Cardinal Health Forecasts 13-15% EPS Growth for Fiscal 2027

Cardinal Health projects fiscal 2027 earnings per share (EPS) growth of 13% to 15%, exceeding the company’s long-term target of 12% to 14%. This forecast follows a record fiscal 2026, during which the firm reported success across its primary business segments.

"The words that really come to mind for me is breadth and depth of our execution and our results. In fiscal 2026, every one of our five operating segments had fantastic performance, not just the P&L, but also in cash flow. We went truly five for five this last year, and our guidance for fiscal 2027 is a continuation of that success at a little bit more normalized rates," said Jason Hollar, Chief Executive Officer, Cardinal Health, at the Morgan Stanley Global Healthcare Conference.

Strategic Focus on Specialty Markets

A central pillar of the company’s growth strategy involves expanding its footprint in the specialty physician practice market. Cardinal Health utilizes Management Services Organizations (MSOs) to integrate independent practices into its network, a strategy that Hollar believes remains in its early stages.

"About 80% to 90% of the physicians in that space continue to be unaffiliated with an MSO, which is basically the white space that allows us the opportunity to continue to bolt on practices to our MSOs," Hollar noted.

Managing Market Transitions

Beyond its MSO expansion, the company is adjusting its approach to the pharmaceutical lifecycle, specifically regarding patent cliffs for both generics and biosimilars. Hollar characterized these opportunities as incremental.

"Whether it’s generics or biosimilars, it’s not a triple and a home run. It’s a lot of singles and doubles that add up to a nice base of business," Hollar said.

Market Position

These projections arrive as Cardinal Health (NYSE: CAH) maintains a position in the medical supply and pharmaceutical distribution sector. As of September 16, 2026, the company’s stock was trading at $233.77.

The company’s transition from the record-setting pace of fiscal 2026 to the projected 13% to 15% growth range for 2027 reflects a shift toward normalized, yet above-target, operational performance. Investors and stakeholders are focused on whether the company can capture the white space in the fragmented specialty market while maintaining the cash flow efficiency demonstrated in the prior fiscal year.