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CAH Q4 EPS rose 13% to $2.08, topping estimates, but revenues of $60.2B missed the mark.
CAH saw profit gains across all segments, led by strong Medical and Other segments' growth.
CAH raised FY26 EPS outlook to $9.30-$9.50, citing continued operational momentum.
Cardinal Health, Inc. (CAH - Free Report) reported fourth-quarter fiscal 2025 adjusted earnings per share (EPS) of $2.08, which beat the Zacks Consensus Estimate of $2.03 by 2.5%. The bottom line also improved 13% year over year.
GAAP EPS in the quarter was $2.10 compared with 96 cents in the year-ago period.
Revenue Details
Sales were flat on a year-over-year basis at $60.2 billion. However, the top line missed the Zacks Consensus Estimate by 0.8%.
Cardinal Health, Inc. Price, Consensus and EPS Surprise
Pharmaceutical revenues were almost flat at $55.4 billion on a year-over-year basis. However, excluding the unfavorable impact of the customer contract expiration with OptumRx in June 2024, sales were up 22% year over year. This growth was driven by branded and specialty pharmaceutical sales growth from existing and new Pharmaceutical Distribution and Specialty Solutions customers.
Pharmaceutical profit totaled $535 million, up 11% from the year-ago period’s level. The upside was driven by growth in brand and specialty products and MSO platforms (including GI Alliance), and contributions from branded and specialty products. This growth was partially offset by the customer contract expiration.
Global Medical Products and Distribution
Revenues in this segment totaled $3.2 billion, up 3% year over year, driven by growth volume from existing customers.
The segment reported a profit of $70 million compared with $47 million in the year-ago quarter.
Other
This segment includes three operating segments — at-Home Solutions, Nuclear and Precision Health Solutions, and OptiFreight Logistics. Sales totaled $1.6 billion, up 37% year over year.
The segment’s profit amounted to $160 million, up 44% from the year-ago level. The upside was driven by robust performance across the three operating segments.
Margin Analysis
Gross profit increased 17% year over year to $2.2 billion.
As a percentage of revenues, the gross margin in the reported quarter was 3.7%, expanding approximately 50 basis points year over year.
Distribution, selling, general and administrative expenses totaled $1.48 billion, up 16% year over year.
Operating income amounted to $428 million, up 7% year over year. Adjusted operating income increased 19% year over year to $719 million.
Financial Update
The company exited the reported quarter with cash and cash equivalents of $3.33 billion compared with $3.81 billion in the fiscal second quarter of 2025.
Net cash provided by operating activities totaled $2.91 billion against $27 million in net cash used in the year-ago period.
2026 View Issued
Cardinal Health raised its fiscal 2026 earnings guidance. The company anticipates adjusted EPS to be between $9.30 and $9.50, up from the previously issued preliminary outlook of $9.10-$9.30. The Zacks Consensus Estimate for the same is pegged at $9.21.
The company expects revenues from its Pharmaceutical segment to grow 11-13% year over year. Segmental profit is also likely to increase 11-13%.
Revenues from the Medical segment are estimated to grow 2-4%. Segmental profit is expected to be at least $140 million.
Revenues from the Other segment are likely to grow 26-28%. Segmental profit is likely to increase 25-27%.
Conclusion
Cardinal Health reported mixed fourth-quarter fiscal 2025 results, with earnings beating estimates but sales lagging the same. Quarterly results were marked by broad-based profit growth across all five operating segments. Pharmaceutical and Specialty Solutions benefited from robust brand and specialty drug sales, excluding the impact of a major contract expiration, while Global Medical Products and Distribution posted double-digit profit gains on higher volumes. The Other segment also saw significant expansion, supported by acquisitions and growth in at-Home Solutions, Nuclear and Precision Health Solutions, and logistics services.
Following mixed results, shares of CAH were down 10.6% in pre-market trading. The company’s shares have gained 33.1% so far this year against the industry’s 2.8% decline. The S&P 500 Index has gained 8.3% in that period.
Image Source: Zacks Investment Research
Management highlighted the quarter as the culmination of a transformative year, with disciplined execution and investments fueling double-digit profit growth across the company. Strategic moves included the acquisition of Advanced Diabetes Supply earlier in the year and the newly announced purchase of Solaris Health, the nation’s largest urology management services organization, to strengthen its multi-specialty healthcare services platform.
Recent initiatives spanned product innovation — such as the U.S. launch of Kendall DL Multi System — and advocacy efforts through the One Voice Initiative for independent pharmacies. Cardinal Health also expanded its community-focused programs, including the Equity Rx initiative, and released an industry report on cell and gene therapy. Entering fiscal 2026, the company raised its earnings outlook, citing confidence in continued operational and strategic momentum.
CAH’s Zacks Rank and Other Stocks to Consider
Cardinal Health carries a Zacks Rank #2 (Buy) at present.
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. (MEDP - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Medpace Holdings, sporting a Zacks Rank #1 (Strong Buy) at present, reported second-quarter 2025 EPS of $3.10, which beat the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.
West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, which beat the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.
West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, which beat the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.
