8/12/2025, 3:52:32 PM | www.barchart.com | news
CAH Q4 Earnings Beat Estimates, '26 EPS View Up, Stock Falls
Cardinal Health, Inc. (CAH) reported fourth-quarter fiscal 2025 adjusted earnings per share of $2.08, exceeding the Zacks Consensus Estimate of $2.03 by 2.5%, with a 13% year-over-year improvement in earnings. GAAP EPS was $2.10, up from 96 cents in the prior-year period. Sales were flat at $60.2 billion, slightly missing the estimate. Pharmaceutical revenues were nearly flat at $55.4 billion, but excluding the impact of a contract expiration with OptumRx in June 2024, they grew 22% year over year. The segment reported a profit of $535 million, up 11%. The Global Medical Products and Distribution segment saw 3% year-over-year revenue growth and a profit of $70 million. The Other segment, including at-Home Solutions, Nuclear and Precision Health Solutions, and OptiFreight Logistics, recorded 37% revenue growth and a 44% profit increase. Gross profit rose 17% to $2.2 billion, with a 50 basis point expansion in gross margin. Distribution, selling, general and administrative expenses increased 16% to $1.48 billion. Operating income rose 7% to $428 million, with adjusted operating income up 19% to $719 million. The company ended the quarter with $3.33 billion in cash and cash equivalents, up from $3.81 billion in the second quarter of 2025. Net cash from operations was $2.91 billion. Cardinal Health raised its fiscal 2026 adjusted EPS guidance to $9.30–$9.50, up from $9.10–$9.30, beating the Zacks Consensus Estimate of $9.21. The company expects 11–13% revenue growth in the Pharmaceutical segment, 2–4% in the Medical segment, and 26–28% in the Other segment, with corresponding profit growth. Strategic initiatives include the acquisition of Advanced Diabetes Supply and the purchase of Solaris Health, the nation’s largest urology management services organization. The company also launched the U.S. version of the Kendall DL Multi System, expanded community programs like Equity Rx, and released an industry report on cell and gene therapy. Despite strong profit growth, shares fell 10.6% in pre-market trading. The company has a Zacks Rank #2 (Buy), and is noted alongside other medical stocks such as Medpace Holdings (MEDP), West Pharmaceutical Services (WST), and Boston Scientific (BSX), which also reported strong quarterly results.