Cardinal Health reported fourth quarter 2026 results featuring a significant bottom-line beat and double-digit profit growth across all segments. While revenue of $63.7 billion missed the $65.15 billion estimate, non-GAAP EPS of $2.91 significantly exceeded expectations, aided by a $0.31 one-time tariff refund. The company also issued optimistic fiscal 2027 guidance and authorized a substantial $5.0 billion increase to its share repurchase program.

Key Highlights

  • Pharma Segment Strength: Pharmaceutical and Specialty Solutions profit grew 21% YoY to $645 million, beating the $628 million analyst estimate on strong brand and specialty performance.
  • One-Time Windfall: Results included a $100 million net operating profit impact ($0.31 per share) from IEEPA tariff refunds; excluding this, non-GAAP EPS was $2.60, still beating the $2.42 estimate.
  • Aggressive Capital Return: The board approved a $5.0 billion increase to the share repurchase authorization, bringing total capacity to $6.4 billion following $1.4 billion in FY2026 buybacks.
  • FY2027 Outlook: Management projected non-GAAP EPS of $12.40 to $12.60 for fiscal 2027, representing 13% to 15% growth over adjusted FY2026 results.