CARDINAL HEALTH INC Earnings Summary — Q3 2026

• Revenue grew 11% year-over-year to $60.9 billion, indicating sustained demand in pharmaceutical distribution.
• Net income saw a significant decline of 25% compared to Q3 2025, falling to $380 million.
• Operating expenses spiked to $1.99 billion, primarily driven by a rise in 'Other Operating Expenses' to $333 million.
• Share count reduction continues, with diluted shares outstanding down 2% YoY to 236 million.
• Gross profit improved to $2.5 billion, but was offset by higher selling, general, and administrative costs.
• The company effectively operates with negative equity, making it dependent on operational liquidity and debt access.
• Operating margins remain razor-thin at less than 1%, leaving the firm vulnerable to even minor cost fluctuations.

Management is focusing on a 'simplify and focus' strategy to stabilize the Medical segment and distance the core business from legal liabilities through 'non-GAAP' reporting metrics.

Stable

While revenue growth remains resilient, persistent margin pressure and the heavy burden of historic legal liabilities continue to weigh on the bottom line.

The outlook remains clouded by structural headwinds in medical supplies and the long-term payout schedule of opioid settlements, though medical segment optimization shows early signs of progress.