CARDINAL HEALTH (CAH) Company Report

Cardinal Health projects over $50 billion in specialty revenue for fiscal 2026, reflecting a 16 percent three-year CAGR in its specialty business.
The company reiterated a target of at least $10 EPS for fiscal 2026 and a 12–14 percent EPS CAGR, driven by broad-based growth across its enterprise.
Strategic priorities remain focused on pharma and specialty solutions, with continued organic and inorganic investments in nuclear, at-home, and OptiFreight segments to capture faster-growing secular trends.
Within specialty, Cardinal Health is emphasizing MSO growth in autoimmune, urology, and oncology, and aims to reach $1 billion in biopharma solutions revenue by 2028 (20 percent CAGR).
The capital allocation framework stays disciplined, prioritizing organic investments, maintaining an investment-grade balance sheet, returning capital via dividends and share repurchases, and pursuing high-ROI tuck-in M&A.

1 day ago

Transcript

Cardinal Health raises FY26 EPS guidance and accelerates Specialty growth

CAH

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Raised fiscal 2026 non-GAAP diluted EPS guidance to $10.00 per share, up from $9.65–$9.85.
Specialty Solutions expected to exceed $50 billion in revenue in FY26, reflecting a 16 % three-year CAGR.
FY26 snapshot: ~$255 billion in revenue, ~$3.4 billion in operating earnings, and ~$3.25 billion in adjusted free cash flow (midpoint guidance).
Launched ContinuCare Pathway for diabetes supply management, enrolling 11,000+ pharmacies and partnering with Publix Super Markets Inc..

1 day ago

Presentation

Cardinal Health outlines growth strategy at 44th J.P. Morgan Healthcare Conference

CAH

Guidance Update

M&A

New Projects/Investments

Cardinal Health highlighted pharma & specialty solutions as its core high-margin business, with three growth platforms—nuclear, at-home, and OptiFreight—complementing its GMPD turnaround segment.
Management reaffirmed USD 10+ EPS guidance for FY 2026 and a 12-14% EPS CAGR, supported by specialty and Biopharma Solutions investments, including a >$50 billion specialty revenue target (16% CAGR over three years).
Strategic priorities remain: (1) pharma & specialty solutions, (2) nuclear, at-home, and OptiFreight growth, (3) GMPD, while maintaining an investment-grade balance sheet and returning capital via dividends and buybacks.
Emphasis on robust utilization drivers—aging demographics and specialty demand—supported by technology investments , ongoing M&A , and stable generics market dynamics.

1 day ago

Transcript

Cardinal Health presents FY 26 EPS guidance and strategic progress

CAH

Guidance Update

M&A

Cardinal Health expects at least $10 EPS in fiscal 2026, driven by broad-based market growth and specialty momentum. The firm has delivered a 14% core operating earnings CAGR, 18% EPS CAGR, and averaged $3 billion in adjusted free cash flow with >150% conversion, targeting > $250 billion in revenue and 99% U.S. exposure.
Specialty solutions revenue is now guided to > $50 billion in FY 26 (a 16% CAGR over three years), with focus on autoimmune, urology and oncology via a 3,000-provider MSO platform, and Biopharma Solutions set to grow > 30% in FY 26 en route to $1 billion by FY 28.
Pharmaceutical distribution remains robust and broad-based across branded, generic, specialty and biosimilars. Contract clauses allow price renegotiation for IRA-driven reductions, preserving fee-for-service economics and model resiliency.
The company maintains a disciplined capital allocation framework—prioritizing organic investments, dividends, share repurchases and an investment-grade balance sheet—while pursuing tuck-in M&A in specialty and integrating recent platform acquisitions. GMPD has been turned around to positive free cash flow with continued infrastructure investment.

1 day ago

Transcript

Cardinal Health raises FY26 EPS to $10+

CAH

Guidance Update

New Projects/Investments

Cardinal Health raised its fiscal 2026 non-GAAP diluted EPS outlook to at least $10.00.
The company forecasts specialty revenues above $50 billion in FY 2026, implying a 3-year CAGR of ~16%.
Management highlighted growth drivers: expansion of specialty distribution and BioPharma Solutions (>30% expected growth), plus new patient-support wins such as Sanofi/Regeneron’s Dupixent My Way.
To mitigate impacts from the 2026 Medicare Drug Price Negotiation Program, Cardinal transitioned manufacturer distribution agreements and launched the ContinuCare Pathway direct-to-patient diabetes supply program.

