Fiscal year ends JunLast earnings: Apr 30, 2026Est. next earnings: Jul 30, 2026
Latest Score
9.0/ 10
-1.0vs prior
4-Period Change
+2.0
vs Q3 '25
Challenge RatePercentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions.
1%
All quarters
9.0out of 10Positive
Sentiment · FY2026 Q3
Q1 '25Q3 '26
Top Analysts & Firms
Most Active Analysts
Analyst
Firm
Questions
ChallengePercentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions.
Base7Base 7GAAP revenue YoY +11.1% → base 7. The base score is anchored to the GAAP revenue YoY band before transcript, EPS, and guidance adjustments.+Transcript0Transcript 0GAAP revenue is clean, no distortion. Healthcare distribution revenue reflects real demand volumes.+EPS+1EPS +1GAAP EPS YoY -19.52% vs rev YoY 11.05%, spread -30.57 percentage points. GAAP operating income YoY -30.27%, operating income spread -41.32 percentage points. Both contaminated by $184M Navista goodwill impairment (qualifying charge: impairment) plus acquisition intangible amortization and deal costs. Serial acquirer rule fires: GAAP-to-non-GAAP EPS gap = 35% - (-19.52%) = 54.52 percentage points >> 5 percentage points. Transcript states non-GAAP EPS of $3.17, representing 35% growth. Non-GAAP EPS spread: 35 - 11.05 = +23.95 percentage points. Non-GAAP operating earnings growth 18%, non-GAAP operating income spread 18 - 11.05 = +6.95 percentage points, outside +5 percentage points same direction, confirms +1.+Guidance+2Guidance +2Full-year FY2026 non-GAAP EPS guidance raised from $10.25 midpoint to $10.75 midpoint ($10.70-$10.80 range), a $0.50 increase. (10.75 - 10.25) / 10.25 = 4.88% → raise ≥3%. Also raised adjusted free cash flow to $3.3B-$3.7B from $3.0B-$3.5B and pharma segment profit growth to 22-23% from 20-22%.=Final9Hard cap9Hard cap 9Calculated total was 10; capped at 9. See the Hard caps section on the About page for the full rules.
How this score was built
Base7Base 7GAAP revenue YoY +11.1% → base 7. The base score is anchored to the GAAP revenue YoY band before transcript, EPS, and guidance adjustments.+Transcript0Transcript 0GAAP revenue is clean, no distortion. Healthcare distribution revenue reflects real demand volumes.+
Macro Signals
→Trade & Tariffs→Supply Chain→Inflation
Cardinal Health posted Q3 non-GAAP EPS of $3.17 representing 35% growth, with operating earnings up 18% despite a $184 million Navista goodwill impairment on the GAAP line. Full-year guidance was raised $0.50 at the midpoint to $10.70-$10.80, with adjusted free cash flow guidance also increased to $3.3-$3.7 billion. Specialty revenue exceeded 20% growth, and pharmaceutical distribution demand remained strong with 11% revenue growth.
Key Themes7
positive📊 company
Pharmaceutical Distribution Demand Strong With 11% Revenue Growth
Total company revenue increased 11% to $61 billion driven by strong demand across product categories including specialty, generics and consumer health.
Revenue GrowthDemand
positive📊 company
Specialty Revenue Exceeds 20% Growth With MSO Expansion
Specialty revenue grew over 20% in the quarter with oncology over 30% growth. Specialty revenue expected to exceed $50 billion in fiscal 2026. Three tuck-in acquisitions closed within the Specialty Alliance.
EPS +1GAAP EPS YoY -19.52% vs rev YoY 11.05%, spread -30.57 percentage points. GAAP operating income YoY -30.27%, operating income spread -41.32 percentage points. Both contaminated by $184M Navista goodwill impairment (qualifying charge: impairment) plus acquisition intangible amortization and deal costs. Serial acquirer rule fires: GAAP-to-non-GAAP EPS gap = 35% - (-19.52%) = 54.52 percentage points >> 5 percentage points. Transcript states non-GAAP EPS of $3.17, representing 35% growth. Non-GAAP EPS spread: 35 - 11.05 = +23.95 percentage points. Non-GAAP operating earnings growth 18%, non-GAAP operating income spread 18 - 11.05 = +6.95 percentage points, outside +5 percentage points same direction, confirms +1.
+
Guidance+2Guidance +2Full-year FY2026 non-GAAP EPS guidance raised from $10.25 midpoint to $10.75 midpoint ($10.70-$10.80 range), a $0.50 increase. (10.75 - 10.25) / 10.25 = 4.88% → raise ≥3%. Also raised adjusted free cash flow to $3.3B-$3.7B from $3.0B-$3.5B and pharma segment profit growth to 22-23% from 20-22%.
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Final9
Hard cap9Hard cap 9Calculated total was 10; capped at 9. See the Hard caps section on the About page for the full rules.
Non-GAAP EPS Guidance Raised $0.50 At Midpoint To $10.70-$10.80
Full year non-GAAP EPS outlook raised to $10.70 to $10.80, a $0.50 increase at the midpoint representing annual EPS growth of 30% to 31%. Pharma segment profit growth raised to 22% to 23%.
Guidance ReliabilityMargin
positive📊 company
Other Growth Businesses Deliver 31% Revenue And 34% Profit Growth
At-Home Solutions, Nuclear and Precision Health Solutions and OptiFreight Logistics delivered segment revenue growth of 31% to $1.7 billion and segment profit growth of 34% to $179 million. Theranostics again saw over 30% revenue growth.
Revenue GrowthInnovation & R&D
negative📊 company
Navista Goodwill Impairment Of $184 Million
GAAP earnings impacted by $184 million pretax goodwill impairment charge related to Navista business due to changes in risk profile and business model updates. Company is prioritizing equity model over nonequity arrangements.
M&ACompetitive Dynamics
negative📊 company
GMPD Segment Profit Impacted By Tariffs
GMPD segment profit decreased to $25 million due to adverse net impact of tariffs. Company has paid approximately $200 million in IEPA tariffs. Revenue was generally flat to prior year.
Trade TariffsCost Pressure
positive📊 company
Free Cash Flow Guidance Raised To $3.3-$3.7 Billion
Full year adjusted free cash flow guidance raised to $3.3 billion to $3.7 billion from prior $3 billion to $3.5 billion. Generated $1.7 billion of adjusted free cash flow in Q3. Total fiscal year share repurchases reached $1 billion.
Capital AllocationMargin
Evercore ISI
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