A giant of the healthcare supply chain, Cardinal Health distributes prescription and over-the-counter medicines to hospitals, pharmacies, and labs, and also makes its own line of medical and laboratory products. It began in 1971 as Cardinal Foods, a grocery wholesaler founded by Robert D. Walter, who named it for Ohio's state bird and his high school mascot. In 1979 the company bought a small drug distributor and pivoted into pharmaceuticals, renaming itself Cardinal Health in 1994.
10-K · Fiscal year ended Jun 30, 2026 · SEC filing ↗
Cardinal Health FY2026 revenue rose 14% to $254.2B as pharma profit grew 23% on branded drugs and MSO acquisitions.
The OptumRx contract loss is now fully in the rearview mirror, and the company replaced that and more. Revenue rose 14% to $254.2 billion and grew 37% to $11.26, driven by branded and specialty pharmaceutical sales and a series of specialty-practice acquisitions. The growth came with a cost: remains elevated at $7.0 billion after a year of heavy M&A spending.
Key takeaways
Pharma profit rose 23% to $2.8 billion, the primary driver of the year, fueled by branded and specialty pharmaceutical sales growth from existing customers, the generics program, and contributions from acquired MSO platforms including Solaris Health and GI Alliance.
increased 14% to $254.2 billion, as branded and specialty pharmaceutical sales growth more than offset the prior-year from the OptumRx contract expiration that had cut revenue in fiscal 2025.
Section summaries
Management's Discussion and Analysis
Revenue rose 14% to $254.2B and non-GAAP operating earnings grew 30% to $3.6B, driven by Pharma segment branded, specialty, and generics performance and MSO acquisitions.
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Consolidated increased 14% to $254.2 billion, primarily from branded and specialty pharmaceutical sales growth in the Pharma .
rose 12% to $7.23, held back by a $184 million non-cash in the Navista & ION reporting unit and a $122 million of the Outcomes equity interest, while diluted EPS grew 37% to $11.26.
GMPD profit nearly doubled to $258 million from growth with existing customers, and the net tariff impact was immaterial for the year because an tariff refund benefit offset the costs.
more than doubled to $5.2 billion, funding $1.9 billion for the Solaris Health acquisition, $1.4 billion in share repurchases, and $417 million in opioid litigation payments.
ended the year at $7.0 billion, down from $8.0 billion a year earlier, as the company repaid $500 million in debt while issuing $1.0 billion for the Solaris Health deal.
What changed
The OptumRx contract expiration that cut in fiscal 2025 is now fully lapped: revenue rose 14% to $254.2 billion after falling 2% the year before, and the pharma profit growth accelerated to 23% from 12%.
The GMPD profit nearly doubled to $258 million after rising 47% to $135 million in fiscal 2025, with the tariff impact that caused a 36% drop in Q3 largely neutralized for the full year by an refund benefit.
The $2.8 billion GI Alliance and $1.1 billion Advanced Diabetes Supply Group acquisitions flagged in fiscal 2025 closed and contributed to results, while the company completed the $1.9 billion Solaris Health acquisition in fiscal 2026.
Cash and equivalents rebounded to $4.9 billion from $3.9 billion a year earlier, even after $1.9 billion deployed for Solaris Health and $1.4 billion in share repurchases, as more than doubled to $5.2 billion.
No opioid settlement escrow payment was disclosed in fiscal 2026, after $797 million was paid through Q3 of fiscal 2025, and the company paid $417 million in opioid litigation payments during the year.
What to watch
Pharma profit trajectory in Q1 FY2027 as MSO platforms (GIA, ION, Solaris Health) scale and GLP-1 volume continues, against the 23% rise to $2.8 billion in FY2026.
GMPD profit trend now that the tariff refund benefit has passed, with the company flagging potential 100-200% tariffs on generics starting in 2028.
level and after the $7.0 billion year-end balance and $1.0 billion in new debt issued for Solaris Health, against the $500 million repaid.
Size and timing of the next opioid settlement escrow payment after $417 million in litigation payments in FY2026 and no escrow payment disclosed.
Pharma profit rose 23% to $2.8 billion, driven by branded and specialty pharmaceuticals, the generics program, and acquisitions of MSO platforms like Solaris Health and GI Alliance.
GMPD profit nearly doubled to $258 million from growth with existing customers, while the net tariff impact was immaterial for the year due to an IEEPA tariff refund benefit.
grew 37% to $11.26, while diluted EPS increased 12% to $7.23, with the latter impacted by a $184 million for Navista & ION and a $122 million of the Outcomes equity interest.
was $5.2 billion; major cash uses included $1.9 billion for the Solaris Health acquisition, $1.4 billion in share repurchases, and $417 million in opioid litigation payments.
The company expects of approximately $700 million in fiscal 2027 and noted that future tariffs, including potential 100-200% levies on generics starting in 2028, could impact costs and supply.
Quantitative and Qualitative Disclosures About Market Risk
Cardinal Health discloses foreign exchange, interest rate, and commodity price risks, using VAR and sensitivity analyses to quantify potential impacts.
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Transactional FX exposure, after hedging, has a potential maximum one-year loss of $15 million at a 95% confidence level.
Translational FX exposure from converting foreign financials to USD has a potential maximum one-year loss of $2 million at a 95% confidence level.
A 50 change in interest rates would impact annual by $14 million and interest income by $19 million.
Forecasted direct commodity exposure is $457 million, with a hypothetical 10% price shift resulting in a $46 million gain/loss.
The company uses a mix of fixed and floating rate debt and interest rate swaps to manage interest rate risk, and had no outstanding commodity hedges at year-end.