Cardinal Health (CAH) Q2 2026 earnings summary

Executive summary

• Q2 FY26 revenue grew 19% year-over-year to $65.6 billion, driven by branded and specialty pharmaceutical sales and recent acquisitions, with all five operating segments delivering at least double-digit profit growth.

• Non-GAAP diluted EPS rose 36% to $2.63, and non-GAAP operating earnings increased 38% to $877 million, reflecting improved operating performance and acquisitions.

• Major acquisitions included Solaris Health, Advanced Diabetes Supply, GI Alliance, and Urology America, expanding the MSO platform and specialty services.

• Strategic focus remains on growth in specialty pharmaceuticals, cost optimization, and execution of the GMPD Improvement Plan.

Financial highlights

• Gross margin increased 23% to $2.4 billion, with operating earnings up 38% to $877 million and operating margin expanding as expenses grew slower than revenue.

• Net earnings attributable to the company rose 17% to $467 million; non-GAAP net earnings increased 33% to $624 million.

• SG&A expenses increased 15%–16% to $1.5 billion, mainly due to acquisitions.

• Adjusted free cash flow for Q2 was $543 million; $1.8 billion generated year-to-date.

Outlook and guidance

• FY26 non-GAAP diluted EPS guidance raised to $10.15–$10.35, representing 23%–26% growth.

• Pharmaceutical and Specialty Solutions segment profit growth guidance increased to 20%–22% (from 16%–19%).

• GMPD segment profit guidance raised to ~$150 million; Other segment profit growth guidance raised to 33%–35%.

• Non-GAAP effective tax rate guidance lowered to 21%–23%; diluted share count guidance reduced to 237–238 million.

• Adjusted free cash flow expected between $3 billion and $3.5 billion for the year.