- CAH
- CVS
Key Points
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Cardinal Health raised its fiscal 2027 adjusted EPS forecast to $12.80–$13.00 from $12.40–$12.60 after first-quarter EPS grew 28% to $3.26; revenue rose 5% to $67.5 billion.
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Pharmaceutical and specialty segment profit increased 17%, with specialty revenue up 18%; the company lifted its full-year pharmaceutical profit growth outlook to 10%–12%. Its “other” businesses also beat expectations, prompting higher revenue and profit growth forecasts.
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The CVS Health contract renewal through June 2032 adds customer visibility, while elevated petroleum <a href="https://bitcomme.com/ad-costs-jump-2-5x-but-shoppers-wont-wait-4-7-days-for-delivery-2/” title=”Ad costs jump 2.5x, but shoppers won't wait 4–7 days for delivery”>costs are pushing the medical segment’s profit outlook toward the low end of its $200 million–$220 million range.
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Cardinal Health Earnings: Can Perfection Get Priced In Twice?
Cardinal Health (NYSE:CAH) raised its fiscal 2027 earnings outlook after reporting double-digit profit growth in its pharmaceutical and specialty segment and its other growth businesses for the first quarter.
The healthcare distributor now expects non-GAAP diluted earnings per share of $12.80 to $13.00 for the year, up from its previous forecast of $12.40 to $12.60. Chief Financial Officer Aaron Alt said the increase reflected operating momentum across the company and confidence in continued profit growth.
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First-quarter revenue rose 5% to $67.5 billion, while operating income increased 17% to $1 billion, reaching that level in a quarter for the first time, Alt said. Diluted earnings per share grew 28% to $3.26. Figures discussed on the call were non-GAAP unless otherwise specified.
Pharmaceutical Demand Drives Growth
Revenue in the pharmaceutical and specialty solutions segment increased 6% to $62.6 billion, and segment profit rose 17% to $783 million. Alt attributed the performance to contributions from brand-name drugs, specialty products and the company’s generics program, as well as its Solaris acquisition.
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Specialty revenue grew 18%, supported by areas including urology and oncology. Alt said generic volumes were slightly above the company’s long-term targets, while market dynamics remained consistent.
GLP-1 medications contributed approximately 5 percentage points to segment revenue growth, Alt said. That was largely offset by a 4-percentage-point headwind from reductions in wholesale acquisition costs under the Inflation Reduction Act.
