In the latest trading session, Cardinal Health (CAH - Free Report) closed at $257.55, marking a +1.94% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq lost 0.02%.
Heading into today, shares of the prescription drug distributor had gained 11.92% over the past month, outpacing the Medical sector's gain of 1.01% and the S&P 500's gain of 0.67%.
Market participants will be closely following the financial results of Cardinal Health in its upcoming release. The company plans to announce its earnings on November 5, 2026. The company is expected to report EPS of $2.92, up 14.51% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $66.96 billion, indicating a 4.6% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.55 per share and revenue of $266.02 billion, which would represent changes of +11.46% and +4.63%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Cardinal Health. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Cardinal Health possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Cardinal Health is currently trading at a Forward P/E ratio of 20.14. This indicates a premium in contrast to its industry's Forward P/E of 17.17.
One should further note that CAH currently holds a PEG ratio of 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 2.01 based on yesterday's closing prices.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 99, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Cardinal Health (CAH - Free Report) ended the recent trading session at $253.71, demonstrating a +2.41% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 1.08%, and the Nasdaq, a tech-heavy index, added 0.08%.
Shares of the prescription drug distributor witnessed a gain of 6.54% over the previous month, beating the performance of the Medical sector with its loss of 0.15%, and the S&P 500's gain of 1.41%.
Investors will be eagerly watching for the performance of Cardinal Health in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 5, 2026. In that report, analysts expect Cardinal Health to post earnings of $2.92 per share. This would mark year-over-year growth of 14.51%. Meanwhile, our latest consensus estimate is calling for revenue of $66.96 billion, up 4.6% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.55 per share and revenue of $266.02 billion, indicating changes of +11.46% and +4.63%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cardinal Health. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Cardinal Health boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, Cardinal Health is currently exchanging hands at a Forward P/E ratio of 19.75. For comparison, its industry has an average Forward P/E of 17.67, which means Cardinal Health is trading at a premium to the group.
We can additionally observe that CAH currently boasts a PEG ratio of 1.49. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Dental Supplies was holding an average PEG ratio of 1.94 at yesterday's closing price.
The Medical - Dental Supplies industry is part of the Medical sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Cardinal Health (CAH - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Medical peers, we might be able to answer that question.
Cardinal Health is one of 916 individual stocks in the Medical sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Cardinal Health is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CAH's full-year earnings has moved 4.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, CAH has returned 15.9% so far this year. Meanwhile, the Medical sector has returned an average of 1.3% on a year-to-date basis. This means that Cardinal Health is outperforming the sector as a whole this year.
One other Medical stock that has outperformed the sector so far this year is Alto Neuroscience, Inc. (ANRO - Free Report) . The stock is up 35.7% year-to-date.
In Alto Neuroscience, Inc.'s case, the consensus EPS estimate for the current year increased 10.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Cardinal Health belongs to the Medical - Dental Supplies industry, which includes 14 individual stocks and currently sits at #69 in the Zacks Industry Rank. On average, stocks in this group have gained 7.5% this year, meaning that CAH is performing better in terms of year-to-date returns.
Alto Neuroscience, Inc., however, belongs to the Medical - Biomedical and Genetics industry. Currently, this 449-stock industry is ranked #160. The industry has moved +1.8% so far this year.
Going forward, investors interested in Medical stocks should continue to pay close attention to Cardinal Health and Alto Neuroscience, Inc. as they could maintain their solid performance.
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Cardinal Health (CAH - Free Report) is a stock many investors are watching right now. CAH is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 15.48 right now. For comparison, its industry sports an average P/E of 17.67. CAH's Forward P/E has been as high as 20.15 and as low as 13.69, with a median of 15.30, all within the past year.
CAH is also sporting a PEG ratio of 1.24. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CAH's industry has an average PEG of 2.27 right now. Within the past year, CAH's PEG has been as high as 1.88 and as low as 1.22, with a median of 1.49.
Finally, we should also recognize that CAH has a P/CF ratio of 15.27. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 19.63. Over the past year, CAH's P/CF has been as high as 17.47 and as low as 12.96, with a median of 15.12.
These are just a handful of the figures considered in Cardinal Health's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CAH is an impressive value stock right now.
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
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VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.86% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
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To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cardinal Health (CAH - Free Report) Headquartered in Dublin, OH, Cardinal Health, Inc. is one of the world’s largest healthcare services and products providers, operating across Pharmaceutical and Specialty Solutions, Global Medical Products and Distribution (GMPD), and three Other growth businesses. The company serves nearly 90% of U.S. hospitals, delivers more than 43,000 pharmaceutical shipments daily, and manages a broad portfolio of medical, surgical, laboratory, and healthcare logistics offerings.
CAH is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. CAH has a Growth Style Score of A, forecasting year-over-year earnings growth of 11.5% for the current fiscal year.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.12 to $12.55 per share. CAH also boasts an average earnings surprise of +14.7%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CAH should be on investors' short list.
Key Takeaways Cardinal Health expects Pharma profit to grow 8-11% in fiscal 2027 despite normalized demand.Other businesses are gaining momentum, with fiscal 2027 profit growth projected at 15-18%.IRA pricing changes may slow Pharma revenue growth, while Specialty growth is set to moderate. Cardinal Health (CAH - Free Report) enters fiscal 2027 with strong momentum across pharmaceutical distribution, specialty solutions and growth businesses. Specialty pharmaceuticals, cell-and-gene therapy capabilities and expanding non-core operations should support earnings growth, while IRA-related pricing changes, GMPD execution challenges, tariffs and elevated operating costs could constrain its overall performance.
Shares of this Zacks Rank #3 (Hold) company have risen 13.4% so far this year compared with the industry's 3.1% growth and the S&P 500 Index’s 12.3% rise.
Cardinal Health, with a market capitalization of $52.87 billion, is a global specialty medical device company.
Image Source: Zacks Investment Research
CAH’s bottom line is estimated to improve 13.3% over the next five years. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 14.72%.
What's Driving CAH’s Performance?Pharma Profit Growth Should Remain a Core Earnings Catalyst: Cardinal Health enters fiscal 2027 with strong momentum in its largest business. Pharma segment profit increased 21% in the fourth quarter of fiscal 2026, supported by brand and specialty portfolios, while the generics program continued to outperform its long-term targets. Management expects 8-11% Pharma profit growth in fiscal 2027, despite assuming more normalized demand. Brand and generic volume strength, additional generic launches, Red Oak-enabled sourcing and previously won distribution contracts should support profitability. Management expects generic conversions to remain earnings-accretive because of their higher-margin economics. This combination of resilient utilization and favorable product mix provides a relatively dependable earnings engine even as fiscal 2027 revenue growth normalizes.
Other Growth Businesses Are Emerging as Growth Engines: Cardinal Health’s Other businesses are becoming increasingly important contributors to consolidated growth. In the fourth quarter of fiscal 2026, the group generated 7% revenue growth and 14% segment-profit growth. Management expects fiscal 2027 revenues to increase 11-13% and profit to rise 15-18%. Nuclear and Precision Health Solutions is particularly attractive, with PET revenues growing more than 20% in the fiscal fourth quarter and Theranostics improved nearly 30%. OptiFreight is also seeing strong adoption of technology-enabled logistics products, while at-Home Solutions is benefiting from scale and integration. The combination of secular demand, operating leverage and selective acquisitions creates a faster-growing earnings layer beyond traditional pharmaceutical distribution.
Operational Efficiency Strengthens Competitive Position: Cardinal Health’s operational investments are increasingly translating into measurable service improvements and customer stickiness. Management highlighted service levels at or near record highs and noted that the company retained key customers across all classes of trade, including a long-term extension with its largest GMPD customer. In the at-Home business, the total fill rate reached nearly 99%, while on-time departures reached a record level. Automation and technology are also improving order accuracy and distribution efficiency. These capabilities can strengthen Cardinal Health’s competitive position because reliable fulfillment is critical in pharmaceutical and medical-product distribution. The combination of scale, service quality and customer retention supports more durable revenue visibility.
What’s Hurting CAH’s ProspectIRA Pricing Changes May Suppress Pharma Revenue Growth: Cardinal Health expects pharmaceutical revenue growth to moderate to 3-5% in fiscal 2027, partly because of the annualization of 2026 IRA price changes and implementation of additional 2027 changes. Management expects the percentage revenue impact to be broadly consistent with the headwind experienced during the second half of fiscal 2026. While the company does not anticipate an adverse profit impact, the pressure can lead to uncertain underlying volume performance and constrain reported top-line growth. This is particularly important because Pharma remains Cardinal Health’s largest operating segment. Investors therefore need to separate revenue trends caused by government-mandated pricing changes from underlying demand, especially as GLP-1 volume growth also moderates.
Specialty Growth Is Likely to Decelerate: Specialty remains a major growth engine, but its unusually strong performance in fiscal 2026 creates a tougher comparison for the coming year. Management said Specialty grew approximately 25% in fiscal 2026, boosted by distribution growth and contributions from acquisitions. For fiscal 2027, management still expects double-digit Specialty revenue growth but explicitly indicated that it will not match the prior year’s pace. Management characterized the expected trajectory as closer to the historical mid-teens range. This normalization could reduce the incremental contribution from Specialty to consolidated growth even while the business remains structurally attractive. The risk is therefore not deterioration, but a meaningful deceleration from an exceptionally strong base that could temper investor expectations.
Commodity Costs and Geopolitical Risks Could Pressure GMPD Profitability: Although GMPD is progressing operationally, its profitability in fiscal 2027 remains exposed to external cost pressures. Management specifically cited diesel fuel, polyethylene, polypropylene, polyvinyl and resins as areas experiencing inflationary pressure. Cardinal Health expects tariff benefits to offset much of these costs, but acknowledged that sustained elevated commodity prices or a prolonged Iran conflict could push GMPD toward the lower end of its $200-$220 million profit guidance. The company has improved its ability to mitigate such pressures through commercial flexibility and fuel surcharges, but some costs still flow through. Consequently, geopolitical developments and input-cost inflation remain important variables for the segment’s earnings trajectory.
Estimate TrendThe Zacks Consensus Estimate for fiscal 2027 revenues is pegged at $266.02 billion, implying growth of 4.6% from the year-ago reported figure. The consensus mark for adjusted EPS is pinned at $12.55, indicating an improvement of 11.5% from the previous year’s recorded level.
