May 1 (Reuters) -

Cardinal Health ( CAH ) said on Thursday its diverse global

footprint is not "bulletproof" to extreme

tariff

rates, as the drug distributor expects a hit of $200

million to $300 million in gross costs in fiscal 2026 despite

mitigation efforts.

The company reduced its workforce in the third quarter

and plans to work with customers on price hikes as well as

alternative solutions to tariffs, CEO Jason Hollar said in a

post-earnings call.

The earlier tariffs will not have a significant

financial impact on the company's fourth quarter as most of the

effects will either be offset or recognized in future periods,

CFO Aaron Alt said.

However, Cardinal expects double-digit growth in its

adjusted earnings for the fiscal year 2026, despite the ongoing

macroeconomic uncertainty.

Alt said the company is "confident" in its ability to

navigate the changes to the U.S. healthcare ecosystem, "whether

that is...

review of the pharmaceutical industry or the recent drug

pricing executive order."

Cardinal raised its fiscal 2025 profit forecast for the

fourth time earlier in the day, betting on strong demand for

costly specialty medicines and branded drugs.

The company expects adjusted profit of $8.05 to $8.15 per

share for the fiscal year ended June 30, compared with the prior

view of $7.85 to $8.00 per share. Analysts were expecting annual

profit of $7.96 per share, according to data compiled by LSEG.

Cardinal Health ( CAH ) reported third-quarter profit of $2.35 per

share on an adjusted basis, beating analysts' average estimate

of $2.17 per share.

The company's share rose 3.5% in morning trading.