Cardinal Health Boosts FY25 EPS Forecast: Growth Ahead Amid Tariff Challenges

Cardinal Health Inc. (NYSE: CAH) recently reported its financial results for the third quarter of 2025. The adjusted earnings per share (EPS) came in at $2.35, a notable 13% increase compared to the previous year. This figure exceeded analyst predictions, which anticipated an EPS of $2.17. However, total sales remained steady at $54.9 billion, falling short of the expected $55.35 billion. Despite this, adjusted operating earnings jumped by 21% to reach $807 million.

The Pharmaceutical and Specialty Solutions segment saw revenues remain unchanged at $50.6 billion. Excluding a recent customer contract expiration, quarterly revenue actually increased by 20%, fueled by brand and specialty pharmaceutical sales from both existing and new clients.

• Segment profit for this area rose 14% to $662 million, thanks to strong contributions from brand and specialty products and improved performance in generics.

In the Global Medical Products and Distribution segment, revenues climbed by 2% to $3.2 billion, bolstered by growth from current customers.

• Profit in this segment surged 77% to $39 million, largely due to successful cost optimization efforts.
• This segment is responsible for producing, sourcing, and distributing medical, surgical, and laboratory products, both under the Cardinal Health brand and as national brands.

Looking ahead, Cardinal Health has raised its fiscal year 2025 adjusted EPS outlook from a range of $7.85-$8.00 to $8.05-$8.15, surpassing the analyst consensus of $7.96. The company also expects 11.5% to 12.5% profit growth in its Pharmaceutical and Specialty Solutions segment, up from the previous forecast of 10% to 12%.

• On the other hand, the profit outlook for the GMPD segment has been narrowed to between $130 million and $140 million, down from $130 million to $150 million.

Despite the shifting macroeconomic landscape, Cardinal Health predicts double-digit non-GAAP EPS growth for fiscal 2026. The company anticipates continued strong growth in the Pharmaceutical and Specialty Solutions segment, while adjusting its expectations for GMPD segment profit to align with fiscal 2025 results.

• Cardinal Health plans to evaluate potential risks and opportunities and will share further insights during its Investor Day on June 12.

As of the latest update, shares of CAH are trading 2.30% higher, positioned at $144.53.

This growth story is reflective not just of Cardinal Health’s strategic initiatives but also of broader trends in the healthcare market. For instance, a recent report highlighted that the pharmaceutical and healthcare sectors are projected to grow significantly, driven by advancements in technology and an increasing demand for healthcare services.

According to a study by the Bureau of Labor Statistics, employment in healthcare occupations is expected to grow by 16% from 2020 to 2030, much faster than the average for all occupations. This rising demand underscores the importance of companies like Cardinal Health in meeting healthcare needs.

For further information on fiscal trends and industry insights, you can explore authoritative sources such as the Health Affairs.

Source link

Cardinal Health, Specialty Solutions, specialty products, Segment profit, Specialty Networks, pharmaceutical sales, contract expiration, Pharmaceutical, national brand products