Cardinal Health (NYSE: CAH) reported a strong start to its 2026 financial year in its first-quarter earnings call, noting that its at-Home Solutions business continues “to accelerate.”
CEO Jason Hollar made that remark during the company’s Oct. 30 presentation, in which he noted “continued operating momentum and broad-based performance.” Hollar announced “strong double-digit profit growth across each of our five operating segments” that demonstrated “our team’s disciplined execution of our strategic priorities and the strength of our resilient business model.”
Strong demand in pharmaceutical and specialty solutions segment
Hollar said Cardinal Health’s Q1 performance was “again led by our pharmaceutical and specialty solutions segment, where we continue to benefit from a robust demand environment, along with our ongoing efforts to prioritize our core operations and deliver exceptional service for customers.”
He added that progress would “be further accelerated by the acquisition of Solaris Health, the country’s largest urology MSO [management services organization] with over 750 providers.”
Cardinal Health subsequently announced the completion of the Solaris deal on Nov. 3, nothing that the acquisition involves more than 250 practices in 14 states, bringing the company’s totals to approximately 3,000 providers in 32 states across the country.
Progress on ADS acquisition, integration
Hollar added that Cardinal Health is “successfully executing our integration of ADS [Advanced Diabetes Supply], which is creating a powerful business serving patients in their homes.”
Chief Financial Officer Aaron Alt said the acquisition of ADS among other businesses had a substantial impact on gross profit, which grew 22% to $2.3 billion for the quarter. Total company revenue increased 22% to $64 billion, “primarily driven by continued strong demand in pharma and reflecting growth from all five operating segments.”
“We are really pleased with our first-quarter performance, which exceeded our expectations across the board,” Alt said. Later in the call, Alt added, “The integration of ADS into at-Home Solutions is progressing well, with earlier realization of planned synergies.”
Alt announced that thanks to strong results in Q1 2026, Cardinal Health is raising its full-year earnings per share (EPS) guidance “to a range of $9.65 to $9.85.”
“Within at-Home Solutions, the demand environment is strong, and we see favorable long-term secular trends in home health care,” Hollar said. “Those factors, coupled with the synergies from our ADS integration, position us for sustainable growth.
“We have already moved the majority of the ADS volume into our network with minimal utilization of our capacity. Our focus is now turning to integrating back-office operations and systems, which is critical to our goal of building the best customer experience in the industry.”
Hollar noted that the company continues to expand its distribution network: Cardinal Health recently opened a Fort Worth, Texas, distribution center and will begin construction on another distribution center in Sacramento, Calif., this fiscal year.
“Both facilities are equipped with the latest robotics and automation technology, a key component of our long-term investment strategy to drive efficiency and service levels,” he said.
Keeping an eye on the horizon
And of course, Cardinal Health is closely monitoring policy and funding changes during a turbulent time in the HME industry.
“We continue to monitor the dynamic legislative and regulatory environment closely,” Hollar said. “Across the enterprise, we have confidence in the resilience of our business model, as evidenced by our increased guidance and our unique position to safely and efficiently deliver the products and solutions that our customers and patients need. Our essential role in health care has never been more critical, and we will continue to deliver our unmatched breadth of capabilities to meet the evolving needs of our customers and patients.”
