Cardinal Health Reports Q4 FY2026 Earnings Beat, Raises FY2027 Guidance and Expands Buyback Authorization

Cardinal Health (NYSE: CAH) reported stronger-than-expected results for its fourth quarter of fiscal year 2026 and rolled out an upbeat outlook for fiscal year 2027, underpinned by robust performance across its core segments and bolstered capital return initiatives.

Quarterly Highlights and Capital Returns

In Q4 FY2026, Cardinal Health delivered non‑GAAP diluted earnings per share of $2.91, significantly above the analyst consensus of $2.42, representing a 40 % year-over-year increase from $2.08 a year earlier. The company attributed part of this strength to a one-time IEEPA tariff refund, which contributed approximately $0.31 to EPS. Revenue for the quarter rose 6 % to $63.67 billion, although it fell short of expectations, with analysts having projected earnings above $2.42 and revenue near $65 billion. Full-year adjusted free cash flow reached an impressive $5 billion, with cash on hand amounting to $4.9 billion. This operating leverage and cash generation enabled Cardinal Health to repurchase approximately $1.35 billion in shares during the year at an average price of $187.
— Financial release and earnings call details

Fiscal Year 2027 Guidance and Segment Outlook

Cardinal Health issued full-year fiscal 2027 guidance, projecting non‑GAAP EPS in the range of $12.40 to $12.60, reflecting a 13 % to 15 % increase over a baseline EPS of $10.95 that excludes the tariff refund benefit. The company reaffirmed its long-term EPS growth target of 12 % to 14 % annually. Segment-level expectations include:

• Pharmaceutical & Specialty Solutions: Revenue growth of 3 %–5 %, with segment profit expanding 8 %–11 %, including a 2–3 percentage point boost from recent M&A activity.
• Global Medical Products & Distribution (GMPD): Revenue growth of 2 %–4 %, and expected segment profit of $200 million–$220 million—an increase of approximately $50 million excluding the tariff-related boost.
• Other businesses (Nuclear & Precision Health, at‑Home Solutions, OptiFreight): Revenue growth of 11 %–13 %, with profit increasing 15 %–18 %, including gains from the tuck-in acquisitions of Strive Medical and AdaptHealth’s diabetes business.

Below the segment level, the company projects interest and other expenses of $240 million to $290 million, an effective tax rate of 19 %–20 %, capital expenditures of around $700 million, and adjusted free cash flow between $3.5 billion and $4 billion.
— Fiscal 2027 guidance details

Enhanced Capital Return Strategy

Reflecting confidence in its financial strength and outlook, Cardinal Health’s Board approved an additional $5.0 billion in share repurchase authorization, bringing the total authorization to approximately $6.4 billion as of August 2026. The company also announced a simplified $4.0 billion revolving credit facility to replace three prior credit lines, enhancing financial flexibility. A regular quarterly dividend of $0.5158 per share was declared, payable October 15, 2026, to shareholders of record as of October 1.
— Capital return and dividend details

Why It Matters

Cardinal Health’s Q4 earnings beat and strong fiscal 2027 guidance underscore operational resilience, particularly in specialty pharmaceuticals, growth in home care services, and continued margin expansion across segments. The elevated share repurchase authorization reflects not only the company’s ample free cash flow but also a commitment to returning value to shareholders. Investors seeking robust earnings growth with disciplined capital allocation may find Cardinal Health’s outlook compelling heading into the new fiscal year.

Live Price Note: As of market close on September 29, 2026, Cardinal Health (CAH) stock traded at $223.91, up 2.46 % on the day.

Readers may want to monitor how Cardinal Health executes on its tuck-in acquisitions, margin management in GMPD amid tariff normalization, and ongoing capital returns throughout fiscal 2027.