Financial Data and Key Metrics Changes - Cardinal Health reported total revenue for Q2 2026 increased by 19% to $66 billion, driven by strong demand in the pharmaceutical and specialty solutions segment [9][12] - Gross margin dollars increased by 24% to $2.4 billion, reflecting a favorable mix across businesses [9] - Operating earnings rose by 38% to $877 million compared to the prior year [10] - Non-GAAP diluted EPS for the quarter was $2.63, a 36% increase from $1.93 in the same quarter last year [11] Business Line Data and Key Metrics Changes - Pharmaceutical and Specialty Solutions segment revenue increased by 19% to $61 billion, with segment profit rising by 29% to $687 million [12] - GMPD segment revenue grew by 3% to $3.3 billion, with segment profit increasing to $37 million from $18 million in the prior year [13] - Other growth businesses, including Nuclear and Precision Health Solutions, At-Home Solutions, and OptiFreight Logistics, saw revenue increase by 34% to $1.7 billion, with segment profit up by 52% to $179 million [14][15] Market Data and Key Metrics Changes - The company expects specialty revenues to surpass $50 billion in fiscal 2026, indicating strong growth in this high-margin area [5] - The GMPD segment's revenue growth was partially driven by inventory restocking by distributors, which is expected to normalize in Q3 [13][20] Company Strategy and Development Direction - Cardinal Health is focused on strengthening its core business while expanding in specialty and other growth areas, with a commitment to operational excellence and simplification [4][23] - The acquisition of Solaris Health is expected to enhance the company's specialty platform and expand its capabilities [5][25] - The company is raising its fiscal year 2026 earnings per share guidance to a range of $10.15-$10.35, reflecting confidence in continued performance [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model and the ability to navigate the dynamic healthcare environment [23][31] - The company anticipates mid-teens profit growth in the second half of the fiscal year, despite not assuming outsized demand [19][38] - Management highlighted the importance of maintaining strong relationships with customers and adapting to market changes [91] Other Important Information - Cardinal Health generated $1.8 billion in adjusted free cash flow year-to-date and ended the quarter with a cash position of $2.8 billion [17] - The company has returned $1 billion to shareholders so far this year, including $750 million through share repurchase programs [17] Q&A Session Summary Question: Can you unpack or break down some of the components of the profit performance in Pharma Solutions? - Management noted strong demand across all categories in the pharma business, with significant contributions from specialty and generics, and emphasized strong execution by operations teams [34][35] Question: Is ADS performing ahead of your expectations? - Management indicated that the ADS acquisition is performing consistently with expectations, and core business remains strong across all three businesses in the other segment [43][44] Question: Can you provide more on capital allocation and opportunities for further transactions? - Management emphasized a disciplined capital allocation framework and noted flexibility to assess growth opportunities while protecting the core business [50][51] Question: How do you see the macro pricing environment impacting your guidance? - Management stated that anticipated changes in manufacturer pricing would be adjusted within the cost structure to preserve margins, with no significant impact expected on revenue [75][76] Question: How is the company modeling revenue or earnings for GLP-1s this year? - Management indicated that while GLP-1s have seen significant volume growth, they do not expect it to be a major driver of underlying profitability moving forward [81][82]

