Cardinal Health Raises FY25 Guidance and Provides Preliminary FY26 Guidance
Cardinal Health has announced several updates and strategic plans during its investor day. The company has raised its non-GAAP diluted EPS guidance for fiscal year 2025 to a range of $8.15 to $8.20, up from the previous range of $8.05 to $8.15, reflecting a 9% growth at the mid-point. Additionally, the company has established a preliminary non-GAAP diluted EPS guidance for fiscal year 2026 in the range of $9.10 to $9.30, indicating a 13% growth at the mid-points.
The company has also confirmed its long-term target of 12% to 14% non-GAAP diluted EPS compound annual growth rate (CAGR) from fiscal year 2026 to fiscal year 2028. Furthermore, Cardinal Health has raised its long-term target for pharmaceutical and specialty solutions profit to 5% to 7% normalized growth, and for other profit to approximately 10% normalized growth.
In terms of financial performance, the company has updated its fiscal year 2025 guidance, including raising and narrowing its non-GAAP diluted EPS, raising pharmaceutical and specialty solutions segment profit growth, and raising other segment profit growth.
Looking ahead, the company has provided preliminary guidance for fiscal year 2026, indicating its expectations for non-GAAP diluted EPS, adjusted free cash flow, capital expenditures, non-GAAP effective tax rate, and revenue and segment profit growth across its various business segments.
Cardinal Health remains committed to its disciplined capital allocation framework and plans to invest at least $600 million per year in capital expenditures to drive organic growth across its businesses. Additionally, the company expects at least $750 million in baseline share repurchases each of the next 3 years.
The market has reacted to these announcements by moving the company's shares 0.29% to a price of $153.53. For the full picture, make sure to review CARDINAL HEALTH INC's 8-K report.
