Cardinal Health (NYSE: CAH) reported strong second-quarter fiscal year 2026 earnings and noted “secular tailwinds” for several business units despite ongoing tariff challenges.
In the company’s Feb. 5 earnings call, CEO Jason Hollar said Cardinal Health “has delivered another excellent quarter, driven by broad-based performance across the enterprise.”
“What stands out to me most in this quarter’s performance is the balance of results across our
portfolio, as we achieved strong profit growth of at least double-digits from all five of our operating
segments,” Hollar added.
In describing results for Cardinal Health’s at-Home Solutions business, among other segments, Hollar noted “the strength of their value propositions and our focused long-term investments” and said Q2 results have provided “confidence as we move forward, and as a result, I’m pleased to share that we are again raising our outlook.”
at-Home Solutions continues to benefit from ADS integration
CFO Aaron Alt said the new range for fiscal year 2026 earnings per share is $10.15 to $10.35, up from an interim guidance of at least $10 per share.
“This updated outlook represents year-over-year EPS [earnings per share] growth of 23% to 26%,” Alt added. “When revenue and gross margin grow faster than SG&A [selling, general and administrative expenses], positive progress is the result.”
Total Q2 revenue was $66 billion, up 19%. For the “Other” business unit — which includes nuclear and precision health solutions, at-Home Solutions, and OptiFreight Logistics — Alt said revenue was up 34% to $1.7 billion, “driven by strong demand across all three businesses and the contribution from the acquisition of Advanced Diabetes Supply (ADS).
“The integration of ADS into our at-Home Solutions business continues to progress well,” Alt said. “This
combination has created a powerful platform for patients with chronic conditions, and we are seeing
the benefits of our dual strategy as both a direct-to-home distributor and a direct provider.”
Revenue guidance for Cardinal Health’s Other business segment was unchanged at 26% to 28% growth for the remainder of the fiscal year, but the company is increasing that segment’s profit guidance to 33% to 35% growth, an increase in the previous range of 29% to 31%.
“Our second quarter results demonstrate that Cardinal Health is executing effectively on its strategy,” Alt said. “We are strengthening our core distribution business while aggressively expanding in higher-margin areas such as Specialty and our Other growth businesses. We remain focused on operational
excellence, simplification, and delivering value to our customers and partners.”
New ContinuCare Pathways program boosts diabetes portfolio
Hollar described the addition of ADS “smooth and efficient,” adding that transition is “positioning us for long-term growth.
“We see synergistic opportunities with our large-core pharma and specialty solutions business, with the latest example seen in the announcement of our ContinuCare Pathways program. This program leverages the full Cardinal Health portfolio to simplify diabetes supply management for partner pharmacies and patients, which is already supporting over 11,000 pharmacies today with more opportunities in the pilot testing phase. We were pleased to announce a key partnership with Publix Super Markets, a recent new customer in our pharma business, to further expand our reach.”
Hollar did say results for Cardinal Health’s Global Medical Products & Distribution (GMPD) business — which showed segment profit of $37 million for the quarter, more than double its segment profit compared to the same period in the prior year — “were partially offset by the adverse net impact of tariffs.”
But Hollar added, “Despite the tariff headwind, the segment’s transition from past challenges to solid profitability is evident, and we remain committed to the improvement plan initiatives that focus on growing the Cardinal Health brand, enhancing our supply chain and simplifying operations.”