In the past 60 days, CAH’s earnings estimate for fiscal 2027 has improved 4.2%.
Stocks to ConsiderSome better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and Merit Medical Systems (MMSI - Free Report) .
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
West Pharmaceutical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.
WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.4%.
Merit Medical Systems, currently carrying a Zacks Rank of 2, reported a second-quarter 2026 adjusted EPS of $1.19, which surpassed the Zacks Consensus Estimate by 24%. Revenues of $419 million beat the Zacks Consensus Estimate by 3.5%.
MMSI has an estimated earnings growth rate of 12.3% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 14.10%.
Park National Corp OH trimmed its position in shares of Cardinal Health, Inc. (NYSE:CAH – Free Report) by 8.1% during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 52,115 shares of the company’s stock after selling 4,578 shares during the quarter. Park National Corp OH’s holdings in Cardinal Health were worth $11,596,000 at the end of the most recent quarter.
A number of other hedge funds have also recently added to or reduced their stakes in CAH. BlackRock Inc. acquired a new position in Cardinal Health during the second quarter worth $6,293,115,000. Wellington Management Group LLP lifted its holdings in Cardinal Health by 247.5% in the second quarter. Wellington Management Group LLP now owns 14,860,271 shares of the company’s stock valued at $3,530,206,000 after acquiring an additional 10,584,119 shares during the period. Bank of America Corp DE purchased a new stake in shares of Cardinal Health during the 2nd quarter worth $689,066,000. Legal & General Group Plc purchased a new stake in shares of Cardinal Health during the 2nd quarter worth $438,870,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of Cardinal Health during the 2nd quarter worth $308,640,000. Institutional investors and hedge funds own 87.17% of the company’s stock.
Insider Activity at Cardinal Health In other Cardinal Health news, CAO Mary C. Scherer sold 2,302 shares of the business’s stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $237.39, for a total transaction of $546,471.78. Following the completion of the sale, the chief accounting officer owned 2,811 shares of the company’s stock, valued at approximately $667,303.29. The trade was a 45.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Deborah Weitzman sold 7,354 shares of the firm’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $235.45, for a total value of $1,731,499.30. Following the completion of the transaction, the chief executive officer owned 77,901 shares in the company, valued at approximately $18,341,790.45. This trade represents a 8.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 210,271 shares of company stock worth $49,626,657. 0.12% of the stock is owned by corporate insiders.
Cardinal Health Stock Performance Cardinal Health stock traded up $4.60 during trading on Monday, hitting $232.90. The company’s stock had a trading volume of 518,648 shares, compared to its average volume of 1,978,612. The stock has a market capitalization of $53.93 billion, a price-to-earnings ratio of 32.21, a P/E/G ratio of 1.37 and a beta of 0.50. The stock’s fifty day moving average is $233.02 and its 200 day moving average is $220.11. Cardinal Health, Inc. has a 1-year low of $151.87 and a 1-year high of $258.30. Cardinal Health (NYSE:CAH – Get Free Report) last issued its quarterly earnings results on Tuesday, August 11th. The company reported $2.91 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.42 by $0.49. Cardinal Health had a negative return on equity of 98.53% and a net margin of 0.67%.The firm had revenue of $63.67 billion for the quarter, compared to analyst estimates of $65.15 billion. During the same period last year, the company earned $2.08 EPS. The firm’s quarterly revenue was up 5.8% on a year-over-year basis. Cardinal Health has set its FY 2027 guidance at 12.400-12.600 EPS. On average, research analysts anticipate that Cardinal Health, Inc. will post 12.55 EPS for the current fiscal year.
Cardinal Health Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be issued a $0.5158 dividend. This represents a $2.06 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Thursday, October 1st. Cardinal Health’s dividend payout ratio (DPR) is 28.49%.
Wall Street Analysts Forecast Growth Several research analysts have weighed in on CAH shares. Bank of America upped their target price on shares of Cardinal Health from $240.00 to $260.00 and gave the stock a “buy” rating in a research report on Thursday, July 2nd. Evercore reissued an “outperform” rating and set a $270.00 price target on shares of Cardinal Health in a research note on Wednesday, August 12th. Weiss Ratings cut Cardinal Health from a “buy (b+)” rating to a “buy (b)” rating in a report on Wednesday, August 19th. Barclays raised their price objective on Cardinal Health from $258.00 to $275.00 and gave the company an “overweight” rating in a research note on Thursday, August 13th. Finally, Wells Fargo & Company lifted their price objective on Cardinal Health from $245.00 to $277.00 and gave the stock an “overweight” rating in a report on Wednesday, August 12th. Sixteen analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $266.56.
Check Out Our Latest Stock Report on Cardinal Health
(Free Report)
Cardinal Health, Inc is a healthcare services and products company that supports pharmacies, hospitals, ambulatory surgery centers, physician offices and other healthcare providers. Its operations are primarily organized into Pharmaceutical and Medical segments.
The Pharmaceutical segment distributes branded, generic, specialty and over-the-counter medicines, as well as consumer health products. It also provides services related to specialty pharmaceuticals, pharmaceutical sourcing, nuclear and precision health products, and data and analytics for pharmaceutical manufacturers and healthcare organizations.
The Medical segment distributes medical and surgical products, including gloves, apparel, incontinence supplies, laboratory products and other essential items.
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Cardinal Health (CAH - Free Report) closed at $233.12 in the latest trading session, marking a +2.11% move from the prior day. This change outpaced the S&P 500's 0.66% gain on the day. Meanwhile, the Dow gained 0.18%, and the Nasdaq, a tech-heavy index, added 1.05%.
The stock of prescription drug distributor has fallen by 7.64% in the past month, lagging the Medical sector's loss of 3.74% and the S&P 500's gain of 0.55%.
The investment community will be closely monitoring the performance of Cardinal Health in its forthcoming earnings report. The company is scheduled to release its earnings on November 5, 2026. The company is predicted to post an EPS of $2.92, indicating a 14.51% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $66.96 billion, indicating a 4.6% upward movement from the same quarter last year.
CAH's full-year Zacks Consensus Estimates are calling for earnings of $12.55 per share and revenue of $266.02 billion. These results would represent year-over-year changes of +11.46% and +4.63%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Cardinal Health. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Cardinal Health holds a Zacks Rank of #3 (Hold).
With respect to valuation, Cardinal Health is currently being traded at a Forward P/E ratio of 18.19. This represents a premium compared to its industry average Forward P/E of 17.17.
We can also see that CAH currently has a PEG ratio of 1.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 1.92 based on yesterday's closing prices.
The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 97, finds itself in the top 40% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
MassMutual Private Wealth & Trust FSB increased its stake in Cardinal Health, Inc. (NYSE:CAH – Free Report) by 6,447.7% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 108,364 shares of the company’s stock after purchasing an additional 106,709 shares during the period. MassMutual Private Wealth & Trust FSB’s holdings in Cardinal Health were worth $24,111,000 at the end of the most recent reporting period.
A number of other institutional investors have also recently added to or reduced their stakes in CAH. BlackRock Inc. acquired a new position in shares of Cardinal Health during the second quarter valued at $6,293,115,000. Wellington Management Group LLP increased its holdings in shares of Cardinal Health by 247.5% in the 2nd quarter. Wellington Management Group LLP now owns 14,860,271 shares of the company’s stock worth $3,530,206,000 after acquiring an additional 10,584,119 shares during the period. Bank of America Corp DE bought a new stake in Cardinal Health in the 2nd quarter valued at about $689,066,000. Victory Capital Management Inc. lifted its position in Cardinal Health by 18.1% in the 4th quarter. Victory Capital Management Inc. now owns 2,698,189 shares of the company’s stock valued at $554,478,000 after purchasing an additional 414,074 shares during the last quarter. Finally, Legal & General Group Plc acquired a new position in Cardinal Health during the 2nd quarter valued at about $438,870,000. 87.17% of the stock is currently owned by institutional investors.
Wall Street Analyst Weigh In Several research analysts have commented on the stock. JPMorgan Chase & Co. upped their target price on shares of Cardinal Health from $215.00 to $260.00 and gave the stock a “neutral” rating in a research report on Thursday, August 13th. Zacks Research cut Cardinal Health from a “strong-buy” rating to a “hold” rating in a research report on Friday, June 12th. TD Cowen lifted their target price on Cardinal Health from $275.00 to $280.00 and gave the company a “buy” rating in a research note on Thursday, August 13th. Weiss Ratings cut Cardinal Health from a “buy (b+)” rating to a “buy (b)” rating in a research note on Wednesday, August 19th. Finally, Evercore reissued an “outperform” rating and set a $270.00 price objective on shares of Cardinal Health in a research note on Wednesday, August 12th. Sixteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $266.56.
Check Out Our Latest Report on Cardinal Health Cardinal Health Trading Up 0.2% Shares of CAH stock opened at $228.78 on Monday. The firm’s fifty day simple moving average is $233.02 and its 200 day simple moving average is $220.11. The firm has a market capitalization of $52.98 billion, a P/E ratio of 31.64, a price-to-earnings-growth ratio of 1.37 and a beta of 0.50. Cardinal Health, Inc. has a 1 year low of $150.77 and a 1 year high of $258.30.
Cardinal Health (NYSE:CAH – Get Free Report) last released its earnings results on Tuesday, August 11th. The company reported $2.91 earnings per share for the quarter, topping analysts’ consensus estimates of $2.42 by $0.49. The business had revenue of $63.67 billion for the quarter, compared to the consensus estimate of $65.15 billion. Cardinal Health had a negative return on equity of 98.53% and a net margin of 0.67%.The firm’s revenue for the quarter was up 5.8% compared to the same quarter last year. During the same period last year, the business earned $2.08 earnings per share. Cardinal Health has set its FY 2027 guidance at 12.400-12.600 EPS. Equities research analysts anticipate that Cardinal Health, Inc. will post 12.55 EPS for the current fiscal year.
Cardinal Health Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be paid a $0.5158 dividend. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $2.06 dividend on an annualized basis and a yield of 0.9%. Cardinal Health’s payout ratio is presently 28.49%.
Insider Buying and Selling In related news, CAO Mary C. Scherer sold 2,302 shares of the firm’s stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $237.39, for a total transaction of $546,471.78. Following the completion of the transaction, the chief accounting officer owned 2,811 shares in the company, valued at $667,303.29. This trade represents a 45.02% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Jessica Mayer sold 29,436 shares of Cardinal Health stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $236.19, for a total value of $6,952,488.84. Following the transaction, the insider directly owned 33,076 shares of the company’s stock, valued at approximately $7,812,220.44. The trade was a 47.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 210,271 shares of company stock worth $49,626,657. Insiders own 0.12% of the company’s stock.
