Cardinal Health raises 2026 profit forecast on specialty drug demand

Jan 13 (Reuters) – Drug distributor Cardinal Health raised its 2026 profit forecast on Tuesday, driven by robust demand for specialty medicines and strong performance across its businesses.

Drug distributors are gaining from sales of specialty medicines, used to treat complex conditions such as rheumatoid arthritis and cancer, due to their high profit margins, while also benefiting from biosimilars when generic drug prices continue to fall amid intense competition.

Cardinal expects more than $50 billion of specialty revenue in 2026,  helped by robust demand across specialty drug distribution. The growth is also driven in part by a more than 30% anticipated revenue jump in its biopharma solutions business, which supports drug development and commercialization. 

Its shares gained 2.7% in premarket trading following the forecast update.

“This is another strong update for a company that has been delivering on improved growth under the current leadership,” said Leerink Partners analyst Michael Cherny. “Given the YTD stock underperformance, we expect a positive reaction.”

Cardinal expects 2026 adjusted profit to be at least $10 per share, compared with its previous expectation of $9.65 to $9.85 per share. Analysts on average were expecting a profit of $9.83 per share, according to data compiled by LSEG.

The company also said it has transitioned its manufacturer distribution service agreements for all branded drugs impacted by the 2026 Medicare drug price negotiation program.

(Reporting by Sneha S K in Bengaluru; Editing by Shilpi Majumdar)