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Sep 30, 2025
Cardinal Health Q1 2026 Earnings Report
Cardinal Health reported strong results in Q1 FY26 with revenue, net income, and EPS all increasing year-over-year.
Key Takeaways
Cardinal Health delivered a robust Q1 FY26, marked by 22% revenue growth and significant improvement in both GAAP and non-GAAP earnings, prompting a raised outlook for the fiscal year.
Revenue rose 22% year-over-year to $64 billion, driven by strong pharmaceutical and specialty sales.
GAAP net income increased to $450 million and EPS to $1.88.
Non-GAAP EPS surged 36% to $2.55 on higher segment profits and a lower tax rate.
The company raised FY26 guidance for non-GAAP EPS and adjusted free cash flow.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Cardinal Health raised its FY26 guidance for non-GAAP EPS and adjusted free cash flow, citing strong Q1 performance and the expected contribution from the Solaris Health acquisition.
Positive Outlook
- FY26 non-GAAP EPS guidance raised to $9.65–$9.85.
- Adjusted free cash flow outlook raised to $3.0–$3.5 billion.
- Expected Solaris Health acquisition to enhance future performance.
- Pharmaceutical segment profit growth outlook raised to 16%–19%.
- Other segment profit growth guidance raised to 29%–31%.
Challenges Ahead
- Increased interest and other expenses due to acquisition financing.
- Capital expenditures guidance raised to $600–$650 million.
- Share count dilution from acquisitions and compensation costs.
- Gross margin remained flat despite revenue growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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