Cardinal Health surges as specialty pharma and GLP-1 demand drive guidance raise

Cardinal Health (NYSE:CAH) delivered a blowout second quarter on Thursday, significantly raising its full-year outlook as the drug wholesaler cashes in on robust demand for specialty therapeutics and high-margin GLP-1 medications.

The Dublin, Ohio-based healthcare giant reported revenue of $65.6 billion, a 19% increase that outpaced analyst expectations.

The bottom line was even more impressive: non-GAAP operating earnings jumped 38% to $877 million, while adjusted EPS rose 36% to $2.63.

The performance was led by the Pharmaceutical and Specialty Solutions segment, which saw a 29% profit surge to $687 million, fueled by strong brand pharmaceutical sales and the successful integration of recent MSO (Management Services Organization) acquisitions like Solaris Health.

A major contributor to the quarter's momentum was the continued rise of specialty medicine, including GLP-1 weight-loss and diabetes therapies, which now account for a significant portion of incremental revenue growth.

Additionally, the company's "Medical Products and Distribution" segment—long a drag on performance—showed signs of a structural turnaround.

The division’s profit more than doubled to $37 million, driven by cost optimization and higher volumes in Cardinal Health–branded clinical products like compression and surgical kits.

Reflecting this broad-based strength, CEO Jason Hollar raised the company’s fiscal 2026 non-GAAP EPS guidance to a range of $10.15–$10.35, up from the previous forecast of at least $10.

Cardinal Health also signaled it has reached its targeted leverage range following the financing of the Solaris Health acquisition, clearing the way for more aggressive capital returns.