Cardinal Health (CAH) Q4 2026 earnings summary

Executive summary

• Achieved strong Q4 and FY26 revenue and profit growth, with double-digit profit increases across all segments and significant margin expansion.

• Strategic investments in automation, technology, and targeted M&A, along with simplification and operational improvements, drove operational momentum and efficiency.

• Disciplined capital allocation and robust cash flow generation supported progress on improvement plans and shareholder returns.

• Entering FY27 with strong momentum, a solid foundation, and a clear focus on long-term value creation.

Financial highlights

• Q4 revenue reached $63.7 billion, up 6% year-over-year; Q4 gross profit grew 16% to $2.6 billion; Q4 operating income rose 30% to $935 million.

• Q4 diluted EPS was $2.91, up 40% year-over-year, with $0.31 attributed to a one-time IEEPA tariff refund; GAAP diluted EPS up 70% to $1.70.

• Full-year revenue grew 14% to $254.2 billion; gross margin up 20% to $9.8 billion; operating earnings up 30% to $3.6 billion.

• Non-GAAP FY26 diluted EPS grew 37% to $11.26; adjusted free cash flow for FY26 was $5.0 billion; capital expenditures reached $649 million.

• Ended FY26 with $4.86 billion in cash and equivalents.

Outlook and guidance

• FY27 non-GAAP EPS guidance: $12.40–$12.60, representing 13–15% growth over adjusted FY26 EPS.

• Pharmaceutical and Specialty Solutions revenue expected to grow 3–5%; profit to grow 8–11%.

• GMPD segment revenue projected to grow 2–4%; profit expected at $200–$220 million, up ~$50 million ex-tariff refund.

• Other growth businesses forecast 11–13% revenue growth and 15–18% profit growth.

• Adjusted free cash flow expected between $3.5–$4.0 billion; capital expenditures projected at ~$700 million; at least $1 billion in share repurchases planned.