Cardinal Health Raises Fiscal 2027 Outlook as Q1 Revenue Hits $67.5B

Higher brand and specialty drug sales pushed Cardinal Health’s fiscal first-quarter revenue up 5% to $67.5 billion, and the Dublin, Ohio-based drug distributor raised its full-year adjusted profit forecast on Thursday.

Non-GAAP diluted earnings per share rose 28% to $3.26 for the quarter ended Sept. 30, from $2.55 a year earlier, which the company attributed to stronger operating earnings, fewer shares outstanding and a lower tax rate. On a GAAP basis, diluted EPS rose 27% to $2.38 and net earnings attributable to the company climbed 23% to $554 million, according to the results release.

StreetInsider reported that analysts had expected adjusted EPS of $2.95 and revenue of $66.59 billion.

• Revenue: $67.5 billion, up from $64.0 billion
• GAAP operating earnings: $753 million, up 13%
• Non-GAAP operating earnings: $1.0 billion, up 17%
• Operating cash flow: $1.40 billion, up from $973 million

Drug distribution carries the quarter

The Pharmaceutical and Specialty Solutions segment, the company’s largest, grew revenue 6% to $62.6 billion and segment profit 17% to $783 million, helped by brand and specialty products and its generics program. The Global Medical Products and Distribution unit was roughly flat at $3.2 billion in revenue, while its profit fell 28% to $33 million on distribution and foreign-exchange pressure. A group covering nuclear pharmacy, at-home products and OptiFreight Logistics lifted revenue 7% to $1.8 billion and profit 16% to $193 million.

New guidance range and CVS renewal

Cardinal Health now expects fiscal 2027 non-GAAP diluted EPS of $12.80 to $13.00, up from $12.40 to $12.60. StreetInsider put the prior consensus at $12.56. The company also raised its profit-growth target for the pharmaceutical segment to 10% to 12% and completed a $500 million share repurchase during the quarter.

The company said it signed a binding letter of intent to renew its pharmaceutical distribution agreements with CVS Health and expects to close its purchase of AdaptHealth’s Diabetes Health business in the third quarter of fiscal 2027. Chief Executive Jason Hollar said the results reflected “a strong start to fiscal 2027.” Management was scheduled to discuss the quarter on a webcast at 8:30 a.m. ET.

Earlier Thursday, health insurer Cigna also raised its forecast; see Cigna’s third-quarter results and 2026 outlook.

Sources: Cardinal Health, PR Newswire, StreetInsider