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CAH Q4 Earnings Beat Estimates, '26 EPS View Up, Stock Falls
Key Takeaways
Cardinal Health, Inc. (CAH - Free Report) reported fourth-quarter fiscal 2025 adjusted earnings per share (EPS) of $2.08, which beat the Zacks Consensus Estimate of $2.03 by 2.5%. The bottom line also improved 13% year over year.
GAAP EPS in the quarter was $2.10 compared with 96 cents in the year-ago period.
Revenue Details
Sales were flat on a year-over-year basis at $60.2 billion. However, the top line missed the Zacks Consensus Estimate by 0.8%.
Cardinal Health, Inc. Price, Consensus and EPS Surprise
Cardinal Health, Inc. price-consensus-eps-surprise-chart | Cardinal Health, Inc. Quote
Segmental Analysis
Pharmaceutical and Specialty Solutions
Pharmaceutical revenues were almost flat at $55.4 billion on a year-over-year basis. However, excluding the unfavorable impact of the customer contract expiration with OptumRx in June 2024, sales were up 22% year over year. This growth was driven by branded and specialty pharmaceutical sales growth from existing and new Pharmaceutical Distribution and Specialty Solutions customers.
Pharmaceutical profit totaled $535 million, up 11% from the year-ago period’s level. The upside was driven by growth in brand and specialty products and MSO platforms (including GI Alliance), and contributions from branded and specialty products. This growth was partially offset by the customer contract expiration.
Global Medical Products and Distribution
Revenues in this segment totaled $3.2 billion, up 3% year over year, driven by growth volume from existing customers.
The segment reported a profit of $70 million compared with $47 million in the year-ago quarter.
Other
This segment includes three operating segments — at-Home Solutions, Nuclear and Precision Health Solutions, and OptiFreight Logistics. Sales totaled $1.6 billion, up 37% year over year.
The segment’s profit amounted to $160 million, up 44% from the year-ago level. The upside was driven by robust performance across the three operating segments.
Margin Analysis
Gross profit increased 17% year over year to $2.2 billion.
As a percentage of revenues, the gross margin in the reported quarter was 3.7%, expanding approximately 50 basis points year over year.
Distribution, selling, general and administrative expenses totaled $1.48 billion, up 16% year over year.
Operating income amounted to $428 million, up 7% year over year. Adjusted operating income increased 19% year over year to $719 million.
Financial Update
The company exited the reported quarter with cash and cash equivalents of $3.33 billion compared with $3.81 billion in the fiscal second quarter of 2025.
Net cash provided by operating activities totaled $2.91 billion against $27 million in net cash used in the year-ago period.
2026 View Issued
Cardinal Health raised its fiscal 2026 earnings guidance. The company anticipates adjusted EPS to be between $9.30 and $9.50, up from the previously issued preliminary outlook of $9.10-$9.30. The Zacks Consensus Estimate for the same is pegged at $9.21.
The company expects revenues from its Pharmaceutical segment to grow 11-13% year over year. Segmental profit is also likely to increase 11-13%.
Revenues from the Medical segment are estimated to grow 2-4%. Segmental profit is expected to be at least $140 million.
Revenues from the Other segment are likely to grow 26-28%. Segmental profit is likely to increase 25-27%.
Conclusion
Cardinal Health reported mixed fourth-quarter fiscal 2025 results, with earnings beating estimates but sales lagging the same. Quarterly results were marked by broad-based profit growth across all five operating segments. Pharmaceutical and Specialty Solutions benefited from robust brand and specialty drug sales, excluding the impact of a major contract expiration, while Global Medical Products and Distribution posted double-digit profit gains on higher volumes. The Other segment also saw significant expansion, supported by acquisitions and growth in at-Home Solutions, Nuclear and Precision Health Solutions, and logistics services.
Following mixed results, shares of CAH were down 10.6% in pre-market trading. The company’s shares have gained 33.1% so far this year against the industry’s 2.8% decline. The S&P 500 Index has gained 8.3% in that period.
Image Source: Zacks Investment Research
Management highlighted the quarter as the culmination of a transformative year, with disciplined execution and investments fueling double-digit profit growth across the company. Strategic moves included the acquisition of Advanced Diabetes Supply earlier in the year and the newly announced purchase of Solaris Health, the nation’s largest urology management services organization, to strengthen its multi-specialty healthcare services platform.
Recent initiatives spanned product innovation — such as the U.S. launch of Kendall DL Multi System — and advocacy efforts through the One Voice Initiative for independent pharmacies. Cardinal Health also expanded its community-focused programs, including the Equity Rx initiative, and released an industry report on cell and gene therapy. Entering fiscal 2026, the company raised its earnings outlook, citing confidence in continued operational and strategic momentum.
CAH’s Zacks Rank and Other Stocks to Consider
Cardinal Health carries a Zacks Rank #2 (Buy) at present.
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. (MEDP - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Medpace Holdings, sporting a Zacks Rank #1 (Strong Buy) at present, reported second-quarter 2025 EPS of $3.10, which beat the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.
West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, which beat the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.
West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, which beat the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.