Revenue and Earnings Growth - Revenue for the three months ended September 30, 2025, increased 22 percent to $64.0 billion from the prior-year quarter due to branded and specialty pharmaceutical sales growth[13] - GAAP operating earnings for the same period increased 18 percent to $668 million, primarily due to the acquisition of management services organization platforms and increased contribution from branded and specialty pharmaceutical products[15] - Non-GAAP operating earnings for the three months ended September 30, 2025, increased 37 percent to $857 million, driven by the impact of acquisitions and growth from existing customers within the GMPD segment[16] - GAAP diluted EPS increased 11 percent to $1.88, while non-GAAP diluted EPS increased 36 percent to $2.55 from the prior-year quarter[18] - Pharmaceutical and Specialty Solutions segment revenue increased 23 percent to $59.2 billion, primarily due to sales growth from existing and new customers[33] - The company reported a 12% increase in non-GAAP earnings for the same quarter last year, totaling $625 million[88] - Net earnings attributable to Cardinal Health, Inc. for Q1 Fiscal 2026 were $450 million, compared to $416 million in Q1 Fiscal 2025, representing an 8.2% increase[106] Acquisitions and Investments - The company announced the acquisition of Solaris Health for approximately $1.9 billion, which is expected to enhance its MSO capabilities[20] - The company announced the acquisition of Solaris Health for approximately $1.9 billion in cash, with additional common units issued to physicians and management valued at around $500 million[70] - The acquisition of Advanced Diabetes Supply Group was completed for approximately $1.0 billion in cash[131] - The company completed the acquisition of GI Alliance for approximately $2.8 billion in cash, with a 73% ownership interest acquired[132] - Total identifiable net assets acquired from Urology America, ADS, GIA, and ION were valued at $381 million, $1.049 billion, $2.785 billion, and $1.069 billion respectively[136] - The company plans to finance the Solaris Health acquisition with cash proceeds from recent debt financing and cash on hand[130] Financial Performance and Margins - Gross margin increased 22 percent to $2.3 billion, primarily due to the acquisition of MSO platforms and increased contributions from branded pharmaceutical products[38] - Total segment profit rose by 37% to $879 million, with Pharmaceutical and Specialty Solutions profit increasing by 26% to $667 million[42][43] - Global Medical Products and Distribution segment profit increased to $46 million, driven by growth from existing customers[44] - Other segment profit surged by 60% to $166 million, attributed to the performance of at-Home Solutions and the acquisition of ADS[45] - Cash flows from operating activities provided $973 million, a significant recovery from a cash outflow of $1,647 million in the prior year[113] Expenses and Liabilities - SG&A expenses increased by 14% to $1.5 billion from the prior-year quarter, primarily due to the acquisition of MSO platforms and ADS[40] - Interest expense increased to $80 million from $32 million in the prior-year quarter, primarily due to additional debt financing for recent acquisitions[53] - Total current liabilities increased to $40,268 million as of September 30, 2025, compared to $38,897 million at June 30, 2025[110] - Long-term obligations increased to $9.0 billion as of September 30, 2025, up from $8.5 billion at June 30, 2025[154] Tax and Legal Matters - The effective tax rate for the three months ended September 30, 2025, was 24.1%, compared to 23.0% in the prior year[54] - The company had $894 million of unrecognized tax benefits as of September 30, 2025, which could impact the effective tax rate if recognized[192] - The company is cooperating with a Department of Justice investigation regarding potential violations of the Anti-Kickback Statute and False Claims Act[184] Cash and Liquidity - Cash and equivalents balance was $4.6 billion at September 30, 2025, up from $3.9 billion at June 30, 2025[56] - The company deployed $500 million for debt repayment and $375 million for share repurchases during the three months ended September 30, 2025[57][69] - Cash and equivalents rose to $4,593 million as of September 30, 2025, compared to $3,874 million at June 30, 2025, reflecting improved liquidity[110] Share Repurchase and Dividends - The company has $2.4 billion remaining under its $3.5 billion share repurchase program approved on June 7, 2023, which is set to expire on December 31, 2027[103] - The company declared cash dividends of $0.5107 per common share, slightly up from $0.5056 per share in the previous year[106] Risk Factors - The company faces risks related to tariffs that may impact costs and supply chain dynamics, potentially affecting financial results[27] - The company accrued $4.3 billion for opioid-related matters as of September 30, 2025, with payments totaling $403 million and $798 million made during the three months and fiscal year 2025, respectively[173] Derivative Instruments and Hedging - The company utilizes derivative financial instruments primarily to manage interest rate risk and currency exchange risk, without engaging in trading or speculative purposes[197] - During the three months ended September 30, 2025, the company entered into pay-floating interest rate swaps with total notional amounts of $300 million, designated as fair value hedges[203] - In September 2025, the company entered into ¥18 billion ($120 million) cross-currency swaps maturing in September 2027 to hedge foreign currency risk associated with net investment positions[206]

