Cardinal Health (NYSE:CAH) Announces Quarterly Earnings Results, Beats Estimates By $0.49 EPS

Cardinal Health (NYSE:CAH) announced its quarterly earnings results on Tuesday. The company reported $2.91 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.42 by $0.49, FiscalAI reports. Cardinal Health had a negative return on equity of 98.74% and a net margin of 0.67%.The company had revenue of $63.67 billion during the quarter, compared to the consensus estimate of $65.15 billion. During the same period in the previous year, the company posted $2.08 earnings per share. Cardinal Health’s revenue for the quarter was up 5.8% on a year-over-year basis. Cardinal Health updated its FY 2027 guidance to 12.400-12.600 EPS.

Here are the key takeaways from Cardinal Health’s conference call:

• Fiscal 2026 results exceeded expectations: fourth-quarter operating earnings rose 30% and EPS increased 40% to $2.91, while full-year adjusted free cash flow reached $5 billion.
• Cardinal Health guided fiscal 2027 adjusted EPS to $12.40-$12.60, representing 13%-15% growth from the normalized fiscal 2026 baseline, above its reaffirmed long-term 12%-14% annual growth target.
• Pharmaceutical and Specialty Solutions continued to lead performance, with fourth-quarter segment profit up 21%; management expects 8%-11% profit growth in fiscal 2027, supported by specialty, generics, distribution wins, and previously completed acquisitions.
• The company authorized an additional $5 billion share-repurchase authorization, bringing total authorization to $6.4 billion, and plans to repurchase at least $1 billion of shares in fiscal 2027.
• The quarter included a non-recurring $100 million net benefit from IEEPA tariff refunds, or $0.31 of EPS, while ongoing replacement tariffs, fuel and commodity costs, foreign exchange, and geopolitical risks could pressure GMPD results toward the low end of its $200 million-$220 million fiscal 2027 profit outlook.

Cardinal Health Stock Down 2.5%

CAH opened at $234.19 on Thursday. Cardinal Health has a twelve month low of $145.47 and a twelve month high of $258.30. The company has a 50-day moving average price of $229.13 and a 200 day moving average price of $216.86. The company has a market cap of $54.85 billion, a PE ratio of 32.39, a price-to-earnings-growth ratio of 1.13 and a beta of 0.49.

Cardinal Health Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st will be given a $0.5158 dividend. The ex-dividend date is Thursday, October 1st. This represents a $2.06 annualized dividend and a dividend yield of 0.9%. Cardinal Health’s dividend payout ratio (DPR) is 28.49%.

Trending Headlines about Cardinal Health

Here are the key news stories impacting Cardinal Health this week:

• Positive Sentiment: Cardinal Health reported adjusted fiscal fourth-quarter earnings of $2.91 per share, well above the $2.42 consensus estimate. Management projected fiscal 2027 EPS of $12.40-$12.60, implying approximately 13%-15% growth, supported by pharmaceutical demand, specialty services, At-Home Solutions and share repurchases. CAH Q4 Earnings Beat on Pharma Strength, Revenues Miss, Stock Up
• Positive Sentiment: Analysts raised their price targets after the results: Citigroup increased its target to $280 with a Buy rating, Wells Fargo raised its target to $277 with an Overweight rating, and Robert W. Baird lifted its target to $274 with an Outperform rating. Cardinal Health Analysts Increase Their Forecasts Following Q4 Results
• Positive Sentiment: Medical technology profits nearly doubled, while Cardinal said it now exclusively serves nearly half of the cell-and-gene therapy market. The company also expanded its share-repurchase authorization by $5 billion, potentially supporting per-share earnings. Cardinal Health nearly doubles medtech profits
• Neutral Sentiment: Cardinal declared a quarterly dividend of $0.5158 per share, maintaining its long dividend-growth record, although the approximately 0.9% yield is modest for income-focused investors.
• Negative Sentiment: Revenue of $63.67 billion increased 5.8% year over year but fell short of the $65.15 billion consensus estimate. The sales shortfall has raised questions about the pace of volume growth as pharmaceutical demand normalizes. Cardinal Health misses sales expectations
• Negative Sentiment: With CAH trading near its high and at a price-to-earnings ratio above 32, investors may be taking profits and demanding stronger revenue execution before assigning further upside. Cardinal Health cash strength faces a valuation test

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in CAH. Compound Planning Inc. boosted its position in Cardinal Health by 9.3% during the fourth quarter. Compound Planning Inc. now owns 2,613 shares of the company’s stock worth $537,000 after acquiring an additional 222 shares during the last quarter. Axxcess Wealth Management LLC increased its holdings in shares of Cardinal Health by 58.6% in the fourth quarter. Axxcess Wealth Management LLC now owns 19,250 shares of the company’s stock valued at $3,956,000 after purchasing an additional 7,109 shares during the last quarter. Corient Private Wealth LLC increased its stake in shares of Cardinal Health by 5.9% in the 4th quarter. Corient Private Wealth LLC now owns 86,424 shares of the company’s stock worth $16,711,000 after acquiring an additional 4,831 shares during the last quarter. Alberta Investment Management Corp acquired a new position in shares of Cardinal Health during the 4th quarter valued at about $5,446,000. Finally, Raymond James Financial Inc. grew its holdings in shares of Cardinal Health by 8.3% in the fourth quarter. Raymond James Financial Inc. now owns 577,547 shares of the company’s stock valued at $118,817,000 after purchasing an additional 44,128 shares during the period. 87.17% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on CAH shares. Mizuho lifted their target price on shares of Cardinal Health from $240.00 to $250.00 and gave the company an “outperform” rating in a report on Wednesday. Zacks Research lowered shares of Cardinal Health from a “strong-buy” rating to a “hold” rating in a research report on Friday, June 12th. Morgan Stanley raised their price target on shares of Cardinal Health from $255.00 to $265.00 and gave the company an “overweight” rating in a research report on Wednesday. William Blair assumed coverage on shares of Cardinal Health in a research report on Tuesday, April 28th. They issued an “outperform” rating for the company. Finally, UBS Group increased their target price on shares of Cardinal Health from $274.00 to $280.00 and gave the stock a “buy” rating in a research note on Wednesday. Fifteen analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, Cardinal Health has a consensus rating of “Moderate Buy” and a consensus target price of $262.60.

About Cardinal Health

Cardinal Health is a multinational healthcare services and products company headquartered in Dublin, Ohio. Tracing its roots to the early 1970s, the company has grown into a major provider of supply chain and distribution services for the healthcare sector. Cardinal Health operates across a range of service lines that support hospitals, health systems, pharmacies, physician offices and clinical laboratories.

The company’s core activities include the wholesale distribution of branded and generic pharmaceuticals, the supply and distribution of medical-surgical products, and the provision of logistics and inventory management solutions.