On Tuesday, Cardinal Health updated its adjusted EPS guidance for fiscal 2026 to a minimum of $10.00 per share, up from its earlier range of $9.65 to $9.85. The upward revision reflects sustained margin expansion in the company’s specialty distribution business and continued cost synergies following the merger with Medtronic’s Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency businesses. The new forecast implies a full-year profit increase of at least 3.8% over the mid-point of the prior range, driven by improved purchasing terms with key generics suppliers and higher volumes in specialty therapeutics.

Cardinal Health cited targeted investments in supply-chain automation and data-analytics platforms as key to driving efficiency gains across its core pharmaceutical and medical-surgical segments. In the first quarter, operating cash flow rose by 14% year-over-year, enabling the company to repurchase $250 million of common stock and maintain its quarterly dividend at $0.55 per share. Management reaffirmed its commitment to return at least 70% of free cash flow to shareholders, balancing share repurchases with continued investments in its rapid-response distribution network.