Cardinal Health Reports First Quarter Fiscal Year 2026 Results and Raises Outlook

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]