Cardinal Health Raises Earnings Outlook, Acquires Solaris Health for $1.9 Billion

Cardinal Health has raised its fiscal 2026 earnings outlook after its Q4 earnings report. The company has also agreed to a $1.9 billion deal to acquire Solaris Health, expanding its healthcare business. The acquisition is expected to enhance Cardinal Health's capabilities in the healthcare market and drive future growth.

Cardinal Health Inc. (CAH) reported strong fiscal 2025 Q4 earnings, exceeding expectations and raising its 2026 earnings per share (EPS) guidance to $9.30–$9.50, a 13–15% increase [1]. The company's net income surged 4.3% to $243 million, with EPS climbing 4.0% to $1.00. This performance was driven by robust growth across all five operating segments.

In addition to its strong earnings, Cardinal Health announced a strategic acquisition of Solaris Health for $1.9 billion in cash, with an expected close by the end of the year. The acquisition will expand Cardinal Health's Specialty Alliances platform, providing access to a network of over 750 community urologists across 14 states [2]. This move is part of Cardinal Health's broader strategy to grow its multispecialty management services organization (MSO) platform, which will reach about 3,000 providers in 32 states once the Solaris Health deal closes [3].

The acquisition is expected to be slightly accretive to Cardinal Health's non-GAAP EPS in the first 12 months following the close. Solaris Health physicians and management will join existing equity holders and operators in The Specialty Alliance, Cardinal Health's multispecialty MSO platform. This deal follows recent acquisitions of Urology America, Potomac Urology, and Academic Urology & Urogynecology, further accelerating Cardinal Health's specialty growth strategy [3].

CEO Jason Hollar expressed confidence in Cardinal Health's position as a leader in multi-specialty care, emphasizing the company's operational efficiency and growth investments. He expects 11–13% revenue growth in the Pharmaceutical segment and double-digit growth in Specialty, including at least 20% in Biopharma Solutions. For GMPD, revenue growth is projected at 2–4%, with segment profit of at least $140 million. The Other businesses are anticipated to deliver 26–28% revenue and 25–27% profit growth [1].

Cardinal Health's stock price has shown mixed results post-earnings, with a 3.76% daily gain but a 9.11% monthly decline. However, a 30-day buy-and-hold strategy has yielded strong returns over the past three years, achieving a 63.27% return and surpassing the benchmark by 16.94% [1].

References:
[1] https://www.ainvest.com/news/cardinal-health-2025-q4-earnings-strong-performance-net-income-surges-4-3-2508/
[2] https://www.reuters.com/legal/transactional/cardinal-health-buy-solaris-health-19-billion-posts-weak-results-2025-08-12/
[3] https://www.fiercehealthcare.com/finance/cardinal-health-builds-out-urology-focus-19b-deal-solaris-health