Cardinal Health, Inc. Q4 2026 Earnings Recap

Shares declined 1.3% following earnings despite reported volume growth and margin expansion, signaling investor caution over the modest tariff refund benefit and elevated SG&A expenses amid ongoing investments.

Key Takeaways

• Total company revenue reached $63.7 billion, up 6% driven primarily by Pharmaceutical and Specialty Solutions and growth businesses.
• Gross profit increased 16% to $2.6 billion, outpacing SG&A growth of 9.5%, which included acquisitions and investment in automation and technology.
• Operating income rose 30% to $935 million, supported by a one-time $100 million net benefit from IEEPA tariff refunds in the Global Medical Products and Distribution segment.
• Adjusted diluted EPS increased 40% to $2.91, with approximately $0.31 attributable to the nonrecurring tariff refund.
• Generated $5 billion in adjusted free cash flow for the year and repurchased $1.35 billion of shares, exceeding prior commitments.