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# Cardinal Health Targets $12.80–$13.00 In Adjusted Earnings Per Share As Drug Profits Grow
- URL: https://www.bullished.co/cardinal-health-targets-12-80-13-00-in-adjusted-earnings-per-share-as-drug-profits-grow-322098d2/
- Published: 2026-11-06T18:21:18.000Z
- Updated: 2026-11-06T18:21:18.000Z
- Description: The supplier raised its annual outlook, though medical products and distribution profit fell 28%.
- Author: Matteo Parrino
- Tags: Earnings, CAH, Industry: Healthcare

[Cardinal Health](https://www.bullished.co/tag/cah/), which supplies pharmaceuticals and medical products, raised its fiscal 2027 adjusted earnings outlook Thursday to [$12.80–$13.00 per share](https://www.sec.gov/Archives/edgar/data/0000721371/000072137126000042/cah-20261105.htm?ref=bullished.co), from $12.40–$12.60\. Stronger quarterly results and better expectations for the remaining year prompted the increase, the company said in its earnings release accompanying the SEC filing.

## Drug Growth, Medical Weakness

First-quarter revenue rose 5% from a year earlier to [$67.5 billion](https://www.sec.gov/Archives/edgar/data/0000721371/000072137126000042/a27q1%5Fx093026xex991xnewsre.htm?ref=bullished.co). Adjusted earnings per share reached $3.26, up 28%, with operating growth, fewer shares and a lower tax rate all contributing.

The pharmaceutical and specialty products business delivered [$783 million in profit](https://www.prnewswire.com/news-releases/cardinal-health-reports-first-quarter-fiscal-year-2027-results-and-raises-outlook-302930631.html?ref=bullished.co), a 17% increase, on sales of $62.6 billion, up 6%. Existing customers bought more brand-name and specialty drugs, while those products and the generics program helped lift profit.

Medical products and distribution moved the other way: profit fell 28% to [$33 million](https://www.prnewswire.com/news-releases/cardinal-health-reports-first-quarter-fiscal-year-2027-results-and-raises-outlook-302930631.html?ref=bullished.co), while revenue stayed roughly flat at $3.2 billion. Distribution weakness and unfavorable currency effects outweighed growth in Cardinal Health Brand products.

The remaining businesses—Nuclear and Precision Health Solutions, at-Home Solutions and OptiFreight Logistics—grew across the group. Their combined revenue increased 7% to $1.8 billion, and profit rose 16% to $193 million.

## Higher Forecasts, Fewer Shares

The annual outlook now calls for pharmaceutical and specialty profit growth of 10%–12%, versus 8%–11% previously. For the remaining businesses, Cardinal Health raised expected profit growth to 17%–20% from 15%–18%, and revenue growth to 12%–14% from 11%–13%.

The earnings forecast implies growth of 17%–19% against fiscal 2026 adjusted earnings of $10.95 per share excluding a tariff refund, or 14%–15% against reported fiscal 2026 results. Those comparisons use different bases.

Cardinal Health completed $500 million in first-quarter buybacks. The timing of that accelerated repurchase helped lower its annual average diluted share forecast to 231 million–232 million from approximately 233 million; management also lowered its expected adjusted tax rate to 18.5%–19.5% from 19.0%–20.0%.

Jason Hollar, Cardinal Health’s CEO, tied the increase to the quarter and the revised expectations: “Given this quarter's strong performance and our updated expectations for the remainder of the year, we are [raising our fiscal](https://www.sec.gov/Archives/edgar/data/0000721371/000072137126000042/a27q1%5Fx093026xex991xnewsre.htm?ref=bullished.co) 2027 non-GAAP EPS outlook.”

## Cash And Distribution Expansion

Operating cash generation reached [$1,398 million](https://www.sec.gov/Archives/edgar/data/0000721371/000072137126000042/a27q1%5Fx093026xex991xnewsre.htm?ref=bullished.co), compared with $973 million a year earlier. Under standard accounting, profit attributable to Cardinal Health increased 23% to $554 million, while diluted earnings per share rose 27% to $2.38\. Operating earnings increased 13% to $753 million; adjusted operating earnings grew 17% to $1.0 billion.

Cardinal Health also entered a binding letter of intent to renew pharmaceutical distribution agreements with CVS Health. Other developments included an additional $1.0 billion in uncommitted revolving credit facilities and the launch of INSIGHT-IBD with Eli Lilly, a study of treatment patterns and outcomes for patients with inflammatory bowel disease in routine care.

CAH shares rose about 1% to $271.81 in Friday trading.

Cardinal Health anticipates completing its purchase of AdaptHealth’s Diabetes Health business in the third quarter of fiscal 2027.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — CARDINAL HEALTH INC (CAH)](https://www.sec.gov/Archives/edgar/data/0000721371/000072137126000042/cah-20261105.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit a27q1\_x093026xex991xnewsre.htm — CARDINAL HEALTH INC 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000721371/000072137126000042/a27q1%5Fx093026xex991xnewsre.htm?ref=bullished.co) — SEC EDGAR
- [Cardinal Health (NYSE:CAH) posts better-than-expected sales in Q3 CY2026](https://finance.yahoo.com/healthcare/articles/cardinal-health-nyse-cah-posts-123700939.html?ref=bullished.co) — Yahoo Finance
- [Cardinal Health beats top-line and bottom-line estimates; raises FY26 outlook | Seeking Alpha](https://seekingalpha.com/news/4666405-cardinal-health-beats-top-line-and-bottom-line-estimates-raises-fy26-outlook?ref=bullished.co) — seekingalpha.com
- [Cardinal: Fiscal Q1 Earnings Snapshot | khou.com](https://www.khou.com/article/syndication/associatedpress/cardinal-fiscal-q1-earnings-snapshot/616-16b379af-ca53-442c-98db-be170c4be427?ref=bullished.co) — Associated Press
- [CAH Q1 Earnings Call Highlights Raised Outlook and Specialty Growth](https://finance.yahoo.com/healthcare/articles/cah-q1-earnings-call-highlights-140000187.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Cardinal Health Reports First Quarter Fiscal Year 2027 Results and Raises Outlook](https://www.prnewswire.com/news-releases/cardinal-health-reports-first-quarter-fiscal-year-2027-results-and-raises-outlook-302930631.html?ref=bullished.co) — prnewswire.com

### More on Cardinal Health

- [Cardinal Health Raises Profit Outlook To $12.80-$13 And Says It Wants No 'Fourth Leg' For Deals](https://www.bullished.co/cardinal-health-raises-profit-outlook-to-12-80-13-and-says-it-wants-no-fourth-leg-for-a2784705/)
- [Cardinal Health Wins Three Of Six Pentagon Medical Supply Contracts, Led By A $1.50 Billion Award](https://www.bullished.co/cardinal-health-wins-three-of-six-pentagon-medical-supply-contracts-led-by-a-1-50-billion-5bc22690/)

[All Cardinal Health (CAH) coverage →](https://www.bullished.co/tag/cah/)