Cardinal Health Q2 revenue up 19%, beats estimates

Overview

• Pharmaceutical distributor's fiscal Q2 revenue rose 19%, beating analyst expectations

• Adjusted EPS for fiscal Q2 beat analyst expectations

• Company completed $750 mln share repurchase program

Outlook

• Cardinal Health raises fiscal year 2026 non-GAAP EPS guidance to $10.15-$10.35

• Company expects Pharmaceutical segment profit growth of 20%-22%

• Cardinal Health lowers non-GAAP effective tax rate to 21%-23%

Result Drivers

• PHARMACEUTICAL SALES - Revenue in the Pharmaceutical and Specialty Solutions segment rose 19% due to brand and specialty pharmaceutical sales growth from existing and new customers

• COST OPTIMIZATION - Global Medical Products and Distribution segment profit increased 106% due to cost optimization initiatives, despite adverse tariff impacts

• ACQUISITIONS AND GROWTH - Other segment revenue grew 34% due to acquisitions and growth in at-Home Solutions, OptiFreight Logistics, and Nuclear and Precision Health Solutions

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for Cardinal Health Inc is $240.00, about 16% above its February 4 closing price of $206.85

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nPn1VF3Kga

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