Cardinal Health (CAH) Q2 FY2026 earnings: revenue $65.6 billion, up 18.8% on the year

Cardinal Health Inc. (CAH) reported revenue of $65.6 billion for Q2 FY2026, the quarter ended 31 December 2025, up 18.8% on the same quarter a year earlier. Net income was $467 million, up 16.8% on the year, and diluted earnings per share $1.97. The figures are the company's own, from the 10-Q it filed with the SEC on 5 February 2026.

Revenue

$65.6 billion

+18.8% on the year · +2.5% on the quarter

Q3 FY2024Q2 FY2026

Operating margin

1.1%

1.0% a year earlier

Q3 FY2024Q2 FY2026

Net income

$467 million

+16.8% on the year · +3.8% on the quarter

Q3 FY2024Q2 FY2026

Diluted EPS

$1.97

+19.4% on the year · +4.8% on the quarter

Q3 FY2024Q2 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 4 raised, 2 lowered.

Non-GAAP diluted EPS rose 36%: Non-GAAP operating earnings rose 38% to $877 million. Non-GAAP diluted EPS rose 36% to $2.63, helped by a lower share count.
Pharma and Specialty segment profit rose 29%: Pharmaceutical and Specialty Solutions revenue rose 19% to $60.7 billion. Segment profit rose 29% to $687 million, with brand and specialty products, MSO platforms and generics cited as drivers.
Global Medical Products profit more than doubled: Global Medical Products and Distribution segment profit rose 106% to $37 million from $18 million. Cost optimization helped, while tariffs had an adverse net effect.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Revenue	65,627	64,009	55,264	+2.5%	+18.8%
Cost of revenue	63,230	61,690	53,323	+2.5%	+18.6%
Gross profit	2,397	2,319	1,941	+3.4%	+23.5%
Gross margin	3.7%	3.6%	3.5%
Selling, general and administrative	1,504	1,461	1,306	+2.9%	+15.2%
Operating income	707	668	549	+5.8%	+28.8%
Operating margin	1.1%	1.0%	1.0%
Interest expense	88.0	80.0	35.0	+10.0%	+151.4%
Pre-tax income	630	598	511	+5.4%	+23.3%
Income tax	159	144	110	+10.4%	+44.5%
Effective tax rate	25.2%	24.1%	21.5%
Net income	467	450	400	+3.8%	+16.8%
Net margin	0.7%	0.7%	0.7%
Diluted EPS	$1.97	$1.88	$1.65	+4.8%	+19.4%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Operating cash flow	686	973	-400	-29.5%
Capital expenditure	131	108	99.0	+21.3%	+32.3%
Free cash flow	555	865	-499	-35.8%
Free cash flow margin	0.8%	1.4%	-0.9%
Cash from investing	-1,980	-142	-976
Cash from financing	-519	-110	2,331
Depreciation and amortisation	234	233	192	+0.4%	+21.9%
Share-based compensation	31.0	93.0	30.0	-66.7%	+3.3%
Buybacks	383	375	15.0	+2.1%	+2,453.3%
Dividends paid	122	129	122	-5.4%	0.0%
Dividend per share	$0.51	$0.51	$0.51	0.0%	+1.0%
Diluted shares, weighted	237m	239m	243m	-0.8%	-2.5%
Shares outstanding at period end	235m	238m	242m	-1.0%	-2.6%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Shareholders' equity	-2,884	-2,879	-2,991
Non-controlling interest	184	148	70.0	+24.3%	+162.9%
Debt	9,027	9,032	7,606	-0.1%	+18.7%
Other liabilities	51,756	48,927	42,317	+5.8%	+22.3%
Total liabilities and equity	58,083	55,228	47,002	+5.2%	+23.6%
Fixed assets	2,877	2,831	2,558	+1.6%	+12.5%
Goodwill	11,609	9,711	5,488	+19.5%	+111.5%
Intangible assets	2,369	2,399	1,948	-1.3%	+21.6%
Cash and equivalents	2,777	4,593	3,810	-39.5%	-27.1%
Receivables	13,662	13,770	12,369	-0.8%	+10.5%
Inventory	20,116	17,559	16,904	+14.6%	+19.0%
Other assets	4,673	4,365	3,925	+7.1%	+19.1%
Total assets	58,083	55,228	47,002	+5.2%	+23.6%

Questions

What was Cardinal Health's revenue in Q2 FY2026?

