Cardinal Health Surges After Reporting Strong Q1 Financial Results

Core Insights - Cardinal Health delivered strong first-quarter results for fiscal 2026, exceeding both earnings and revenue expectations while raising full-year guidance [1][6] Financial Performance - Non-GAAP earnings per share (EPS) reached $2.55, surpassing the consensus estimate of $2.21 by 16% [2][9] - Revenue totaled $64.0 billion, exceeding estimates of $59.79 billion by 7% [2][9] - Non-GAAP operating earnings increased by 37% to $857 million, while GAAP operating earnings rose 18% to $668 million, indicating effective margin expansion [3][9] Segment Performance - The Pharmaceutical and Specialty Solutions segment, which constitutes 92% of total revenue, grew by 23% year over year to $59.2 billion, driving overall performance [2][5] - Global Medical Products saw modest growth of 2%, while the Other segment surged by 38%, highlighting successful diversification efforts [2] Guidance and Future Outlook - Full-year fiscal 2026 non-GAAP EPS guidance was raised to a range of $9.65 to $9.85, with a midpoint of $9.75 suggesting approximately $7.20 of EPS generation in the remaining three quarters [6] - Free cash flow guidance is set at $3.0 billion to $3.5 billion, indicating expectations for strong operational cash conversion into shareholder returns [6] - An accelerated share repurchase program of $375 million was initiated, reflecting management's confidence in the company's valuation [6] Strategic Moves - The acquisition of Solaris Health is anticipated to close in early November, expected to enhance specialty pharmaceutical services and contribute to earnings growth [7] Leadership Commentary - CEO Jason Hollar expressed satisfaction with the company's strong operational and financial performance, emphasizing consistent execution across all segments [10]