Key Takeaways
- Cardinal Health (CAH) reported robust Q4 2025 adjusted earnings per share (EPS) of $2.08, surpassing analyst estimates, and subsequently raised its FY 2026 guidance.
- The healthcare giant also announced a significant strategic move to acquire Solaris Health, committing $1.9 billion in cash to Specialty Alliance to facilitate the deal.
- European companies are now anticipated to report a 4.8% increase in Q2 earnings, an upward revision from the 3.1% increase projected just a week prior.
- An EU spokesperson confirmed there is no set timeline for tariffs, as officials are still awaiting further communication from their U.S. counterparts.
Cardinal Health (CAH) delivered a strong close to its fiscal year 2025, reporting better-than-expected fourth-quarter earnings and providing an optimistic outlook for the upcoming fiscal year. The company's adjusted EPS for Q4 2025 came in at $2.08, outperforming the estimated $2.04. Despite revenue of $60.16 billion slightly missing the $60.92 billion estimate, Cardinal Health (CAH) demonstrated confidence by raising its fiscal year 2026 adjusted EPS guidance to a range of $9.30 to $9.50, exceeding the prior estimate of $9.26.
In a separate but related development, Cardinal Health (CAH) announced its intent to acquire Solaris Health., This acquisition involves providing $1.9 billion in cash to Specialty Alliance, a move that will grant Cardinal Health (CAH) approximately 75% ownership of Specialty Alliance., This strategic acquisition is expected to bolster Cardinal Health's (CAH) position within the healthcare sector.
Across the Atlantic, the earnings outlook for European companies has improved, signaling a potentially stronger quarter than previously anticipated. Latest LSEG IBES data indicates that European companies are now expected to report a 4.8% increase in Q2 earnings. This represents a notable uptick from the 3.1% increase that was projected just a week ago, suggesting a more resilient corporate performance in the region.
Meanwhile, the situation surrounding potential tariffs between the European Union and the United States remains fluid. An EU spokesperson reiterated that there is no specific timeline for the imposition of tariffs. The spokesperson clarified that the EU is still awaiting further engagement and information from U.S. officials regarding the matter.,
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.