Cardinal Health Inc: A Strategic Expansion and Strong Financial Outlook

Cardinal Health, Inc., a leading player in the healthcare sector, has recently made headlines with its robust financial performance and strategic acquisitions. As of August 12, 2025, the company has reported strong fourth-quarter and fiscal year 2025 results, while also announcing a significant acquisition and raising its fiscal year 2026 guidance.

Strong Financial Performance

In its Q4 FY2025 results, Cardinal Health reported a revenue of $60.2 billion, which remained flat but showed a 21% increase when excluding the impact of a contract expiration. The company’s non-GAAP operating earnings for the quarter rose by 19% to $719 million, with non-GAAP EPS up 13% to $2.08. For the entire fiscal year 2025, Cardinal Health achieved $222.6 billion in revenue and a 15% increase in non-GAAP operating earnings to $2.8 billion. These results underscore the company’s resilience and ability to navigate market challenges effectively.

Raised Guidance for FY2026

Building on its strong performance, Cardinal Health has raised its FY2026 non-GAAP EPS guidance to $9.30-$9.50, representing a growth of 13-15%. This optimistic outlook reflects the company’s confidence in its strategic initiatives and market position.

Strategic Acquisition of Solaris Health

In a significant move to bolster its portfolio, Cardinal Health announced the acquisition of Solaris Health for approximately $1.9 billion in cash. Solaris Health, the country’s leading urology management services organization (MSO), will enhance Cardinal Health’s multi-specialty MSO platform, The Specialty Alliance. This acquisition adds over 750 providers to The Specialty Alliance, expanding its reach to approximately 3,000 providers across 32 states upon transaction close. This strategic expansion is expected to strengthen Cardinal Health’s leadership in the urology therapeutic area and enhance its service offerings.

Investment Performance

Reflecting on its investment performance, Cardinal Health’s stock has shown significant growth over the past five years. As of August 11, 2025, the stock closed at $157.41, up from $53.04 on August 11, 2020. Investors who had invested $100 in Cardinal Health five years ago would now see their investment valued at approximately $296.78, highlighting the company’s strong market performance and investor confidence.

Market Context

As investors await the July inflation report, the broader market remains cautious. Futures are modestly higher, with the Russell 2000 leading the gains, followed by the Dow (+0.18%), S&P 500 (+0.12%), and Nasdaq (+0.10%). The upcoming inflation data is expected to be a significant market mover, influencing investor sentiment and market dynamics.

Conclusion

Cardinal Health’s recent financial results, strategic acquisition of Solaris Health, and raised guidance for FY2026 position the company for continued growth and leadership in the healthcare sector. With a strong market performance and strategic initiatives in place, Cardinal Health is well-equipped to navigate future challenges and capitalize on emerging opportunities.