Cardinal Health Reveals Fourth Quarter Results and 2026 Financial Forecast

Cardinal Health Reports Fourth Quarter and Fiscal Year 2025 Results

On August 12, 2025, Cardinal Health, Inc. released its financial results for the fourth quarter and the entire fiscal year of 2025, signaling steady growth and a bolstered outlook for fiscal year 2026. The fourth quarter saw revenues reach approximately $60.2 billion, remaining relatively flat compared to the same period last year, but reflecting a significant 21% increase when excluding the effects of an earlier announced contract expiration.

The company's GAAP operating earnings for the fourth quarter amounted to $428 million, translating to a diluted earnings per share (EPS) of $1.00. In contrast, its non-GAAP performance showcased a more robust showing, with operating earnings rising by 19% to $719 million, and a non-GAAP diluted EPS rising 13% to $2.08. These impressive figures illustrate Cardinal Health's capacity to effectively execute its long-term strategies, even in a fluctuating market.

For the fiscal year ending in 2025, Cardinal Health recorded total revenues of $222.6 billion, a slight decrease of 2% from the previous fiscal year. However, when adjusted for the aforementioned contract expiring, revenue growth was appreciable at 18%. The year culminated with GAAP operating earnings reaching $2.3 billion, and a remarkable rise in net earnings attributable to Cardinal Health, which hit $1.6 billion, growing by 83% year-over-year.

Noteworthy Developments

CEO Jason Hollar expressed confidence in Cardinal Health’s performance, citing a transformative year that was marked by increased profits across all five operational segments. Each division's growth can be linked back to the company’s powerful strategic execution and continuous investment in innovation.

The Pharmaceutical and Specialty Solutions segment reported revenues of $55.4 billion for the fourth quarter, showing the same flat trajectory as the previous year. However, excluding the expired customer contract, revenues in this segment surged by 22%. Segment profits jumped by 11% to $535 million, depicting strong returns from both existing and new customer accounts.

Segment struggles weren't as prevalent in the Global Medical Products and Distribution sector, which experienced a 3% revenue growth hitting $3.2 billion, benefiting from increased volume from existing clients. This division's corresponding profit rocketed by 49%, demonstrating a significant operational uplift.

In a strategic move aimed at amplifying its service offerings, Cardinal Health announced the acquisition of Solaris Health, a leading urology MSO, with over 750 providers in its network. This acquisition is part of Cardinal’s broader strategy to enhance its multi-specialty growth approach.

Fiscal Year 2026 Outlook

Looking ahead, Cardinal Health has adjusted its non-GAAP EPS guidance for fiscal year 2026 to a range between $9.30 and $9.50, representing a growth forecast of 13% to 15%, a notable increase from its preliminary projections made earlier. The forecast adjustments reflect confidence in the continued growth trajectory across several sectors, especially in Pharmaceutical and Specialty Solutions, which anticipates revenue and profit growth in the range of 11% to 13%.

Furthermore, the Global Medical Products and Distribution segment is expected to generate moderate growth, while promisingly higher growth is predicted for the Other segment, which includes at-home solutions and OptiFreight Logistics. An anticipated total non-GAAP adjusted free cash flow for 2026 is projected to fall between $2.75 billion to $3.25 billion, bolstering Cardinal's cash flow generation strategy.

Conclusion

With a strong operational foundation and newly embarked strategic partnerships, Cardinal Health is poised for the challenges and opportunities that lie ahead in 2026. Investors and analysts alike will be keen to monitor Cardinal's performance as it navigates these transformative times, underpinned by robust financial health and market strategies.

For those wishing to delve deeper into Cardinal Health’s financial narratives, a webcast will be available to further discuss these results and the implications for the future.