Cardinal Health stock lifts outlook after strong fiscal Q1

Cardinal Health reported a stronger start to fiscal 2027 on Thursday, November 5, and raised its full-year adjusted earnings outlook. In its company release, Cardinal Health said first-quarter revenue rose 5 percent year over year to 67.5 billion US dollars. GAAP diluted earnings per share increased 27 percent to 2.38 US dollars, while non-GAAP diluted earnings per share rose 28 percent to 3.26 US dollars.

Pharmaceutical segment drives growth

The Pharmaceutical and Specialty Solutions segment provided the main operating lift. Revenue increased 6 percent to 62.6 billion US dollars, while segment profit advanced 17 percent to 783 million US dollars. Cardinal Health attributed the improvement to brand and specialty pharmaceutical sales from existing customers and positive performance in its generics program.

The Global Medical Products and Distribution segment remained under pressure. Revenue was broadly unchanged at 3.2 billion US dollars, while segment profit fell 28 percent to 33 million US dollars. The company cited unfavorable distribution and foreign-exchange effects, partly offset by growth in Cardinal Health Brand products.

The Other segment, which includes Nuclear and Precision Health Solutions, at-Home Solutions and OptiFreight Logistics, also contributed to the quarter. Revenue rose 7 percent to 1.8 billion US dollars and segment profit increased 16 percent to 193 million US dollars.

Guidance moves higher

Management raised fiscal 2027 non-GAAP diluted EPS guidance to 12.80 to 13.00 US dollars from the previous range of 12.40 to 12.60 US dollars. The company said the new range implies 17 to 19 percent growth from its fiscal 2026 adjusted baseline excluding the IEEPA tariff refund, or 14 to 15 percent growth from reported fiscal 2026 results.

Cardinal Health also increased its pharmaceutical and specialty profit growth outlook to 10 to 12 percent from 8 to 11 percent. The expected profit growth range for Other rose to 17 to 20 percent from 15 to 18 percent, while its revenue growth outlook moved to 12 to 14 percent from 11 to 13 percent. The company lowered its projected non-GAAP effective tax rate to 18.5 to 19.5 percent and now expects 231 million to 232 million diluted weighted-average shares.

The adjusted figures exclude items including restructuring and severance costs, acquisition-related costs, impairments and litigation recoveries or charges. For the quarter, non-GAAP operating earnings reached 1.001 billion US dollars, compared with GAAP operating earnings of 753 million US dollars.

Strategic milestones support visibility

Cardinal Health said it completed a 500 million US dollar accelerated share repurchase during the first quarter. The company also entered a binding letter of intent to renew its pharmaceutical distribution agreements with CVS Health, reinforcing a long-standing customer relationship and supporting continued volume growth in the pharmaceutical and specialty business.

Another planned milestone is the expected completion of Cardinal Health's acquisition of AdaptHealth's Diabetes Health business in the third quarter of fiscal 2027. The company also announced a real-world evidence study with Eli Lilly focused on treatment patterns and outcomes for patients with inflammatory bowel disease.

Cardinal Health stock traded at 245.90 euros on Lang & Schwarz at 13:19 CET on Tuesday, November 10. The quote provides the current trading indication, while the earnings release gives investors the more material fundamental signal: higher near-term earnings and a raised full-year outlook alongside uneven segment execution.

Cardinal Health company facts

• Company: Cardinal Health, Inc.
• ISIN: US14149Y1082
• Ticker: CAH
• Home exchange: New York Stock Exchange
• Lang & Schwarz quote: 245.90 euros at 13:19 CET on Tuesday, November 10, 2026
• Fiscal first-quarter revenue: 67.5 billion US dollars, up 5 percent year over year
• Fiscal 2027 adjusted EPS outlook: 12.80 to 13.00 US dollars

The broader US market context is covered in current market reports.

For more coverage, see more news and analyses on Cardinal Health stock.