Key Headlines Impacting Cardinal Health Here are the key news stories impacting Cardinal Health this week:
Positive Sentiment: Cardinal Health signed a binding letter of intent to continue its existing distribution services for CVS Health through 2032. The extension provides longer-term revenue visibility without requiring a change to the current scope of services. Cardinal Health CVS distribution agreement Positive Sentiment: CVS Health was identified as Cardinal Health’s only customer representing at least 10% of fiscal 2026 revenue or gross trade receivables, making the renewal particularly important for protecting future sales and earnings visibility. Cardinal Health CVS deal and outlook Positive Sentiment: Management reaffirmed fiscal 2027 adjusted EPS guidance of $12.40 to $12.60, broadly in line with the approximately $12.56 analyst consensus, as well as its long-term adjusted EPS growth target of 12% to 14%. The absence of a guidance cut supports confidence in the outlook. Cardinal Health and McKesson CVS agreements Neutral Sentiment: Cardinal Health plans to report fiscal 2027 first-quarter results before the market opens on November 5, giving investors a forthcoming catalyst to assess prescription volumes, margins and the impact of the renewed CVS relationship. Cardinal Health first-quarter earnings date Negative Sentiment: Separate tracking data shows substantial insider selling over the past six months, with no reported insider purchases. While these transactions may reflect planned diversification rather than a change in fundamentals, they could temper enthusiasm around the shares. Cardinal Health Company Profile (Free Report)
Cardinal Health, Inc is a healthcare services and products company that supports pharmacies, hospitals, ambulatory surgery centers, physician offices and other healthcare providers. Its operations are primarily organized into Pharmaceutical and Medical segments.
The Pharmaceutical segment distributes branded, generic, specialty and over-the-counter medicines, as well as consumer health products. It also provides services related to specialty pharmaceuticals, pharmaceutical sourcing, nuclear and precision health products, and data and analytics for pharmaceutical manufacturers and healthcare organizations.
The Medical segment distributes medical and surgical products, including gloves, apparel, incontinence supplies, laboratory products and other essential items.
Further Reading Five stocks we like better than Cardinal Health Could Nike’s Brutal Sell-Off Finally Be Running Out of Steam? The AI Buildout Needs Power It Cannot Get: 4 Energy Stocks Already Have It McDonald’s Is Undergoing a Massive New Growth Strategy. Can It Win Back Consumers? MGM Resorts Stock Sinks After Diller Deal Collapse: Overreaction or Warning? Want to see what other hedge funds are holding CAH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cardinal Health, Inc. (NYSE:CAH – Free Report).
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DUBLIN, Ohio, Oct. 1, 2026 /PRNewswire/ -- Cardinal Health (NYSE: CAH) plans to release first-quarter financial results for its fiscal year 2027 on November 5, prior to the opening of trading on the New York Stock Exchange. The company will webcast a discussion of these results beginning at 8:30 a.m.
DUBLIN, Ohio, Oct. 1, 2026 /PRNewswire/ -- Cardinal Health (NYSE: CAH) announced today that it has entered into a binding Letter of Intent to extend its existing distribution agreement with CVS Health through June 30, 2032, reflecting the continuation of Cardinal Health's current scope of distribution services. "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," stated Jason Hollar, CEO of Cardinal Health.
Cardinal Health remains a Buy, driven by robust FY2026 results, strong cash flow, and credible FY2027 guidance. CAH delivered 14% revenue growth, 20% gross margin expansion, and doubled free cash flow, despite ongoing thin margins and higher current liabilities. FY2027 guidance targets 13-15% non-GAAP EPS growth, with profit improvement expected from both Pharmaceutical and Specialty Solutions and higher-margin 'Other' segments.
Key Takeaways Cardinal Health is scaling At-Home Solutions through investments and acquisitions in specialized home care.CAH expects its Other growth businesses to deliver 11-13% revenues and 15-18% profit growth in fiscal 2027.ADS, Strive Medical and AdaptHealth's Diabetes business are expanding CAH's at-Home capabilities and scale. Cardinal Health (CAH - Free Report) is positioning its At-Home Solutions business to capture the continued shift toward home-based healthcare, particularly through diabetes and other specialized care needs. Management described at-Home as a fast-growing yet fragmented market, creating opportunities to scale through both organic investments and acquisitions. The business delivered strong operating performance in the fourth quarter, supported by investments in distribution capacity, technology and automation. Its nearly 99% fill rate and best-ever quarter for on-time departures highlight the operational infrastructure being built to support rising home-care demand.
The integration of Advanced Diabetes Supply (“ADS”) is becoming an important component of this strategy. Cardinal Health said the integration was progressing ahead of schedule on synergies, while recent investments in home care are strengthening the framework established through ADS. The company is also scaling through the completed acquisition of Strive Medical and the announced acquisition of AdaptHealth’s Diabetes Health business. Management expects these transactions to contribute to growth while expanding its at-Home capabilities.
Beyond distribution, Cardinal Health is building connectivity across the healthcare ecosystem. Its continued care pathway program simplifies diabetes supply management for both pharmacies and patients, allowing the company to extend its role beyond traditional product distribution.
CAH’s strategy also relies on expanding its network and capabilities through acquisitions and customer relationships. Strive and AdaptHealth’s Diabetes Health businesses are expected to add scale, while Cardinal Health continues to invest in technology, capacity and capabilities across its growth businesses. For fiscal 2027, management expects the Other growth businesses, which include At-Home Solutions, to deliver 11-13% revenue growth and 15-18% profit growth.
Peer UpdatesBrightSpring Health Services (BTSG - Free Report) is expanding its at-home footprint through a platform spanning home health, hospice, personal care and home-based primary care. In the second quarter, Provider Services revenues increased 30%, led by Home Health Care revenue growth of 51%. The growth in Home Health was supported by census gains, de novo expansion and contributions from Amedisys and LHC branches. Personal Care hours served also grew above the industry rate, while home-based primary care continued showing reductions in hospitalizations and healthcare costs.
BrightSpring is integrating these services and pursuing tuck-in acquisitions and expansions, using scale, technology, AI and capabilities to broaden access, improve efficiency and capture demand across home-based care markets.
Addus HomeCare (ADUS - Free Report) is expanding its position in home-based care primarily through Personal Care, while using acquisitions to increase geographic density and service scale. Personal Care revenues rose 6.8% in the second quarter, with hours served up 2.2% and census increasing sequentially across most markets.
Addus also expanded into Indiana through HomeCourt Home Care and agreed to acquire another Indianapolis-area provider, extending its presence around Illinois. Hospice revenues increased 11.1%, while hospice census rose 6.5%. Although Home Health revenues declined 2.8%, admissions and operating performance improved sequentially. Addus is also evaluating additional personal care and home health acquisitions to broaden coverage and regional reach.
CAH’s Price Performance, Valuation and Estimates
Shares of CAH have gained 7.1% so far this year compared with the industry’s 2% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Cardinal Health trades at a forward price-to-earnings of 17.1X, above the industry average. However, it is trading lower than its five-year high of 22.19X. CAH carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Cardinal Health’s fiscal 2027 earnings implies an 11.5% rise from the year-ago reported number.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the latest trading session, Cardinal Health (CAH - Free Report) closed at $220.22, marking a -1.08% move from the previous day. This move lagged the S&P 500's daily gain of 0.51%. Meanwhile, the Dow experienced a rise of 0.93%, and the technology-dominated Nasdaq saw an increase of 0.48%.
The stock of prescription drug distributor has fallen by 5.32% in the past month, lagging the Medical sector's loss of 3.38% and the S&P 500's gain of 0.74%.
Market participants will be closely following the financial results of Cardinal Health in its upcoming release. The company's upcoming EPS is projected at $2.92, signifying a 14.51% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $66.96 billion, showing a 4.6% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.55 per share and a revenue of $266.02 billion, indicating changes of +11.46% and +4.63%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cardinal Health. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Cardinal Health is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Cardinal Health is currently being traded at a Forward P/E ratio of 17.74. This represents a premium compared to its industry average Forward P/E of 16.94.
We can additionally observe that CAH currently boasts a PEG ratio of 1.34. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Medical - Dental Supplies industry held an average PEG ratio of 1.95.
The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 104, finds itself in the top 43% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CAH in the coming trading sessions, be sure to utilize Zacks.com.
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What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cardinal Health (CAH - Free Report) Headquartered in Dublin, OH, Cardinal Health, Inc. is one of the world’s largest healthcare services and products providers, operating across Pharmaceutical and Specialty Solutions, Global Medical Products and Distribution (GMPD), and three Other growth businesses. The company serves nearly 90% of U.S. hospitals, delivers more than 43,000 pharmaceutical shipments daily, and manages a broad portfolio of medical, surgical, laboratory, and healthcare logistics offerings.
CAH is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. CAH has a Growth Style Score of A, forecasting year-over-year earnings growth of 11.5% for the current fiscal year.
For fiscal 2027, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.51 to $12.55 per share. CAH boasts an average earnings surprise of +14.7%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CAH should be on investors' short list.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Cardinal Health (CAH - Free Report) .
Cardinal currently has an average brokerage recommendation (ABR) of 1.39, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 18 brokerage firms. An ABR of 1.39 approximates between Strong Buy and Buy.
Of the 18 recommendations that derive the current ABR, 14 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 77.8% and 5.6% of all recommendations.
Brokerage Recommendation Trends for CAH
Check price target & stock forecast for Cardinal here>>>
The ABR suggests buying Cardinal, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in CAH?In terms of earnings estimate revisions for Cardinal, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $12.55.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Cardinal. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Cardinal.
Key Takeaways Cardinal Health expects MSO platforms to contribute to growth in fiscal 2027, boosted by Solaris.CAH's MSOs span fragmented markets, including urology, GI, oncology and autoimmune care.Cardinal Health plans to expand its MSO services and integrate them with its broader Specialty ecosystem. Cardinal Health (CAH - Free Report) is increasingly using its multi-specialty management services organization (MSO) strategy to expand its presence in specialty care delivery. The company expects its MSO platforms to contribute to growth in fiscal 2027, with the recently completed Solaris acquisition providing an incremental contribution before Cardinal Health reaches the acquisition anniversary in the second quarter of fiscal 2027.
