Cardinal Health on Thursday raised its full-year adjusted profit forecast after reporting quarterly results that outpaced Wall Street estimates, saying demand for specialty medicines remains robust and performance was solid across its businesses. Shares of the Dublin, Ohio-based distributor climbed more than 3% in premarket trading.
The company highlighted strong momentum in medicines for complex conditions - including cancer and autoimmune diseases - which tend to carry higher margins. Cardinal and other large drug distributors such as Cencora and McKesson are benefiting from this accelerating demand, while also seeing support from biosimilar activity tied to patent expirations on major drugs.
In the quarter ended December 31, Cardinal’s pharmaceutical and specialty solutions segment generated $60.7 billion in revenue, a 19% increase compared with the prior year. Total quarterly revenue for the company was $65.63 billion, above analysts’ average estimate of $64.14 billion, according to LSEG data. Adjusted earnings per share for the quarter were $2.63, beating the $2.36 consensus.
Management reiterated expectations that specialty revenue will exceed $50 billion in 2026, attributing that outlook to continued strong demand for specialty drug distribution. The company also expects growth from its biopharma solutions unit, forecasting a projected increase of more than 30% for that business as it supports drug development and commercialization activities.
As part of broader industry trends, drug distributors are expanding their footprints in the specialty medicines market and, in some cases, acquiring cancer center operators to diversify beyond traditional drug distribution and to complement their core operations.
Cardinal updated its full-year adjusted per-share profit guidance to a range of $10.15 to $10.35, up from its prior forecast of at least $10.00 per share.
Context from analysts and market signals
Analysts at Jefferies said earlier in the week that they remain tactically positive on drug distributors going into earnings, citing under-valuation and favorable growth prospects despite what they described as broader healthcare services volatility.
Financial highlights
- Quarterly revenue: $65.63 billion (above $64.14 billion estimate)
- Pharmaceutical & specialty solutions revenue: $60.7 billion (up 19% year-over-year)
- Adjusted EPS for the quarter: $2.63 (beat $2.36 estimate)
- Updated full-year adjusted EPS outlook: $10.15 to $10.35 (previously at least $10.00)
The company did not provide additional forward-looking detail beyond the revised earnings range and the previously stated revenue target for specialty in 2026.