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 August 24, 2026
CAH moved above its 50-day moving average on August 24, 2026 date and that indicates a change from a downward trend to an upward trend. In 20 of 29 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 69%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a +3.87% 3-day Advance, the price is estimated to grow further. Considering data from situations where CAH advanced for three days, in 259 of 388 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
The Aroon Indicator entered an Uptrend today. In 181 of 308 cases where CAH Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 59%.
Bearish Trend Analysis
The 10-day RSI Indicator for CAH moved out of overbought territory on September 04, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 40 similar instances where the indicator moved out of overbought territory. In 24 of the 40 cases, the stock moved lower in the following days. This puts the odds of a move lower at 60%.
The Momentum Indicator moved below the 0 level on September 10, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CAH as a result. In 37 of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 43%.
The Moving Average Convergence Divergence Histogram (MACD) for CAH turned negative on September 10, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 41 similar instances when the indicator turned negative. In 25 of the 41 cases the stock turned lower in the days that followed. This puts the odds of success at 61%.
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 43%.
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.
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 74, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 17 (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 43 (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 70 (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (0.000) is normal, around the industry mean (7.715). CAH has a moderately high P/E Ratio (32.444) as compared to the industry average of (19.412). Projected Growth (PEG Ratio) (1.173) is also within normal values, averaging (1.318). Dividend Yield (0.009) settles around the average of (0.007) among similar stocks. P/S Ratio (0.219) is also within normal values, averaging (4.328).
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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