Why This Matters to Distributors: Cardinal Health ended fiscal 2026 with higher sales and earnings, led by its pharmaceutical and specialty business. The healthcare distributor expects growth to continue in fiscal 2027 as it expands through acquisitions and adds distribution capacity, robotics and automation.
Cardinal Health closed fiscal 2026 with higher sales and earnings as growth in its pharmaceutical and specialty business offset a fourth-quarter sales decline in its medical products distribution operation.
Fourth-quarter sales increased 6% to $63.7 billion from $60.2 billion a year earlier. Earnings rose 67% to $398 million from $239 million.
For the fiscal year ended June 30, sales climbed 14% to $254.2 billion from $222.6 billion in fiscal 2025. Earnings increased 10% to $1.71 billion from $1.56 billion.
“Fiscal 2026 was a standout year for Cardinal Health and I am pleased with our strong fourth quarter results,” CEO Jason Hollar said.
Hollar said all five of Cardinal Health’s operating segments posted double-digit profit growth for the year, even before the benefit of tariff refunds.
Cardinal Health’s Pharmaceutical and Specialty Solutions business, its largest segment, remained the primary growth driver.
Fourth-quarter sales increased 6% to $58.8 billion from $55.4 billion a year earlier, driven by higher sales of branded and specialty pharmaceuticals to existing customers. Segment profit rose 21% to $645 million from $535 million.
For the full year, Pharmaceutical and Specialty Solutions sales increased 15% to $234.8 billion from $204.6 billion. Segment profit rose 23% to $2.8 billion from $2.3 billion.
Results were mixed in Cardinal Health’s Global Medical Products and Distribution business.
Fourth-quarter sales declined 2% to $3.1 billion from $3.2 billion a year earlier. Cardinal Health attributed the decline primarily to lower distribution volumes and tariff-related refunds to customers, partially offset by growth in Cardinal Health-branded products.
Segment profit increased to $150 million from $70 million, primarily because of tariff refunds.
For the full year, Global Medical Products and Distribution sales increased 1% to $12.7 billion from $12.6 billion. Segment profit rose 91% to $258 million from $135 million.
Cardinal Health’s three other operating businesses — Nuclear and Precision Health Solutions, OptiFreight Logistics and at-Home Solutions — also grew during the quarter.
Combined fourth-quarter sales increased 7% to $1.7 billion from $1.6 billion a year earlier, while profit rose 14% to $183 million from $160 million. Cardinal Health attributed the profit increase to growth at OptiFreight Logistics and at-Home Solutions.
For the full year, sales from the three businesses increased 26% to $6.8 billion from $5.4 billion. Profit rose 37% to $707 million from $516 million.
Cardinal Health expects growth across its businesses to continue in fiscal 2027.
The company expects Pharmaceutical and Specialty Solutions sales to increase 3% to 5%, with profit growing 8% to 11%.
Global Medical Products and Distribution sales are expected to increase 2% to 4%. Cardinal Health expects its Nuclear and Precision Health Solutions, OptiFreight Logistics and at-Home Solutions businesses to generate combined sales growth of 11% to 13% and profit growth of 15% to 18%.
The forecast includes the expected contribution from Cardinal Health’s recently completed acquisition of Strive Medical and its announced acquisition of AdaptHealth’s Diabetes Health business.
The company is also expanding its physical distribution network. Cardinal Health plans to open a distribution center in Indianapolis in 2027 that will feature advanced robotics and automation to add capacity and increase operating flexibility.
Cardinal Health is a distributor of pharmaceuticals and specialty products and a manufacturer and distributor of medical and laboratory products. The company also supplies home health and direct-to-patient products and services and operates nuclear pharmacies and logistics and data businesses.
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