Cardinal Health Stock Drops 7% Amid Acquisition and Q4 Earnings

Cardinal Health stock fell 7% after announcing a $1.9 billion acquisition of Solaris Health, a urology MSO, and reporting flat Q4 revenue at $60.2 billion. Non-GAAP net income rose 11% to $501 million, or $2.08 per share. The company raised its 2026 guidance, forecasting adjusted EPS of $9.30 to $9.50.

Cardinal Health (NYSE: CAH) reported its fourth quarter (Q4) and full year (FY) 2025 results, with stock falling 7% after the announcement of a $1.9 billion acquisition of Solaris Health, a leading urology medical services organization (MSO). The company's Q4 revenue was relatively flat at $60.2 billion, while non-GAAP net income rose 11% to $501 million, or $2.08 per share. Cardinal Health also raised its 2026 earnings per share (EPS) guidance to $9.30 to $9.50 [1].

Financial Highlights:

- Revenue: Q4 revenue was $60.2 billion, a 2% decrease from the previous year. Excluding the impact of a previously communicated customer contract expiration, revenue increased by 21% [1].
- Operating Earnings: GAAP operating earnings were $428 million, a 7% increase year-over-year (YoY). Non-GAAP operating earnings rose 19% to $719 million [1].
- EPS: GAAP diluted EPS was $1.00, while non-GAAP diluted EPS increased 13% to $2.08 [1].
- Acquisition: Cardinal Health announced the acquisition of Solaris Health, which will join the Specialty Alliance's Urology Alliance [1].

Stock Performance:

Cardinal Health's stock fell 7% after the announcement, with investors reacting to the acquisition's cost and the flat Q4 revenue. The company's shares traded at $120.50, down from $130.00 before the announcement.

Outlook:

Cardinal Health raised its 2026 non-GAAP EPS guidance to $9.30 to $9.50, a 13% to 15% increase from the previous guidance. The company expects revenue growth of 11% to 13% for the Pharmaceutical and Specialty Solutions segment, 2% to 4% for the Global Medical Products and Distribution segment, and 26% to 28% for the Other segment [1].

References:

[1] https://newsroom.cardinalhealth.com/2025-08-12-Cardinal-Health-Reports-Fourth-Quarter-and-Fiscal-Year-2025-Results-and-Raises-Fiscal-Year-2026-Guidance