Cardinal Health delivered $60.9 billion in Q3 revenue, up 11% year-over-year, while GAAP operating earnings declined 30% to $509 million and GAAP diluted EPS fell 20% to $1.69 due to a $184 million pre-tax goodwill impairment. On a non-GAAP basis, operating earnings rose 18% to $956 million and non-GAAP diluted EPS increased 35% to $3.17, driven by improved tax rate and lower share count but partially offset by higher interest expense.

The company raised and narrowed its fiscal 2026 non-GAAP EPS outlook to $10.70–$10.80, representing 30%–31% growth, citing stronger segment profits, a reduced effective tax rate of approximately 19% and a slight decrease in share count to about 237 million. Adjusted free cash flow guidance was also lifted to $3.3–$3.7 billion from the prior $3.0–$3.5 billion range, reflecting improved cash generation.

Debt reduction efforts included an early $100 million term loan payment and maintenance of a 3.0× leverage ratio within the 2.75–3.25× target range, preserving investment grade status. An additional $250 million accelerated share repurchase brought total FY26 buybacks to $1.0 billion, lowering diluted weighted average shares and supporting EPS growth.

The Pharmaceutical and Specialty Solutions segment posted 11% revenue growth to $56.1 billion and an 18% profit increase to $784 million. Global Medical Products revenue held flat at $3.1 billion with profit down 36% to $25 million, while the Other segment saw 31% revenue growth to $1.7 billion and a 34% profit boost to $179 million driven by at-Home Solutions, OptiFreight Logistics and Nuclear and Precision Health initiatives.