10-QPeriod: Q1 FY2026

CARDINAL HEALTH INC Quarterly Report for Q1 Ended Sep 30, 2025

Filed October 30, 2025For Securities:CAH

Summary

Cardinal Health Inc. reported a strong first quarter of fiscal year 2026, with total revenue climbing 22% year-over-year to $64.0 billion. This growth was primarily driven by a significant increase in pharmaceutical and specialty solutions sales, fueled by both existing and new customers, alongside contributions from strategic acquisitions. Non-GAAP operating earnings saw a substantial 37% increase, reflecting improved profitability from recent MSO platform acquisitions and strong performance in branded and specialty pharmaceuticals. The company announced a significant move with the agreement to acquire Solaris Health for approximately $1.9 billion, a strategic expansion into the urology MSO space. While this acquisition will be financed through debt and cash, it underscores Cardinal Health's commitment to expanding its specialized healthcare services. Despite increased interest expenses related to new debt financing, the company's diluted EPS also showed healthy growth, with non-GAAP diluted EPS increasing by 36%.

Financial Highlights

49 data points
Beta

Revenue

$64.01B

3.6% Gross Margin

Net Income

$450.00M

0.7% Net Margin

EPS (Diluted)

$1.88

Total Assets

$55.23B

Cash & Equivalents

$4.59B

Free Cash Flow

$865.00M

Financial Statements
Beta
Revenue$64.01B
Cost of Revenue$61.69B
Gross Profit$2.32B
SG&A Expenses$1.46B
Operating Income$668.00M
Interest Expense$80.00M
Net Income$450.00M
EPS (Basic)$1.89
EPS (Diluted)$1.88
Shares Outstanding (Basic)238.00M
Shares Outstanding (Diluted)239.00M

Key Highlights

  • 1Total revenue increased by 22% to $64.0 billion for the first quarter of fiscal year 2026, driven by pharmaceutical and specialty pharmaceutical sales growth.
  • 2Non-GAAP operating earnings surged by 37% to $857 million, demonstrating enhanced profitability from acquisitions and core business performance.
  • 3Acquisition of Solaris Health for approximately $1.9 billion announced, strengthening the company's position in specialized healthcare services.
  • 4GAAP operating earnings grew 18% to $668 million, benefiting from the acquisition of MSO platforms and Advanced Diabetes Supply Group (ADS).
  • 5Non-GAAP diluted EPS rose by 36% to $2.55, reflecting strong underlying operational performance.
  • 6The company is managing its liquidity effectively, with cash and equivalents increasing to $4.6 billion and no outstanding balances on its commercial paper or revolving credit facilities as of quarter-end.
  • 7Capital deployment included $375 million for share repurchases and $129 million for dividends, indicating a commitment to shareholder returns.

Frequently Asked Questions

The 22% year-over-year revenue increase to $64.0 billion was primarily driven by strong sales growth in the Pharmaceutical and Specialty Solutions segment, attributed to both existing and new customers. The acquisition of MSO platforms and Advanced Diabetes Supply Group also contributed to this growth.

Cardinal Health intends to finance the approximately $1.9 billion acquisition of Solaris Health through a combination of cash proceeds from recent debt financing and existing cash on hand.

Recent acquisitions, particularly of MSO platforms like GI Alliance (GIA), Urology America, and Integrated Oncology Network (ION), along with Advanced Diabetes Supply Group (ADS), have positively impacted profitability. Non-GAAP operating earnings increased by 37%, largely due to these acquisitions and increased contributions from branded and specialty pharmaceutical products.

The company's liquidity remains strong, with cash and equivalents at $4.6 billion as of September 30, 2025. Cardinal Health has $3.0 billion in available liquidity through its commercial paper program backed by a revolving credit facility, and as of the reporting date, had no amounts outstanding under these facilities. Long-term debt increased to $9.0 billion, partly due to new debt issuance for acquisitions.