Cardinal Health Inc. (NYSE:CAH) stock jumped nearly 7% on Tuesday after the company reported better-than-expected fourth-quarter earnings and issued an upbeat fiscal 2027 outlook.

Cardinal Health Earnings Beat Estimates

Cardinal Health reported fourth-quarter adjusted earnings of $2.91 per share, topping the analyst consensus estimate of $2.42.

The healthcare services company reported revenue of $63.67 billion, up 6% year over year. However, revenue fell short of the analyst consensus estimate of $65.03 billion.

Adjusted operating earnings rose 30% year over year to $935 million.

Revenue from the Pharmaceutical and Specialty Solutions segment increased 6% to $58.8 billion. Growth in brand and specialty pharmaceutical sales to existing customers drove the increase.

Global Medical Products and Distribution revenue fell 2% to $3.1 billion. Lower distribution volumes and the recognition of an expected IEEPA tariff refund repayment to customers weighed on results. Growth in Cardinal Health-branded products partially offset the decline.

During the earnings call, CEO Jason Hollar highlighted Cardinal Health’s growing position in cell and gene therapies. The company secured two additional gene therapy commercialization agreements through its third-party logistics business.

With those wins, the company now exclusively serves nearly half of the cell and gene therapy market and about three-quarters of the total market, Hollar said. The company also recently opened a specialty pharmacy designed to support high-cost, complex cell and gene therapies.

Cardinal Health Expands Buyback Program

Cardinal Health increased its share repurchase authorization by $5 billion, bringing its total remaining authorization to $6.4 billion as of August 2026.

The company also renewed its long-term wholesaler distribution agreement with Kroger.

Separately, Cardinal Health plans to open a new distribution center in Indianapolis in 2027. The facility will use advanced robotics and automation to increase capacity and improve operational flexibility.

Cardinal Health Sees Stronger Fiscal 2027 Earnings

“Fiscal 2026 was a standout year for Cardinal Health…,” Hollar said. “The broad-based operational strength for the year, with all five of our operating segments growing profit double-digits, even before recognition of IEEPA tariff recoveries in GMPD, reflects the disciplined execution of our strategy and our investments for growth.”

“We enter Fiscal 2027 with momentum and confidence in our ability to deliver continued shareholder value creation,” Hollar added.

The company expects fiscal 2027 adjusted earnings of $12.40 to $12.60 per share, above the analyst consensus estimate of $12.04.

William Blair remained positive on the company following the results.

“We continue to believe that Cardinal Health’s strong execution in core distribution, combined with robust higher-margin specialty growth and its differentiated other businesses, positions the company as one of the highest-quality companies in healthcare,” the firm wrote Tuesday.

CAH Price Action: Cardinal Health shares were up 6.87% at $253.47 at the time of publication on Tuesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

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