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CAH Q4 Earnings Call Centers on Fiscal 2027 Growth Outlook
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Key Takeaways
CAH expects fiscal 2027 non-GAAP EPS of $12.40-$12.60, implying 13%-15% growth from its adjusted baseline.
CAH guides pharma revenue growth of 3%-5% and profit growth of 8%-11%, assuming strong, not outsized demand.
Board lifted buyback authorization by $5B to $6.4B; fiscal 2027 plans include at least $1B of repurchases.
Cardinal Health, Inc. (CAH - Free Report) used its fourth-quarter fiscal 2026 call to focus on fiscal 2027 profit growth and normalized pharmaceutical demand. Management also emphasized scaling specialty businesses.
The company reported fourth-quarter non-GAAP EPS of $2.91, which topped the Zacks Consensus Estimate of $2.42. Revenues of $63.67 billion missed the $65.61 billion estimate. Meanwhile, management spent more time on the outlook.
Cardinal Health, Inc. Price, Consensus and EPS Surprise
CFO Aaron Alt said fiscal 2027 non-GAAP earnings are expected at $12.40-$12.60 per share. This represents 13%-15% growth from the adjusted $10.95 fiscal 2026 baseline, excluding the one-time tariff refund benefit.
Alt reconfirmed Cardinal Health's long-term EPS growth framework of 12%-14%. He said the fiscal 2027 range sits above that framework and includes a 19%-20% non-GAAP tax rate.
Alt expects adjusted free cash flow of $3.5-$4.0 billion. He also guided to about $700 million of capital expenditures and roughly 233 million weighted-average shares.
Cardinal Health Plans for Normalized Pharma Demand
CFO Alt guided Pharmaceutical and Specialty Solutions revenue growth to 3%-5% and segment profit growth to 8%-11%. He said the plan assumes strong demand without the outsized demand seen in fiscal 2026.
A Morgan Stanley analyst asked whether Pharma momentum could continue. Alt said Specialty growth, generics performance and execution should carry forward, with completed M&A adding 2-3 percentage points to fiscal 2027 segment profit growth.
A UBS analyst asked about strong versus outsized demand. CEO Jason Hollar said Specialty growth should moderate from more than 25% in fiscal 2026 toward longer-term planning levels while remaining double-digit.
CAH Balances GMPD Recovery With Cost Risks
CFO Alt expects Global Medical Products and Distribution revenue growth of 2%-4% and segment profit of $200-$220 million. He said the outlook excludes the fiscal 2026 IEEPA refund and assumes a modest tariff tailwind.
A TD Cowen analyst asked about input-cost pressure. CEO Hollar cited diesel fuel and petroleum-based commodities as pressures while emphasizing improved commercial protections and cost management.
Hollar said sustained cost pressure would move GMPD closer to the lower end of its profit range. He reiterated that the improvement plan remains focused on Cardinal Health brand growth, simplification and operational performance.
Cardinal Health Expands Specialty and At-Home
Hollar described Specialty as an investment priority across distribution, Biopharma Solutions and multi-specialty MSOs. He said capacity additions remain tied to planned growth, including refrigeration and freezing capabilities.
Hollar highlighted two gene-therapy commercialization agreements and a new pharmacy for complex cell and gene therapies. He said those investments extend 3PL and specialty distribution capabilities.
Hollar said Advanced Diabetes Supply integration synergies are ahead of expectations. CFO Alt added that Strive Medical and the announced AdaptHealth Diabetes Health acquisition should add 2 percentage points to fiscal 2027 Other profit growth.
CAH Expands Buyback Capacity and Keeps M&A Optional
Alt said fiscal 2027 plans include at least $1 billion of share repurchases. Hollar said the board increased repurchase authorization by $5 billion, bringing total authorization to $6.4 billion.
Alt said Cardinal Health is not assuming material M&A in fiscal 2027 guidance. He added that Cardinal Health retains flexibility for tuck-in deals, strategic M&A or additional capital returns.
Alt added fiscal 2026 repurchases totaled $1.35 billion at an average price of $187 per share. He pointed to investment in automation, technology and supply-chain capabilities.
Cardinal Health Keeps Execution at the Center
CEO Hollar framed fiscal 2027 around service levels, specialized-business growth and automation across distribution. He emphasized customer retention, operational reliability and capacity ahead of planned growth.
CFO Alt flagged uneven GMPD cadence, with segment profit weighted toward the second half. Together, Hollar and Alt framed fiscal 2027 around executing initiatives already underway rather than changing strategic direction.
CAH's Zacks Signals Favor Value and Growth
CAH carries a Zacks Rank #2 (Buy), with Value and Growth Scores of A, a Momentum Score of D and a VGM Score of A. Under the Zacks framework, a #1 (Strong Buy) or #2 Rank paired with A or B Style Scores is favorable, while the D Momentum Score tempers the timing signal. You can see the complete list of today’s Zacks #1 Rank stocks here.
The A-rated VGM Score combines value, growth and momentum characteristics into one measure. The Zacks Rank can change as earnings estimates are revised after the just-reported results, making the current signal dynamic rather than fixed.
