Cardinal Health Inc (NYSE:CAH) stock rose 0.62% (As on August 13, 11:18:09 AM UTC-4, Source: Google Finance) after the company announced that The Specialty Alliance, its multi-specialty management services organization (MSO) platform, has entered into a definitive agreement to acquire Solaris Health, the country’s leading urology MSO, from Lee Equity Partners and Solaris Health physician owners. Cardinal Health will provide approximately $1.9 billion in cash to The Specialty Alliance to enable the acquisition and will own approximately 75% of The Specialty Alliance after its acquisition of Solaris Health. Solaris Health physicians and several members of management will join GI Alliance physician owners and management as equity holders and operators in The Specialty Alliance. Cardinal Health expects the transaction to close by the end of calendar year 2025, subject to closing conditions, including the receipt of required physician and regulatory approvals. The transaction is expected to be slightly accretive to Cardinal Health’s non-GAAP earnings per share (EPS) in the first 12 months following close.

Meanwhile, the company has reported fourth-quarter revenue that missed analyst expectations, despite raising its fiscal 2026 earnings guidance. Non-GAAP operating earnings increased 19% to $719 million, driven by segment profit increases across Pharmaceutical and Specialty Solutions, GMPD and Other. Fourth-quarter revenue for the Pharmaceutical and Specialty Solutions segment was relatively flat at $55.4 billion. Fourth-quarter revenue increased 22% excluding the impact of the customer contract expiration, driven by brand and specialty pharmaceutical sales growth from existing and new customers. Fourth-quarter revenue for the Global Medical Products and Distribution segment increased 3% to $3.2 billion, driven by volume growth from existing customers.

CAH in the fourth quarter of FY25 has reported the adjusted earnings per share of $2.08, beating the analysts’ estimates for the adjusted earnings per share of $2.03. The 13% year-over-year increase in adjusted EPS was driven by a 19% rise in non-GAAP operating earnings to $719 million, with all five operating segments growing profit by double digits. The company had reported the adjusted revenue growth of 21 percent to $60.2 billion in the fourth quarter of FY25, missing the analysts’ estimates for revenue of $60.92 billion. This is after excluding the impact of a previously communicated contract expiration with OptumRx.

The company raised its fiscal 2026 adjusted EPS guidance to $9.30-$9.50, up from its previous outlook of $9.10-$9.30 and above the analyst consensus of $9.25. Cardinal Health generated $2.5 billion in adjusted free cash flow for fiscal 2025 and expects $2.75-$3.25 billion for fiscal 2026.