The strategy extends beyond urology. Cardinal Health has invested significantly in MSOs serving autoimmune care, including gastroenterology (GI), oncology and urology. Management noted that while the company has achieved meaningful scale, particularly in urology and GI, these markets remain highly fragmented, leaving substantial room to expand physician networks and scale operations.
Cardinal Health is not focused solely on adding practices. Management intends to expand the services provided through its MSOs, creating greater capabilities for physicians and patients. The company sees these specialized and fragmented markets as opportunities to build scale while improving service delivery.
The MSO strategy also aligns with Cardinal Health’s broader Specialty ecosystem. Management said its MSOs, Biopharma Solutions and associated services are contributing to broad-based growth, with the different parts of the business increasingly working together to improve products and services for customers and patients.
This integrated model could help Cardinal Health increase access to specialty therapies by combining physician-facing capabilities with its broader specialty infrastructure. The company specifically views expanding MSOs and the services attached to them as significant opportunities.
Peer UpdatesMcKesson (MCK - Free Report) is expanding its MSO and practice-management capabilities by deepening its oncology and multispecialty platform. MCK now serves more than 14,000 providers across community-based specialties, while the US Oncology Network has grown to approximately 3,400 providers who cumulatively treat more than 2 million patients annually.
PRISM Vision adds more than 200 providers across 97 locations, extending McKesson’s physician network into retina and ophthalmology. The company expects continued provider additions to drive growth across practice management, GPO services, data and analytics, and clinical research support. By integrating these capabilities with specialty distribution, McKesson can strengthen physician relationships while expanding community-based patient access.
Cencora (COR - Free Report) is building its MSO strategy around oncology and retina practices, using management services to help physicians navigate access, reimbursement and administrative complexity while maintaining a community-based care model. Cencora’s OneOncology and RCA platforms performed ahead of expectations in the third quarter, with OneOncology demonstrating an ability to attract physicians to the MSO platform.
Management outlined three phases of value creation — integrating MSOs into Cencora, sharing capabilities such as clinical-trial resources, and developing new services including analytics and insights. Cencora also plans to expand physician networks through tuck-in acquisitions and individual physician additions, creating opportunities to broaden specialty services and patient access.
CAH’s Price Performance, Valuation and EstimatesShares of CAH have gained 9.8% so far this year compared with the industry’s 2.2% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Cardinal Health trades at a forward price-to-earnings of 17.55X, above the industry average. However, it is trading lower than its five-year high of 22.19X. CAH carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Cardinal Health’s fiscal 2027 earnings implies an 11.5% rise from the year-ago reported number.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways CVS Health's Health Services revenues rose 11.5% in Q2 2026, driven by favorable drug mix and services. Cardinal Health's fiscal 2026 segment revenues climbed 15% to $234.8 billion, with profit up 23%. CVS has a higher average analyst price target upside and trades at a higher P/S than Cardinal Health. The global healthcare services market has expanded steadily in recent years. The market size is expected to reach $11.32 trillion by 2030, at a compound annual growth rate (CAGR) of 4.9% (per The Business Research). Over the coming years, market expansion is likely to be supported by greater adoption of digital health services, increased integration of AI into clinical workflows, rising demand for home-based care, broader population health management and higher investments in healthcare infrastructure.
Key trends include the growing adoption of telehealth and virtual care, increased use of data-driven clinical decision support, greater emphasis on preventive and value-based care, expansion of integrated care delivery models and a stronger focus on patient-centric service design.
CVS Health (CVS - Free Report) and Cardinal Health (CAH - Free Report) , two prominent players in this space, are positioned to capitalize on the market’s growth prospects.
Over the past year, shares of CVS have risen 16.6% while those of CAH have gained 53.1%.
Image Source: Zacks Investment Research
The Case for CVS HealthCVS Health’s Health Services business continues to benefit from favorable pharmacy drug mix, brand inflation, purchasing economics and gradual improvement in Health Care Delivery. In the second quarter of 2026, the segment’s revenues increased 11.5% year over year to $51.80 billion, while adjusted operating income rose 10% to $1.73 billion. The company reiterated its full-year 2026 adjusted operating income outlook despite updating its view of the 340B program, supported by performance across the broader Pharmacy Services business.
Caremark continues to adapt its offerings as clients seek lower net costs and greater transparency. The 2026 selling season generated more than $6 billion in new sales, well above the company’s historical average. CVS Specialty also maintained adherence levels above 90%, while Caremark’s Humira biosimilar strategy has delivered more than $1.8 billion in client savings.
Health Care Delivery is also contributing to growth, with second-quarter 2026 revenues rising nearly 23% year over year, primarily driven by Oak Street Health. CVS is making technology infrastructure changes, refining payer contracts and adopting a more selective clinic footprint to improve the economics of Health Care Delivery over time.
However, the company remains exposed to reimbursement pressure across its government, retail pharmacy and PBM businesses, which could weigh on profitability. It also continues to factor potential macroeconomic headwinds into its 2026 outlook, as inflation, tariffs, interest rates, unemployment and supply-chain disruptions could increase costs, affect consumer behavior and pressure cash flow.
Valuation: CVS vs. CAHCVS currently trades at a forward one-year price-to-sales (P/S) of 0.26X, slightly higher than its median. Cardinal Health’s 0.19X P/S also sits above its median. Additionally, CVS trades at a higher valuation than Cardinal Health.
Image Source: Zacks Investment Research
The Case for Cardinal HealthCardinal Health is one of the world’s largest healthcare services and products providers, operating across Pharmaceutical and Specialty Solutions, Global Medical Products and Distribution (“GMPD”). The company serves nearly 90% of U.S. hospitals, delivers more than 43,000 pharmaceutical shipments daily, and manages a broad portfolio of medical, surgical, laboratory and healthcare logistics offerings.
Its Pharmaceutical and Specialty Solutions business continues to benefit from strong branded and specialty drug volumes, related services and positive generics performance. In fiscal 2026, the segment’s revenues increased 15% year over year to $234.8 billion, while segment profit rose 23% to $2.8 billion. The company continues to execute its GMPD improvement plan, focusing on product mix, simplification, automation and cost optimization. BioPharma Solutions is also expanding its cell and gene therapy commercialization agreements, while the Specialty Alliance continues to broaden its multi-specialty services.
At-Home Solutions is benefiting from investments in distribution capacity and automation, while synergies from the Advanced Diabetes Supply integration are progressing ahead of schedule. Nuclear and Precision Health Solutions continues to expand in PET and theranostics, with fourth-quarter PET revenue growth above 20% and theranostics growth near 30%.
However, the company still depends on large distribution relationships, making contract renewals and customer mix important to revenue scale and pricing. The fiscal 2025 OptumRx expiration demonstrated how a major contract change can alter reported growth and distribution volumes. Additionally, GMPD remains exposed to tariffs, fuel and commodity costs, and geopolitical disruption across its global sourcing network.
Short-Term Price Target Favors CVS Over CAHBased on short-term price targets offered by 23 analysts, the average price target for CVS comes to $115.09. The average price target represents an increase of 29.55% from the last closing price.
Image Source: Zacks Investment Research
Based on short-term price targets offered by 16 analysts, the average price target for Cardinal Health comes to $272.75. The average price target represents an increase of 21.02% from the last closing price.
Image Source: Zacks Investment Research
Our TakeBoth CVS Health and Cardinal Health remain positioned to benefit from the continued expansion of the global healthcare services market. Both companies are investing in their respective growth areas while working to improve operating efficiency and expand service offerings. However, broader macroeconomic uncertainties remain key factors that could affect their growth and profitability.
CVS and CAH presently carry a Zacks Rank #3 (Hold) each. Based on the price performance, short-term price target and valuation metrics, CVS Health appears more favorable than Cardinal Health.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Abbott?The final step today is to look at a stock that meets our ESP qualifications. Abbott (ABT - Free Report) earns a #3 (Hold) 30 days from its next quarterly earnings release on October 21, 2026, and its Most Accurate Estimate comes in at $1.46 a share.
ABT has an Earnings ESP figure of +2.36%, which, as explained above, is calculated by taking the percentage difference between the $1.46 Most Accurate Estimate and the Zacks Consensus Estimate of $1.43. Abbott is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
ABT is one of just a large database of Medical stocks with positive ESPs. Another solid-looking stock is Cardinal Health (CAH - Free Report) .
Cardinal Health, which is readying to report earnings on October 29, 2026, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $2.96 a share, and CAH is 38 days out from its next earnings report.
Cardinal Health's Earnings ESP figure currently stands at +1.29% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.92.
ABT and CAH's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Cardinal Health (NYSE:CAH) CEO Jason Hollar said the company expects fiscal 2027 to extend the broad operating momentum it generated in fiscal 2026, with all five operating segments positioned for what he described as a “constructive” period.
Speaking at the Morgan Stanley Global Healthcare Conference, Hollar said the company’s fiscal 2027 adjusted earnings-per-share outlook of 13% to 15% growth is expected to be driven primarily by operating-income growth across its three reporting segments and five operating businesses. Cardinal Health reiterated its longer-term EPS growth target of 12% to 14%.
Hollar said fiscal 2026 included strong performance across both profit and cash flow, though fiscal 2027 growth is expected to occur at more normalized rates. He said below-the-line factors will include lower interest expense supported by strong cash flow, a slightly higher expected tax rate and $1 billion in planned share repurchases. Pharmaceutical and Specialty Growth Within Pharmaceutical and Specialty Solutions, Hollar said generic-drug volume is expected to grow slightly above the company’s usual 2% to 3% range in fiscal 2027. He attributed the outlook to favorable demographics and continued loss-of-exclusivity activity, although he said growth is not expected to match fiscal 2026 levels.
Specialty was a major contributor in fiscal 2026, when it grew 25%, aided by acquisitions and customer wins in BioPharma Solutions. For fiscal 2027 and beyond, Cardinal Health expects specialty growth closer to a double-digit rate.
Hollar said the company remains focused on three specialty platforms: oncology, urology and autoimmune care, including gastroenterology. He said the non-oncology markets remain highly fragmented, with an estimated 80% to 90% of physicians in gastroenterology and urology still unaffiliated with a management services organization, or MSO.