View the Zacks #1 Rank List
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CAH Q4 Earnings Call Centers on Fiscal 2027 Growth Outlook
Key Takeaways
Cardinal Health, Inc. (CAH - Free Report) used its fourth-quarter fiscal 2026 call to focus on fiscal 2027 profit growth and normalized pharmaceutical demand. Management also emphasized scaling specialty businesses.
The company reported fourth-quarter non-GAAP EPS of $2.91, which topped the Zacks Consensus Estimate of $2.42. Revenues of $63.67 billion missed the $65.61 billion estimate. Meanwhile, management spent more time on the outlook.
Cardinal Health, Inc. Price, Consensus and EPS Surprise
Cardinal Health, Inc. price-consensus-eps-surprise-chart | Cardinal Health, Inc. Quote
CAH Sets Fiscal 2027 Growth Above Long-Term Range
CFO Aaron Alt said fiscal 2027 non-GAAP earnings are expected at $12.40-$12.60 per share. This represents 13%-15% growth from the adjusted $10.95 fiscal 2026 baseline, excluding the one-time tariff refund benefit.
Alt reconfirmed Cardinal Health's long-term EPS growth framework of 12%-14%. He said the fiscal 2027 range sits above that framework and includes a 19%-20% non-GAAP tax rate.
Alt expects adjusted free cash flow of $3.5-$4.0 billion. He also guided to about $700 million of capital expenditures and roughly 233 million weighted-average shares.
Cardinal Health Plans for Normalized Pharma Demand
CFO Alt guided Pharmaceutical and Specialty Solutions revenue growth to 3%-5% and segment profit growth to 8%-11%. He said the plan assumes strong demand without the outsized demand seen in fiscal 2026.
A Morgan Stanley analyst asked whether Pharma momentum could continue. Alt said Specialty growth, generics performance and execution should carry forward, with completed M&A adding 2-3 percentage points to fiscal 2027 segment profit growth.
A UBS analyst asked about strong versus outsized demand. CEO Jason Hollar said Specialty growth should moderate from more than 25% in fiscal 2026 toward longer-term planning levels while remaining double-digit.
CAH Balances GMPD Recovery With Cost Risks
CFO Alt expects Global Medical Products and Distribution revenue growth of 2%-4% and segment profit of $200-$220 million. He said the outlook excludes the fiscal 2026 IEEPA refund and assumes a modest tariff tailwind.
A TD Cowen analyst asked about input-cost pressure. CEO Hollar cited diesel fuel and petroleum-based commodities as pressures while emphasizing improved commercial protections and cost management.
Hollar said sustained cost pressure would move GMPD closer to the lower end of its profit range. He reiterated that the improvement plan remains focused on Cardinal Health brand growth, simplification and operational performance.
Cardinal Health Expands Specialty and At-Home
Hollar described Specialty as an investment priority across distribution, Biopharma Solutions and multi-specialty MSOs. He said capacity additions remain tied to planned growth, including refrigeration and freezing capabilities.
Hollar highlighted two gene-therapy commercialization agreements and a new pharmacy for complex cell and gene therapies. He said those investments extend 3PL and specialty distribution capabilities.
Hollar said Advanced Diabetes Supply integration synergies are ahead of expectations. CFO Alt added that Strive Medical and the announced AdaptHealth Diabetes Health acquisition should add 2 percentage points to fiscal 2027 Other profit growth.
CAH Expands Buyback Capacity and Keeps M&A Optional
Alt said fiscal 2027 plans include at least $1 billion of share repurchases. Hollar said the board increased repurchase authorization by $5 billion, bringing total authorization to $6.4 billion.
Alt said Cardinal Health is not assuming material M&A in fiscal 2027 guidance. He added that Cardinal Health retains flexibility for tuck-in deals, strategic M&A or additional capital returns.
Alt added fiscal 2026 repurchases totaled $1.35 billion at an average price of $187 per share. He pointed to investment in automation, technology and supply-chain capabilities.
Cardinal Health Keeps Execution at the Center
CEO Hollar framed fiscal 2027 around service levels, specialized-business growth and automation across distribution. He emphasized customer retention, operational reliability and capacity ahead of planned growth.
CFO Alt flagged uneven GMPD cadence, with segment profit weighted toward the second half. Together, Hollar and Alt framed fiscal 2027 around executing initiatives already underway rather than changing strategic direction.
CAH's Zacks Signals Favor Value and Growth
CAH carries a Zacks Rank #2 (Buy), with Value and Growth Scores of A, a Momentum Score of D and a VGM Score of A. Under the Zacks framework, a #1 (Strong Buy) or #2 Rank paired with A or B Style Scores is favorable, while the D Momentum Score tempers the timing signal. You can see the complete list of today’s Zacks #1 Rank stocks here.
The A-rated VGM Score combines value, growth and momentum characteristics into one measure. The Zacks Rank can change as earnings estimates are revised after the just-reported results, making the current signal dynamic rather than fixed.