Cardinal Health earnings top estimates, revenue misses forecast

Cardinal Health Inc. reported adjusted earnings per share of $1.55 for the quarter ended March 31, exceeding analyst expectations by $0.19. Revenue totaled $51.2 billion, missing the $51.5 billion forecast compiled by Refinitiv. The company attributed the revenue shortfall to softer demand in its medical and pharmaceutical distribution segments.

Adjusted operating income rose 5% year-over-year to $1.1 billion, driven by cost efficiencies and operational improvements. Cardinal Health reaffirmed its full-year guidance, projecting adjusted EPS in the range of $5.50 to $5.70 and revenue between $206 billion and $210 billion. The company cited stable demand for prescription drugs and medical supplies as key supports for the outlook.

Shares were little changed in pre-market trading, reflecting the mixed results. Analysts at Jefferies maintained a hold rating on the stock, citing valuation concerns despite the earnings beat. The company’s medical segment, which supplies hospitals and clinics, continues to face margin pressure from rising labor and supply costs.

Cardinal Health, a Fortune 20 component, remains a bellwether for U.S. healthcare distribution trends. The company’s performance is closely watched for signals on pharmaceutical pricing dynamics and hospital supply chain health.