CAH · Cardinal Health, Inc.

Cardinal Health reported a robust third quarter for fiscal year 2026, with revenue climbing 11% to $60.9 billion, primarily driven by brand and specialty pharmaceutical sales growth within the Pharmaceutical and Specialty Solutions (PSS) segment. While GAAP operating earnings declined 30% to $509 million due to a $184 million pre-tax goodwill impairment in the Navista & ION reporting unit, non-GAAP operating earnings increased 18% to $956 million. This divergence highlights the impact of non-cash impairment charges versus the underlying operational strength. The PSS segment delivered an 18% profit increase to $784 million, attributed to contributions from brand and specialty products and positive generics program performance. Conversely, the Global Medical Products and Distribution segment faced headwinds, with profit declining 36% to $25 million, primarily due to the adverse net impact of tariffs. The 'Other' segment, which includes at-Home Solutions and OptiFreight Logistics, posted strong results with profit up 34% to $179 million. Management raised and narrowed its fiscal year 2026 non-GAAP diluted EPS guidance to a range of $10.70 to $10.80, citing improved operating segment performance and net below-the-line improvements, including a lower effective tax rate. The company also demonstrated financial discipline by reducing debt to achieve a 3.0x leverage ratio and completing $1.0 billion in share repurchases year-to-date.