Recasts headline and lead, adds CEO comments from interview in paragraph 2

By Kamal Choudhury

May 1 (Reuters) - Cardinal Health CAH.N forecast double-digit growth in earnings for the fiscal year 2026, despite a hit of $200 million to $300 million due to extreme tariff rates, the drug distributor said on Thursday.

The company sources about 10% of its products from China, CEO Jason Hollar told Reuters, adding that the 145% U.S. levies on these goods make it the firm's most substantial tariff expense.

Holler said in a post-earnings conference call that Cardinal reduced its workforce in the third quarter ended March 31 and plans to work with customers on price hikes as well as alternative solutions to tariffs. He did not disclose the number of jobs cut.

The Ohio-based company raised its fiscal 2025 profit forecast for the fourth time earlier in the day, betting on strong demand for costly specialty medicines and branded drugs.

Cardinal Health expects adjusted profit of $8.05 per share to $8.15 per share for the fiscal year ended June 30, compared with the prior view of $7.85 per share to $8.00 per share. Analysts were expecting annual profit of $7.96 per share, according to data compiled by LSEG.

It reported third-quarter profit of $2.35 per share on an adjusted basis, beating analysts' average estimate of $2.17 per share.

CFO Aaron Alt said in the conference call that the company is "confident" in its ability to navigate the changes to the U.S. healthcare ecosystem, "whether that is ... review of the pharmaceutical industry or the recent drug pricing executive order."

The company's share rose 2.3% in afternoon trading.

(Reporting by Kamal Choudhury and Mariam Sunny in Bengaluru; Editing by Sahal Muhammed and Shreya Biswas)

((Kamal.Choudhury@thomsonreuters.com;))