Cardinal Health FY26: Non-GAAP EPS $11.26, Guides FY27 Above Consensus; $5B Buyback Authorized

summarizeSummary

Cardinal Health reported FY26 non-GAAP EPS of $11.26, up 37%, and guided FY27 non-GAAP EPS to $12.00–$12.40, above consensus. A new $5B buyback was authorized, but the filing also disclosed $306M in impairments and up to $1.56B in potential IRS tax liabilities.

check_boxKey Events · Earnings and Guidance · CAH

• FY26 Results Beat, FY27 Guidance Raised

  Non-GAAP diluted EPS of $11.26 (up 37% YoY) on revenue of $254.2B (up 14%). FY27 non-GAAP EPS guidance of $12.00–$12.40 exceeds consensus of $11.26, with revenue growth expected at 10–12%.

• $5B Share Buyback Authorized

  Board approved a new $5.0 billion repurchase program on August 4, 2026, adding to the $1.4 billion remaining under the prior authorization. $1.4 billion was deployed in FY26.

• Goodwill and Equity Impairments Total $306M

  A $184M pre-tax goodwill impairment was recorded for the Navista & ION oncology MSO reporting unit, and a $122M pre-tax impairment was taken on the 16% equity stake in Outcomes.

• IRS Challenges Could Cost Up to $1.56B

  Two NOPAs received: one challenges captive insurance loss deductions (~$400M tax expense, ~$1.4B liability); the other recharacterizes a 2017 acquisition (~$160M liability). Both plus interest.

auto_awesomeAnalysis · CAH · Trade & Services

Fiscal 2026 proved to be a standout year for Cardinal Health, as non-GAAP diluted EPS surged 37% to $11.26 on 14% revenue growth, fueled by branded and specialty pharma strength along with MSO acquisitions. Looking ahead, the company initiated FY27 non-GAAP EPS guidance of $12.00–$12.40, well above the $11.26 consensus, signaling confidence in continued momentum. A new $5.0 billion share repurchase authorization—on top of $1.4 billion remaining—underscores management's commitment to returning capital. However, the 10-K also reveals significant tax contingencies: two IRS Notices of Proposed Adjustment could result in up to $1.4 billion in additional tax liability plus interest, and a separate $160 million challenge. A $184 million goodwill impairment in the Navista & ION oncology MSO unit and a $122 million impairment of the Outcomes equity stake highlight integration and valuation risks in the newer MSO businesses. The balance sheet remains robust with $4.9 billion in cash and a newly consolidated $4.0 billion revolver, but the opioid litigation overhang persists with $4.3 billion accrued. Overall, the strong operating performance and bullish guidance are tempered by sizable tax and impairment headwinds.