Cardinal Health Inc
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.69%.
Did CAH Beat Earnings? Q3 2026 Results
Cardinal Health delivered a standout fiscal third quarter for 2026, posting non-GAAP diluted EPS of $3.17 and beating the $2.79 consensus estimate by 13.69%, extending the company's streak of consensus EPS beats to four consecutive quarters. Revenue climbed 11.1% year-over-year to $60.94 billion, though it fell short of the $62.24 billion analyst estimate by 2.09%, as broad-based pharmaceutical distribution strength was partially offset by segment-level headwinds. The primary engine behind the earnings outperformance was a sharply lower non-GAAP effective tax rate of 10.2%, down from 22.4% a year ago, driven by discrete tax planning benefits, alongside robust profit growth in the Pharmaceutical and Specialty Solutions segment, which expanded segment profit 18% to $784.00 million. On the GAAP side, a $184.00 million goodwill impairment charge weighed on results, pulling GAAP diluted EPS down 20% to $1.69. Looking ahead, Cardinal Health raised its full-year non-GAAP EPS guidance to $10.70-$10.80, reflecting 30%-31% growth, and lifted adjusted free cash flow guidance to $3.30 billion-$3.70 billion.
- Brand and specialty pharmaceutical sales growth from existing customers drove Pharmaceutical and Specialty Solutions revenue growth
- Positive generics program performance contributed to Pharma segment profit growth
- Lower non-GAAP effective tax rate of 10.2% (from 22.4%) due to discrete planning benefits boosted non-GAAP EPS
- Lower share count from repurchase activity contributed to EPS growth
- Growth across at-Home Solutions, Nuclear and Precision Health Solutions, and OptiFreight Logistics drove Other segment results
- Advanced Diabetes Supply acquisition contributed to Other segment growth
“An excellent third quarter extends our FY26 momentum, due to the durability and resilience of our business.”
Cardinal Health CEO, on the earnings call
Forward Guidance & Outlook
Cardinal Health raised and narrowed FY2026 non-GAAP diluted EPS guidance to $10.70–$10.80, representing 30%–31% growth. Pharmaceutical and Specialty Solutions segment profit growth raised to 22%–23% (from 20%–22%). Other segment profit growth raised to 36%–38% (from 33%–35%). Non-GAAP effective tax rate lowered to approximately 19% (from 21%–23%). Diluted weighted average shares outstanding decreased to approximately 237 million. Interest and Other expense updated to approximately $340 million (from $325 million). Adjusted free cash flow raised and narrowed to $3.3 billion–$3.7 billion (from $3.0 billion–$3.5 billion).
CAH YoY Financials
CAH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.