Cardinal Health reported first‑quarter fiscal 2026 revenue of $64.0 billion, a 22% year‑over‑year increase, and adjusted earnings per share of $2.55, beating consensus estimates of $2.18. Adjusted operating earnings rose 37% to $857 million, while GAAP operating earnings increased 18% to $668 million. Sequentially, Q1 FY25 revenue was $52.3 billion, GAAP operating earnings were $568 million, non‑GAAP operating earnings were $625 million, and diluted EPS was $1.88.
The Pharmaceutical and Specialty Solutions segment generated $59.2 billion in revenue, up 23% from the same period last year, driven by growth in brand and specialty drug sales and contributions from the company’s multi‑specialty management services platform. Global Medical Products and Distribution grew 2% to $3.2 billion, and the Other segment surged 38% to $1.6 billion, reflecting gains in at‑home solutions, nuclear and precision health, logistics services, and the acquisition of Advanced Diabetes Supply.
Cardinal Health raised its full‑year fiscal 2026 adjusted EPS guidance to $9.65–$9.85, up from $9.30–$9.50, and lifted its adjusted free‑cash‑flow outlook to $3.0 billion–$3.5 billion. The company also launched a $375 million accelerated share‑repurchase program in the first quarter. The guidance increase reflects the strong Q1 performance and the expected contribution from the Solaris Health acquisition.
The Solaris Health acquisition involves a $1.9 billion cash payment for a 75% stake in the urology‑focused practice‑management firm, implying a total transaction value of approximately $2.04 billion when accounting for equity rollover. The deal is expected to close early November 2025 and is projected to be accretive to Cardinal Health’s non‑GAAP earnings per share in the first 12 months post‑closure, expanding the company’s specialty‑pharmaceutical services and physician‑engagement capabilities.
Interest expense rose in the quarter as a result of financing the Solaris Health acquisition and other strategic investments. While cost inflation and pricing pressures moderated operating margins, the company’s strong brand and specialty drug sales, along with the expansion of its multi‑specialty management services platform, helped offset these headwinds.
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