分组1 - Cardinal Health reported quarterly earnings of $2.63 per share, exceeding the Zacks Consensus Estimate of $2.39 per share, and up from $1.93 per share a year ago, representing an earnings surprise of +9.86% [1] - The company achieved revenues of $65.63 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.90%, and an increase from $55.26 billion year-over-year [2] - Cardinal has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates two times during the same period [2] 分组2 - The stock's immediate price movement will depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $2.78 on revenues of $62.78 billion, and for the current fiscal year, it is $10.04 on revenues of $259.68 billion [7] - The Medical - Dental Supplies industry, to which Cardinal belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Revenue and Earnings Growth - Revenue for the three and six months ended December 31, 2025 increased 19% to $65.6 billion and 21% to $129.6 billion, respectively, primarily due to branded and specialty pharmaceutical sales growth[12]. - GAAP operating earnings for the three and six months ended December 31, 2025 increased 29% to $707 million and 23% to $1.4 billion, respectively, driven by acquisitions and increased contributions from pharmaceutical products[14]. - Non-GAAP operating earnings for the same periods increased 38% to $877 million and $1.7 billion, respectively, due to similar factors impacting GAAP earnings[15]. - GAAP diluted EPS for the three and six months ended December 31, 2025 increased 19% to $1.97 and 15% to $3.85, respectively[17]. - Non-GAAP diluted EPS for the same periods increased 36% to $2.63 and $5.18, respectively[18]. Acquisitions - The acquisition of Solaris Health for approximately $1.9 billion was completed on November 3, 2025, enhancing the company's MSO platform[19]. - Solaris Health includes over 750 providers across more than 250 practice locations in 14 states, contributing to the Pharma segment[20]. - The acquisition of Advanced Diabetes Supply Group (ADS) was finalized for about $1.0 billion, with integration costs of $7 million reported for the same period[126][127]. - The company acquired a 73% ownership interest in GI Alliance for approximately $2.8 billion, with a call right to purchase the remaining interests starting three years post-acquisition[128]. - The total identifiable net assets acquired from Solaris Health, Urology America, ADS, GIA, and ION amounted to $2,140 million, with goodwill recognized at $6,784 million across these acquisitions[133]. Segment Performance - Pharmaceutical and Specialty Solutions segment revenue increased 19% to $60.7 billion for the three months ended December 31, 2025, and 21% to $119.9 billion for the six months ended December 31, 2025, driven by growth in branded and specialty pharmaceutical sales[31]. - Global Medical Products and Distribution segment revenue rose 3% to $3.3 billion for the three months ended December 31, 2025, and $6.4 billion for the six months ended December 31, 2025, primarily due to volume growth from existing customers[32]. - Other segment revenue surged 34% to $1.7 billion for the three months ended December 31, 2025, and 36% to $3.4 billion for the six months ended December 31, 2025, attributed to growth in at-Home Solutions and the acquisition of ADS[33]. Financial Position and Cash Flow - Cash and equivalents balance was $2.8 billion at December 31, 2025, down from $3.9 billion at June 30, 2025, with net cash provided by operating activities at $1.7 billion[54]. - Total long-term obligations, including current portion and other short-term borrowings, amounted to $9.0 billion at December 31, 2025, up from $8.5 billion at June 30, 2025[61]. - Cash flows from operating activities provided $1,659 million, a significant recovery compared to a cash outflow of $2,043 million in the prior year[107]. - The company reported a net cash used in investing activities of $2,122 million, compared to $1,064 million in the prior year[107]. Expenses and Costs - SG&A expenses increased 15% to $1.5 billion for the three months ended December 31, 2025, and $3.0 billion for the six months ended December 31, 2025, primarily due to acquisitions[36]. - Interest expense, net increased significantly to $88 million for the three months ended December 31, 2025, and $168 million for the six months ended December 31, 2025, due to additional debt financing for recent acquisitions[51]. - The company incurred $130 million in amortization and other acquisition-related costs for the three months ended December 31, 2025[100]. Tax and Legal Matters - The effective tax rate was 25.2% for the three months ended December 31, 2025, compared to 21.4% for the same period in 2024[52]. - As of December 31, 2025, the company accrued $4.3 billion related to national opioid litigation settlements, with expected payments continuing through 2038[64]. - The IRS has proposed an adjustment that could result in an additional federal income tax liability of approximately $160 million, plus interest, related to a restructuring from a 2017 acquisition[183]. - The company has paid approximately $2.2 billion to settling governmental entities under the National Opioid Settlement Agreement and expects to pay up to an additional $4.1 billion through 2038[170]. Shareholder Returns - The company approved quarterly dividends of $0.5107 per share, amounting to an annualized total of $2.04 per share, with payments made on specified dates[66]. - During the six months ended December 31, 2025, the company repurchased $750 million of its common shares under accelerated share repurchase programs[67]. - The company has a remaining $2.0 billion authorized for share repurchases under its $3.5 billion program, which is set to expire on December 31, 2027[99]. Inventory and Assets - Current assets increased to $39,230 million as of December 31, 2025, compared to $36,373 million as of June 30, 2025, representing an increase of 5.1%[104]. - Inventories, net, rose to $20,116 million as of December 31, 2025, compared to $16,831 million as of June 30, 2025, marking a significant increase of 19.0%[104]. - Total assets increased to $58,083 million as of December 31, 2025, compared to $53,122 million as of June 30, 2025, reflecting a growth of 9.4%[104]. Goodwill and Intangible Assets - Goodwill increased to $11,609 million as of December 31, 2025, primarily due to the Solaris acquisition, reflecting expected growth and synergies[142]. - The total identifiable intangible assets acquired amounted to $1,104 million, with customer intangibles making up a significant portion of this value[133]. - The estimated fair value of customer intangibles for ADS was determined to be $472 million, utilizing a multi-period excess earnings method[136]. Compliance and Investigations - The company is cooperating with a Department of Justice investigation regarding potential violations of the Anti-Kickback Statute and False Claims Act[178]. - The company has settled approximately 4,375 claims related to IVC filter product liability for $275 million, with payments expected to continue as additional plaintiffs meet procedural requirements[180].

Q2 FY26 Earnings Cardinal Health, Inc. February 5, 2026 © 2026 Cardinal Health. All Rights Reserved. 1 © 2026 Cardinal Health. All Rights Reserved. • Q2 FY26 Earnings Cautions Concerning Forward-Looking Statements This presentation contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "c ...

