Cardinal Health Inc.’s stock surged on Thursday as the healthcare services company reported upbeat first-quarter 2026 earnings, with adjusted earnings of $2.55 per share, beating the consensus of $2.18.

Sales increased 22% year over year to $64.01 billion, surpassing the consensus estimate of $59.19 billion. Adjusted operating earnings increased 37% to $857 million.

Revenue for the Pharmaceutical and Specialty Solutions segment increased 23% to $59.2 billion, driven by growth in brand and specialty pharmaceutical sales from existing and new customers.

First quarter revenue for the Global Medical Products and Distribution segment increased 2% to $3.2 billion, driven by volume growth from existing customers.

Cardinal Health ( CAH ) initiated a $375 million accelerated share repurchase program in the first quarter of fiscal year 2026.

“This outstanding first quarter reflects our focused execution across each of our operating segments and provides a solid foundation as we carry forward. As a result, we are raising our fiscal 2026 outlook,” said CEO Jason Hollar.

Outlook

Cardinal Health ( CAH ) raised its outlook for fiscal year 2026 adjusted earnings per share from $9.30-$9.50 to $9.65-$9.85, above the consensus of $9.43.

The $0.35 increase from the prior range reflects the company’s strong first-quarter performance and the expected contributions from the Solaris Health acquisition.

The company expects profit growth in the Pharmaceutical and Specialty Solutions segment of 16%-19%, compared to the prior guidance range of 11%-13%.

The company is also raising its expectations for adjusted free cash flow to $3.0 billion to $3.5 billion, from a prior range of $2.75 billion to $3.25 billion.

Price Action: CAH stock is trading higher by 16.55% at $191.68 at the last check on Thursday.

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