TLDR
- $CAH shares fell 6.61% to $147.24 after Q2 CY2025 revenue missed estimates.
- Cardinal Health to acquire Solaris Health for $1.9B to expand specialty care network.
- Q2 adjusted EPS of $2.08 beat forecasts; revenue flat at $60.16B.
- FY2026 EPS guidance raised to $9.30–$9.50, above analyst consensus.
- Specialty business and acquisitions are expected to drive future growth.
As of 11:58 AM EDT, Cardinal Health (NYSE: CAH) traded at $147.24, down $10.43 (-6.61%) after reporting Q2 CY2025 results.
The healthcare services giant posted quarterly revenue of $60.16 billion, falling short of Wall Street’s $60.75 billion estimate, though adjusted earnings per share (EPS) of $2.08 topped expectations of $2.03.
The modest 2.4% EPS beat was driven by a 19% rise in non-GAAP operating earnings to $719 million, with all five operating segments posting double-digit profit growth. Still, revenue remained flat year over year, pressured by the loss of a major contract with UnitedHealth Group’s OptumRx.
Cardinal Health, $CAH, Q4-25. Results:
📊 Adj. EPS: $2.08 🟢
💰 Revenue: $60.2B 🔴
📈 Net Income: $239M
🔎 Strong finish to a transformative year with double-digit non-GAAP profit growth across all segments and raised FY26 guidance. pic.twitter.com/EEEDbGBoSv— EarningsTime (@Earnings_Time) August 12, 2025
Solaris Health Acquisition
Cardinal Health announced the $1.9 billion cash acquisition of Solaris Health, a leading urology management services organization with more than 750 providers across 14 states.
The deal, executed through its Specialty Alliance unit, will leave Cardinal with a 75% stake in the newly structured business, with Solaris physicians reinvesting about $500 million in equity. Including rollover equity, the deal’s total value reaches $2.4 billion.
Solaris provides administrative and management support services to community urology practices, complementing Cardinal’s specialty medicine distribution, which includes oncology and rheumatoid arthritis treatments. The transaction, funded through cash and new debt, is expected to close by year-end.
Financial Performance and Outlook
For fiscal year 2025, Cardinal Health generated $222.6 billion in revenue, down 2% from the prior year, or up 18% when excluding the OptumRx contract expiration. Adjusted EPS climbed 9% to $8.24, while free cash flow totaled $2.5 billion.
The company raised its FY2026 adjusted EPS guidance to $9.30–$9.50, exceeding its prior forecast of $9.10–$9.30 and surpassing analyst estimates of $9.25. It also expects free cash flow between $2.75 billion and $3.25 billion in FY2026.
Market and Long-Term Growth Trends
Over the past five years, Cardinal Health’s revenue has grown at an annualized rate of 7.8%, with EPS rising 8.6% annually. Its specialty business and ongoing acquisitions suggest potential for stronger growth, with analysts projecting 11.8% revenue growth over the next 12 months.
Despite a breakeven operating margin, management is optimistic about leveraging its scale, specialty portfolio, and acquisitions to strengthen profitability.
