10:22 AM EDT, 06/12/2025 (MT Newswires) -- Cardinal Health ( CAH ) lifted its fiscal 2025 earnings guidance on Thursday and provided a preliminary bottom-line outlook above market estimates at the midpoint for the following year.

The drug distributor now anticipates adjusted earnings to be in a range of $8.15 to $8.20 per share for the ongoing fiscal year, up from its previous projections of $8.05 to $8.15. The current consensus on FactSet is for non-GAAP EPS of $8.13. The stock was up 1.7% in Thursday trade.

"We are proud of the strong and resilient foundation we have built that enables us to deliver compelling future growth," Chief Executive Jason Hollar said in a statement, ahead of the company's investor day. "We look forward to highlighting the significant opportunities in front of Cardinal Health ( CAH ) as we continue to evolve to reach our full potential."

For its pharmaceutical and specialty solutions segment, the company now forecasts profit growth of 12% to 13% for fiscal 2025, compared with its prior guidance for an 11.5% to 12.5% rise. Global medical products and distribution division profit is now pegged at about $130 million, compared with the previous forecast range of $130 million to $140 million.

Cardinal Health ( CAH ) offered a preliminary outlook for the 2026 fiscal year. It expects adjusted EPS to come in between $9.10 and $9.30 in the year. The guidance range's midpoint of $9.20 is above the Street's current view for $9.13.

Revenue from the pharmaceutical and specialty solutions business is expected to rise by 11% to 13% in fiscal 2026, while global medical products and distribution is set to grow by 3% to 5%, according to the company.

"With the benefits of our robust cash flow generation, continued investments in the business and accelerating contributions from higher-margin businesses, we are positioning our business to deliver sustainable long-term growth and value creation," Chief Financial Officer Aaron Alt said.

The company continues to estimate a 12% to 14% compound annual growth rate for adjusted EPS for fiscal 2026 to 2028.

Cardinal Health ( CAH ) also expects to generate at least $10 billion in total adjusted free cash flow over the next three years. It lifted its baseline share repurchase plans to at least $750 million per year from the previous annual target of $500 million.

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