Cardinal Health Stock Hits All-Time High as Existing Customers Power Results

Core Insights - Cardinal Health reported better-than-expected first-quarter profit and sales, driven by growing demand from existing customers [1] - Despite a revenue decline in its largest division, Pharmaceutical & Specialty Solutions, the company indicated that revenue would have increased by 16% year-over-year without the loss of a significant contract [1] - The company raised its full-year EPS guidance, and its shares reached a new all-time intraday high [1] Financial Performance - The company reported fiscal 2025 first-quarter adjusted earnings per share (EPS) of $1.88, exceeding analyst forecasts [1] - Revenue decreased by 4% year-over-year to $52.28 billion, but still surpassed consensus estimates [1] - Sales in the Pharmaceutical and Specialty Solutions unit fell by 5% to $48.0 billion due to the expiration of a distribution contract with OptumRx; however, excluding this impact, revenue would have increased by 16% [1] Segment Performance - Revenue in the Global Medical Products and Distribution segment rose by 3% to $3.1 billion, attributed to higher volumes from existing customers [1] - Other revenue surged by 13% to $1.2 billion, driven by "at-Home Solutions, Nuclear and Precision Health Solutions, and OptiFreight Logistics" [1] Future Outlook - Cardinal Health now projects full-year EPS in the range of $7.75 to $7.90, an increase from the previous guidance of $7.55 to $7.70 [1] - Following the earnings report, shares of Cardinal Health increased nearly 7% to $115.76, with an earlier peak of $119.12 [1]