Cardinal Health Reports Q1 FY27 Beat & Raises Full-Year Guidance

Executive Summary

On November 5, 2026, Cardinal Health, Inc. (NYSE: CAH) filed a Form 8-K reporting financial results for its first quarter ended September 30, 2026 (Q1 FY27). The company reported solid year-over-year revenue growth, substantial margin expansion, completed a $500 million share repurchase, and raised its full-year non-GAAP EPS guidance.

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Q1 FY27 Financial Highlights

• Revenue: $67.51 billion, up 5% year-over-year from $64.01 billion in Q1 FY26.
• GAAP Operating Earnings: $753 million, up 13% compared to $668 million in Q1 FY26.
• Non-GAAP Operating Earnings: $1.0 billion, up 17% compared to $857 million in Q1 FY26.
• Net Earnings: GAAP net earnings attributable to Cardinal Health were $554 million ($2.38 diluted EPS), up 27% from $1.88 in Q1 FY26. Non-GAAP net earnings were $759 million ($3.26 diluted EPS), up 28% from $2.55 in Q1 FY26.
• Tax Rates: GAAP effective tax rate dropped to 19.2% (from 24.1%); non-GAAP effective tax rate decreased to 18.5% (from 21.9%).

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Segment Performance

1. Pharmaceutical and Specialty Solutions:

   • Revenue: $62.6 billion (+6% Y/Y), supported by brand and specialty sales growth.
   • Segment Profit: $783 million (+17% Y/Y), driven by brand/specialty product momentum and generics program performance.

2. Global Medical Products and Distribution (GMPD):

   • Revenue: $3.2 billion (flat Y/Y), as Cardinal Health Brand growth was offset by lower distribution revenues.
   • Segment Profit: $33 million (-28% Y/Y), impacted by unfavorable distribution mix and FX pressures.

3. Other (Nuclear/Precision Health, at-Home, OptiFreight Logistics):

   • Revenue: $1.8 billion (+7% Y/Y).
   • Segment Profit: $193 million (+16% Y/Y), seeing balanced expansion across all three sub-units.

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Updated FY27 Outlook

• Non-GAAP Diluted EPS: Raised to $12.80 – $13.00 (previously $12.40 – $12.60), reflecting 14% to 15% growth from reported FY26 results.
• Pharmaceutical and Specialty Solutions Profit Growth: Upgraded to 10%–12% (previously 8%–11%).
• Other Segment Growth: Profit growth upgraded to 17%–20%; revenue growth upgraded to 12%–14%.
• Capital Allocation & Share Count: Diluted weighted average shares projected at 231M–232M (reduced following the completion of the $500M accelerated share repurchase in Q1).

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Strategic & Corporate Developments

• CVS Health Renewal: Cardinal Health executed a binding letter of intent to renew its key pharmaceutical distribution agreements with CVS Health.
• M&A: Management expects to close the acquisition of AdaptHealth’s Diabetes Health business in Q3 FY27.
• Liquidity: Added $1.0 billion in uncommitted revolving credit facilities.