Cardinal Health Q4 2025 Earnings Rise, Full-Year Outlook Boosted

Cardinal Health (CAH.US) announced its Q4 2025 results, with non-GAAP diluted EPS rising 13% to $2.08, surpassing the analyst estimate of $2.03. Revenue remained relatively flat at $60.2 billion compared to Q4 2024, but increased 21% when excluding the impact of a previously communicated customer contract expiration. Non-GAAP operating earnings increased 19% to $719 million.

Strong Segment Performance

The Pharmaceutical and Specialty Solutions segment profit increased 11% to $535 million in the fourth quarter. This growth was primarily driven by the acquisition of MSO platforms and strong contributions from brand and specialty products, despite being partially offset by the customer contract expiration.

The Global Medical Products and Distribution segment saw its profit increase 49% to $70 million, benefiting from volume growth with existing customers. Additionally, the 'Other' segment, which includes at-Home Solutions, Nuclear and Precision Health Solutions, and OptiFreight Logistics, reported a 44% increase in profit to $160 million, largely due to growth across all three operating segments, including the acquisition of Advanced Diabetes Supply.

Positive Fiscal Year 2026 Outlook and Strategic Acquisitions

Cardinal Health raised its fiscal year 2026 outlook for non-GAAP diluted EPS to a range of $9.30 to $9.50, an increase from its preliminary outlook of $9.10 to $9.30. This upward revision reflects a benefit to net earnings from classifying shares held by physicians and management of The Specialty Alliance as a liability, as well as increased contributions from the Pharmaceutical and Specialty Solutions segment and the growth businesses within 'Other'.

The company also announced the acquisition of Solaris Health, a leading urology MSO with over 750 providers, which will enhance Cardinal Health's multi-specialty growth strategy. This acquisition, along with the recent Investor Day and ongoing advocacy efforts for independent pharmacies, underscores Cardinal Health's commitment to strategic growth and market expansion.