Cardinal Health (NYSE:CAH) shares fell 2.9% on Tuesday after the healthcare services company reported fourth-quarter revenue that missed analyst expectations, despite raising its fiscal 2026 earnings guidance.
The company reported fourth-quarter revenue of $60.2 billion, relatively flat compared to the same period last year and below the analyst consensus of $60.92 billion.
However, revenue increased 21% when excluding the impact of a previously communicated contract expiration with OptumRx.
Adjusted earnings per share came in at $2.08, exceeding analyst expectations of $2.03. The 13% year-over-year increase in adjusted EPS was driven by a 19% rise in non-GAAP operating earnings to $719 million, with all five operating segments growing profit by double digits.
"Fiscal 2025 was a transformative year for Cardinal Health, and we closed the year with momentum, delivering strong fourth quarter results," said Jason Hollar, CEO of Cardinal Health.
"The broad-based operational strength, with all five of our operating segments growing profit double-digits, reflects the disciplined execution of our strategy and our investments for growth."
For the full fiscal year 2025, Cardinal Health reported revenue of $222.6 billion, a 2% decrease from fiscal 2024, though revenue increased 18% excluding the OptumRx contract expiration. Adjusted EPS for the year rose 9% to $8.24.
The company raised its fiscal 2026 adjusted EPS guidance to $9.30-$9.50, up from its previous outlook of $9.10-$9.30 and above the analyst consensus of $9.25.
Cardinal Health also announced the acquisition of Solaris Health, described as the country’s leading urology MSO with over 750 providers.
Cardinal Health generated $2.5 billion in adjusted free cash flow for fiscal 2025 and expects $2.75-$3.25 billion for fiscal 2026.
Source :
https://www.investing.com/news/earnings/cardinal-health-shares-drop-as-revenue-misses-expectations-despite-raised-outlook-4184678
