Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Cardinal Health's fiscal 2026 was characterized by broad-based revenue growth and a significant improvement in cash flow generation. A $184 million goodwill impairment charge in the Pharma segment, related to Navista & ION, weighed on operating income and highlighted valuation risks. While gross profit expanded at a faster pace than revenue, indicating some operational leverage, rising SG&A expenses and a deepening negative equity position from aggressive share buybacks created tension in the financial profile.
Revenue
$254.25B
+14.23% YoY
EPS (Diluted)
$7.23
+12.09% YoY
Gross Margin
3.8%
+0.2 pts YoY
Operating Income
$2.61B
+14.86% YoY
Filed · Source: SEC EDGAR 10-K filing · Audit Opinion: Unqualified (Source: Report of Independent Registered Public Accounting Firm)
Next CAH earnings expected
Source: SEC XBRL
Cardinal Health (CAH) reported FY2026 revenue of $254.25B, up 14.2% year over year. Operating margin was 1.0%, essentially unchanged from a year earlier. Operating cash flow was $5.17B, up 115.9% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.60 | 2.44 | Beat +6.4% |
| Mar 2026 | 3.17 | 2.82 | Beat +12.6% |
| Dec 2025 | 2.63 | 2.40 | Beat +9.4% |
| Sep 2025 | 2.55 | 2.20 | Beat +15.9% |
3 reported segments · SEC XBRL
Segment revenue totals $254.34B; with -$96M of reconciling items (corporate, unallocated and eliminations) it ties to the $254.25B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure CAH itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from this SEC filing
The company recognized a $184 million goodwill impairment charge for the Navista & ION reporting unit within the Pharmaceutical segment, reducing operating income for the year.
Source: Report of Independent Registered Public Accounting Firm
Operating cash flow increased 115.9% to $5.2 billion, reflecting a substantial improvement in cash conversion from operations.
Source: 10-K Cash Flow Statement (XBRL)
Share buybacks rose 77.5% to $1.4 billion, signaling management's confidence but also contributing to the stockholders' equity deficit.
Source: 10-K Cash Flow Statement (XBRL)
Stockholders' equity remained negative at -$2.9 billion, indicating that liabilities exceed assets, though operating cash flow provides liquidity.
Source: 10-K Balance Sheet (XBRL)
Gross margin expanded by 0.2 percentage points, as revenue growth (+14.2%) slightly outpaced cost of revenue growth (+14.0%).
Source: 10-K Income Statement (XBRL)
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
With a current ratio of 0.88 and negative stockholders' equity of -$2.9 billion, the company relies heavily on operating cash flow and capital markets to meet short-term obligations and maintain solvency.
Source: 10-K Balance Sheet (XBRL)
The $184 million impairment of Navista & ION underscores the risk that other reporting units may become impaired if future performance falls short of projections, potentially leading to additional non-cash charges.
Source: Report of Independent Registered Public Accounting Firm
A substantial portion of revenue comes from the Pharmaceutical and Specialty Solutions segment, which likely depends on a limited number of large pharmacy chains and hospital networks. Loss of a key customer could severely impact revenue.
Source: 10-K Income Statement (XBRL)
The company operates with extremely thin margins (gross margin of 3.84%), reflecting intense competition in pharmaceutical distribution. Even minor pricing aggression or cost increases could materially reduce profitability.
Source: 10-K Income Statement (XBRL)
Cardinal Health's business is subject to healthcare laws and drug pricing regulations. Changes in government reimbursement policies or pharmaceutical pricing rules could materially affect demand and the economics of its distribution model.
Source: 10-K Income Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 254.25 $B | 222.58 $B | +14.23% |
Cost of Revenue $B | 244.47 $B | 214.41 $B | +14.02% |
Gross Profit $B | 9.77 $B | 8.17 $B | +19.66% |
Operating Income $B | 2.61 $B | 2.28 $B | +14.86% |
Net Income $B | 1.71 $B | 1.56 $B | +9.80% |
EPS (Basic) $ | 7.27 $ | 6.48 $ | +12.19% |
EPS (Diluted) $ | 7.23 $ | 6.45 $ | +12.09% |
SG&A Expense $B | 6.13 $B | 5.38 $B | +13.94% |
Answers draw on this SEC filing and the data on this page
Insufficient data is available from CAH's 2026-Q1 10-Q filing to provide a meaningful one-sentence financial summary, as no financial statements or MD&A text were included in the provided data.
CAH (Cardinal Health) delivered strong Q2 FY2026 results with revenue surging 18.8% YoY to $65.6B and operating income jumping 28.8% to $707M, though the company carries negative stockholders' equity and a current ratio below 1.
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