Cardinal Health (NYSE: CAH) shares surged 15.92% in early trading on Thursday following the release of its impressive first-quarter fiscal 2026 results, which significantly outperformed analyst expectations. The healthcare services and products company also raised its full-year outlook and announced strategic initiatives, fueling investor optimism.

The company reported first-quarter revenue of $64 billion, a substantial 22% increase from the previous year and well above the consensus estimate of $59.35 billion. Adjusted earnings per share (EPS) came in at $2.55, surpassing analyst expectations of $2.18 and marking a 36% year-over-year growth. The strong performance was primarily driven by the Pharmaceutical and Specialty Solutions segment, which saw a 23% revenue increase to $59.2 billion and a 26% profit growth to $667 million.

In light of the strong results, Cardinal Health raised its fiscal year 2026 guidance. The company now expects non-GAAP EPS in the range of $9.65 to $9.85, up from its previous forecast of $9.30 to $9.50 and surpassing the FactSet consensus of $9.44. Additionally, Cardinal Health increased its fiscal year 2026 non-GAAP adjusted free cash flow outlook to $3.0 to $3.5 billion. The company also announced the initiation of a $375 million accelerated share repurchase program in Q1, further boosting investor confidence. With the anticipated completion of the Solaris Health acquisition in early November, Cardinal Health appears well-positioned for continued growth and expansion in the healthcare sector.