The company does not believe it needs to add a fourth specialty platform at this stage, Hollar said. Instead, it plans to continue pursuing bolt-on opportunities that fit its existing platforms and culture.
Cardinal Health’s BioPharma Solutions business generated more than 30% growth in fiscal 2026, Hollar said. The company previously outlined a path to grow BioPharma Solutions revenue to $1 billion by fiscal 2028 from $550 million in fiscal 2025, representing a 20% compound annual growth rate.
Customer Relationships and Specialty Alliance Addressing the upcoming year-end renewal of Cardinal Health’s distribution contract with CVS, Hollar said the relationship is “very strong.” He pointed to longer-dated partnerships involving Red Oak Sourcing, the Averon Sourcing biosimilars joint venture and IQ Purchasing for over-the-counter products.
“It is an all-of-the-above type of relationship with them,” Hollar said, adding that Cardinal Health believes CVS is receiving strong service.
Hollar also said integration of Solaris Health into The Specialty Alliance is progressing as planned. The company brought distribution for GI Alliance and Solaris under its umbrella during the second calendar quarter of 2026. Cardinal Health expects the year-over-year distribution benefit to continue through the fourth quarter of fiscal 2027.
He said Solaris and GI Alliance have shared opportunities in physician recruitment, payer negotiations, infusion services and ambulatory surgery centers, while also gaining access to Cardinal Health capabilities in nuclear medicine, at-home solutions and core distribution.
Policy, Biosimilars and Medical Products On drug pricing and Inflation Reduction Act-related changes, Hollar said Cardinal Health’s fee-for-service model and contractual protections have allowed it to maintain economics when product pricing changes. He said the company expects that framework to remain intact in fiscal 2027 and beyond.
For Cardinal Health’s MSO operations, Hollar said drug spending accounts for roughly one-third of revenue in its larger urology and GI businesses, while office visits and procedures account for the remaining two-thirds. That diversification, he said, limits the potential effect of policy changes on the organization.
Hollar characterized biosimilar and generic loss-of-exclusivity opportunities as “a lot of singles and doubles” rather than a single outsized event. He said 2026 and 2027 should be constructive years for loss of exclusivity, with 2028 and 2029 expected to be somewhat stronger.
In Global Medical Products and Distribution, Hollar said Cardinal Health faced a $450 million tariff impact in fiscal 2026 but mitigated about two-thirds through sourcing and other operating actions. The remaining impact was effectively shared with customers, he said. The company has not implemented significant pricing related to commodity costs, though it is monitoring pressure on fuel and oil-based inputs.
At-Home and Other Businesses Cardinal Health expects its “other” segment to deliver 15% to 18% adjusted operating-income growth in fiscal 2027. About 2 percentage points of that growth is expected to come from the Strive Medical acquisition and an anticipated small late-year contribution from AdaptHealth’s diabetes business.
Hollar said the company also expects benefits from synergies tied to its earlier acquisition of Advanced Diabetes Supply Group. In addition to at-home solutions, he cited growth in nuclear medicine, including theranostics, and expansion by OptiFreight Logistics into pharmacy products.
Looking ahead, Hollar said Pharmaceutical and Specialty Solutions will remain Cardinal Health’s largest investment priority, particularly specialty services. At-home solutions will remain a key area for inorganic investment, while Global Medical Products and Distribution remains in a turnaround phase but has growth potential through Cardinal Health-branded products.
About Cardinal Health (NYSE:CAH) Cardinal Health, Inc is a healthcare services and products company that supports the pharmaceutical and medical industries. Its Pharmaceutical and Specialty Solutions segment distributes branded, generic and specialty pharmaceuticals, over-the-counter products and consumer health items to pharmacies, hospitals, health systems and other healthcare providers. The segment also provides specialty pharmaceutical services, nuclear and radiopharmaceutical products, and related support for manufacturers and providers.
Through its Global Medical Products and Distribution segment, Cardinal Health manufactures, sources and distributes medical and surgical products, including gloves, gowns, syringes, exam-room supplies and other essential equipment.
Cardinal Health (NYSE:CAH) CEO Jason Hollar said the company’s fiscal 2026 performance was supported by double-digit earnings growth across each of its five operating segments, while fiscal 2027 guidance reflects continued growth from a more normalized base.
Speaking at a Baird event, Hollar said the company’s results were not driven by a single factor. Strong healthcare utilization, specialty growth, new customer wins, acquisitions and operational execution all contributed, he said. However, Cardinal expects certain drivers of the prior year’s outperformance—including unusually strong specialty growth and customer onboarding—to be less pronounced in fiscal 2027.
“The breadth and the depth of the activities and the opportunities that we see in front of us” were central to the company’s performance, Hollar said. He noted that all five operating segments generated at least double-digit earnings growth, excluding the effects of mergers and acquisitions. Specialty, at-Home and MSO Strategy Hollar said Cardinal’s specialty business grew 25% during fiscal 2026, aided by acquisitions, customer gains and service provided to existing customers. He said the company expects growth to moderate from that level as the effects of acquisitions and new customer wins are annualized, though underlying demand remains constructive.
Cardinal is continuing to invest in specialty and at-home healthcare businesses. Hollar said the company has three managed-services organization platforms focused on oncology, urology and gastroenterology. The company is now focused on integrating those platforms while continuing to pursue bolt-on acquisitions; it completed four such acquisitions during the most recent quarter, he said.
Hollar said Cardinal does not currently manage its business in a way that would support separate segment reporting for MSO operations. The company views the operations as part of its larger specialty strategy, where distribution, biopharma services and physician-focused offerings are interconnected.
On recent at-home deals, Hollar said Strive Medical has already closed and provides urology-focused durable medical equipment. He described the acquisition as a fit with Cardinal’s existing urology distribution, MSO, nuclear pharmaceutical and at-home operations.
The acquisition of AdaptHealth’s diabetes business is expected to close in the second half of fiscal 2027, according to Hollar. He said the business complements Cardinal’s Advanced Diabetes Supply, or ADS, acquisition and expands the company’s presence in continuous glucose monitoring.
“Only 35% of people that are eligible for a CGM through insurance coverage actually has a CGM,” Hollar said, adding that the eligible population and use of the products have continued to grow.
Focus on Logistics and Product Mix Hollar emphasized that Cardinal’s at-home strategy is centered on automated distribution of relatively small, dense and higher-value products through small-parcel shipping rather than entering patients’ homes to provide setup or care services.
He said Cardinal has significant small-parcel freight scale through businesses including OptiFreight and at-Home Solutions, and has built distribution centers using automation designed for this product mix. The company has opened three such distribution centers in recent years and plans three more over the next several years, he said.
Cardinal has also intentionally deprioritized some larger and bulkier products where network capacity needs and profitability have been less favorable, Hollar said.
“We are an expert at freight logistics,” he said. “But when you get into taking care of patients inside of the home, that’s a very different model.”
Pharmaceutical Distribution and Medical Segment Progress Hollar said the company expects a broadly consistent book of business during fiscal 2027. He explained that fiscal 2026 benefited from onboarding large customers in businesses including Biopharma Solutions and core distribution, creating a comparison headwind as those benefits are annualized.
He also said Cardinal’s customer contracts have evolved to address product-mix changes, particularly the growing role of specialty pharmaceuticals. Utilization requirements in contracts can adjust for differing profitability across product categories, reducing the need for broad contract renegotiations when mix shifts occur, he said.
In the company’s Global Medical Products and Distribution segment, Hollar said Cardinal produced growth even after excluding a tariff refund that benefited fiscal 2026 results. He cited higher Cardinal Health brand volume and ongoing simplification efforts as key contributors to the segment’s improvement.
The company has reduced by more than 50% the number of countries in which its global medical business operates, according to Hollar. He said elevated commodity costs remain a pressure point, and that if such costs remain at elevated levels, segment performance could fall toward the lower end of Cardinal’s guidance range while remaining within that range.
Cash Flow Outlook Hollar said cash flow was a major positive in fiscal 2026. Based on last year’s results and current-year guidance, Cardinal is already about 90% of the way toward a previously stated $10 billion cash-flow objective, he said.
The company has not provided a new target for fiscal 2028, but Hollar said management will consider its next cash-flow objective and intends to allocate capital responsibly.
About Cardinal Health (NYSE:CAH) Cardinal Health, Inc is a healthcare services and products company that supports the pharmaceutical and medical industries. Its Pharmaceutical and Specialty Solutions segment distributes branded, generic and specialty pharmaceuticals, over-the-counter products and consumer health items to pharmacies, hospitals, health systems and other healthcare providers. The segment also provides specialty pharmaceutical services, nuclear and radiopharmaceutical products, and related support for manufacturers and providers.
Through its Global Medical Products and Distribution segment, Cardinal Health manufactures, sources and distributes medical and surgical products, including gloves, gowns, syringes, exam-room supplies and other essential equipment.
Cardinal Health Earnings: Can Perfection Get Priced In Twice?Cardinal Health NYSE: CAH CEO Jason Hollar said the company expects fiscal 2027 to extend the broad operating momentum it generated in fiscal 2026, with all five operating segments positioned for what he described as a “constructive” period.
Speaking at the Morgan Stanley Global Healthcare Conference, Hollar said the company’s fiscal 2027 adjusted earnings-per-share outlook of 13% to 15% growth is expected to be driven primarily by operating-income growth across its three reporting segments and five operating businesses. Cardinal Health reiterated its longer-term EPS growth target of 12% to 14%.
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McKesson's Compounding Keeps Adding UpHollar said fiscal 2026 included strong performance across both profit and cash flow, though fiscal 2027 growth is expected to occur at more normalized rates. He said below-the-line factors will include lower interest expense supported by strong cash flow, a slightly higher expected tax rate and $1 billion in planned share repurchases.
Pharmaceutical and Specialty Growth Within Pharmaceutical and Specialty Solutions, Hollar said generic-drug volume is expected to grow slightly above the company’s usual 2% to 3% range in fiscal 2027. He attributed the outlook to favorable demographics and continued loss-of-exclusivity activity, although he said growth is not expected to match fiscal 2026 levels.
Doubt the Market? 3 Stocks to Rideout Fear, Uncertainty and DoubtSpecialty was a major contributor in fiscal 2026, when it grew 25%, aided by acquisitions and customer wins in BioPharma Solutions. For fiscal 2027 and beyond, Cardinal Health expects specialty growth closer to a double-digit rate.
