Cardinal Health (NYSE: CAH) Surpasses EPS Estimates but Misses on Revenue

Cardinal Health's EPS of $2.08 exceeded expectations, while revenue fell short of forecasts. The company's revenue remained flat in Q4 FY2025, with a notable 21% increase excluding a customer contract expiration. Cardinal Health raised its non-GAAP EPS guidance for FY2026, indicating confidence in future performance.

Cardinal Health (NYSE:CAH) is a prominent player in the healthcare sector, providing pharmaceuticals and medical products to hospitals, pharmacies, and other healthcare providers. On August 12, 2025, CAH reported earnings per share (EPS) of $2.08, surpassing the estimated $2.04. However, its revenue of approximately $60.16 billion fell short of the expected $60.89 billion.

In the fourth quarter of fiscal year 2025, Cardinal Health's revenue was $60.16 billion, remaining flat compared to the same period in 2024. Excluding the impact of a customer contract expiration, revenue increased by 21%. The company's GAAP operating earnings were $428 million, with a GAAP diluted EPS of $1.00. Non-GAAP operating earnings rose by 19% to $719 million, and non-GAAP diluted EPS increased by 13% to $2.08.

For the entire fiscal year 2025, Cardinal Health reported revenues of $222.6 billion, a 2% decrease from the previous year. Despite this decline, the company raised its non-GAAP EPS guidance for fiscal year 2026 to a range of $9.30 to $9.50, up from the previous guidance of $9.10 to $9.30. This indicates confidence in future performance.

Cardinal Health's acquisition of Solaris Health, a leading urology management services organization, is expected to bolster its position in the healthcare sector. The company's financial metrics include a price-to-earnings (P/E) ratio of approximately 24.29 and a price-to-sales ratio of about 0.17. Its enterprise value to sales ratio is around 0.19, and the enterprise value to operating cash flow ratio is approximately 14.25.

The company's earnings yield is about 4.12%, and it has a debt-to-equity ratio of approximately -2.60. Its current ratio is around 0.94, reflecting its ability to cover short-term liabilities with short-term assets. These metrics provide insight into Cardinal Health's financial health and market valuation.