Cardinal Health raises fiscal 2027 outlook after $67.5B quarter

Cardinal Health reported fiscal first-quarter GAAP operating earnings of $753 million, up 13%, while GAAP diluted EPS rose 27% to $2.38. Non-GAAP operating earnings increased 17% to $1.0 billion, and non-GAAP diluted EPS climbed 28% to $3.26; the company also raised its fiscal 2027 outlook.

The quarter follows fiscal 2026 revenue of $254.2 billion for the year ended June 30, 2026. Cardinal Health operates with a 0.7% net margin in that annual period, so the earnings growth rate matters alongside the scale of the distribution business.

The result directly affects CAH through revenue and operating earnings, with the reported EPS growth translating into the company’s per-share earnings line. Its annual diluted EPS was $7.23 in fiscal 2026, providing the prior-year reference point for the new fiscal year.

The outlook increase and double-digit earnings growth create a constructive operating read, but the business remains structurally low-margin: fiscal 2026 gross margin was 3.8% and net margin was 0.7%. The durability of the improvement therefore depends on sustaining earnings growth against the company’s large revenue base.

The next checkpoints are Cardinal Health’s subsequent fiscal-quarter results and the company’s updated fiscal 2027 outlook, including whether operating earnings and diluted EPS continue to grow at the pace established in the first quarter.