Cardinal Health Q4 Profit Climbs, Sees Growth In FY27; Approves $5 Bln Buyback

(RTTNews) - Healthcare services company Cardinal Health, Inc., while reporting significantly higher profit in its fourth quarter on revenue strength, on Tuesday issued fiscal 2027 outlook, expecting higher adjusted earnings.

Further, the Board of Directors approved a $5.0 billion increase to the share repurchase program, bringing the total share repurchase authorization to $6.4 billion as of August 2026.

In pre-market activity on the NYSE, Cardinal Health shares were trading 0.31 percent higher, at $238.00, extending the 0.33 percent increase on Monday's regular trading close.

Jason Hollar, CEO of Cardinal Health, stated, "The broad-based operational strength for the year, with all five of our operating segments growing profit double-digits, even before recognition of IEEPA tariff recoveries in GMPD, reflects the disciplined execution of our strategy and our investments for growth."

Cardinal Health separately announced that its Board of Directors approved its quarterly dividend of $0.5158 per share, payable on October 15 to shareholders of record at the close of business on October 1.

Looking ahead for fiscal 2027, Cardinal Health projects adjusted earnings per share growth of 13 percent to 15 percent from last year, above its long-term earnings per share guidance. The expected growth would result in earnings per share between $12.40 and $12.60 for the full year. In fiscal 2026, adjusted earnings per share were $11.26.

Further, the firm projects Pharmaceutical and Specialty Solutions segment revenue to grow 3 percent to 5 percent with segment profit growth of 8 percent to 11 percent from last year.

Global Medical Products and Distribution segment's revenue would increase 2 percent to 4 percent year-over-year, and Segment profit would be between $200 million to $220 million.

The company said the outlook reflects the estimated impact of its recently completed tuck-in acquisition of Strive Medical and the announced tuck-in acquisition of the Diabetes Health business of AdaptHealth.

In the fourth quarter, net earnings attributable to Cardinal Health climbed 67 percent to $398 million from prior year's $239 million. Earnings per share grew 70 percent to $1.70 from $1.00 a year ago.

Adjusted earnings were $682 million or $2.91 per share for the period, compared to $501 million or $2.08 per share last year. The result included the recognition of a one-time net operating profit impact of IEEPA tariff refunds of $100 million in the GMPD segment.

Adjusted net earnings, excluding IEEPA tariff refunds, were $608 million or $2.60 per share for the latest quarter.

Adjusted operating earnings were $935 million, up 30 percent from prior year's $719 million.

The company's revenue for the period rose 5.8 percent to $63.672 billion from $60.159 billion last year.

In the quarter, Pharmaceutical and Specialty Solutions segment's revenue of $58.8 billion grew 6 percent year-over-year, while Global Medical Products and Distribution segment's revenue dropped 2 percent to $3.1 billion.

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