Cardinal Health expects adjusted EPS to grow 13%-15% in fiscal 2027, driven mainly by operating-income growth across its business segments. The company also reiterated its longer-term 12%-14% EPS growth target and plans $1 billion in share repurchases. Specialty services remain the primary growth engine: after expanding 25% in fiscal 2026, specialty growth is expected to approach double digits, while BioPharma Solutions is targeting $1 billion in revenue by fiscal 2028.
Cardinal Health anticipates continued growth in at-home solutions and other businesses, including contributions from recent acquisitions, while its medical-products division remains focused on recovery after mitigating much of a $450 million tariff impact. Cardinal Health Earnings: Can Perfection Get Priced In Twice? Cardinal Health (NYSE:CAH) CEO Jason Hollar said the company expects fiscal 2027 to extend the broad operating momentum it generated in fiscal 2026, with all five operating segments positioned for what he described as a "constructive" period.
Speaking at the Morgan Stanley Global Healthcare Conference, Hollar said the company's fiscal 2027 adjusted earnings-per-share outlook of 13% to 15% growth is expected to be driven primarily by operating-income growth across its three reporting segments and five operating businesses. Cardinal Health reiterated its longer-term EPS growth target of 12% to 14%. → IonQ and NVIDIA Just Cracked a Major Quantum Computing Bottleneck Hollar said fiscal 2026 included strong performance across both profit and cash flow, though fiscal 2027 growth is expected to occur at more normalized rates. He said below-the-line factors will include lower interest expense supported by strong cash flow, a slightly higher expected tax rate and $1 billion in planned share repurchases.
Within Pharmaceutical and Specialty Solutions, Hollar said generic-drug volume is expected to grow slightly above the company's usual 2% to 3% range in fiscal 2027. He attributed the outlook to favorable demographics and continued loss-of-exclusivity activity, although he said growth is not expected to match fiscal 2026 levels. → 2 Stocks Breaking Out Post-FOMC With One Thing in Common Doubt the Market? 3 Stocks to Rideout Fear, Uncertainty and Doubt Specialty was a major contributor in fiscal 2026, when it grew 25%, aided by acquisitions and customer wins in BioPharma Solutions. For fiscal 2027 and beyond, Cardinal Health expects specialty growth closer to a double-digit rate.
Hollar said the company remains focused on three specialty platforms: oncology, urology and autoimmune care, including gastroenterology. He said the non-oncology markets remain highly fragmented, with an estimated 80% to 90% of physicians in gastroenterology and urology still unaffiliated with a management services organization, or MSO. → Generac Plugs into Amazon for an $8B AI-Powered Deal The company does not believe it needs to add a fourth specialty platform at this stage, Hollar said. Instead, it plans to continue pursuing bolt-on opportunities that fit its existing platforms and culture.
Cardinal Health's BioPharma Solutions business generated more than 30% growth in fiscal 2026, Hollar said. The company previously outlined a path to grow BioPharma Solutions revenue to $1 billion by fiscal 2028 from $550 million in fiscal 2025, representing a 20% compound annual growth rate. Addressing the upcoming year-end renewal of Cardinal Health's distribution contract with CVS, Hollar said the relationship is "very strong." He pointed to longer-dated partnerships involving Red Oak Sourcing, the Averon Sourcing biosimilars joint venture and IQ Purchasing for over-the-counter products.
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