Hollar said the company remains focused on three specialty platforms: oncology, urology and autoimmune care, including gastroenterology. He said the non-oncology markets remain highly fragmented, with an estimated 80% to 90% of physicians in gastroenterology and urology still unaffiliated with a management services organization, or MSO.
The company does not believe it needs to add a fourth specialty platform at this stage, Hollar said. Instead, it plans to continue pursuing bolt-on opportunities that fit its existing platforms and culture.
Cardinal Health’s BioPharma Solutions business generated more than 30% growth in fiscal 2026, Hollar said. The company previously outlined a path to grow BioPharma Solutions revenue to $1 billion by fiscal 2028 from $550 million in fiscal 2025, representing a 20% compound annual growth rate.
Customer Relationships and Specialty Alliance Addressing the upcoming year-end renewal of Cardinal Health’s distribution contract with CVS, Hollar said the relationship is “very strong.” He pointed to longer-dated partnerships involving Red Oak Sourcing, the Averon Sourcing biosimilars joint venture and IQ Purchasing for over-the-counter products.
“It is an all-of-the-above type of relationship with them,” Hollar said, adding that Cardinal Health believes CVS is receiving strong service.
Hollar also said integration of Solaris Health into The Specialty Alliance is progressing as planned. The company brought distribution for GI Alliance and Solaris under its umbrella during the second calendar quarter of 2026. Cardinal Health expects the year-over-year distribution benefit to continue through the fourth quarter of fiscal 2027.
He said Solaris and GI Alliance have shared opportunities in physician recruitment, payer negotiations, infusion services and ambulatory surgery centers, while also gaining access to Cardinal Health capabilities in nuclear medicine, at-home solutions and core distribution.
Policy, Biosimilars and Medical Products On drug pricing and Inflation Reduction Act-related changes, Hollar said Cardinal Health’s fee-for-service model and contractual protections have allowed it to maintain economics when product pricing changes. He said the company expects that framework to remain intact in fiscal 2027 and beyond.
For Cardinal Health’s MSO operations, Hollar said drug spending accounts for roughly one-third of revenue in its larger urology and GI businesses, while office visits and procedures account for the remaining two-thirds. That diversification, he said, limits the potential effect of policy changes on the organization.
Hollar characterized biosimilar and generic loss-of-exclusivity opportunities as “a lot of singles and doubles” rather than a single outsized event. He said 2026 and 2027 should be constructive years for loss of exclusivity, with 2028 and 2029 expected to be somewhat stronger.
In Global Medical Products and Distribution, Hollar said Cardinal Health faced a $450 million tariff impact in fiscal 2026 but mitigated about two-thirds through sourcing and other operating actions. The remaining impact was effectively shared with customers, he said. The company has not implemented significant pricing related to commodity costs, though it is monitoring pressure on fuel and oil-based inputs.
At-Home and Other Businesses Cardinal Health expects its “other” segment to deliver 15% to 18% adjusted operating-income growth in fiscal 2027. About 2 percentage points of that growth is expected to come from the Strive Medical acquisition and an anticipated small late-year contribution from AdaptHealth’s diabetes business.
Hollar said the company also expects benefits from synergies tied to its earlier acquisition of Advanced Diabetes Supply Group. In addition to at-home solutions, he cited growth in nuclear medicine, including theranostics, and expansion by OptiFreight Logistics into pharmacy products.
Looking ahead, Hollar said Pharmaceutical and Specialty Solutions will remain Cardinal Health’s largest investment priority, particularly specialty services. At-home solutions will remain a key area for inorganic investment, while Global Medical Products and Distribution remains in a turnaround phase but has growth potential through Cardinal Health-branded products.
About Cardinal Health (NYSE:CAH)Cardinal Health, Inc is a healthcare services and products company that supports the pharmaceutical and medical industries. Its Pharmaceutical and Specialty Solutions segment distributes branded, generic and specialty pharmaceuticals, over-the-counter products and consumer health items to pharmacies, hospitals, health systems and other healthcare providers. The segment also provides specialty pharmaceutical services, nuclear and radiopharmaceutical products, and related support for manufacturers and providers.
Through its Global Medical Products and Distribution segment, Cardinal Health manufactures, sources and distributes medical and surgical products, including gloves, gowns, syringes, exam-room supplies and other essential equipment.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Cardinal Health Right Now?Before you consider Cardinal Health, you'll want to hear this.
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Cardinal Health Earnings: Can Perfection Get Priced In Twice?Cardinal Health NYSE: CAH CEO Jason Hollar said the company’s fiscal 2026 performance was supported by double-digit earnings growth across each of its five operating segments, while fiscal 2027 guidance reflects continued growth from a more normalized base.
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Speaking at a Baird event, Hollar said the company’s results were not driven by a single factor. Strong healthcare utilization, specialty growth, new customer wins, acquisitions and operational execution all contributed, he said. However, Cardinal expects certain drivers of the prior year’s outperformance—including unusually strong specialty growth and customer onboarding—to be less pronounced in fiscal 2027.
McKesson's Compounding Keeps Adding Up“The breadth and the depth of the activities and the opportunities that we see in front of us” were central to the company’s performance, Hollar said. He noted that all five operating segments generated at least double-digit earnings growth, excluding the effects of mergers and acquisitions.
Specialty, at-Home and MSO Strategy Hollar said Cardinal’s specialty business grew 25% during fiscal 2026, aided by acquisitions, customer gains and service provided to existing customers. He said the company expects growth to moderate from that level as the effects of acquisitions and new customer wins are annualized, though underlying demand remains constructive.
Doubt the Market? 3 Stocks to Rideout Fear, Uncertainty and DoubtCardinal is continuing to invest in specialty and at-home healthcare businesses. Hollar said the company has three managed-services organization platforms focused on oncology, urology and gastroenterology. The company is now focused on integrating those platforms while continuing to pursue bolt-on acquisitions; it completed four such acquisitions during the most recent quarter, he said.
Hollar said Cardinal does not currently manage its business in a way that would support separate segment reporting for MSO operations. The company views the operations as part of its larger specialty strategy, where distribution, biopharma services and physician-focused offerings are interconnected.
On recent at-home deals, Hollar said Strive Medical has already closed and provides urology-focused durable medical equipment. He described the acquisition as a fit with Cardinal’s existing urology distribution, MSO, nuclear pharmaceutical and at-home operations.
The acquisition of AdaptHealth’s diabetes business is expected to close in the second half of fiscal 2027, according to Hollar. He said the business complements Cardinal’s Advanced Diabetes Supply, or ADS, acquisition and expands the company’s presence in continuous glucose monitoring.
“Only 35% of people that are eligible for a CGM through insurance coverage actually has a CGM,” Hollar said, adding that the eligible population and use of the products have continued to grow.
Focus on Logistics and Product Mix Hollar emphasized that Cardinal’s at-home strategy is centered on automated distribution of relatively small, dense and higher-value products through small-parcel shipping rather than entering patients’ homes to provide setup or care services.
He said Cardinal has significant small-parcel freight scale through businesses including OptiFreight and at-Home Solutions, and has built distribution centers using automation designed for this product mix. The company has opened three such distribution centers in recent years and plans three more over the next several years, he said.
Cardinal has also intentionally deprioritized some larger and bulkier products where network capacity needs and profitability have been less favorable, Hollar said.
“We are an expert at freight logistics,” he said. “But when you get into taking care of patients inside of the home, that’s a very different model.”
Pharmaceutical Distribution and Medical Segment Progress Hollar said the company expects a broadly consistent book of business during fiscal 2027. He explained that fiscal 2026 benefited from onboarding large customers in businesses including Biopharma Solutions and core distribution, creating a comparison headwind as those benefits are annualized.
He also said Cardinal’s customer contracts have evolved to address product-mix changes, particularly the growing role of specialty pharmaceuticals. Utilization requirements in contracts can adjust for differing profitability across product categories, reducing the need for broad contract renegotiations when mix shifts occur, he said.
In the company’s Global Medical Products and Distribution segment, Hollar said Cardinal produced growth even after excluding a tariff refund that benefited fiscal 2026 results. He cited higher Cardinal Health brand volume and ongoing simplification efforts as key contributors to the segment’s improvement.
The company has reduced by more than 50% the number of countries in which its global medical business operates, according to Hollar. He said elevated commodity costs remain a pressure point, and that if such costs remain at elevated levels, segment performance could fall toward the lower end of Cardinal’s guidance range while remaining within that range.
Cash Flow Outlook Hollar said cash flow was a major positive in fiscal 2026. Based on last year’s results and current-year guidance, Cardinal is already about 90% of the way toward a previously stated $10 billion cash-flow objective, he said.
The company has not provided a new target for fiscal 2028, but Hollar said management will consider its next cash-flow objective and intends to allocate capital responsibly.
About Cardinal Health (NYSE:CAH)Cardinal Health, Inc is a healthcare services and products company that supports the pharmaceutical and medical industries. Its Pharmaceutical and Specialty Solutions segment distributes branded, generic and specialty pharmaceuticals, over-the-counter products and consumer health items to pharmacies, hospitals, health systems and other healthcare providers. The segment also provides specialty pharmaceutical services, nuclear and radiopharmaceutical products, and related support for manufacturers and providers.
Through its Global Medical Products and Distribution segment, Cardinal Health manufactures, sources and distributes medical and surgical products, including gloves, gowns, syringes, exam-room supplies and other essential equipment.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Cardinal Health Right Now?Before you consider Cardinal Health, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Cardinal Health wasn't on the list.
While Cardinal Health currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
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Key Takeaways Cardinal Health expects 2027 IRA changes to create a Pharma revenue headwind similar to fiscal 2026.Management aims to preserve compensation as regulatory changes reshape underlying transaction models.Brand and generic volumes plus higher-margin Specialty operations are expected to aid Pharma profit growth. Cardinal Health (CAH - Free Report) has entered fiscal 2027 with regulatory changes remaining a key headwind for its Pharma business, particularly the impact of Inflation Reduction Act (IRA) pricing changes. In the fourth quarter, IRA-related WACC changes represented an approximately 500-basis-point headwind to Pharma revenues, roughly offsetting a similarly sized GLP-1 tailwind.
For fiscal 2027, CAH expects the annualization of 2026 IRA price changes and implementation of 2027 changes to create a comparable revenue headwind, but management expects no adverse profit impact.
