Cardinal Health, Inc. Q1 2027 Earnings Recap

Cardinal Health’s shares rose 2.2%, a roughly flat reaction, as the company reported first-quarter growth and raised its fiscal 2027 EPS outlook. The quarter included solid profit growth, but pharmaceutical revenue growth was partly offset by IRA-related price reductions, while GMPD revenue was flat.

Key Takeaways

• Revenue increased 5% to $67.5 billion; gross profit rose 12% to $2.6 billion, and operating income grew 17% to $1.0 billion.
• Adjusted EPS increased 28% to $3.26. Cardinal raised its fiscal 2027 EPS guidance to $12.80–$13 from $12.40–$12.60.
• Pharmaceutical revenue rose 6% to $62.6 billion, with specialty growth of 18%. GLP-1 medications contributed about 500 basis points to revenue growth, largely offset by a 400-basis-point headwind from IRA WAC reductions.
• GMPD revenue was roughly flat at $3.2 billion; segment profit was $33 million, higher than expected, as the company continued its improvement plan.
• Cardinal completed a $500 million accelerated share repurchase program during the quarter; diluted weighted-average shares were approximately 233 million.