Cardinal Health beats Q1 revenue, adjusted EPS estimates, raises outlook
CAH•Cardinal Health’s fiscal first-quarter revenue rose 5% to $67.50 billion and adjusted EPS rose 28% to $3.26, beating estimates. The company raised its fiscal 2027 adjusted EPS guidance to $12.80-$13.00 from $12.40-$12.60.
1. Quarterly results
Cardinal Health reported fiscal first-quarter revenue of $67.50 billion, up 5% and above the $66.59 billion analyst estimate. Adjusted EPS rose 28% to $3.26, beating the $2.94 estimate; net income was $554 million and EPS was $2.38.
2. Raised outlook
The company raised its fiscal 2027 non-GAAP EPS guidance to $12.80-$13.00 from $12.40-$12.60. It now expects Pharmaceutical and Specialty Solutions profit growth of 10%-12%, compared with its previous outlook of 8%-11%, and lowered its expected non-GAAP effective tax rate to 18.5%-19.5% from 19.0%-20.0%.
3. Growth drivers
Pharmaceutical and Specialty Solutions revenue growth was driven by increased brand and specialty pharmaceutical sales to existing customers. Segment profit rose 17%, primarily reflecting contributions from brand and specialty products and positive generics program performance. Adjusted EPS growth also reflected higher non-GAAP operating earnings, a lower share count and a lower effective tax rate.
