How much of the EPS growth came from the one-time IEEPA tariff refund?

The refund contributed $0.31 per diluted share in Q4 FY26 and for the full year, after tax, from $100 million of pre-tax GMPD segment profit. Excluding it, Q4 non-GAAP EPS grew 25% (to $2.60) rather than 40%, and FY26 non-GAAP EPS grew 33% (to $10.95) rather than 37%.

What is the FY2027 earnings outlook?

Management guides FY27 non-GAAP diluted EPS to $12.40 to $12.60, growth of 13% to 15% over the adjusted FY26 base of $10.95. Guidance assumes Pharma segment profit growth of 8% to 11%, GMPD segment profit of $200 million to $220 million, and about 233 million diluted shares. It also reflects the Strive Medical and AdaptHealth Diabetes Health acquisitions.

Why are GAAP and non-GAAP results so different?

The main drivers in FY26 were a $184 million goodwill impairment on the Navista & ION reporting unit, a $122 million impairment of the Outcomes equity investment, $349 million of after-tax amortization and other acquisition-related costs, and a $275 million after-tax impact from acquisition-related cash and share-based compensation. Management excludes these items as non-cash or non-recurring, but investors may want to track them as recurring features of an acquisitive strategy.

What is the company's capital return plan?

The board approved a $5.0 billion increase to the repurchase authorization, bringing the total to $6.4 billion. FY26 repurchases were $1.4 billion, and FY27 guidance assumes about $1 billion of repurchases. The quarterly dividend was declared at $0.5158 per share, payable October 15, 2026.

Are there balance sheet or liquidity concerns?

Total shareholders' deficit was $(2.7) billion at June 30, 2026. Current portion of long-term obligations rose to $1.9 billion from $550 million, and long-term obligations were $7.0 billion, for total debt of about $8.9 billion. Cash was $4.9 billion. The company also announced a new $4.0 billion revolving credit facility replacing three earlier facilities. Operating cash flow of $5.2 billion comfortably covered dividends and buybacks, although FY26 acquisition spending of $2.0 billion was a significant use of cash.

CAH 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed August 11, 2026. Cited figures are marked; the original filing is the authoritative source.

Cardinal Health reported fiscal Q4 and full-year FY2026 results on August 11, 2026, with revenue up 6% to $63.7 billion^a in the quarter and 14% to $254.2 billion for the year.

GAAP diluted EPS rose 70% to $1.70^b in Q4 and 12% to $7.23 for FY2026. Non-GAAP diluted EPS was $2.91 in Q4 (up 40%) and $11.26 for the year (up 37%). Both figures include a one-time $0.31 per-share benefit from recognizing IEEPA tariff refunds ($100 million pre-tax in the GMPD segment).

Excluding that benefit, Q4 non-GAAP EPS grew 25% to $2.60^c and full-year non-GAAP EPS grew 33% to $10.95. Investors should treat the tariff refund as non-recurring when judging underlying momentum. Operating cash flow was $5.2 billion and adjusted free cash flow was $5.0 billion for FY2026.

The Pharmaceutical and Specialty Solutions segment drove the results, with FY2026 segment profit up 23% to $2.8 billion^d on 15% revenue growth. GMPD profit excluding the tariff refund was $158 million for the year, up 17%, and its Q4 profit excluding the refund fell 29%, reflecting lower distribution volumes. The company also took a $122 million pre-tax impairment on its Outcomes equity stake and a $184 million goodwill impairment tied to the Navista & ION reporting unit; both were excluded from non-GAAP results.

GAAP results were therefore weighed down by these charges, and the GAAP-to-non-GAAP gap is wide. For fiscal 2027, management guided non-GAAP EPS to $12.40 to $12.60, growth of 13% to 15% versus the adjusted FY2026 base of $10.95. Guidance includes the recent Strive Medical acquisition and the announced Diabetes Health tuck-in from AdaptHealth.

Management also raised the share repurchase authorization by $5.0 billion to a total of $6.4 billion, and plans about $1 billion of repurchases in FY2027. Shareholders' deficit remains at $(2.7) billion, and total debt rose to about $8.9 billion, so balance sheet leverage is a continuing consideration.

02—Key points

Key Highlights

Q4 FY26 revenue rose 6% to $63.7 billion; FY26 revenue rose 14% to $254.2 billion.
Q4 non-GAAP diluted EPS of $2.91 (+40%) includes a one-time $0.31 IEEPA tariff refund benefit; excluding it, EPS was $2.60 (+25%).
FY26 non-GAAP diluted EPS of $11.26 (+37%); excluding the tariff refund, $10.95 (+33%).
FY27 non-GAAP EPS guidance of $12.40 to $12.60 (+13% to 15%), above the company's long-term EPS framework.
FY26 operating cash flow of $5.2 billion and adjusted free cash flow of $5.0 billion; FY27 adjusted free cash flow guided to $3.5 to $4.0 billion.
Board increased the share repurchase authorization by $5.0 billion to $6.4 billion total; FY26 repurchases reached $1.4 billion.
GAAP results include a $184 million goodwill impairment (Navista & ION) and a $122 million impairment of the Outcomes equity stake, both excluded from non-GAAP figures.

03—Questions

Frequently Asked Questions

How much of the EPS growth came from the one-time IEEPA tariff refund?
The refund contributed $0.31 per diluted share in Q4 FY26 and for the full year, after tax, from $100 million of pre-tax GMPD segment profit. Excluding it, Q4 non-GAAP EPS grew 25% (to $2.60) rather than 40%, and FY26 non-GAAP EPS grew 33% (to $10.95) rather than 37%.
What is the FY2027 earnings outlook?
Management guides FY27 non-GAAP diluted EPS to $12.40 to $12.60, growth of 13% to 15% over the adjusted FY26 base of $10.95. Guidance assumes Pharma segment profit growth of 8% to 11%, GMPD segment profit of $200 million to $220 million, and about 233 million diluted shares. It also reflects the Strive Medical and AdaptHealth Diabetes Health acquisitions.
Why are GAAP and non-GAAP results so different?
The main drivers in FY26 were a $184 million goodwill impairment on the Navista & ION reporting unit, a $122 million impairment of the Outcomes equity investment, $349 million of after-tax amortization and other acquisition-related costs, and a $275 million after-tax impact from acquisition-related cash and share-based compensation. Management excludes these items as non-cash or non-recurring, but investors may want to track them as recurring features of an acquisitive strategy.
What is the company's capital return plan?
The board approved a $5.0 billion increase to the repurchase authorization, bringing the total to $6.4 billion. FY26 repurchases were $1.4 billion, and FY27 guidance assumes about $1 billion of repurchases. The quarterly dividend was declared at $0.5158 per share, payable October 15, 2026.
Are there balance sheet or liquidity concerns?
Total shareholders' deficit was $(2.7) billion at June 30, 2026. Current portion of long-term obligations rose to $1.9 billion from $550 million, and long-term obligations were $7.0 billion, for total debt of about $8.9 billion. Cash was $4.9 billion. The company also announced a new $4.0 billion revolving credit facility replacing three earlier facilities. Operating cash flow of $5.2 billion comfortably covered dividends and buybacks, although FY26 acquisition spending of $2.0 billion was a significant use of cash.

04—Continue

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