Cardinal Health (CAH) Wells Fargo 21st Annual Healthcare Conference summary

Strategic overview and performance

• Portfolio positioned as integral across the healthcare ecosystem, with strong FY 2026 results and robust Q4 performance, especially in specialty and generics.

• Specialty business grew at double digits, surpassing $50 billion, and generics also delivered strong demand and margins.

• FY 2027 guidance projects 13%-15% adjusted EPS growth, above long-range targets, driven by continued execution of established strategy.

• Operational momentum is high, with record service levels and successful integration of recent MSO acquisitions.

• Business demonstrates resilience amid economic and regulatory changes, leveraging a diversified portfolio.

Segment drivers and outlook

• Pharmaceutical and Specialty Solutions segment profit growth exceeded normalized expectations, driven by specialty and generics demand.

• Acquisitions and integration of MSOs contributed to profit delivery; guidance for FY 2027 assumes continued secular trends and strong specialty growth.

• Generics expected to maintain positive momentum, with significant LOE opportunities anticipated in FY 2028 and FY 2029.

• Red Oak joint venture with CVS remains a competitive strength, supporting access and affordability.

• Biosimilars seen as an early-stage profit opportunity, with potential to benefit both patients and the business model.

Customer relationships and regulatory environment

• Ongoing, rolling contract negotiations with suppliers and customers, with recent renewals including Kroger and the largest GMPD customer.

• Strong relationships with major customers like CVS, with confidence in future renewals.

• IRA-related price negotiations for 2026 and 2027 expected to have manageable impact, with compensation for services provided.

• MSO strategy focuses on specialties with diversified revenue profiles, reducing exposure to regulatory changes.