Cardinal Health (CAH) investor relations material

Executive summary

• Q3 FY26 revenue grew 11% year-over-year to $60.9 billion, driven by branded and specialty pharmaceutical sales and growth businesses.

• Non-GAAP operating earnings rose 18% to $956 million, while non-GAAP diluted EPS increased 35% to $3.17; GAAP operating earnings fell 30% to $509 million, impacted by a $184 million goodwill impairment in Navista & ION.

• Strategic focus remains on specialty expansion, simplification, and growth in higher-margin businesses, supported by MSO platform acquisitions.

• Net earnings attributable to the company decreased 21% to $399 million year-over-year.

Financial highlights

• Gross profit increased 18% to $2.5 billion; gross margin rate up to 4.10%.

• Non-GAAP net earnings were $750 million, up 32%; non-GAAP diluted EPS was $3.17, up 35%.

• Adjusted free cash flow for Q3 was $1.7 billion, and $3.5 billion year-to-date.

• Pharma segment revenue up 11% to $56.1 billion; segment profit up 18% to $784 million.

• Other segment revenue up 31% to $1.7 billion; profit up 34% to $179 million.

Outlook and guidance

• FY26 non-GAAP EPS guidance raised and narrowed to $10.70–$10.80, representing 30–31% annual growth.

• Adjusted free cash flow guidance increased to $3.3–$3.7 billion.

• Pharmaceutical and Specialty Solutions segment profit growth outlook raised to 22–23%; Other segment profit growth to 36–38%.

• GMPD segment profit guidance set at ~$150 million; GMPD revenue guidance reiterated at 1–3% growth.

• Fiscal 2027 expected to maintain strong momentum, with further details to be provided in Q4.