Cardinal Health Lifts Fiscal 2027 Non-GAAP EPS Outlook

The Tip Desk · November 5, 2026 · 3 min read

The pharmaceutical distributor reported first-quarter fiscal 2027 revenue of $67.5 billion and raised its full-year non-GAAP EPS range to $12.80 to $13.00.

Cardinal Health (CAH) raised its fiscal 2027 non-GAAP diluted earnings-per-share outlook to $12.80 to $13.00 after a first quarter in which Pharmaceutical and Specialty Solutions profit rose 17% and the company finished a $500 million share-repurchase program.

The pharmaceutical distributor said the new range compares with the prior $12.40 to $12.60 outlook issued with fourth-quarter fiscal 2026 results. The company said the update reflects 17% to 19% growth from its fiscal 2026 ex-tariff-refund non-GAAP EPS baseline of $10.95, and 14% to 15% growth from reported fiscal 2026 results.

First-quarter revenue was $67.5 billion, up 5% from $64.0 billion a year earlier. GAAP operating earnings rose 13% to $753 million and GAAP diluted EPS rose 27% to $2.38. Non-GAAP operating earnings increased 17% to $1.0 billion. Non-GAAP diluted EPS rose 28% to $3.26, which the company said reflected higher non-GAAP operating earnings, a lower share count and a lower effective tax rate.

Gross margin was $2.596 billion. The GAAP effective tax rate was 19.2%, compared with 24.1% a year earlier; the non-GAAP rate was 18.5%. Net earnings attributable to Cardinal Health were $554 million.

Pharmaceutical and Specialty Solutions, the largest reportable segment, posted revenue of $62.6 billion, up 6%. The company said the increase was driven by brand and specialty pharmaceutical sales growth from existing customers. Segment profit rose 17% to $783 million, which the company attributed primarily to contributions from brand and specialty products and positive generics program performance. Segment profit margin was 1.25%.

Global Medical Products and Distribution revenue was approximately flat at $3.2 billion. The company said that result was primarily driven by growth in Cardinal Health Brand, offset by lower distribution revenue. Segment profit fell 28% to $33 million, due to unfavorable distribution and foreign-exchange impacts partially offset by Cardinal Health Brand growth. Profit margin was 1.03%.

Other, which includes Nuclear and Precision Health Solutions, at-Home Solutions and OptiFreight Logistics, generated revenue of $1.8 billion, up 7%. Profit rose 16% to $193 million. The company said both the revenue and profit increases were driven by growth across those three operating segments.

The company raised segment-level profit-growth assumptions for the year. Pharmaceutical and Specialty Solutions profit growth is now expected at 10% to 12%, from the prior range of 8% to 11%. Other profit growth is now 17% to 20%, from 15% to 18%. Other revenue growth is now 12% to 14%, from 11% to 13%. The non-GAAP effective tax-rate assumption was lowered to 18.5% to 19.5%, from 19.0% to 20.0%. Diluted weighted-average shares outstanding are now 231 million to 232 million, from about 233 million, reflecting the timing of the $500 million accelerated share repurchase completed in the first quarter.

Cash and equivalents were $5.264 billion at September 30, 2026. Net cash provided by operating activities was $1.398 billion in the quarter. The company completed the $500 million repurchase program and announced additional $1.0 billion in uncommitted revolving credit facilities.

Cardinal Health entered a binding letter of intent to renew pharmaceutical distribution agreements with CVS Health, which the company said would enable continued volume growth in Pharmaceutical and Specialty Solutions. It also said it anticipates completing the acquisition of AdaptHealth’s Diabetes Health business in the third quarter of fiscal 2027.

Chief executive Jason Hollar said the results reflected a strong start to fiscal 2027 and that, given the quarter’s performance and updated expectations for the remainder of the year, the company was raising its fiscal 2027 non-GAAP EPS outlook.