Cardinal Health, Inc.

Q4 & FY26 delivered strong momentum (profit, EPS, cash flow) - Q4: Total revenue $63.7B (+6% YoY); gross profit +16% to $2.6B; operating earnings $935M (+30%); diluted EPS $2.91 (+40%). - FY26: Enterprise revenue +14% to $254B; operating earnings $3.6B (+30%); generated $5.0B adjusted free cash flow. - Good: Execution drove results with service levels “at or near record levels” while navigating regulatory and macro changes.

IEEPA tariff refund boosted results—management is normalizing guidance - Q4: Recorded one-time ~$100M net operating earnings benefit in GMPD from anticipated IEEPA tariff refunds (~$200M expected refunds) offset by related customer payables. - EPS impact: $0.31 of Q4 EPS (~15 percentage points of the total 40% growth) tied to the tariff refund. - Important for investors: Long-term guidance is reconfirmed but FY27 outlook guidance is presented off a “baseline” excluding the one-time EPS benefit.

Fiscal 2027 outlook: above-average growth expected vs long-run rate; clear segment assumptions - FY27 EPS guidance: +13% to +15% vs the baseline, targeting EPS $12.40–$12.60 (management explicitly excludes the one-time tariff EPS benefit from the baseline). - Long-term EPS growth: 12%–14% per year reconfirmed. - Pharma segment (largest): Revenue +3% to +5%; profit +8% to +11%. - Assumptions/challenges baked in: no “outsized” FY26-style demand, annualization of 2026 IRA price changes and 2027 IRA changes (revenue impact consistent with H2’26; “no adverse profit impact”), plus customer stability from renewals (incl. Kroger). - GMPD (distribution/medical products): Revenue +2% to +4%; profit guide reconfirmed at $200M–$220M ex IEEPA tariff refund. - Risk flagged: tariff/geopolitical uncertainty; if conflicts in Iran are protracted, GMPD profits could skew to the lower end.