Core Viewpoint - Cardinal Health, Inc. has shown significant stock performance, outperforming major indices and demonstrating strong earnings growth potential Company Overview - Founded in 1979, Cardinal Health, Inc. is based in Dublin, Ohio, and operates as a healthcare services and products company both in the United States and internationally [1] - The company has a market capitalization of $49.1 billion and operates in two segments: Pharmaceutical and Specialty Solutions, and Global Medical Products and Distribution [1] Stock Performance - CAH stock has surged 65.3% over the past 52 weeks, significantly outperforming the S&P 500 Index, which returned 14% during the same period [1] - The stock has also outperformed the State Street Healthcare Select Sector SPDR ETF's (XLV) 6.1% rise over the past 52 weeks [2] Earnings Forecast - On January 13, Cardinal Health raised its full-year adjusted EPS forecast to at least $10.00 from a previous range of $9.65-$9.85, exceeding the consensus estimate of $9.83 [3] - For the fiscal year ending in June 2026, analysts expect CAH to report a 22.1% year-over-year growth in adjusted EPS to $10.06 [3] - The company has a strong earnings surprise history, surpassing bottom-line estimates in each of the past four quarters [3] Analyst Ratings - CAH has a consensus "Strong Buy" rating overall, with 13 out of 16 analysts recommending "Strong Buy" and three recommending "Hold" [4] - Analyst sentiment has become increasingly bullish, with the number of "Strong Buy" recommendations rising from 12 a month ago to 13 [5] Price Targets - CAH's mean price target of $234 indicates a 13.1% premium to current market prices [6] - The Street-high target of $270 suggests a robust 30.5% upside potential from current price levels [6]

Core Insights - Cardinal Health raised its annual profit expectations after exceeding Wall Street estimates for quarterly results, driven by strong demand for specialty medicines and robust performance in its operations [1] Financial Performance - The company reported quarterly results that surpassed Wall Street estimates, indicating a positive trend in its financial performance [1] - The increase in profit expectations reflects confidence in the ongoing demand for specialty medicines [1]

Group 1 - Cardinal Health raised its outlook for the year following an increase in profit and revenue during its fiscal second quarter [1]

Exhibit 99.1 "Our strong second-quarter performance reflects at least double-digit segment profit growth across all five of our operating segments," said Jason Hollar, CEO of Cardinal Health. "Our ongoing momentum and the team's consistent execution against our strategic priorities gives us confidence to raise our fiscal 2026 outlook." Q2 FY26 summary | | Q2 FY26 | Q2 FY25 | Y/Y | | --- | --- | --- | --- | | Revenue | $65.6 billion | $55.3 billion | 19% | | Operating earnings | $707 million | $549 million | ...

Q2 FY26 summary | Q2 FY26 Q2 FY25 Y/Y | | | --- | --- | | Revenue $65.6 billion $55.3 billion 19 % | | | Operating earnings $707 million $549 million 29 % | | | Non-GAAP operating earnings $877 million $635 million 38 % | | | Net earnings attributable to Cardinal Health, Inc. $467 million $400 million 17 % | | | Non-GAAP net earnings attributable to Cardinal Health, Inc. $624 million $468 million 33 % | | | Effective Tax Rate 25.2 % 21.4 % | | | Non-GAAP Effective Tax Rate 21.4 % 21.4 % | | | Diluted EPS at ...

Core Insights - Cardinal Health, Inc. (CAH) is set to report its second-quarter fiscal 2026 results on February 5, with expectations of strong revenue and earnings growth driven by its Pharmaceutical and Specialty Solutions segment [2][3][4]. Financial Performance Expectations - The Zacks Consensus Estimate for CAH's revenues in Q2 fiscal 2026 is $64.49 billion, reflecting a 16.7% increase from the previous year [3]. - The consensus estimate for EPS is $2.37, indicating a 22.8% rise compared to the same period last year [3]. Revenue Growth Drivers - Revenue growth is anticipated to be robust, primarily due to the Pharmaceutical and Specialty Solutions segment, which has seen increased utilization across various product categories [4]. - In the first quarter, this segment's revenues grew by 23%, with a significant contribution from GLP-1 therapies, and profits increased by 26% [5]. Segment Performance Insights - Contributions from MSO platforms and BioPharma Solutions are expected to remain significant, although COVID vaccine distribution may have weakened year-over-year [6]. - The Global Medical Products and Distribution segment is projected to show mixed performance, with tariff-related costs expected to rise, potentially impacting profit growth [7]. - The Other segment, including at-Home Solutions and Nuclear and Precision Health Solutions, is likely to continue its strong growth trajectory, benefiting from high demand and early synergies from acquisitions [8]. Market Position and Share Performance - Over the past six months, CAH's shares have increased by 35.6%, outperforming the industry average growth of 16.9% [12]. - Despite this, CAH's performance has lagged behind the Zacks Medical sector's 5% increase and the S&P 500's 12.2% gain during the same period [12]. Earnings Beat Prediction - The company's earnings model suggests a likely earnings beat, supported by a positive Earnings ESP of +0.46% and a Zacks Rank of 2 (Buy) [10][11].