Cardinal Health Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.29%.
Did CAH Beat Earnings? Q4 2025 Results
Cardinal Health posted a mixed but largely encouraging fourth quarter for fiscal year 2025, beating Wall Street's earnings expectations while falling modestly short on the top line. The healthcare distribution giant reported non-GAAP diluted EPS of $2.08, edging past the $2.03 consensus estimate by 2.46%, as non-GAAP operating earnings climbed 19% year-over-year to $719.00 million. Revenue of $60.16 billion grew 0.8% from a year ago but came in 1.19% below the $60.89 billion consensus, a shortfall the company had largely telegraphed given the previously communicated expiration of the OptumRx contract; strip out that headwind, and underlying revenue surged 21%. The standout driver was broad segment momentum, with all five operating units delivering double-digit profit growth, led by a 49% jump in GMPD segment profit to $70.00 million. Looking ahead, Cardinal Health raised its fiscal 2026 non-GAAP EPS guidance to $9.30 to $9.50, a $0.20 increase from its prior outlook, and announced the $1.90 billion acquisition of urology MSO Solaris Health, extending its specialty platform to roughly 3,000 providers across 32 states.
- Brand and specialty pharmaceutical sales growth from existing and new customers
- MSO platform acquisitions driving Pharmaceutical and Specialty Solutions segment profit
- Volume growth from existing customers in GMPD segment
- Advanced Diabetes Supply acquisition contributing to Other segment growth
- Lower share count from share repurchases supporting EPS growth
- All five operating segments growing profit at double-digit rates in FY2025
“Fiscal 2025 was a transformative year for Cardinal Health, and we closed the year with momentum, delivering strong fourth quarter results. The broad-based operational strength, with all five of our operating segments growing profit double-digits, reflects the disciplined execution of our strategy and our investments for growth. We enter Fiscal 2026 with confidence, evidenced by our increased financial outlook, as we continue to evolve towards reaching our full potential.”
Cardinal Health CEO, on the earnings call
Forward Guidance & Outlook
Cardinal Health raised its fiscal year 2026 non-GAAP diluted EPS guidance to $9.30–$9.50, a $0.20 increase from the preliminary outlook of $9.10–$9.30 provided at its June 2025 Investor Day, representing 13%–15% growth. The increase reflects benefits from reclassifying physician equity interests as liabilities and increased contributions from Pharmaceutical and Specialty Solutions and growth businesses. Pharma & Specialty Solutions segment revenue and profit are expected to grow 11%–13%. GMPD revenue is expected to grow 2%–4% with segment profit of at least $140 million. Other segment revenue is expected to grow 26%–28% with profit growth of 25%–27%. Non-GAAP adjusted free cash flow is expected at $2.75 billion to $3.25 billion, with approximately $750 million in share repurchases and approximately $600 million in capital expenditures. The Solaris Health acquisition is expected to be slightly accretive to non-GAAP EPS in the first 12 months following close.
CAH YoY Financials
CAH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.