Earnings
Home›Earnings›Results›Cardinal Health posts big EPS jump but part of it is t…
Cardinal Health posts big EPS jump but part of it is tariff refund
The company said about $0.31 of its $2.91 quarterly non-GAAP diluted EPS, roughly 15 percentage points of the gain, came from a one-time net benefit tied to IEEPA tariff refunds.
Cardinal Health reported fourth-quarter fiscal 2026 results that showed a sharp year-over-year increase in earnings and cash flow, but the company cautioned that a portion of the headline EPS rise was tied to a one-time item. Non-GAAP diluted EPS climbed 40% year over year to $2.91, while full-year adjusted free cash flow reached $5.0 billion, according to Yahoo Finance.
Fourth-quarter total revenue rose to $63.7 billion, up 6% year over year, driven by strength in Pharmaceutical and Specialty Solutions. In that segment, revenue increased 6% to $58.8 billion, with segment profit up 21% to $645 million, supported by brand and specialty demand, while BioPharma Solutions added two gene therapy 3PL commercialization agreements.
Cardinal Health also highlighted growth in smaller businesses, including Nuclear PET revenue up 20% and Theranostics revenue up 30% in the fourth quarter, and at-Home Solutions posting a 99% total fill rate and its best quarter ever for on-time departures. The article also notes that the board authorized a $5.0 billion increase to its buyback program, bringing total authorization to $6.4 billion, and that Cardinal Health extended a long-term Kroger contract and renewed its largest medical products customer.
Looking closer at the EPS jump, Yahoo Finance reported that about $0.31 of the $2.91 non-GAAP diluted EPS, or roughly 15 percentage points of the 40% growth, came from a one-time $100 million net benefit tied to IEEPA tariff refunds in the Global Medical Products and Distribution segment. The company’s guidance for the year ahead was described as pointing to a more normal pace of growth.