Q1 FY26 Financial Performance - Revenue increased by 22% to $64,009 million[9] - Gross Margin increased by 22% to $2,319 million[9] - Operating Earnings increased by 18% to $668 million on a GAAP basis, and 37% to $857 million on a non-GAAP basis[9] - Net Earnings attributable to Cardinal Health, Inc increased by 8% to $450 million on a GAAP basis, and 33% to $611 million on a non-GAAP basis[9] - Diluted EPS attributable to Cardinal Health, Inc increased by 11% to $1.88 on a GAAP basis, and 36% to $2.55 on a non-GAAP basis[9] Segment Performance - Pharmaceutical and Specialty Solutions revenue increased by 23% to $59,205 million, with segment profit increasing by 26% to $667 million[11] - Global Medical Products and Distribution revenue increased by 2% to $3,184 million, with segment profit increasing significantly to $46 million[16] - Other (NPHS, at-Home Solutions, and OptiFreight) revenue increased by 38% to $1,641 million, with segment profit increasing by 60% to $166 million[21] FY26 Outlook - Non-GAAP EPS outlook revised upwards to $9.65 - $9.85 from the previous $9.30 to $9.50[29] - Non-GAAP adjusted free cash flow is expected to be $3.0 billion - $3.5 billion, revised upwards from the previous $2.75 billion - $3.25 billion[29] - The company anticipates ~$325 million in Interest and Other expenses[29]

Core Insights - Cardinal Health raised its annual adjusted profit forecast after exceeding first-quarter profit estimates, driven by strong demand for specialty medicines and branded drugs [1] Financial Performance - The company reported a strong first-quarter profit, which surpassed market expectations [1] - The increase in profit forecast indicates positive growth prospects for the company in the upcoming fiscal year [1] Market Demand - There is a notable increase in demand for costly specialty medicines, which has significantly contributed to the company's financial performance [1] - The performance in branded drugs also played a crucial role in the overall profit increase [1]

Financial Performance - Cardinal Health reported Q1 FY26 revenues of $64 billion, a 22% increase from $52.3 billion in Q1 FY25[2] - GAAP operating earnings rose 18% to $668 million, while GAAP diluted EPS increased 11% to $1.88[3] - Non-GAAP operating earnings increased 37% to $857 million, with non-GAAP diluted EPS rising 36% to $2.55[3] - Net earnings for the first quarter of 2026 were $454 million, compared to $417 million in the first quarter of 2025, reflecting a growth of 9%[26] - Revenue from Global Medical Products and Pharmaceutical and Specialty Solutions Distribution reached $59,205 million in the first quarter of 2026, a 23% increase from $47,990 million in the same period of 2025[28] - Segment profit for Global Medical Products and Pharmaceutical and Specialty Solutions Distribution rose to $667 million, a 26% increase from $530 million year-over-year[28] Guidance and Future Outlook - The company raised its fiscal year 2026 non-GAAP EPS guidance to a range of $9.65 to $9.85, reflecting a 17% to 20% growth[10] - Cardinal Health anticipates completing the acquisition of Solaris Health in early November 2025[3] Segment Performance - Revenue for the Pharmaceutical and Specialty Solutions segment increased 23% to $59.2 billion, with segment profit up 26% to $667 million[4] - The Global Medical Products and Distribution segment saw a 2% revenue increase to $3.2 billion, with segment profit rising to $46 million[6] - Other segment revenue grew 38% to $1.6 billion, with segment profit increasing 60% to $166 million[8] Cash Flow and Liquidity - Net cash provided by operating activities was $973 million in the first quarter of 2026, a significant recovery from a cash outflow of $1,647 million in the first quarter of 2025[34] - Non-GAAP adjusted free cash flow for the first quarter of 2026 was $1,269 million, compared to a negative $1,361 million in the first quarter of 2025[34] - Cash and equivalents at the end of the period increased to $4,593 million, up from $2,867 million at the end of the first quarter of 2025[26] Assets and Liabilities - Total assets increased to $55,228 million as of September 30, 2025, up from $53,122 million on June 30, 2025, representing a growth of 4%[24] - Accounts payable increased to $36,860 million as of September 30, 2025, up from $34,713 million on June 30, 2025, indicating a growth of 6%[24] - Total current liabilities rose to $40,268 million as of September 30, 2025, compared to $38,897 million on June 30, 2025, marking an increase of 4%[24] Shareholder Actions - The company initiated a $375 million accelerated share repurchase program in Q1 FY26[14] - Cardinal Health announced the opening of a new flagship Pharmaceutical and Specialty Solutions distribution center in Indianapolis, expected to be operational by Fall 2027[14] Non-GAAP Metrics and Adjustments - Non-GAAP adjusted free cash flow is provided as a supplemental metric to assess cash flow available for working capital needs, debt repayments, and strategic acquisitions[40] - Non-GAAP operating earnings exclude various costs such as LIFO charges, state opioid assessments, restructuring costs, and acquisition-related expenses[45] - Non-GAAP net earnings attributable to Cardinal Health, Inc. exclude significant non-recurring items, enhancing the clarity of ongoing business performance[48] - Non-GAAP gross margin excludes LIFO charges, providing a clearer view of operational efficiency[44] - Non-GAAP effective tax rate adjusts for various excluded items, offering a more accurate reflection of tax obligations[49] - The company emphasizes the importance of adjusted free cash flow as a measure for assessing financial health and strategic flexibility[51] Accounting and Reporting - The company did not recognize any LIFO charges or credits during the periods presented, facilitating comparison of current financial results to historical results[39] - The occurrence and timing of excluded items could significantly impact the company's fiscal 2026 GAAP results[42] - Over the past five fiscal years, excluded items have impacted the company's EPS from $1.79 to $8.44, including a $6.79 charge related to goodwill impairment in fiscal 2022[42] - The company does not provide GAAP outlook due to the unpredictability of excluded items, which are not part of routine operating activities[41]

