Cardinal Health (CAH) Earnings: +40% EPS Growth and Solid 2027 Guidance
Key Takeaways
- Non-GAAP EPS of $2.91 surged 40% year-over-year, handily beating the consensus estimate of approximately $2.41.
- Revenue rose 6% to $63.7 billion, missing the consensus estimate of roughly $65.2 billion but reflecting solid demand across the pharmaceutical distribution business.
- Full-year non-GAAP EPS reached $11.26, up 37% from fiscal 2025, capping what management called a standout year.
- Fiscal 2027 EPS guidance of $12.40 to $12.60 came in well above the $12.05 analyst consensus, implying 13% to 15% growth.
- The quarter included a one-time $0.31 per share benefit from IEEPA (International Emergency Economic Powers Act) tariff refunds in the medical products segment.
- Shares rose approximately 3% following the release, extending year-to-date gains above 15%.
Why the Results Matter in Context
Cardinal Health’s fourth-quarter and full-year fiscal 2026 results arrive at an important juncture for the healthcare distribution company. Management has pursued a multi-year plan to lift margins, streamline the Global Medical Products and Distribution segment, and expand higher-margin specialty and home-health operations. This report serves as a progress check on that effort and shapes expectations for the year ahead. With the stock up more than 60% over the past twelve months and valuation multiples reflecting that run-up, investors sought evidence that operational gains can continue, and the guidance delivered a clear positive signal.
Breaking Down the Reported Numbers
Cardinal Health reported fourth-quarter fiscal 2026 revenue of $63.7 billion, up 6% from $60.2 billion a year earlier. Although the top line fell short of the roughly $65.2 billion consensus, earnings came in stronger. Non-GAAP diluted EPS reached $2.91, a 40% jump from $2.08 in the prior-year quarter and well above the $2.41 estimate. GAAP diluted EPS was $1.70, up 70% from $1.00.
The Pharmaceutical and Specialty Solutions segment generated $58.8 billion in revenue, up 6%, while segment profit rose 21% to $645 million. Growth came from brand and specialty pharmaceutical demand, generics program performance, and specialty revenue that expanded more than 25% for the full year. The Global Medical Products and Distribution segment posted $3.1 billion in revenue, down 2%, but segment profit increased to $150 million from $70 million thanks to the one-time $100 million net benefit tied to anticipated IEEPA tariff refunds. Excluding that item, profit would have been $50 million. The Other segment delivered $1.7 billion in revenue, up 7%, with segment profit rising 14% to $183 million.
For the full fiscal year 2026, total revenue reached $254.2 billion (up 14%), non-GAAP operating earnings grew 30% to $3.6 billion, and adjusted free cash flow hit $5.0 billion. The company returned $1.4 billion to shareholders via repurchases, and the board approved an additional $5.0 billion buyback authorization. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
How the Market Responded
Shares of CAH rose approximately 3% in the session after the August 11 release. The positive reaction reflected the earnings beat and, more importantly, the fiscal 2027 guidance that exceeded consensus. The revenue shortfall drew limited attention because it stemmed mainly from pass-through dynamics in pharmaceutical distribution rather than weaker underlying demand. Investor sentiment was further supported by the expanded $5.0 billion repurchase authorization, which underscores confidence in ongoing free cash flow generation. Heading into the report, the stock had already climbed more than 60% over the prior twelve months, and these results largely affirmed the premium valuation by showing durable earnings momentum across segments.
Looking Ahead to Fiscal 2027
CAH enters the new fiscal year with solid momentum. Management guided non-GAAP EPS to $12.40–$12.60, representing 13% to 15% growth from an adjusted fiscal 2026 baseline that excludes the non-recurring tariff refund. This range sits above the company’s long-term 12%–14% target and ahead of the $12.05 consensus.
In the Pharmaceutical and Specialty Solutions segment, revenue growth of 3%–5% and profit growth of 8%–11% are expected, supported by specialty pharmaceuticals, the generics program, and recent acquisitions. The GMPD segment is projected to generate $200–$220 million in profit, up from an adjusted $158 million baseline, with revenue growth of 2%–4%. The higher-margin businesses grouped under “Other” are forecast to deliver revenue growth of 11%–13% and profit growth of 15%–18%.
Key items to watch include the pace of GMPD margin recovery, the sustainability of specialty demand (expected to moderate from the prior year’s pace), effects of Inflation Reduction Act provisions on pharmaceutical pricing, and effective deployment of cash and the new buyback authorization. Tariff-related pressures and geopolitical risks could also influence results, potentially pushing GMPD toward the lower end of guidance. From what I see, these factors will determine how the year unfolds.
Enhancing Research with AI Tools
When analyzing earnings across sectors, I find Tickeron’s AI Screener a helpful addition to my process. It lets me quickly filter for peers with comparable earnings momentum, valuation metrics, and technical patterns, which adds useful context without replacing fundamental review. The platform has become a regular part of how I cross-check opportunities in healthcare distribution and beyond.
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Contributor
Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
CAH in upward trend: price rose above 50-day moving average on October 05, 2026
CAH moved above its 50-day moving average on October 05, 2026 date and that indicates a change from a downward trend to an upward trend. In 23 of 29 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 79%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where CAH's RSI Indicator exited the oversold zone, 16 of 22 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 73%.
The Momentum Indicator moved above the 0 level on October 01, 2026. You may want to consider a long position or call options on CAH as a result. In 67 of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 76%.
The Moving Average Convergence Divergence (MACD) for CAH just turned positive on October 02, 2026. Looking at past instances where CAH's MACD turned positive, the stock continued to rise in 33 of 42 cases over the following month. The odds of a continued upward trend are 79%.
Following a +1.68% 3-day Advance, the price is estimated to grow further. Considering data from situations where CAH advanced for three days, in 263 of 393 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The 10-day moving average for CAH crossed bearishly below the 50-day moving average on September 21, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 6 of 12 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 50%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CAH declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 42%.
CAH broke above its upper Bollinger Band on September 02, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for CAH entered a downward trend on October 05, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 4 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 19 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating steady price growth. CAH’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 66 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (16.077) is normal, around the industry mean (2.488). P/E Ratio (30.469) is within average values for comparable stocks, (39.020). Projected Growth (PEG Ratio) (1.105) is also within normal values, averaging (2.016). CAH has a moderately high Dividend Yield (0.009) as compared to the industry average of (0.004). P/S Ratio (0.217) is also within normal values, averaging (4.260).
The Tickeron SMR rating for this company is 99 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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a maker of pharmaceuticals, medical, surgical and laboratory supplies as well as develops drug delivery systems
Industry MedicalDistributors
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