Abstract
Cardinal Health will report fiscal Q2 2026 results on February 05, 2026 Pre-Market. The preview consolidates market forecasts and recent institutional commentary to frame expectations around revenue, margins, net profit, and adjusted EPS for the quarter.
Market Forecast
Consensus points to fiscal Q2 revenue of USD 64.13 billion, EBIT of USD 813.52 million, and adjusted EPS of USD 2.33, with year-over-year increases of 16.56%, 37.98%, and 32.51%, respectively; company-level projections guide toward margin expansion versus the prior year, while net profit is expected to grow year-over-year alongside a modest net profit margin improvement. The main business is expected to remain driven by the pharmaceutical and specialty solutions segment, with steady distribution demand and improving specialty mix; the most promising segment continues to be pharmaceutical and specialty solutions, with outsized revenue scale and high single- to double-digit growth momentum year over year.
Last Quarter Review
Cardinal Health’s last fiscal quarter delivered revenue of USD 64.01 billion, a gross profit margin of 3.62%, GAAP net profit attributable to the parent company of USD 450.00 million, a net profit margin of 0.70%, and adjusted EPS of USD 2.55, all improving year over year. A key highlight was EBIT of USD 857.00 million, which outpaced prior expectations and reflected strong operating leverage across distribution and specialty platforms. The main business posted USD 59.21 billion from pharmaceutical and specialty solutions, USD 3.18 billion from global medical products and distribution, and USD 1.64 billion from other activities, illustrating the dominant revenue contribution and year-over-year expansion in the core pharmaceutical segment.
Current Quarter Outlook
Main Business: Pharmaceutical and Specialty Solutions
The pharmaceutical and specialty solutions segment is set to anchor this quarter’s performance, backed by broad-based distribution volumes and continued specialty therapy adoption. The revenue forecast implies sustained client demand across retail pharmacy chains, health systems, and physician-office channels, with specialty pharmaceuticals remaining a mix-enhancing driver. Pricing disciplines and purchasing efficiencies are expected to support gross margin stability near recent levels, while operating expense containment should allow EBIT momentum to continue. With year-over-year top-line growth of 16.56% implied for the consolidated business, this segment’s scale and contract coverage are central to delivering the projected EPS of USD 2.33.
Most Promising Business: Specialty Distribution and Services
Specialty distribution and services remain the focal point for incremental growth, benefiting from continued expansion in oncology, immunology, and complex therapies that require controlled distribution capabilities. The segment’s economics are attractive due to service intensity and value-added offerings such as data, hub services, and practice management support, which can improve stickiness and pricing realization. Volume growth tied to new specialty launches and deeper penetration into provider offices should bolster EBIT growth, supporting the estimated USD 813.52 million of consolidated EBIT. Execution in this area is crucial to sustaining adjusted EPS momentum and reinforcing the year-over-year growth profile projected for fiscal Q2.
Stock Price Drivers This Quarter
Investors will likely focus on margin cadence, particularly whether gross profit margin can hold near 3.62% and whether net profit margin trends remain consistent with last quarter’s 0.70%. Visibility into the sustainability of EBIT expansion versus the prior quarter’s USD 857.00 million will factor into sentiment, as will management’s commentary on specialty volumes and reimbursement dynamics. Guidance updates for the second half of the fiscal year, including any adjustments to revenue or EPS ranges, could materially influence the stock trajectory, especially if they validate the implied 32.51% year-over-year growth in adjusted EPS for fiscal Q2. Execution on cost control and working capital discipline will also be monitored for free cash flow implications.
Analyst Opinions
Recent institutional commentary on Cardinal Health tilts bullish, with a majority expecting upside from operational execution and specialty-driven mix improvements. Analysts cite strong prior-quarter outperformance, including EBIT exceeding expectations by USD 107.46 million and adjusted EPS topping by USD 0.37, as a foundation for confidence heading into fiscal Q2. The prevailing view emphasizes that robust revenue scale of USD 64.01 billion last quarter and improving operating leverage can support the current estimates for USD 64.13 billion of revenue and USD 2.33 adjusted EPS. Commentary from major sell-side institutions highlights that consistent specialty growth, disciplined expense control, and improving EBIT trends are the key pillars underpinning a positive stance, while attention remains on margin execution and reimbursement conditions to validate the year-over-year growth trajectory this quarter.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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