Cardinal Health (CLH) AI Stock Analysis

Company Guidance

For fiscal 2027, Cardinal Health raised non-GAAP diluted EPS guidance to a new range of $12.80-$13.00 from $12.40-$12.60, representing 17%-19% growth off its ex-tariff refund adjusted fiscal 2026 EPS of $10.95 and 14%-15% growth off reported fiscal 2026 EPS of $11.26; pharma revenue growth is expected at 3%-5% and segment profit growth at 10%-12%, GMPD revenue growth at 2%-4% with segment profit toward the low end of the guidance range of $200 million-$220 million, and other revenue growth at 12%-14% with profit growth of 17%-20%; interest and other is expected to be between $240 million and $290 million, the effective tax rate in the range of 18.5%-19.5%, capital expenditure approximately $700 million, diluted weighted average shares outstanding in the range of 231 million-232 million shares, and adjusted free cash flow between $3.5 billion and $4 billion. For modeling purposes, earnings growth is expected to moderate in the second and third quarters before strengthening in the fourth quarter to a level modestly below Q1, GMPD’s results are expected to be weighted towards the back half of the fiscal year, other revenue and profit growth are expected to accelerate in the second half of the fiscal year, and GMPD’s second quarter is expected to be generally consistent with the Q1 result, with sequential quarterly growth for the remainder of the year thereafter.