Cardinal Health generated approximately $5 billion of adjusted free cash flow in fiscal 2026, nearly double the prior-year level, as strong operating performance provided the healthcare company with substantially greater capacity for share repurchases and other capital allocation priorities.
Net cash provided by operating activities reached $5.17 billion for fiscal 2026 compared with $2.40 billion a year earlier. Adjusted free cash flow increased to $4.97 billion from $2.49 billion.
Cardinal Health used part of the stronger cash generation to accelerate share repurchases. The company completed an additional $350 million accelerated share repurchase program, bringing total fiscal 2026 repurchases to approximately $1.4 billion.
The board subsequently approved an additional $5 billion for the share repurchase program, increasing total authorization to $6.4 billion as of August 2026. For fiscal 2027, Cardinal Health currently expects to repurchase approximately $1 billion of shares.
The company also simplified its liquidity structure with a new $4 billion revolving credit facility replacing three historical facilities. Capital expenditures are expected to reach approximately $700 million during fiscal 2027, while adjusted free cash flow is projected between $3.5 billion and $4 billion.
Cardinal Health’s fiscal 2026 revenue increased 14% to $254.2 billion, while non-GAAP operating earnings increased 30% to $3.6 billion. Non-GAAP diluted EPS increased 37% to $11.26.
All five operating segments generated double-digit profit growth during fiscal 2026 before accounting for the impact of IEEPA tariff recoveries in the Global Medical Products and Distribution business.
Pharmaceutical and Specialty Solutions revenue increased 15% for the year to $234.8 billion, while segment profit increased 23% to $2.78 billion. Global Medical Products and Distribution revenue increased 1% to $12.7 billion, while segment profit surged 91% to $258 million.
Cardinal Health’s other businesses, which include Nuclear and Precision Health Solutions, at-Home Solutions and OptiFreight Logistics, generated $6.8 billion of fiscal 2026 revenue, up 26%, and $707 million of segment profit, up 37%.
For fiscal 2027, Cardinal Health expects non-GAAP diluted EPS of $12.40 to $12.60, representing 13% to 15% growth and exceeding its long-term EPS growth framework.
KEY QUOTES:
“Fiscal 2026 was a standout year for Cardinal Health and I am pleased with our strong fourth quarter results. The broad-based operational strength for the year, with all five of our operating segments growing profit double-digits, even before recognition of IEEPA tariff recoveries in GMPD, reflects the disciplined execution of our strategy and our investments for growth.”
“We enter Fiscal 2027 with momentum and confidence in our ability to deliver continued shareholder value creation.”
Jason Hollar, CEO of Cardinal Health
