Cardinal Health 2025 Q4 Earnings Strong Performance as Net Income Surges 4.3%

Cardinal Health reported its fiscal 2025 Q4 earnings on Aug 12th, 2025, delivering results that outperformed expectations. The company raised its fiscal 2026 EPS guidance to $9.30–$9.50, signaling strong confidence in future growth. With net income rising 4.3% year-over-year to $243 million and EPS climbing 4.0% to $1.00, the firm demonstrated solid profitability and a clear earnings beat.

Revenue

Earnings/Net Income
Cardinal Health’s EPS rose 4.0% to $1.00 in 2025 Q4 from $0.96 in 2024 Q4, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $243 million in 2025 Q4, marking 4.3% growth from $233 million in 2024 Q4. The strong performance in earnings reflects the company's success in driving profitability across its operating segments.

Price Action
The stock price of Cardinal Health has climbed 3.76% during the latest trading day, has dropped 7.55% during the most recent full trading week, and has tumbled 9.11% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Cardinal Health (CAH) shares after a quarterly revenue drop on the financial report release date and holding for 30 days delivered strong returns over the past three years. The strategy achieved a 63.27% return, surpassing the benchmark by 16.94%. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.81, the strategy also demonstrated robust risk management, making it a reliable approach for investors seeking both growth and stability.

CEO Commentary
Jason M. Hollar, CEO & Director, highlighted Cardinal Health’s strong fiscal 2025 performance, with all five operating segments delivering double-digit profit growth in Q4. He emphasized the company’s strategic focus on simplification, operational efficiency, and growth investments, noting the acquisition of Solaris Health as a key step in expanding the Specialty Alliances platform. Hollar praised the teams’ dedication to enhancing customer reliability and resiliency in healthcare. He expressed optimism about fiscal 2026, driven by strategic investments and momentum in Pharmaceutical and Specialty Solutions, with confidence in the company’s position as a leader in multi-specialty care.

Guidance
Cardinal Health raised its fiscal 2026 EPS guidance to $9.30–$9.50, reflecting 13–15% growth. The company 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. Fiscal 2026 adjusted free cash flow is forecasted at $2.75–$3.25 billion, with a tax rate of 22–24%.

Additional News
Among the most-discussed non-earnings-related news within three weeks of Cardinal Health’s August 12th, 2025 earnings report, the acquisition of Solaris Health stood out as a key strategic move. This acquisition was highlighted as a major development in the company’s expansion of its Specialty Alliances platform, signaling a commitment to growth in the specialty pharmacy market. Additionally, the company announced internal leadership restructuring, with several key roles being realigned to better support its operational efficiency goals. Lastly, Cardinal Health committed to a new stock buyback program, allocating $500 million to repurchase shares, reflecting strong confidence in its capital structure and long-term value.