08:59 AM EDT, 08/12/2025 (MT Newswires) -- Cardinal Health ( CAH ) raised its full-year earnings outlook on Tuesday after its fiscal fourth-quarter bottom line rose above market expectations, while the drug distributor agreed to acquire urological healthcare management company Solaris Health in a deal worth $1.9 billion.

The company's multi-specialty management services organization platform, Specialty Alliance, will purchase Solaris Health from Lee Equity Partners and the firm's physician owners. Solaris Health supports more than 750 providers across more than 250 practice locations in 14 states.

Cardinal will give about $1.9 billion to Specialty Alliance and own 75% of the platform after the deal closes, which is expected to happen by the end of the year. Cardinal will fund the acquisition through cash on hand and new debt financing, it said.

The deal is expected to be slightly accretive to Cardinal's adjusted earnings per share in the first 12 months after it's complete. The company will include the projected impact of the transaction to the fiscal 2026 outlook after it closes.

"Accelerating Specialty growth remains our top priority," Cardinal Health ( CAH ) Chief Executive Jason Hollar said. "Urology is an attractive specialty for us, and we are well-positioned to meet the comprehensive needs of community urologists through the robust combined capabilities of The Specialty Alliance, Specialty Networks and Cardinal Health ( CAH )."

Cardinal's shares fell 5.9% in the most recent premarket activity.

Separately, the drug distributor raised its fiscal 2026 adjusted EPS guidance to a range of $9.30 to $9.50 from its previous guidance of $9.10 to $9.30. The current consensus on FactSet is for non-GAAP EPS of $9.26. In the just-ended fiscal year, adjusted EPS grew 9% annually to $8.24.

"Fiscal 2025 was a transformative year for Cardinal Health ( CAH ), and we closed the year with momentum, delivering strong fourth-quarter results," Hollar said in the earnings release. "The broad-based operational strength, with all five of our operating segments growing profit double-digits, reflects the disciplined execution of our strategy and our investments for growth."

For the June quarter, adjusted EPS climbed to $2.08 from $1.84, topping the Street's view for $2.04. Revenue edged higher to $60.16 billion from $59.87 billion, but fell short of the average analyst estimate of $60.89 billion. Sales inclined 21% excluding the impact of a customer contract expiration.

Sales in the pharmaceutical and specialty solutions division dipped to $55.37 billion from $55.61 billion in the prior-year quarter, while the segment's profit was up 11%. Global medical products and distribution revenue rose 3% to nearly $3.2 billion while profit soared 49%, buoyed by volume gains from existing customers.

For the ongoing fiscal year, the company now expects profit in the pharmaceutical and specialty solutions business to rise by 11% to 13%, compared with its prior forecast for growth of 10% to 12%. Revenue in the global medical products and distribution business is projected to increase by 2% to 4%, down from the previous outlook of 3% to 5%.