Pharma, Specialty Units Likely to Drive Cardinal Health's Q2 Earnings

Core Insights - Cardinal Health, Inc. (CAH) is set to report its second-quarter fiscal 2026 results on February 5, with expectations of strong revenue and earnings growth driven by its Pharmaceutical and Specialty Solutions segment [2][3][4]. Financial Performance Expectations - The Zacks Consensus Estimate for CAH's revenues in Q2 fiscal 2026 is $64.49 billion, reflecting a 16.7% increase from the previous year [3]. - The consensus estimate for EPS is $2.37, indicating a 22.8% rise compared to the same period last year [3]. Revenue Growth Drivers - Revenue growth is anticipated to be robust, primarily due to the Pharmaceutical and Specialty Solutions segment, which has seen increased utilization across various product categories [4]. - In the first quarter, this segment's revenues grew by 23%, with a significant contribution from GLP-1 therapies, and profits increased by 26% [5]. Segment Performance Insights - Contributions from MSO platforms and BioPharma Solutions are expected to remain significant, although COVID vaccine distribution may have weakened year-over-year [6]. - The Global Medical Products and Distribution segment is projected to show mixed performance, with tariff-related costs expected to rise, potentially impacting profit growth [7]. - The Other segment, including at-Home Solutions and Nuclear and Precision Health Solutions, is likely to continue its strong growth trajectory, benefiting from high demand and early synergies from acquisitions [8]. Market Position and Share Performance - Over the past six months, CAH's shares have increased by 35.6%, outperforming the industry average growth of 16.9% [12]. - Despite this, CAH's performance has lagged behind the Zacks Medical sector's 5% increase and the S&P 500's 12.2% gain during the same period [12]. Earnings Beat Prediction - The company's earnings model suggests a likely earnings beat, supported by a positive Earnings ESP of +0.46% and a Zacks Rank of 2 (Buy) [10][11].