The key to CAH’s approach is maintaining compensation for the services it provides rather than absorbing the economics of regulatory changes. Management said the company works closely with customers and manufacturers to understand regulatory changes and their logistical implications, while maintaining that its compensation should not change as long as its role remains unchanged. The company also noted that the underlying transaction models may evolve, requiring CAH to adapt upstream or downstream.
Distribution agreements provide another layer of protection. CAH highlighted the durability of its core distribution business and its ability to remain compensated for the value it provides during regulatory transitions. Its long-term customer relationships, including a major GMPD renewal and an extended Kroger relationship, provide additional commercial stability.
Manufacturer pricing adjustments could still reshape revenue flows, particularly as IRA changes may involve rebates or WACC reductions. However, CAH says a large portion of the impact flows through revenues without materially affecting profitability. Management therefore expects policy-driven revenue pressure to coexist with continued Pharma profit growth, supported by brand and generic volumes and higher-margin Specialty operations.
Peer UpdatesIRA pricing changes are creating a meaningful revenue headwind but a relatively limited direct EBITDA impact for BrightSpring Health Services (BTSG - Free Report) . Management expects the IRA to reduce Home and Community Pharmacy revenues by approximately $200 million in 2026, or about $50 million per quarter, while estimating the corresponding EBITDA impact at only $15 million for the full year.
In Specialty and Infusion, the company expects roughly $175 million of revenue pressure but essentially no EBITDA impact. Management attributed this resilience to operational initiatives, including technology, automation and AI investments, which are improving efficiency and helping offset regulatory pressures.
CVS Health's (CVS - Free Report) pharmacy economics is already getting affected by the regulatory drug-price reductions, although the company did not separately quantify the IRA's specific margin impact. Pharmacy & Consumer Wellness revenues were pressured by regulatory-related price reductions on certain drugs, generic introductions and reimbursement pressure, while adjusted operating income still increased more than 10% year over year.
In Caremark, CVS is transitioning toward net-cost pricing models amid regulatory developments, with management emphasizing that the transition is intended to preserve the value delivered by the PBM. The company also expects to maintain margins at historical industry levels over time, supported by specialty pharmacy, generic penetration, purchasing economics and operational improvements.
CAH’s Price Performance, Valuation and EstimatesShares of CAH have gained 13.2% so far this year compared with the industry’s 5% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Cardinal Health trades at a forward price-to-earnings of 18.12X, above the industry average. However, it is trading lower than its five-year high of 22.19X. CAH carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Cardinal Health’s fiscal 2027 earnings implies an 11.5% rise from the year-ago reported number.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cardinal Health, Inc. (CAH) 2026 Global Healthcare Conference September 15, 2026 9:05 AM EDT
Company Participants
David Frost - Vice President of Investor Relations
Jason Hollar - CEO & Director
Conference Call Participants
Eric Coldwell - Robert W. Baird & Co. Incorporated, Research Division
Presentation
Eric Coldwell
Robert W. Baird & Co. Incorporated, Research Division
Okay. Good morning, everyone. My name is Eric Coldwell. Obviously, I cover a number of health care names with Baird. I've been with Baird quite a long time. And not as long as I've covered the pharmaceutical wholesaling space, which is obviously a lot more than that today. But it's been a pretty amazing handful of years here.
And I've said this several times and maybe blowing smoke but my favorite management team at Cardinal in my lifetime, and I continue to enjoy having you guys at events hopefully, many years to come. So thank you for being here.
So of course, we have Jason Hollar today. And David Frost wants to -- an IR wants to make a quick comment before we get started.
David Frost
Vice President of Investor Relations
Just a quick comment. Yes.
Eric Coldwell
Robert W. Baird & Co. Incorporated, Research Division
And then we're going to jump straight into Q&A. And if you guys want to send questions up to the front, I'll happily take those on the iPad. Otherwise, I have, believe me, more than enough.
Unknown Executive
You do. Quite a...
David Frost
Vice President of Investor Relations
Yes. Just a little bit of housekeeping. We'll be making forward-looking statements today, which are subject to risks and uncertainties that could cause our actual results to differ materially from those projected or implied. For a description of these factors, please review our SEC filings, which can be found on our Investor Relations website
Cardinal Health (CAH - Free Report) ended the recent trading session at $232.36, demonstrating a -1.08% change from the preceding day's closing price. This change lagged the S&P 500's 0.45% loss on the day. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.78%.
The stock of prescription drug distributor has fallen by 0.33% in the past month, lagging the Medical sector's gain of 0.57% and overreaching the S&P 500's loss of 1.99%.
The investment community will be closely monitoring the performance of Cardinal Health in its forthcoming earnings report. The company is forecasted to report an EPS of $2.92, showcasing a 14.51% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $66.96 billion, indicating a 4.6% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.55 per share and revenue of $266.02 billion, which would represent changes of +11.46% and +4.63%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cardinal Health. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. Cardinal Health is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Cardinal Health is currently being traded at a Forward P/E ratio of 18.72. This valuation marks a premium compared to its industry average Forward P/E of 17.66.
We can additionally observe that CAH currently boasts a PEG ratio of 1.41. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CAH's industry had an average PEG ratio of 1.94 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 102, finds itself in the top 42% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Cardinal Health, Inc. (CAH) Morgan Stanley 24th Annual Global Healthcare Conference September 14, 2026 8:30 AM EDT
Company Participants
David Frost - Vice President of Investor Relations
Jason Hollar - CEO & Director
Conference Call Participants
Erin Wilson Wright - Morgan Stanley, Research Division
Presentation
Erin Wilson Wright
Morgan Stanley, Research Division
Okay. Good morning, everyone. Welcome to the Morgan Stanley Global Healthcare Conference. I'm Erin Wright, Head of Healthcare Services Research at Morgan Stanley. We're happy to have Cardinal Health with us today, CEO, Jason Hollar as well as David Frost, who heads up the IR effort. Thank you so much for coming.
I'm going to hand it over to David for some quick remarks.
David Frost
Vice President of Investor Relations
Yes. Perfect. Thank you for hosting us, Erin. It's great to be here. But before we begin, a little housekeeping. We will be making forward-looking statements today, which are subject to risks and uncertainties that could cause our actual results to differ materially from those projected or implied. For a description of these factors, please review our SEC filings, which can be found on our Investor Relations website at ir.cardinalhealth.com.
Okay. Let's get started.
Erin Wilson Wright
Morgan Stanley, Research Division
Yes. Important disclosures, please see the Morgan Stanley research disclosure website at morganstanley.com/researchdisclosures, if I didn't say about that at the beginning.
Question-and-Answer Session
Erin Wilson Wright
Morgan Stanley, Research Division
Okay. So let's kick it off with some Q&A. So thanks so much for coming. Obviously, starting off, you introduced initial fiscal '27 guidance in August. Your EPS guide calls for 13% to 15% growth. That is above the long-term target of 12% to 14%. Can you break down a little bit how much of that growth is expected to come from the operational kind of performance versus some of the below-the-line items, lower interest, other tax rate and just some
Key Takeaways Cardinal Health gained 29.3% in four months as specialty businesses boosted investor confidence.Specialty grew 25% in fiscal 2026, while MSO expansion and M&A add further profit growth drivers.CAH faces cost inflation, tariffs and tougher comparisons after exceptionally strong fiscal 2026 growth. Cardinal Health (CAH - Free Report) has gained 29.3% in the past four months, with investors increasingly recognizing the earnings contribution from its specialty-focused businesses and a broader portfolio of higher-margin growth assets. The Zacks Medical - Dental Supplies industry increased 19.5%, the Medical sector gained 10.8% and the S&P 500 Index rose 1.6% over the same period. While McKesson (MCK - Free Report) gained 21.4%, Cencora (COR - Free Report) rose 23.6%.
The company closed fiscal 2026 with strong momentum, as fourth-quarter revenues increased 6% to $63.7 billion, while gross profit rose 16% to $2.6 billion and operating earnings jumped 30% to $935 million. Full-year revenues increased 14% to $254 billion, while operating earnings climbed 30% to $3.6 billion.
The Pharmaceutical and Specialty Solutions segment remains the central earnings engine. Cardinal expects only 3-5% Pharma revenue growth in fiscal 2027 as fiscal 2026's unusually strong demand normalizes, but expects 8-11% segment profit growth, supported by higher-margin Specialty, generic and brand volume strength, MSO expansion and new distribution wins. This combination of resilient core distribution and fast-growing specialty businesses is boosting investor confidence in the durability of the earnings trajectory.
4-Month Share Price Performance
Image Source: Zacks Investment Research
Specialty Platform and MSO Expansion Strengthen the Growth StorySpecialty is becoming increasingly important to Cardinal Health's investment case. Cardinal Health's Specialty business grew 25% in fiscal 2026, significantly above its historical mid-teens growth rate. Specialty revenues topped $50 billion in the fiscal 2026. Management expects growth to moderate to the teens in fiscal 2027 as the business normalizes following its unusually strong fiscal 2026 performance.
The MSO strategy adds another layer of growth by expanding Cardinal Health's relationships with specialty physicians. The Specialty Alliance, including the integration of Solaris, is being expanded across multispecialty offerings, while management is prioritizing equity-based physician arrangements following stronger market acceptance of this model. Cardinal Health expects planned M&A to contribute 2-3% to fiscal 2027 profit growth, while continued MSO expansion should provide an additional structural growth driver.
Acquisitions and Other Businesses Drive Earnings GrowthCardinal Health's acquisition strategy is increasingly contributing to both scale and profitability. The Solaris acquisition is expected to remain an important contributor in fiscal 2027, while the company expects its broader M&A portfolio to support profit expansion.
The company's Other businesses provide further diversification. At-Home Solutions, Nuclear and Precision Health Solutions and OptiFreight Logistics generated 7% revenue growth and 14% profit growth in the fiscal fourth quarter. Although growth moderated sequentially as the company lapped the Advanced Diabetes Supply acquisition, demand remained healthy and ADS integration synergies continued to progress.
ADS has strengthened the at-Home platform, while Nuclear and Precision Health Solutions is benefiting from theranostics. OptiFreight continues to grow through healthcare logistics demand. Management therefore sees these businesses as important long-term growth assets supported by favorable secular trends.
Valuation and Competitive PositionCAH trades at a forward P/E of 18.41X, above its five-year median of 14.10X but below the S&P 500's 19.83X. McKesson trades at 18.75X, while Cencora trades at 16.32X. Thus, Cardinal Health is not deeply discounted against its direct peers, but remains relatively inexpensive compared with the broader market given its earnings trajectory.
