10-KPeriod: FY2026

CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2026

Filed August 11, 2026For Securities:CAH

Summary

Cardinal Health Inc. reported strong fiscal year 2026 results, demonstrating significant revenue growth and improved profitability. Total revenue increased by 14% to $254.2 billion, driven by robust performance in the Pharmaceutical and Specialty Solutions (Pharma) segment, which saw a 15% revenue increase. The Global Medical Products and Distribution (GMPD) segment experienced a more modest 1% revenue increase, while the Other segments collectively grew by 26% due to acquisitions in at-Home Solutions and expansion in Nuclear and Precision Health Solutions. Non-GAAP operating earnings saw a substantial 30% increase, reaching $3.6 billion, and non-GAAP diluted EPS grew by 37% to $11.26. This growth was underpinned by contributions from branded and specialty pharmaceuticals, the generics program, and strategic acquisitions like Solaris Health and Advanced Diabetes Supply Group (ADS). The company also managed a significant goodwill impairment of $184 million related to its Navista & ION reporting unit, impacting GAAP operating earnings but offset by increased non-GAAP performance. Operationally, Cardinal Health continued to strengthen its balance sheet, with cash and equivalents increasing to $4.9 billion. The company deployed substantial capital in fiscal 2026, investing $1.9 billion in the Solaris Health acquisition and $1.4 billion in share repurchases, alongside returning capital to shareholders through dividends. Despite increased interest expenses related to new debt financing, the company maintained compliance with its leverage covenants. The company also addressed ongoing litigation, including opioid settlements, and managed various regulatory and tariff-related dynamics. Looking ahead, Cardinal Health is focused on integrating its acquisitions and further optimizing its operations, while navigating a dynamic industry landscape.

Key Highlights

  • 1Total revenue for fiscal 2026 increased by 14% to $254.2 billion, driven by strong performance in the Pharma segment.
  • 2Non-GAAP operating earnings grew 30% to $3.6 billion, and Non-GAAP diluted EPS increased 37% to $11.26.
  • 3The Pharma segment saw a 15% revenue increase, primarily due to branded and specialty pharmaceutical sales.
  • 4Significant acquisitions in fiscal 2026 included Solaris Health ($1.9 billion) and Advanced Diabetes Supply Group (ADS) ($1.0 billion), contributing to growth in the Pharma and Other segments, respectively.
  • 5The company repurchased $1.4 billion of its common shares during fiscal 2026 and declared dividends totaling $2.04 per share.
  • 6A goodwill impairment charge of $184 million was recorded for the Navista & ION reporting unit within the Pharma segment.
  • 7Cash and equivalents increased to $4.9 billion at June 30, 2026, providing ample liquidity.

Frequently Asked Questions

Cardinal Health reported a strong fiscal year 2026 with a 14% increase in total revenue to $254.2 billion. Profitability also saw significant improvement, with non-GAAP operating earnings up 30% to $3.6 billion and non-GAAP diluted EPS up 37% to $11.26. These results were driven by growth across its segments, particularly the Pharmaceutical and Specialty Solutions segment, and strategic acquisitions.

Revenue growth was primarily driven by the Pharmaceutical and Specialty Solutions (Pharma) segment, which experienced a 15% increase due to higher sales of branded and specialty pharmaceuticals. Growth in the Other segments, fueled by acquisitions like at-Home Solutions (including ADS) and performance in Nuclear and Precision Health Solutions, also contributed significantly.

Cardinal Health strategically deployed capital in fiscal 2026. It invested $1.9 billion in the acquisition of Solaris Health and $1.4 billion in share repurchases. The company also returned capital to shareholders through dividends totaling $491 million. The company's liquidity remained strong, with cash and equivalents ending the year at $4.9 billion.

Yes, Cardinal Health recorded a pre-tax goodwill impairment charge of $184 million related to its Navista & ION reporting unit within the Pharma segment. This charge negatively impacted GAAP operating earnings but was offset by overall strong performance, particularly on a non-GAAP basis.