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Research Alert: Cardinal Health: Fy 26 Momentum Continues With Pharma Distribution Strength

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Cardinal Health delivered its 15th consecutive quarterly earnings beat in Q3 FY 26, with adjusted EPS of $3.17 rising 35% Y/Y and beating consensus by $0.38. Revenue increased 11% Y/Y to $60.9B, missing consensus by $1.3B. The Pharmaceutical and Specialty Solutions segment drove strong performance, with 11% Y/Y revenue growth to $56.1B and margin expansion of 9 bps to 1.40%. Meanwhile, the Other segment surged 31% Y/Y with 21 bps margin expansion to 10.49%, offsetting GMPD segment headwinds where profit declined 36% due to adverse tariff impacts. CAH raised its adjusted EPS guidance by 4.9% at the midpoint, representing 30.5% growth vs. FY 25, while maintaining its GMPD segment sales and profit expectations despite ongoing challenges. We believe robust FCF generation remains a key strength. CAH raised its FY 26 FCF guidance to $3.5B from $3.25B previously, supporting continued capital returns through the additional $250M share repurchase completed during the quarter.

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Asia Markets

Exchange-Traded Funds Higher as US Equities Advance After Midday

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