Cardinal Health Reports 37% EPS Jump for Fiscal 2026, Boosted by Tariff Refund and Segment Gains
The healthcare distributor delivered $11.26 in non-GAAP diluted EPS for the fiscal year, driven by double-digit profit growth across all five operating segments and a one-time IEEPA tariff recovery.
Strong Finish to Record Year
Cardinal Health, Inc. closed fiscal year 2026 with robust fourth-quarter results that capped what CEO Jason Hollar characterized as "a standout year," according to an 8-K filing released August 11, 2026. The Dublin, Ohio-based healthcare distributor reported fourth-quarter revenue of $63.7 billion, up 6% year-over-year, with full-year revenues reaching $254.2 billion, a 14% increase (8-K filing, 2026-08-11).
Fourth-quarter GAAP diluted earnings per share rose 70% to $1.70, while non-GAAP diluted EPS increased 40% to $2.91 (8-K filing, 2026-08-11). The results included a one-time positive impact of $0.31 per share from recognition of IEEPA tariff refunds totaling $100 million in operating profit within the Global Medical Products and Distribution (GMPD) segment. Excluding this benefit, non-GAAP diluted EPS still grew 25% to $2.60 in the quarter (8-K filing, 2026-08-11).
Broad-Based Segment Performance
For the full fiscal year, non-GAAP diluted EPS reached $11.26, up 37% from fiscal 2025, or $10.95 excluding the tariff recovery—representing 33% growth (8-K filing, 2026-08-11). The company highlighted that all five operating segments delivered double-digit profit growth even before the IEEPA tariff benefit.
The Pharmaceutical and Specialty Solutions segment, Cardinal's largest business, posted fourth-quarter revenue of $58.8 billion, up 6%, driven by brand and specialty pharmaceutical sales growth from existing customers. Segment profit increased 21% to $645 million, "primarily driven by contributions from brand and specialty products and positive generics program performance" (8-K filing, 2026-08-11).
The GMPD segment saw fourth-quarter revenue decline 2% to $3.1 billion, attributed to lower distribution volumes and repayment of the expected IEEPA tariff refund to customers, partially offset by Cardinal Health brand growth. However, segment profit surged to $150 million, primarily driven by the tariff refunds (8-K filing, 2026-08-11).
The "Other" category, comprising Nuclear and Precision Health Solutions, OptiFreight Logistics, and at-Home Solutions, reported fourth-quarter revenue growth of 7% to $1.7 billion, with segment profit up 14% to $183 million (8-K filing, 2026-08-11).
Capital Allocation and Outlook
Cardinal Health generated operating cash flow of $5.2 billion and adjusted free cash flow of $5.0 billion for fiscal 2026 (8-K filing, 2026-08-11). The company completed an additional $350 million accelerated share repurchase program during the quarter, bringing total fiscal 2026 repurchases to $1.4 billion. The board approved a substantial $5.0 billion increase to the share repurchase authorization, bringing total authorization to $6.4 billion as of August 2026 (8-K filing, 2026-08-11).
For fiscal year 2027, Cardinal Health issued guidance for non-GAAP diluted EPS growth of 13% to 15%, translating to $12.40 to $12.60 per share, based on adjusted fiscal 2026 results that exclude the IEEPA tariff refund benefit (8-K filing, 2026-08-11). The company noted this guidance exceeds its long-term EPS growth targets and reflects the estimated impact of recently completed and announced tuck-in acquisitions of Strive Medical and AdaptHealth's Diabetes Health business.
MarginX data shows recent equity awards to executives including CFO Aaron E. Alt (58,738 shares), Jessica L. Mayer (46,992 shares), and Deborah Weitzman (54,823 shares).
This article was generated by MarginX from the 8-K filing on 2026-08-11. It is not investment advice.