Cardinal Health's Quarterly Earnings Preview: What You Need to Know

Core Viewpoint - Cardinal Health, Inc. is poised to report strong fiscal second-quarter earnings for 2026, with significant growth in earnings per share (EPS) anticipated due to various strategic initiatives and market performance [1][2][5]. Financial Performance - Analysts expect Cardinal Health to report a profit of $2.31 per share on a diluted basis, reflecting a 19.7% increase from $1.93 per share in the same quarter last year [2]. - For the full fiscal year, EPS is projected to be $9.86, up 19.7% from $8.24 in fiscal 2025, with further growth expected to $10.90 in fiscal 2027, representing a year-over-year increase of 10.6% [3]. Stock Performance - Cardinal Health's stock has outperformed the S&P 500 Index, which gained 16.4% over the past 52 weeks, with CAH shares increasing by 74.3% during the same period [4]. - The company also significantly outperformed the Health Care Select Sector SPDR Fund, which returned 12.8% in the same timeframe [4]. Strategic Initiatives - The strong performance of Cardinal Health is attributed to the acquisition of Solaris Health, which added over 750 providers to its MSO platform, alongside robust organic growth in pharmaceuticals, generics, and specialty solutions [5]. - New customer acquisitions, effective cost controls, and investments in automation and logistics are enhancing profitability, with double-digit growth expected in specialty platforms such as autoimmune, urology, and oncology [5]. Recent Developments - On October 30, Cardinal Health shares rose more than 15% following the release of Q1 results, where adjusted EPS of $2.55 exceeded Wall Street expectations of $2.21, and revenue reached $64 billion, surpassing forecasts of $59.1 billion [6]. - The company anticipates full-year adjusted EPS to be in the range of $9.65 to $9.85 [6].