Cardinal Health (NYSE:CAH) raised its fiscal year 2026 earnings outlook Tuesday, citing rapid acceleration in its specialty pharmaceutical business and a successful navigating of federal drug pricing changes.
The Dublin, Ohio-based distributor now expects non-GAAP diluted earnings per share of at least $10, up from its previous guidance of $9.65 to $9.85.
The upward revision, announced during the 44th Annual J.P. Morgan Healthcare Conference, is underpinned by a surge in high-margin specialty services.
Cardinal Health anticipates its specialty revenues will exceed $50 billion by fiscal 2026, representing a robust 16% three-year compound annual growth rate.
Much of this momentum is coming from its BioPharma Solutions unit, which is projected to grow revenue by more than 30% this year as it secures new contracts for complex therapies.
Crucially, management confirmed the company has successfully transitioned its distribution agreements ahead of the Medicare Drug Price Negotiation program changes that took effect Jan. 1, 2026.
This proactive shift mitigates potential headwinds from the Inflation Reduction Act, ensuring stability for its branded pharmaceutical portfolio.
Beyond traditional distribution, Cardinal is deepening its reach into patient care.
Its Sonexus™ Access and Patient Support business now serves over one million patients, while its newly launched ContinuCare™ Pathway program has expanded to over 11,000 pharmacies.
This includes a key partnership with Publix Super Markets, which recently enrolled nearly 1,400 of its locations to simplify diabetes supply management for patients.