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Cardinal Health (CAH) is flying higher after reporting 2Q26 results that exceeded expectations and raising its FY26 outlook for the second time in a month. Despite a recent interim update forecasting EPS of at least $10.00, the company surpassed those projections due to double-digit profit growth across all five operating segments. The results underscore a successful shift toward high-margin specialty services and clinical products, solidifying CAH's position as a critical infrastructure provider in the U.S. healthcare sector.

• CAH grew Q2 revenue 19% to $66 bln and non-GAAP EPS 36% to $2.63, driven by strong pharmaceutical demand.
• The company raised its FY26 EPS guidance to $10.15–$10.35, representing projected yr/yr growth of 23-26%.
• All five operating segments achieved at least double-digit profit growth, led by a 29% profit increase in Pharmaceutical and Specialty Solutions.
• GLP-1 medication sales provided approximately 6 percentage points of revenue growth for the Pharmaceutical and Specialty segment.
• BioPharma Solutions experienced over 30% revenue growth in theranostics and supported roughly half of all 2025 specialty product launches.
• The November 3 acquisition of Solaris Health contributed two months of results and has already added its first urology practice.

Briefing.com Analyst Insight:

CAH’s Q2 performance marks a masterclass in execution, highlighted by its second guidance raise in under a month. The narrative is shifting from a turnaround to a growth story as the company pivots toward high-margin specialty services and nuclear medicine. A 52% profit surge in Other Growth Businesses and 30% growth in theranostics demonstrate that CAH is capturing the market's most lucrative segments. The Solaris Health acquisition and the expansion into urology provide a clear roadmap for FY26, positioning CAH to thrive in the high-demand specialty market. While competitors face pricing pressure, CAH is leveraging its scale and digital infrastructure to lock in manufacturer partnerships. With $1 bln returned to shareholders this year and a return to targeted leverage, CAH possesses the financial flexibility to sustain its beat-and-raise momentum.