Cardinal Health FY26: Non-GAAP EPS $11.26, Guides FY27 Above Consensus; $5B Buyback Authorized
CAH sits 73% above its 52-week low of $137.75.
Summary
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.
Key Events · Earnings and Guidance · CAH
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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%.
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$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.
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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.
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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.
Analysis · 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.
How filings like this one have moved
In the 30 days to Oct 15, 2026, 46.5% of the 301 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.48%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, CAH was trading at $238.62 on NYSE in the Trade & Services sector, with a market capitalization of approximately $55.5B. The 52-week trading range was $137.75 to $244.87. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.