Cardinal Health (CAH) reported revenue of $65.6 billion for Q2 FY2026, the quarter ended 31 December 2025, up 18.8% on the same quarter a year earlier.

How much did Cardinal Health earn in Q2 FY2026?

Net income for Q2 FY2026 was $467 million, up 16.8% on the year, and diluted earnings per share $1.97.

When did Cardinal Health report Q2 FY2026 results?

Cardinal Health filed its 10-Q for the quarter ended 31 December 2025 with the SEC on 5 February 2026.

Quarterly results, the last 20 quarters

	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023 †	Q2 FY2023 †	Q3 FY2023 †	Q4 FY2023 * †	Q1 FY2024 †	Q2 FY2024 †	Q3 FY2024 †	Q4 FY2024 * †	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *	Q1 FY2027
Revenue	45,457	44,836	47,103	49,603	51,469	50,487	53,453	54,650	57,445	54,911	59,708	52,277	55,264	54,878	60,159	64,009	65,627	60,940	63,672	67,513
Cost of revenue	43,841	43,154	45,498	47,989	49,806	48,702	51,626	52,995	55,599	52,964	57,855	50,375	53,323	52,755	57,957	61,690	63,230	58,442	61,112	64,917
Gross profit	1,616	1,682	1,605	1,596	1,684	1,810	1,784	1,743	1,854	1,935	1,882	1,902	1,941	2,123	2,202	2,319	2,397	2,498	2,560	2,596
Gross margin	4%	4%	3%	3%	3%	4%	3%	3%	3%	4%	3%	4%	4%	4%	4%	4%	4%	4%	4%	4%
SG&A	1,151	1,137	1,155	1,197	1,179	1,172	1,252	1,186	1,268	1,269	1,277	1,277	1,306	1,315	1,484	1,461	1,504	1,542	1,625	1,595
Operating income	-950	-97.0	36.0	123	-86.0	604	111	-32.0	505	369	401	568	549	730	428	668	707	509	729	753
Operating margin	-2%	-0%	0%	0%	-0%	1%	0%	-0%	1%	1%	1%	1%	1%	1%	1%	1%	1%	1%	1%	1%
Interest expense	37.0	38.0	34.0	24.0	24.0	26.0	10.0	11.0	3.0	28.0	9.0	32.0	35.0	74.0	74.0	80.0	88.0	101	79.0	73.0
Pre-tax income	-973	-137	-28.0	96.0	-104	576	95.0	-44.0	512	342	391	541	511	665	384	598	630	392	554	688
Tax rate	n/a	n/a	n/a	-3%	n/a	36%	161%	n/a	28%	23%	40%	23%	22%	24%	37%	24%	25%	3%	28%	19%
Net income	49.0	-1,391	138	98.0	-77.0	365	-56.0	-12.0	368	261	235	416	400	506	239	450	467	399	398	554
Net margin	0%	-3%	0%	0%	-0%	1%	-0%	-0%	1%	0%	0%	1%	1%	1%	0%	1%	1%	1%	1%	1%
Diluted EPS	$0.17	-$5.05	$0.59	$0.40	-$0.30	$1.41	-$0.51	-$0.05	$1.50	$1.07	$0.96	$1.70	$1.65	$2.10	$1.00	$1.88	$1.97	$1.69	$1.70	$2.38
Operating cash flow	1,195	-419	2,992	23.0	597	1,361	858	528	1,189	-49.0	2,077	-1,647	-400	2,917	1,527	973	686	1,823	1,692	1,398
Capital expenditure	74.0	82.0	164	70.0	85.0	109	217	92.0	114	112	193	90.0	99.0	126	232	108	131	146	264	157
Free cash flow	1,121	-501	2,828	-47.0	512	1,252	641	436	1,075	-161	1,884	-1,737	-499	2,791	1,295	865	555	1,677	1,428	1,241
Buybacks	300	200	0.0	1,000	250	250	500	500	250	0.0	0.0	375	15.0	375	0.0	375	383	250	350	500
Dividends paid	140	136	134	142	129	128	126	131	124	122	122	128	122	124	120	129	122	120	120	126
Shares outstanding	277m	272m	273m	262m	258m	255m	251m	246m	243m	244m	244m	242m	242m	239m	239m	238m	235m	234m	233m	231m
Filing	10-Q	10-Q	10-K	10-K	10-K	10-K	10-K	10-K	10-K	10-K	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 31 December 2025, filed 5 February 2026: the filing.