10-Q · April 30, 2026
Cardinal Health reported Q3 FY26 revenues of $60.9 billion, an 11% increase year-over-year, driven by branded and specialty pharmaceutical sales growth. Despite a GAAP EPS decline of 20% to $1.69 due to goodwill…
Earnings analysis · 10-K
CAH earnings analysis
Filed August 11, 2026 · Our reading of the company's report
The latest report
Cardinal Health delivered strong fiscal 2026 growth, with revenue up 14% to $254.248 billion, GAAP EPS up 12% to $7.23, and operating cash flow increasing to $5.174 billion. Pharma and the acquired MSO and at-Home…
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Cardinal Health delivered strong fiscal 2026 growth, with revenue up 14% to $254.248 billion, GAAP EPS up 12% to $7.23, and operating cash flow increasing to $5.174 billion. Pharma and the acquired MSO and at-Home businesses drove results, while GMPD profit recovered despite essentially flat revenue. The outlook is strategically constructive, but the new IRS tax disputes, expanding tariff exposure, and the Navista & ION impairment raise execution and downside risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $7.23
What stood out
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Revenue Accelerated to $254.2B
Fiscal 2026 revenue increased 14% to $254.248 billion from $222.578 billion in fiscal 2025. Revenue was $226.827 billion in fiscal 2024, indicating a significant two-year recovery despite the OptumRx contract expiration at the end of June 2024.
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EPS and Operating Earnings Expanded
GAAP diluted EPS rose 12% to $7.23 from $6.45, following a sharp increase from $3.45 in fiscal 2024. Non-GAAP diluted EPS increased 37% to $11.26 from $8.24, while non-GAAP operating earnings grew 30% to $3.624 billion.
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Margins Improved Modestly
Gross margin increased 20% to $9.774 billion, and the gross margin rate improved 17 basis points year over year. Consolidated operating earnings increased 15% to $2.613 billion, implying an operating margin of approximately 1.03% versus approximately 1.02% in fiscal 2025.
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Pharma Led Segment Growth
Pharma remained the primary growth engine, with revenue of $234.833 billion and segment profit of $2.783 billion. Management attributed the profit increase to branded and specialty pharmaceuticals, the generics program, and MSO acquisitions.
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Specialty MSO Platform Expanded
The company completed the approximately $1.9 billion Solaris Health acquisition, adding more than 750 providers across more than 250 practice locations in 14 states. Cardinal Health owns approximately 76% of The Specialty Alliance following the transaction.
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Cash Generation Supported Returns
Net cash provided by operating activities increased to $5.174 billion from $2.397 billion in fiscal 2025 and $3.762 billion in fiscal 2024. Capital expenditures were $649 million, up from $547 million in fiscal 2025, while the company deployed $1.4 billion for share repurchases and paid $491 million in dividends.
What to watch
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New IRS Tax Audit Exposures
The IRS issued two Notices of Proposed Adjustment during fiscal 2026. One challenges the deductibility of self-insurance losses and could create approximately $400 million of additional tax expense plus interest and approximately $1.4 billion of additional tax liability plus interest; the other could create approximately $160 million of additional federal tax liability plus interest.
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Tariff and Supply Disruption Risk
Trade-policy exposure broadened beyond the approximately $200 million of IEEPA tariffs paid to date. Management states that proposed tariffs on generic pharmaceuticals could reach 100% beginning in 2028 and 200% beginning in 2029, potentially increasing costs or reducing supply; the company also said existing tariff mitigation actions have not fully offset adverse impacts.
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MSO Integration and Impairment Risk
The MSO strategy showed a new impairment signal: Cardinal recognized a $184 million pre-tax goodwill impairment for Navista & ION after reductions in long-term plan assumptions and an increased risk profile. Management notes that a hypothetical 0.5 percentage-point increase in the discount rate to 11.0% or a 1.0 percentage-point decrease in terminal growth to 2.0% would reduce estimated fair value by approximately $70 million further.
Management's outlook
The 10-K does not provide annual revenue or EPS guidance; annual outlook was provided separately in the earnings release/call. The MD&A states that fiscal 2027 capital expenditures are expected to be approximately $700 million, primarily for manufacturing and distribution infrastructure and technology investments.
Earlier filings 4
10-Q · November 1, 2024
Cardinal Health reported revenue of $52,277 million, down 4% year-over-year, driven by the expiration of OptumRx contracts (which generated 17% of FY2024 revenue). Gross margin rose 9% to $1,902 million (3.64% of sales)…
10-K · August 14, 2024
Cardinal Health reported FY2024 revenue of $226,827 million and net earnings attributable to Cardinal Health of $852 million (diluted EPS $3.45), reflecting year-over-year improvement from $204,979 million revenue and…
10-Q · February 1, 2024
Cardinal Health reported Q2 FY2024 revenue of $57,445 million, up 12% year-over-year, with GAAP diluted EPS of $1.43 and non-GAAP diluted EPS of $1.82 (non-GAAP EPS up 38% YoY). Pharmaceutical drove the growth…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.