The healthcare distributor’s earnings beat included a non-recurring tariff refund, while guidance suggests slower growth ahead.
Cardinal Health reported fourth-quarter non-GAAP diluted EPS of $2.91, up 40% year over year, driven partly by a one-time tariff refund. Full-year adjusted free cash flow reached $5 billion, but the company’s forward guidance implies a return to more moderate growth.
Revenue for the quarter rose 6% to $63.7 billion, with Pharmaceutical and Specialty Solutions leading the gains. Segment profit in that unit climbed 21% to $645 million, supported by strong demand in brand and specialty products. Over four years, non-GAAP EPS more than doubled from $5.07 to $11.26, while free cash flow grew from $2.3 billion to $5 billion.
The company also secured two new gene therapy 3PL agreements, expanding its market share in cell and gene therapy services. Despite the strong print, the gap between the headline beat and underlying trends may temper investor expectations.