Cardinal Health (NYSE:CAH) Releases Earnings Results

Cardinal Health (NYSE:CAH) posted its quarterly earnings results on Thursday. The company reported $2.63 EPS for the quarter, topping the consensus estimate of $2.31 by $0.32, FiscalAI reports. The business had revenue of $65.63 billion for the quarter, compared to analyst estimates of $64.88 billion. Cardinal Health had a negative return on equity of 84.37% and a net margin of 0.68%.The company’s quarterly revenue was up 18.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.93 EPS.

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

• Raised FY26 non-GAAP EPS guidance to $10.15–$10.35 (implying 23%–26% YoY) after a strong Q2 where consolidated revenue rose 19% to $66 billion and non‑GAAP EPS was $2.63 (+36%).
• The Pharmaceutical & Specialty Solutions segment led performance with revenue up 19% to $61 billion; management expects specialty revenues to exceed $50 billion in FY26 and closed the Solaris Health urology MSO acquisition in November to expand MSO scale.
• GMPD is showing a tangible turnaround—Q2 revenue +3% to $3.3 billion and segment profit improved to $37M—but part of the strength reflected distributor restocking timing and tariffs remain an adverse factor that may normalize in Q3.
• “Other” growth businesses delivered outsized results (revenue +34% to $1.7 billion, profit +52%), with Theranostics and OptiFreight each growing >30%, ADS integration proceeding well, and management reiterated strong cash generation with adjusted FCF guidance of $3.0–$3.5 billion while completing the $750M baseline buyback (Q2 repurchases of $375M) and returning leverage to ~3.2x.

Cardinal Health Stock Up 9.2%

NYSE:CAH traded up $19.05 on Thursday, reaching $225.90. 1,355,349 shares of the company’s stock were exchanged, compared to its average volume of 1,751,757. The firm has a market capitalization of $53.67 billion, a price-to-earnings ratio of 34.02, a price-to-earnings-growth ratio of 1.48 and a beta of 0.64. Cardinal Health has a 52-week low of $120.72 and a 52-week high of $229.76. The business has a fifty day moving average of $206.34 and a 200-day moving average of $179.16.

Institutional Investors Weigh In On Cardinal Health

Several large investors have recently added to or reduced their stakes in CAH. Wellington Management Group LLP boosted its position in Cardinal Health by 153.2% in the 3rd quarter. Wellington Management Group LLP now owns 5,804,090 shares of the company’s stock valued at $911,010,000 after buying an additional 3,511,579 shares during the period. Bank of America Corp DE increased its position in shares of Cardinal Health by 3.2% during the third quarter. Bank of America Corp DE now owns 3,592,775 shares of the company’s stock worth $563,922,000 after acquiring an additional 111,582 shares during the period. Invesco Ltd. raised its stake in shares of Cardinal Health by 14.7% in the third quarter. Invesco Ltd. now owns 3,483,207 shares of the company’s stock valued at $546,724,000 after acquiring an additional 445,425 shares in the last quarter. Man Group plc boosted its holdings in Cardinal Health by 26.1% in the third quarter. Man Group plc now owns 1,605,349 shares of the company’s stock valued at $251,976,000 after purchasing an additional 331,783 shares during the period. Finally, Ameriprise Financial Inc. boosted its holdings in Cardinal Health by 33.0% in the third quarter. Ameriprise Financial Inc. now owns 1,455,196 shares of the company’s stock valued at $228,467,000 after purchasing an additional 360,725 shares during the period. 87.17% of the stock is owned by hedge funds and other institutional investors.

Cardinal Health News Summary

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

• Positive Sentiment: Q2 results beat consensus — GAAP revenue of ~$65.6B (+19% y/y) and non‑GAAP EPS of $2.63 topped estimates, driven by strong segment margins. Management raised fiscal‑year non‑GAAP EPS guidance again to $10.15–$10.35. CAH Q2 Earnings Beat
• Positive Sentiment: Company raised guidance for a second time — analysts and journalists flagged the guidance lift as a key catalyst for the rally. The guidance boost signals confidence in specialty drug demand and margin leverage. Cardinal Health Stock Roars Higher
• Positive Sentiment: Specialty/pharma distribution strength — management cited surging demand for specialty medicines (including GLP‑1s) as a major growth driver, helping operating earnings and revenue growth. Reuters: Boosts Forecast
• Positive Sentiment: Capital return & balance‑sheet progress — Cardinal completed its $750M baseline share repurchase and said it has reached its targeted leverage range, which supports buyback capacity and investor confidence. PR Newswire: Q2 Results & Buyback
• Positive Sentiment: Market reaction — coverage notes the stock pushed to a 52‑week high after the results, reflecting strong investor demand on the news. Benzinga: 52‑Week High
• Neutral Sentiment: Details & context available — the full earnings release, slide deck and call transcript are posted for investors wanting line‑by‑line metrics and management commentary. Press Release / Slides Earnings Call Transcript
• Neutral Sentiment: Key drivers vs. estimates — analysts point to Pharma and Specialty Solutions as the primary beat contributors; follow‑through will depend on sustainability of GLP‑1 demand and pricing dynamics. Zacks: Driver Analysis
• Negative Sentiment: Margin/return metrics and valuation caveats — despite strong top‑line growth, trailing net margin remains thin (~0.7%) and reported return on equity was negative last period; valuation (PE ~34) is elevated, so the stock may be sensitive to execution or guidance misses. MarketBeat: Metrics & Valuation

Analyst Ratings Changes

Several research firms have recently commented on CAH. Jefferies Financial Group lifted their price target on shares of Cardinal Health from $220.00 to $270.00 and gave the company a “buy” rating in a research report on Thursday, January 22nd. Morgan Stanley raised their target price on Cardinal Health from $224.00 to $245.00 and gave the stock an “overweight” rating in a research note on Thursday, January 29th. Leerink Partners set a $240.00 price target on Cardinal Health in a research note on Tuesday, January 13th. Citigroup raised Cardinal Health from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $190.00 to $244.00 in a research report on Friday, January 9th. Finally, Barclays started coverage on shares of Cardinal Health in a research report on Monday, December 8th. They issued an “overweight” rating and a $243.00 target price on the stock. Fourteen investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $230.43.

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.