Cardinal Health Extends CVS Distribution Agreement
On 2 October 2026, Cardinal Health Inc (NYSE:CAH) announced that it has entered into a binding Letter of Intent to extend its existing drug distribution agreement with CVS Health until June 30, 2032. The extension preserves the current scope of distribution services between the two companies.
The announcement prompted a ~3.7% rise in Cardinal Health’s share price during Thursday trading, as reported by Reuters. In conjunction with the contract renewal, the company reaffirmed its fiscal‑year 2027 non‑GAAP earnings‑per‑share (EPS) guidance, projecting $12.40 to $12.60 per share, which represents 13% to 15% growth year‑over‑year. Cardinal Health also maintained its long‑term non‑GAAP EPS growth outlook of 12% to 14%.
CEO Jason Hollar commented, “We value our long‑standing partnership with CVS Health and look forward to continuing to bring our best‑in‑class capabilities together to serve their customers.”
The company indicated that further updates may be provided during its first‑quarter earnings call scheduled for November 5, 2026**.
Key figures:
- Extension term: June 30, 2032
- Share price reaction: +3.7%
- FY2027 non‑GAAP EPS guidance: $12.40‑$12.60 (13%‑15% growth)
- Long‑term non‑GAAP EPS growth outlook: 12%‑14%
- Upcoming earnings call: November 5, 2026