Cardinal Health Inc. reported fiscal second‑quarter 2026 revenue of $65.6 billion, up 19% from $55.3 billion in Q2 FY25, and non‑GAAP diluted earnings per share of $2.63, a 36% increase from $1.93 a year earlier. The earnings beat consensus estimates of $2.38 by $0.25, a 10.5% overrun, and revenue surpassed analyst forecasts by roughly $1.1 billion, reflecting robust demand across the company’s portfolio.
Revenue growth was driven by double‑digit profit expansion in all five operating segments. The Pharmaceutical and Specialty Solutions segment generated $60.7 billion in revenue, up 19% YoY, while the Global Medical Products and Distribution segment saw a 106% jump in profit despite modest revenue gains. Strong specialty drug sales and continued momentum in at‑home solutions contributed to the overall lift, offsetting headwinds in legacy commodity distribution.
Operating earnings rose 29% to $877 million, and gross margin expanded to $2.4 billion, a 24% increase from the prior year. The margin improvement was largely due to higher mix in high‑margin specialty products and disciplined cost management, which helped offset inflationary pressure on raw materials and logistics. Operating cash flow swung to a positive $686 million, reversing a $396 million outflow in Q2 FY25, underscoring the company’s improving liquidity profile.
Management raised its full‑year 2026 non‑GAAP diluted EPS guidance to $10.15–$10.35, up 23%–26% from the previous range of $7.90–$8.10. The guidance lift signals confidence in sustained demand for specialty pharmaceuticals and a continued shift away from commodity distribution. The company also reaffirmed its revenue outlook, reflecting expectations of continued growth in its core segments.
CEO Jason Hollar highlighted the company’s “ongoing momentum and consistent execution against our strategic priorities” as the basis for the guidance increase. He noted that while tariffs on the Global Medical Products and Distribution segment and interest expense from recent acquisitions present headwinds, the firm’s strategic investments in specialty solutions and at‑home platforms are expected to drive long‑term growth. Analysts noted the EPS beat of $0.25, a 10.5% overrun, and praised the company’s ability to maintain margin expansion amid rising costs.
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