#United States #Dublin #Cardinal Health #Q1 Results #Solaris Health

Cardinal Health Shows Impressive Performance in Q1 FY26

Cardinal Health, Inc. recently announced its first quarter results for fiscal year 2026, showcasing remarkable growth in its financial performance compared to the previous year. The company reported a revenue of $64 billion, marking a 22% increase from the same quarter of 2025. This increase is attributed to a surge in sales across various segments, demonstrating Cardinal Health's robust operational strategies.

Financial Highlights

Revenue and Earnings Growth

The major highlights from the report are as follows:

• - GAAP operating earnings rose to $668 million, an 18% increase compared to the prior year.
• - The GAAP diluted earnings per share (EPS) also saw an increase of 11%, reaching $1.88.
• - The company's non-GAAP operating earnings jumped significantly by 37%, reaching $857 million, primarily due to profit growth across all five operating segments. The non-GAAP diluted EPS increased by 36%, landing at $2.55.

These figures paint a favorable picture of Cardinal Health’s persistent efforts to enhance efficiency and profitability across its various business lines.

Revised Fiscal Year Guidance

In light of their strong performance in Q1, Cardinal Health has increased its guidance for non-GAAP diluted EPS for fiscal year 2026 to a range of $9.65 to $9.85, reflecting an anticipated growth of 17% to 20%. Further, the company's forecast for adjusted free cash flow has also been revised upward to $3.0 billion to $3.5 billion. This upward revision is attributed to the successful execution of their operational strategies and the expected positive impact from the upcoming acquisition of Solaris Health, which is anticipated to complete in early November.

Segment Performance

Cardinal Health's growth can be attributed to several key operational segments:

• - The Pharmaceutical and Specialty Solutions segment reported revenues of $59.2 billion, an increase of 23% year-over-year, bolstered by both existing and new customer pharmaceutical sales.
• - The Global Medical Products and Distribution segment saw a modest 2% revenue increase, bringing in $3.2 billion, with a segment profit of $46 million, reflecting significant growth from existing clients.
• - The Other segment, which includes various operational segments, outperformed with a 38% increase in revenues to $1.6 billion and a notable 60% rise in segment profit to $166 million.

Company Outlook

CEO Jason Hollar expressed satisfaction with the company’s operational execution, indicating that this strong first quarter provides a solid foundation for the remaining fiscal year. With the acquisition of Solaris Health on the horizon, Cardinal Health anticipates further enhancements in growth and operational capabilities in upcoming quarters.

Moreover, the initiation of a $375 million accelerated share repurchase program during Q1 is another strategic decision designed to return value to shareholders.

New Developments

Recently, Cardinal Health has made significant investments in infrastructure aimed at supporting future growth:

• - They have announced the development of a new Pharmaceutical and Specialty Solutions forward distribution center in Indianapolis, set to be operational by Fall 2027. The facility will integrate cutting-edge automation technologies to optimize efficiency and service.
• - The company also launched a state-of-the-art Consumer Health Logistics Center, a centralized hub dedicated to over-the-counter medications and diagnostic solutions, enhancing their distribution capabilities.

As Cardinal Health progresses through fiscal year 2026, the company’s commitment to expanding its product offerings and operational efficiency remains evident, positioning it for sustained growth and success in the competitive healthcare market.