Cardinal Health Reports Record Earnings, Shares Reach New High

Cardinal Health has achieved a significant milestone, reporting strong financial results for the second quarter of 2026. The company announced adjusted earnings of $2.63 per share, exceeding analysts’ expectations of $2.35. Sales surged by 19% year over year, reaching $65.63 billion, and also surpassing the consensus estimate of $64.14 billion.

The remarkable performance was largely driven by the Pharmaceutical and Specialty Solutions segment, which saw a revenue increase of 19% to $60.7 billion. This growth was attributed to rising sales in brand and specialty pharmaceuticals from both existing and new customers. The segment’s profit rose by 29% to $687 million, bolstered by the successful acquisition of MSO platforms and strong contributions from the generics program.

Segment Performance and Future Outlook

In addition, the Global Medical Products and Distribution segment reported a 3% increase in revenue to $3.3 billion. Profit for this segment skyrocketed by 106% to $37 million, thanks to volume growth from established customers and effective cost optimization initiatives, although this was partially offset by tariff impacts.

“Our strong second-quarter performance reflects at least double-digit segment profit growth across all five of our operating segments,” stated Jason Hollar, CEO of Cardinal Health. He expressed confidence in the company’s ongoing momentum and strategic execution, leading to an upward revision of their fiscal year 2026 outlook. Cardinal Health has raised its guidance for adjusted earnings per share to between $10.15 and $10.35, indicating a growth of 23% to 26% compared to the previous estimate of at least $10. The consensus among analysts was $10.01.

Furthermore, Cardinal Health has updated its profit growth expectations for the Pharmaceutical and Specialty Solutions segment to a range of 20% to 22%, an increase from the prior estimate of 16% to 19%. The company also raised its profit expectation for the Global Medical Products and Distribution segment to approximately $150 million, up from a previous guidance of at least $140 million.

Market Reaction

As a result of these positive earnings announcements, Cardinal Health shares experienced a notable increase, rising by 9.11% to reach $225.70 at the time of publication on Thursday. This surge has positioned the stock at a new 52-week high, according to data from Benzinga Pro.

These robust results underscore Cardinal Health’s strong market position and operational efficiency, setting a positive tone as the company moves forward into the next fiscal year.