Cardinal Health, Inc.

Fourth-quarter revenue was $63.7 billion, up 6% year over year. Gross profit increased 16% to $2.6 billion, SG&A rose 9.5%, and operating income was $935 million, up 30%. Diluted EPS was $2.91, up 40%, including a $0.31 onetime benefit from IEEPA tariff refunds. For the full year, revenue grew 14% to $254 billion, gross profit grew 20% to $9.8 billion, and operating earnings were $3.6 billion, up 30%; full-year non-GAAP EPS was $11.26, and adjusted free cash flow was $5 billion. For fiscal 2027, Cardinal expects EPS of $12.40 to $12.60, 3% to 5% Pharma revenue growth, 2% to 4% GMPD revenue growth, 11% to 13% Other revenue growth, adjusted free cash flow of $3.5 billion to $4 billion, capex of $700 million, tax rate of 19% to 20%, and at least $1 billion of share repurchases.

Jason Hollar said the company ended fiscal 2026 with “consistent execution and broad-based performance,” and that the strategy is working because of simplification, investment in infrastructure, and disciplined operating execution. He highlighted Pharma and Specialty as the main growth engines, GMPD’s steady progress on its improvement plan, and above-market growth in Cardinal Health brand once tariff effects are normalized. His tone was confident and forward-looking, emphasizing that the company enters fiscal 2027 with momentum, a strong balance sheet, and “significant opportunities ahead.”

Aaron Alt emphasized broad-based demand, strong profit growth, and strong cash generation, calling out 30% growth in operating earnings for both the quarter and the year. He detailed Q4 revenue of $63.7 billion, gross profit of $2.6 billion, operating income of $935 million, and EPS of $2.91, while noting the $100 million net operating benefit from IEEPA tariff refunds in GMPD. He also cited $5 billion of adjusted free cash flow, $4.9 billion of cash on hand, $649 million of capex for the year, $1.35 billion of buybacks, and a new $4 billion revolver; for fiscal 2027 he guided to $12.40-$12.60 EPS, $3.5-$4 billion of adjusted free cash flow, $700 million of capex, and a 19% to 20% tax rate.

Analysts focused on whether Pharma and Specialty momentum can persist, how much of the guidance assumes demand normalizes, and how much M&A is embedded. Management said guidance assumes strong demand but not the “outsized” demand seen at times in fiscal 2026, and that fiscal 2027 includes 2 to 3 percentage points of profit benefit from already completed M&A. Questions also centered on regulation and 340B: Hollar said Cardinal sees its role as unchanged, believes compensation should not change if its service role stays the same, and is watching customer impacts closely because pressure on hospitals could affect access and volumes. On GMPD and tariffs/input costs, management said higher diesel, oil-based commodities and resin costs are being monitored, but tariff tailwinds should largely offset them unless conflicts persist, which could push GMPD toward the low end of guidance.