Cardinal Health is setting its sights on adjusted earnings-per-share growth of 13 to 15 percent for fiscal 2027. The company shared this new target at the Morgan Stanley Global Healthcare Conference, signaling confidence in its specialty and pharmaceutical businesses even as growth returns to a steadier pace after a strong 2026. This guidance is higher than Cardinal Health’s long-term EPS growth goal of 12 to 14 percent, reflecting management’s view that the company’s current momentum and market position are solid, according to an Investing.com transcript.
Cardinal Health reported that its normalized EPS for fiscal 2026 exceeded the initial forecast by more than $2.00, providing a stronger starting point for 2027.
Hollar also pointed out that non-oncology specialty markets are still highly fragmented, with 80 to 90 percent of physicians in gastroenterology and urology not affiliated with management services organizations. Instead of launching a fourth specialty platform, Cardinal Health plans to focus on smaller acquisitions that fit its current platforms and culture.
BioPharma Solutions remains a key growth area. The business saw over 30 percent revenue growth in fiscal 2026, and Cardinal Health aims to reach $1 billion in revenue by fiscal 2028, up from $550 million in fiscal 2025. This path represents a 20 percent compound annual growth rate. According to a Marketscreener conference summary, all five operating segments posted double-digit profit growth in fiscal 2026, forming the basis for the company’s expectations for 2027.
Cardinal Health indicated that the Advanced Diabetes Supply (ADS) acquisition will be fully included in the fiscal 2027 comparative base, which means specialty growth rates are likely to normalize compared to the exceptional performance in 2026.
The company’s partnership with CVS remains important. Hollar described the relationship as strong, pointing to long-term collaborations like Red Oak Sourcing, the Averon Sourcing biosimilars joint venture, and IQ Purchasing for over-the-counter products. Cardinal Health is preparing for the year-end renewal of its distribution contract with CVS and expects the partnership to continue.
Integration work is ongoing, with Solaris Health now part of The Specialty Alliance and distribution for GI Alliance and Solaris consolidated under Cardinal Health. The company expects these changes to bring year-over-year distribution benefits through the fourth quarter of fiscal 2027, and to create new opportunities in physician recruitment, payer negotiations, infusion services, and ambulatory surgery centers.
On the regulatory side, Hollar said that Cardinal Health’s fee-for-service model and contractual protections have helped shield the company from drug pricing changes and the Inflation Reduction Act. This framework is expected to remain stable into fiscal 2027 and beyond, limiting exposure to policy changes.
In the Global Medical Products and Distribution segment, Cardinal Health faced a $450 million tariff impact in fiscal 2026 but offset about two-thirds of that through sourcing and operational changes. The remaining costs were shared with customers. The company continues to monitor commodity cost pressures, especially fuel and oil-based inputs.
Other segments are also seeing growth. Cardinal Health projects 15 to 18 percent adjusted operating-income growth in its "other" segment for fiscal 2027, with contributions from the Strive Medical acquisition and a late-year boost from AdaptHealth’s diabetes business. Synergies from the earlier Advanced Diabetes Supply Group acquisition are also expected to add value.
Looking ahead, the company’s investment priorities are clear: Pharmaceutical and Specialty Solutions, especially specialty services, will remain the main focus. At-home solutions are set for further growth through acquisitions, while Global Medical Products and Distribution is still in turnaround but could benefit from Cardinal Health-branded products and expansion in nuclear medicine and logistics.
Cardinal Health is betting that its specialty platforms, acquisition strategy, and business model will support its growth targets. With strong cash flow, $1 billion in planned share repurchases, and a focus on high-growth segments, the company is aiming to strengthen its position in healthcare distribution. Whether its specialty bets and integration efforts can keep up the momentum will be the key question in the coming years.