Core Insights - Cardinal Health reported a strong first quarter for fiscal year 2026, with revenues of $64 billion, marking a 22% increase from the previous year [1][2] - The company raised its fiscal 2026 outlook based on this performance, anticipating non-GAAP diluted EPS in the range of $9.65 to $9.85, reflecting a growth of 17% to 20% [10][11] Financial Performance - First quarter fiscal year 2026 revenues reached $64 billion, up from $52.3 billion in the same quarter of fiscal year 2025, representing a 22% year-over-year increase [2][11] - GAAP operating earnings increased by 18% to $668 million, while non-GAAP operating earnings rose by 37% to $857 million [1][11] - GAAP diluted EPS increased by 11% to $1.88, and non-GAAP diluted EPS surged by 36% to $2.55 [1][11] Segment Performance - The Pharmaceutical and Specialty Solutions segment generated revenues of $59.2 billion, a 23% increase from $48 billion in the prior year, with segment profit rising 26% to $667 million [3][4] - The Global Medical Products and Distribution segment saw a modest revenue increase of 2% to $3.2 billion, with segment profit significantly improving from $8 million to $46 million [5][7] - The "Other" segment reported a 38% revenue increase to $1.6 billion, with segment profit growing 60% to $166 million, driven by various operating segments [8][9] Guidance and Outlook - Cardinal Health raised its guidance for non-GAAP diluted EPS to a range of $9.65 to $9.85, up from the previous range of $9.30 to $9.50, reflecting strong first quarter performance and expected contributions from the acquisition of Solaris Health [10][11] - The company also increased its adjusted free cash flow expectations to $3.0 billion to $3.5 billion, up from $2.75 billion to $3.25 billion [10][11] Recent Developments - Cardinal Health's Sonexus Access and Patient Support business onboarded over 30 new specialty therapies in Q1, supporting growth expectations of over 30% for the BioPharma Solutions business in fiscal year 2026 [19] - The company announced the opening of a new flagship Pharmaceutical and Specialty Solutions distribution center in Indianapolis, expected to be operational by Fall 2027 [19] - An accelerated share repurchase program of $375 million was initiated in the first quarter of fiscal year 2026 [19]

Core Viewpoint - Cardinal Health, Inc. (CAH) is expected to report strong first-quarter fiscal 2026 results, with adjusted earnings per share (EPS) anticipated to increase by 17.6% year-over-year, driven by robust pharmaceutical demand and new customer acquisitions [1][7]. Group 1: Performance Expectations - The company is projected to achieve revenues of $59.05 billion for the first quarter, reflecting a 13% increase from the previous year [7]. - The Pharmaceutical and Specialty Solutions unit is likely to be a key driver of revenue growth, benefiting from steady brand and generics volume growth, as well as contributions from biosimilars and GLP-1 therapies [3][9]. - The Other segment, which includes growth businesses like at-Home Solutions and Nuclear and Precision Health, is expected to show strong double-digit growth, with estimated sales of $1.49 billion [5]. Group 2: Segment Analysis - The Pharmaceutical and Specialty Solutions segment is estimated to generate $53.58 billion in sales, supported by increasing specialty penetration and new customer wins [3]. - The Global Medical Products and Distribution (GMPD) segment is projected to have sales of $3.19 billion, although margins may be pressured by tariff-related costs [4]. - U.S. and international sales are estimated at $57.82 billion and $437 million, respectively, with higher selling, general and administrative (SG&A) expenses potentially impacting operating leverage [6]. Group 3: Market Position and Valuation - Cardinal Health's shares have gained 1.2% over the past three months, underperforming the Medical - Dental Supplies sector and the S&P 500 [11]. - The company's forward 12-month price-to-earnings (P/E) ratio is 16.3X, which is below the industry average of 16.8X, indicating a potential valuation opportunity [15]. - The company is building a durable growth runway through its Pharmaceutical and Specialty Solutions business, supported by acquisitions and expansion into high-growth therapeutic areas [16][19]. Group 4: Growth Initiatives - The Biopharma Solutions segment is expected to grow at an annual rate of 20%, driven by technology-enabled services [17]. - The at-Home Solutions segment is capitalizing on the increasing demand for home healthcare, supported by recent acquisitions and distribution center expansions [18]. - Supply-chain modernization and growth in Cardinal-branded products in GMPD are expected to contribute to sustained earnings growth and margin expansion [19].

