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Cardinal Health Reports Strong Second Quarter 2026 Earnings and Positive Outlook Adjustments

On February 5, 2026, Cardinal Health (NYSE: CAH) disclosed its second quarter results for the fiscal year 2026, revealing impressive revenues of $65.6 billion. This denotes a notable 19% increase compared to the same quarter last year. The company’s CEO, Jason Hollar, attributed this success to a favorable growth trajectory across all five operational segments, bolstering confidence in the organization's strategic plans.

Financial Highlights

• - Revenue: $65.6 billion, up from $55.3 billion in Q2 FY25.
• - Operating Earnings: GAAP operating profits saw a rise of 29% to reach $707 million.
• - Diluted EPS: The diluted earnings per share (EPS) increased to $1.97, reflecting a 19% jump.
• - Non-GAAP Operating Earnings: Saw a significant increase of 38%, totaling $877 million with a diluted EPS of $2.63, a 36% year-over-year improvement.

The company's ongoing momentum stems from significant profit growth experienced across its entire operational landscape. In clarifying the performance, Hollar stated, "Our strong second-quarter performance reflects at least double-digit segment profit growth across all five of our operating segments. This momentum gives us confidence to raise our fiscal 2026 outlook."

Segment Performance Breakdown

The Pharmaceutical and Specialty Solutions segment emerged as a pivotal driver, generating $60.7 billion in revenue for Q2, a 19% increase attributed to robust sales in both brand and specialty pharmaceuticals. Segment profits rose 29% to $687 million, buoyed by new customer growth and contributions from existing offers.

Conversely, the Global Medical Products and Distribution segment reported revenue growth of 3% to $3.3 billion with profits doubling, hitting $37 million. This growth is largely thanks to cost optimization measures despite some tariff-related challenges.

Another notable performer was the Other segment, which saw revenues rise 34% to $1.7 billion alongside a notable profit improvement of 52%, reaching $179 million.

Revised Outlook for Fiscal Year 2026

Building on the momentum from the second quarter, Cardinal Health has raised its guidance for the fiscal year 2026. Key adjustments include:

• - Non-GAAP diluted EPS guidance revised to a range of $10.15 to $10.35, marking an anticipated growth of 23% to 26%.
• - Increased profitability projections for the Pharmaceutical Solutions segment, narrowed to 20% to 22%, up from the previous guidance of 16% to 19%.

The projected effective tax rate has also shown improvement, reflecting a decrease to 21% to 23%, which serves as an additional boost to anticipated earnings.

Strategic Developments and Shareholder Returns

In addition to record sales and profits, Cardinal Health continued executing its strategy through notable shareholder actions. During the second quarter, the company completed an accelerated share repurchase program amounting to $375 million, bringing the total for FY26 to $750 million.

The positive report, combined with ongoing strategic initiatives—including the acquisition of Solaris Health and the launch of the ContinuCare™ Pathway program in diabetes supply management—signals that Cardinal Health is well-positioned to maintain its impact within the healthcare sector.

The firm also received accolades for workplace culture, earning the Great Place to Work Certification across six countries, indicating a solid internal environment that supports long-term growth and performance.

Investor Engagement

For investors interested in more detailed insights, Cardinal Health has scheduled a webcast on February 5, 2026, at 8:30 a.m. ET. Individuals can access the webcast through the Investor Relations section of Cardinal Health’s website.

As this robust financial performance and insights demonstrate, Cardinal Health is navigating a path of growth by effectively aligning strategic initiatives with operational execution, reflecting a promising outlook for both the company and its stakeholders going forward.