Core Insights - Cardinal Health, Inc. reported fourth-quarter fiscal 2025 adjusted earnings per share (EPS) of $2.08, exceeding the Zacks Consensus Estimate of $2.03 by 2.5% and reflecting a 13% year-over-year improvement [1] - The company raised its fiscal 2026 earnings guidance, anticipating adjusted EPS between $9.30 and $9.50, up from a previous outlook of $9.10-$9.30 [9] Revenue Details - Total sales for the quarter were flat year-over-year at $60.2 billion, missing the Zacks Consensus Estimate by 0.8% [2] Segmental Analysis - **Pharmaceutical and Specialty Solutions**: Revenues were nearly flat at $55.4 billion year-over-year, but excluding the impact of a customer contract expiration, sales increased by 22% [3] - **Pharmaceutical Profit**: Totaled $535 million, an 11% increase from the previous year, driven by growth in brand and specialty products [4] - **Global Medical Products and Distribution**: Revenues reached $3.2 billion, up 3% year-over-year, with profits increasing from $47 million to $70 million [4] - **Other Segment**: Sales grew by 37% year-over-year to $1.6 billion, with profits rising 44% to $160 million [5] Margin Analysis - Gross profit increased by 17% year-over-year to $2.2 billion, with a gross margin of 3.7%, expanding approximately 50 basis points [6] Financial Update - The company ended the quarter with cash and cash equivalents of $3.33 billion, down from $3.81 billion in the previous quarter, while net cash provided by operating activities was $2.91 billion compared to a net cash usage of $27 million in the prior year [8] 2026 Outlook - The company expects revenues from the Pharmaceutical segment to grow by 11-13% year-over-year, with segmental profit also anticipated to increase by 11-13% [9] - Medical segment revenues are estimated to grow by 2-4%, while the Other segment is projected to see revenue growth of 26-28% [10] Conclusion - Cardinal Health's fourth-quarter results showed mixed performance, with earnings exceeding estimates but revenues falling short. Profit growth was observed across all segments, particularly in Pharmaceutical and Specialty Solutions, Global Medical Products, and the Other segment [11]