Core Insights - Cardinal Health's Relative Strength (RS) Rating has improved from 70 to 74, indicating enhanced market leadership and price performance [1][3]. Group 1: Stock Performance - Cardinal Health's stock has received an upgrade in its RS Rating, reflecting a positive trend in its price performance [1][3]. - The RS Rating for Cardinal Health has shown a significant increase, moving to 74, which suggests a strong upward momentum in its stock [3]. Group 2: Market Position - The improvement in Cardinal Health's RS Rating signifies that the stock is getting closer to key technical measures, indicating potential for further growth [3]. - Despite the upgrade, Cardinal Health's RS Rating is still shy of the benchmark, suggesting there is room for improvement [3].

Core Insights - Cardinal Health, Inc. (NYSE:CAH) is recognized as a must-buy dividend stock due to its diversified operations and strong financial position [2][4]. Group 1: Company Overview - Cardinal Health is a major distributor of branded and generic drugs, specialty medicines, over-the-counter healthcare products, and consumer goods, serving a wide range of customers including hospitals, pharmacies, and medical offices [2]. - The company also produces and markets its own line of medical and surgical supplies, including gloves and surgical wear, and operates a large network of radiopharmacies [3]. Group 2: Financial Performance - In FY25, Cardinal Health generated an adjusted free cash flow of $2.5 billion, with expectations for FY26 to be between $2.75 billion and $3.25 billion [4]. - The company has increased its dividend payouts for 39 consecutive years, currently offering a quarterly dividend of $0.5107 per share and a dividend yield of 1.30% as of October 9 [4].

Core Insights - Cardinal Health, Inc. is a healthcare services and products company with a market cap of $36.6 billion, providing a range of services including pharmaceutical distribution and healthcare product manufacturing [1] - The company is expected to announce its fiscal first-quarter earnings for 2026 on October 30, with analysts predicting a profit of $2.21 per share, a 17.6% increase from the previous year [2] - For the full fiscal year, analysts forecast an EPS of $9.45, reflecting a 14.7% increase from $8.24 in fiscal 2025, and an expected rise to $10.58 in fiscal 2027 [3] Stock Performance - Cardinal Health's stock has underperformed compared to the S&P 500 Index, which gained 14.7% over the past 52 weeks, while CAH shares increased by 39% [4] - Following a mixed Q4 earnings report, CAH shares dropped 7.2%, despite an adjusted EPS of $2.08 beating estimates, while revenue of $60.2 billion slightly missed expectations [5] Analyst Ratings - The consensus opinion on CAH stock is bullish, with a "Strong Buy" rating from 11 out of 15 analysts, while four analysts recommend a "Hold" [6] - The average analyst price target for CAH is $179.80, indicating a potential upside of 15.5% from current levels [6]

Core Insights - Cardinal Health, Inc. (NYSE:CAH) is recognized as one of the top defensive healthcare dividend stocks to invest in [1][2] - The company is expanding its U.S. distribution network with a new facility in Indianapolis, Indiana, aimed at modernizing its pharmaceutical distribution capabilities [3][4] Expansion Plans - On September 30, Cardinal Health announced plans to build a flagship forward distribution center in Indianapolis, which will utilize advanced automation and technology [3] - The new facility will support the distribution of over 70,000 pharmaceutical and specialty products across the U.S. daily [3] - The Indianapolis center is expected to be operational by fall 2027 and will create over 100 new jobs [4] Financial Performance - Cardinal Health has demonstrated financial consistency by increasing its dividend for 39 consecutive years [5] - The company currently offers a quarterly dividend of $0.5107 per share, resulting in a dividend yield of 1.33% as of October 14 [5]