The strong Q4 beat combined with FY2027 guidance above the long-term target and a massive $5.0B buyback authorization creates a powerful catalyst. Traders should watch for upward analyst revisions and potential multiple expansion as the market prices in sustained double-digit EPS growth. The Kroger contract renewal removes a key overhang.
Price Chart
Executive Summary
Cardinal Health reported strong Q4 FY2026 results with revenue of $63.7B (+6% YoY) and GAAP EPS of $1.70 (+70% YoY). Non-GAAP EPS of $2.91 (+40% YoY) included a $0.31 one-time benefit from IEEPA tariff refunds; excluding that, non-GAAP EPS grew 25% to $2.60. The company provided FY2027 non-GAAP EPS guidance of $12.40-$12.60 (+13-15% growth), above its long-term target, and announced a $5.0B incremental share repurchase authorization. The combination of a strong Q4 beat, raised FY2027 guidance above consensus, and a massive capital return program is a clear bullish signal for the stock.
Key Financial Metrics
Key Facts
- Q4 FY2026 revenue $63.7B (+6% YoY), GAAP EPS $1.70 (+70% YoY), Non-GAAP EPS $2.91 (+40% YoY)
- FY2027 non-GAAP EPS guidance $12.40-$12.60 (+13-15% growth), above long-term target
- Board approved $5.0B incremental share repurchase authorization, total authorization now $6.4B
- FY2026 operating cash flow $5.2B, adjusted free cash flow $5.0B
- All five operating segments grew profit double-digits in FY2026
- Pharmaceutical & Specialty Solutions segment profit +21% in Q4
- GMPD segment profit $150M in Q4, driven by $100M IEEPA tariff refunds
- Other segment (NPHS, at-Home, OptiFreight) profit +14% in Q4
- Completed $1.4B in share repurchases in FY2026, including $350M incremental ASR
- Long-term renewal of wholesaler distribution contract with Kroger
Financial Impact
FY2027 non-GAAP EPS guidance of $12.40-$12.60 represents 13-15% growth over adjusted FY2026 non-GAAP EPS of $10.95, above the company's long-term EPS growth target. $5.0B incremental buyback authorization signals strong capital return.
Risk Factors
- GMPD segment profit excluding IEEPA tariff refunds declined 29% in Q4, indicating underlying weakness
- Tariff uncertainty remains a risk for the medical products segment
- Interest expense increased 7% in Q4 and is guided higher for FY2027 ($240M-$290M)
- Integration of recent acquisitions (Strive Medical, AdaptHealth diabetes business) carries execution risk
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000721371-26-000037 |
| Document: cah-20260811.htm | 0000721371-26-000037 |
| Document: 0000721371-26-000037-index-headers.html | 0000721371-26-000037 |
| Document: 0000721371-26-000037-index.html | 0000721371-26-000037 |
| Document: 0000721371-26-000037.txt | 0000721371-26-000037 |
| 8-K Data (Synthetic) | 0000721371-26-000037 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 20, 2026 6w ago | Insider Cluster | $228.46 $225.38 | ▼ −1.35% | ▼ −1.35% | $227.72 (−0.32%) |
Aug 20, 2026 6w ago | Insider Cluster | $228.46 $225.38 | ▼ −1.35% | ▼ −1.35% | $227.72 (−0.32%) |
Aug 20, 2026 6w ago | Insider Cluster | $228.46 $225.38 | ▼ −1.35% | ▼ −1.35% | $227.72 (−0.32%) |
Aug 11, 2026 7w ago | 8-K | $240.26 $239.92 | ▼ −0.14% | ▲ +0.92% | $227.72 (−5.22%) |
Aug 11, 2026 7w ago | 8-K | $240.26 $239.92 | ▼ −0.14% | ▲ +0.92% | $227.72 (−5.22%) |
Aug 5, 2026 8w ago | 8-K | $239.23 $245.49 | ▲ +2.62% | ▲ +3.22% | $227.72 (−4.81%) |
Jul 20, 2026 10w ago | Press Release | $227.09 $234.98 | ▲ +3.47% | ▲ +0.91% | $227.72 (+0.28%) |
Mar 5, 2026 30w ago | 8-K | $215.96 $214.02 | ▼ −0.90% | ▲ +2.89% | $227.72 (+5.45%) |
US Market Status
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