Cardinal Health is a Dublin, Ohio-based pharmaceutical and medical products distributor that serves the majority of U.S. hospitals, retail pharmacies, and healthcare providers through the Pharmaceutical and Specialty Solutions segment, the Global Medical Products and Distribution segment, and the broader portfolio of healthcare distribution and services, and the company is in the middle of a fiscal fourth quarter and fiscal year 2026 print that demonstrates the kind of five-segment-growth pivot the healthcare distribution cohort has been waiting for. Q4 FY2026 revenue of $63.7 billion was 6 percent above the prior-year quarter's $60.2 billion, Q4 FY2026 GAAP diluted EPS of $1.70 was 70 percent above the prior-year quarter's $1.00, and FY2026 revenue of $254.2 billion was 14 percent above the prior fiscal year's $222.6 billion. The combination of the 14 percent FY2026 revenue growth, the 30 percent FY2026 non-GAAP operating earnings growth, the $1.4 billion of FY2026 share repurchases, the $5.0 billion of incremental repurchase authorization, and the FY2027 non-GAAP EPS guidance of $12.40 to $12.60 representing 13 to 15 percent growth is the cleanest single-sentence read on what the healthcare distribution business model is producing, and the combination is the source of the operating-leverage spread the equity offers the buy-side.
The numbers tell the story with the kind of operational detail the healthcare distribution equity has been waiting for. The Q4 FY2026 GAAP operating earnings of $729 million were 70 percent above the prior-year quarter's $428 million, and the Q4 FY2026 non-GAAP operating earnings of $935 million were 30 percent above the prior-year quarter's $719 million. The FY2026 GAAP operating earnings of $2.6 billion were 15 percent above the prior fiscal year's $2.3 billion, and the FY2026 non-GAAP operating earnings of $3.6 billion were 30 percent above the prior fiscal year's $2.8 billion. The non-GAAP operating earnings growth of 30 percent was driven by segment profit increases across all five operating segments.
The Q4 FY2026 non-GAAP diluted EPS of $2.91 was 40 percent above the prior-year quarter, with the non-GAAP EPS growth reflecting the increase in non-GAAP earnings, the recognition of a one-time net operating profit impact of IEEPA tariff refunds of $100 million in the GMPD segment, the lower non-GAAP effective tax rate, and the lower share count from the FY2026 share repurchases. The FY2026 non-GAAP diluted EPS of $11.26 was 37 percent above the prior fiscal year's $8.22, with the FY2026 non-GAAP EPS growth reflecting the same factors.
The Q4 FY2026 GAAP EPS of $1.70 was 70 percent above the prior-year quarter, with the GAAP EPS growth reflecting the same factors plus the lower share count. The Q4 FY2026 GAAP EPS excluding the IEEPA tariff refund recognition would have been $1.39, representing a 39 percent increase.
The FY2026 operating cash flow of $5.2 billion and the FY2026 adjusted free cash flow of $5.0 billion are the cleanest single read on the cash-generation profile the company is producing, and the cash generation is the source of the capital-return capacity the company is producing. The incremental $350 million share repurchase completed during Q4 FY2026, bringing the FY2026 total share repurchases to $1.4 billion, and the $5.0 billion incremental repurchase authorization approved by the board of directors is the cleanest single read on the capital-return profile the company is producing.
The FY2027 non-GAAP EPS guidance of $12.40 to $12.60, representing 13 to 15 percent growth and above the Company's long-term EPS guidance, is the cleanest single read on the management confidence in the operating profile the company is producing.
The question the next four quarters resolve is whether the company can sustain the 14 percent revenue growth and the 30 percent non-GAAP operating earnings growth through FY2027, and whether the FY2027 guidance of 13 to 15 percent non-GAAP EPS growth is achievable. A Q1 FY2027 print that continues the double-digit segment profit growth and the 13 to 15 percent non-GAAP EPS growth would confirm the operating profile is sustainable. A Q1 FY2027 print that shows segment profit growth decelerating or non-GAAP EPS growth below the guided range would force the market to reprice the equity for a more modest terminal value.