strategy and our investments for growth.”
Pharmaceutical business drives profit higher
Pharmaceutical and Specialty Solutions remained Cardinal Health’s largest business, generating fourth-quarter revenue of $58.8 billion, an increase of 6% year on year.
Segment profit rose 21% to $645 million, providing a significant contribution to the company’s overall earnings growth.
Global Medical Products and Distribution reported a 2% decline in revenue to $3.1 billion. However, segment profit more than doubled to $150 million from $70 million, primarily reflecting the benefit from IEEPA tariff refunds.
The results show stronger profitability across the business even as revenue performance varied between segments.
Cash generation supports new $5 billion buyback authorization
Cardinal Health generated $5.2 billion of operating cash flow during fiscal 2026, alongside adjusted free cash flow of $5.0 billion.
The company repurchased $1.4 billion of shares during the year and announced a new $5.0 billion share repurchase authorization, giving it additional capacity to return capital to shareholders.
For investors, the revenue miss is a weaker element of the quarter, but the market reaction indicates greater attention on earnings growth, cash generation and the fiscal 2027 outlook. With guidance pointing to another 13% to 15% increase in adjusted EPS, execution against that forecast and continued segment profit growth are likely to remain key areas of focus.
Cardinal Health stock price
