Cardinal Health, Inc. Q3 2026 Earnings Recap

Cardinal Health shares fell 3.7% post-earnings as decelerating GLP-1 growth and signs of moderating pharma momentum overshadowed raised full-year guidance. While management emphasized broad-based strength, the market appears concerned by a slowdown in key drug revenue drivers and mix headwinds.

Key Takeaways

• GLP-1 category revenue, while still up over 30%, moderated sequentially; GLP-1s added 6 percentage points to revenue growth, offset by a 6-point headwind from inflation reduction at WAC pricing adjustments.
• Pharma segment revenue grew 11% to $56.1 billion, with profit climbing 18% to $784 million, driven by brand and specialty.
• Company-wide, revenue rose 11% to $61 billion; gross profit increased 18% to $2.5 billion.
• Operating earnings gained 18% to $956 million, and non-GAAP EPS rose 35% to $3.17 (aided by discrete tax benefits).
• Management raised full-year non-GAAP EPS and free cash flow guidance, but the tempered outlook in high-growth categories and mix shifts weighed on investor sentiment.