Why Cardinal Health Stock Was Tumbling on Tuesday

Core Viewpoint - Cardinal Health reported strong quarterly earnings but faced a decline in share price due to a significant acquisition announcement [2][3]. Group 1: Acquisition Details - Cardinal Health announced the acquisition of Solaris Health for approximately $1.9 billion in cash, acquiring around a 75% stake [5]. - Solaris Health is recognized as the leading urology multiservices organization (MSO) in the country, which Cardinal Health aims to integrate into its Specialty Alliance platform [3][5]. - The acquisition will be financed through cash on hand and new debt, with an expected closing by the end of the calendar year [5]. Group 2: Financial Performance - For fiscal Q4 2025, Cardinal Health reported revenue of just under $60.2 billion, which was flat year-over-year [6]. - Non-GAAP net income increased by 11% to $501 million, translating to $2.08 per share, surpassing analyst expectations [6]. - Analysts had projected revenue of $60.9 billion and adjusted net income of $2.03 per share [6]. Group 3: Future Guidance - Cardinal Health raised its adjusted earnings per share guidance for fiscal 2026 to a range of $9.30 to $9.50, up from the previous estimate of $9.10 to $9.30 [7]. - The low end of the new earnings guidance represents a 13% increase compared to the actual fiscal 2025 result [7]. - No revenue guidance was provided for the upcoming fiscal year [8].