1 day ago

Barron's

Cardinal Health raises FY 26 EPS outlook and outlines growth initiatives

CAH

Guidance Update

Revenue Acceleration/Inflection

Product Launch

Cardinal Health raised its fiscal 2026 non-GAAP diluted EPS guidance to at least $10.00, up from the prior range of $9.65–$9.85.
Specialty revenues are expected to exceed $50 billion in FY 2026, marking a 16% compound annual growth rate over three years.
The BioPharma Solutions segment anticipates over 30% revenue growth in FY 2026, driven by Sonexus™ Access and Patient Support wins.
Launched the ContinuCare™ Pathway for direct-to-patient diabetes supply management, partnering with Publix across ~1,400 pharmacies and expanding to over 11,000 retail and grocery locations.
Successfully transitioned manufacturer distribution agreements for branded pharmaceuticals impacted by the 2026 Medicare Drug Price Negotiation Program.

1 day ago

8-K

Cardinal Health raises fiscal 2026 EPS outlook and highlights strategic progress

CAH

Guidance Update

Product Launch

Raises fiscal 2026 non-GAAP EPS guidance to at least $10.00, up from $9.65–$9.85.
Expects Specialty revenues to exceed $50 billion in FY 2026, representing a 16% CAGR over three years.
Completes transition of manufacturer distribution agreements ahead of the 2026 Medicare Drug Price Negotiation Program.
Introduces ContinuCare™ Pathway for at-home diabetes supply delivery; Publix enrolls ~1,400 pharmacies, expanding the program to over 11,000 locations.

1 day ago

Press Release

Cardinal Health presents Q1 2025 results and strategic update

CAH

Guidance Update

New Projects/Investments

Cardinal delivered double-digit profit growth across all five operating segments in Q1 and raised FY 2026 EPS guidance to $9.65–$9.85.
The MSO strategy targets “otherologies,” integrating practices via Specialty Networks and bolstering with GIA and Solaris acquisitions to extend distribution, data and ancillary services.
Committed $150 million to expand nuclear manufacturing and cyclotron capacity, supporting over 70 theranostic assets with a ~10% segment margin and 95% hospital reach.
Preparing At-Home Solutions for new Medicare competitive-bidding rules affecting ~15% of revenues (CGMs and pumps) from FY 2028, leveraging scale and compliance to partner with the administration.
Raised FY 2025 free cash flow guidance to $3.0–$3.5 billion, increased CapEx to $600–$650 million, maintaining a BBB/AA rating and returning ≥ $750 million to shareholders via buybacks and dividends, with selective high-ROI M&A optionality.

Dec 3, 2025, 2:00 PM

Transcript

Cardinal Health reports strong Q1 performance and outlines strategic investments

CAH

Guidance Update

M&A

New Projects/Investments

All five segments delivered double-digit profit growth in Q1, led by pharma and specialty, prompting a guidance raise to $9.65–$9.85 EPS for FY26.
Emphasized MSO strategy focused on “otherologies” with acquisitions of GIA and Solaris, leveraging Specialty Networks to integrate distribution, data, and back-office services.
Nuclear precision health business will add $150 million in cyclotron capacity, serving 95% of hospitals within three hours and supporting over 70 radiopharmaceuticals under development.
Finalized competitive bidding rules for CGMs and pumps affect ~15% of the at-home solutions segment; confident in compliance framework and scale to navigate changes by FY2028.
Raised FY25 free cash flow guidance to $3.0–$3.5 billion, CapEx to $600–$650 million, maintain BBB/AA rating, and commit to returning at least $750 million to shareholders.

Dec 3, 2025, 2:00 PM

Transcript

Cardinal Health presents FY 2025 overview at Citi Global Healthcare Conference

CAH

Guidance Update

M&A

New Projects/Investments

CFO Aaron Alt reported double-digit profit growth in all five segments in Q1 FY 25 and raised FY 26 EPS guidance to $9.65–$9.85.
Pharma business delivered outsized demand across brand, generics, specialty, and consumer health, while targeting 5–7% organic growth ex-M&A; generics benefited from strong volume and average margin-per-unit management.
MSO strategy focuses on specialty platforms (e.g., GIA in GI, Solaris in urology) and data/ancillary services, with only ~1/3 of revenues from distribution to diversify profit streams.
Growth investments include nuclear precision health (∼10% margin, cyclotron expansion for 70+ radiopharma) and At-Home Solutions (15% revenue subject to CMS competitive bidding, impact expected FY 28).
GMPD turnaround delivered positive profit and cash flow while managing a $450 m tariff headwind (offset 2/3 operationally, rest via pricing), and capital strategy emphasizes $3–3.5 bn FCF, $600–650 m CapEx, balance sheet strength, and $750 m+ returns to shareholders.