Image Source: Zacks Investment Research
The lucrative market prospect of Specialty segment has also drawn CAH’s competitors into the business. McKesson reported 8% revenue growth and 16% operating-profit growth in the first quarter of fiscal 2027, led partly by North American Pharmaceutical and Oncology & Multispecialty. Cencora similarly reported strong specialty-led performance, with U.S. Healthcare Solutions operating income increasing 16% as OneOncology and RCA both performed ahead of expectations.
Cardinal Health's differentiated combination of pharmaceutical distribution, MSOs, specialty services and Other businesses therefore remains critical to sustaining its competitive position.
Challenges Facing the OutlookThe principal near-term risks are cost inflation and tariffs. Cardinal Health expects tariff benefits in fiscal 2027 to offset higher fuel and commodity costs, but acknowledged ongoing pressure from diesel, petroleum-based products, resins and other inputs. Prolonged elevated costs could push GMPD profit toward the lower end of its $200-$220 million guidance.
The company also faces normalization after exceptionally strong fiscal 2026 growth. It will lap the Solaris acquisition during fiscal 2027, while some prior customer and acquisition tailwinds will become less pronounced.
ConclusionCardinal Health's strong four-month rally reflects improving confidence in a business that is becoming less dependent on traditional pharmaceutical distribution and increasingly focused on specialty care, MSOs and higher-growth healthcare assets. Specialty's double-digit outlook, continued acquisition synergies and strong performance across Other provide meaningful earnings support.
Although the stock's Zacks Rank #3 (Hold) reflects a more balanced risk-reward profile after its rally, CAH's valuation remains reasonable relative to the S&P 500 and broadly comparable with McKesson. The stock therefore still appears relatively inexpensive given the quality of its earnings profile, although its valuation is not below its historical median. For existing investors, holding CAH appears appropriate while monitoring specialty growth, acquisition execution and tariff-related cost pressures. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It has been about a month since the last earnings report for Cardinal Health (CAH - Free Report) . Shares have added about 2.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cardinal due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Cardinal Health, Inc. before we dive into how investors and analysts have reacted as of late.
CAH Q4 Earnings Beat on Pharma Strength, Revenues MissCardinal Health reported fourth-quarter fiscal 2026 adjusted earnings per share of $2.91, beating the Zacks Consensus Estimate by 20.3%. The bottom line improved 40% year over year, aided by higher operating earnings, IEEPA tariff refunds, a lower tax rate and a reduced share count.
GAAP earnings per share in the quarter was $1.70 compared with $1.00 in the year-ago period.
Full-year fiscal 2026 adjusted EPS was $11.26, up 37% compared to the figure at the end of the fiscal 2025 period. The company reported GAAP EPS of $7.23 in fiscal 2026, compared with $6.45 in the year-ago period.
Q4 Revenue DetailsFor the fiscal fourth quarter, revenues were up 6% on a year-over-year basis to $63.67 billion. The top line, however, missed the Zacks Consensus Estimate by 2.9%.
For full-year fiscal 2026, CAH registered revenues of $254.25 billion, up 14% compared with fiscal 2025.
Segmental Analysis of CAHPharmaceutical and Specialty Solutions
Pharmaceutical and Specialty Solutions revenues increased 6% year over year to $58.85 billion. The improvement was driven by brand and specialty pharmaceutical sales growth from existing customers.
The segment’s profit totaled $645 million, up 21% from the year-ago period’s level. The upside was primarily driven by contributions from brand and specialty products and positive generics program performance.
Global Medical Products and Distribution
Revenues in this segment totaled $3.13 billion, down 2% year over year. The decline primarily reflected lower distribution volumes and the recognition of expected IEEPA tariff refund repayments to customers, partially offset by Cardinal Health brand growth.
The segment reported a profit of $150 million compared with $70 million in the year-ago quarter. This improvement was primarily driven by IEEPA tariff refunds.
Other
This segment includes three operating segments — Nuclear and Precision Health Solutions, at-Home Solutions and OptiFreight Logistics. Revenues totaled $1.72 billion, up 7% year over year, driven by growth across all three operating segments.
The segment’s profit amounted to $183 million, up 14% from the year-ago level. This upside was driven by growth in OptiFreight Logistics and at-Home Solutions.
Q4 Margin AnalysisGross profit increased 16% year over year to $2.56 billion. As a percentage of revenues, the gross margin in the reported quarter was approximately 4.0%, up almost 36 basis points year over year.
Distribution, selling, general and administrative expenses totaled $1.63 billion, up 10% year over year.
Operating income amounted to $729 million, up 70% year over year. Adjusted operating income increased 30% year over year to $935 million.
Financial UpdateThe company exited the reported quarter with cash and cash equivalents of $4.86 billion compared with $3.94 billion at the end of the third quarter of fiscal 2026.
Net cash provided by operating activities totaled $5.17 billion compared with $2.39 billion in the year-ago period.
CAH Sets FY27 Growth TargetsCardinal Health raised its fiscal 2027 earnings guidance.
CAH expects fiscal 2027 adjusted earnings per share in the range of $12.40-$12.60, implying growth of 13-15% from adjusted fiscal 2026 results excluding the IEEPA tariff refund benefit.
The company expects revenues from the Pharmaceutical and Specialty Solutions segment to grow 3-5% year over year. Segmental profit is projected to increase 8-11%.
Revenues from the Global Medical Products and Distribution segment are anticipated to grow 2-4%. Segmental profit is expected to be between $200 million and $220 million.
Revenues from the Other segment are likely to increase 11-13%. Segmental profit is projected to grow 15-18%.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates review.
VGM ScoresCurrently, Cardinal has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a score of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Cardinal has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerCardinal is part of the Zacks Medical - Dental Supplies industry. Over the past month, McKesson (MCK - Free Report) , a stock from the same industry, has gained 1.5%. The company reported its results for the quarter ended June 2026 more than a month ago.
McKesson reported revenues of $105.38 billion in the last reported quarter, representing a year-over-year change of +7.7%. EPS of $9.93 for the same period compares with $8.26 a year ago.
For the current quarter, McKesson is expected to post earnings of $10.75 per share, indicating a change of +9% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.6% over the last 30 days.
McKesson has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
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Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
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Stock to Watch: Cardinal Health (CAH - Free Report) Headquartered in Dublin, OH, Cardinal Health, Inc. is one of the world’s largest healthcare services and products providers, operating across Pharmaceutical and Specialty Solutions, Global Medical Products and Distribution (GMPD), and three Other growth businesses. The company serves nearly 90% of U.S. hospitals, delivers more than 43,000 pharmaceutical shipments daily, and manages a broad portfolio of medical, surgical, laboratory, and healthcare logistics offerings.
CAH is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 19.7; value investors should take notice.
Nine analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.57 to $12.55 per share. CAH boasts an average earnings surprise of +14.7%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, CAH should be on investors' short list.
Key Takeaways CAH is integrating technology across distribution, specialty services, patient support and logistics.Sonexus now connects with Nuclear's web-ordering platform for an end-to-end digital workflow.CAH expects $700 million in fiscal 2027 capital spending, including infrastructure and technology. Cardinal Health’s (CAH - Free Report) fiscal 2026 results suggest that technology is becoming an increasingly important layer across its healthcare infrastructure, complementing its traditional distribution capabilities. The company has invested heavily in automation, technology and advanced analytics across its distribution network, with management citing meaningful gains in efficiency and service performance. These investments are translating into measurable operational benefits: Cardinal’s total fill rate reached nearly 99%, while the company recorded its best quarter for on-time departures.
The transformation is particularly visible in Sonexus, Cardinal Health’s specialty access and patient-support business. Rather than operating Sonexus as a standalone service, Cardinal Health has integrated it directly into the Nuclear business’ web-ordering platform. The result is an end-to-end digital workflow for high-cost radiopharmaceuticals, combining insurance-benefit verification, patient enrollment and order placement within a single system. This integration potentially reduces friction across a highly complex healthcare transaction while improving the experience for providers and patients.
Technology is also reshaping Cardinal Health’s logistics offering. OptiFreight is expanding its technology-enabled products, including Shipment Navigator and Tracking Beacon, which are designed to provide customers with greater visibility and insights into outbound pharmacy shipments. Management said adoption has been strong, as these solutions are built to generate cost savings and efficiency for healthcare providers.
The broader strategy is therefore moving beyond simply distributing pharmaceuticals and medical products. Cardinal Health is increasingly connecting distribution, specialty services, patient support and logistics through digital workflows. Its Consumer Health Logistics Center, meanwhile, has used technology and automation to improve service levels and customer access.
The financial opportunity lies in making these investments scalable. Cardinal expects $700 million of fiscal 2027 capital expenditures, including infrastructure and technology investments supporting future growth. If technology continues improving throughput, accuracy, customer experience and supply-chain visibility, Cardinal Health could increasingly operate as a tech-enabled healthcare platform rather than a conventional distributor.
Peer UpdatesCONMED (CNMD - Free Report) is building its technology proposition around AirSeal, using differentiated surgical technology and clinical evidence to improve procedure efficiency and outcomes. AirSeal’s low-pressure insufflation platform is designed to improve visualization, reduce procedure times, postoperative pain and length of stay, making it increasingly relevant as robotic surgery expands across specialties and ASCs. CONMED is also generating ASC-specific economic data and expanding clinical relationships in laparoscopic applications such as colorectal and gynecology. With AirSeal currently used in only 6-7% of more than 3 million U.S. laparoscopic procedures, the company has substantial room to expand utilization. Management expects long-term AirSeal growth of high-single-digit to low-double-digit rates.
Align Technology (ALGN - Free Report) is developing a broader digital healthcare platform that connects imaging, diagnostics, treatment planning and treatment delivery. Its Align Digital Platform integrates iTero scanners, Invisalign, exocad and X-ray Insight software, creating a connected workflow spanning orthodontic and restorative dentistry. New platform capabilities are designed to improve patient engagement, treatment planning and workflow efficiency, while software, visualization, digital planning and 3D printing help doctors increase practice productivity. The strategy is also expanding the installed scanner base through lower-cost configurations, leasing and rental models, which can increase digital adoption and create a larger funnel for higher-margin, recurring treatment revenue. With active scanner units up 11% year over year and scans rising 16%, growing platform utilization could reinforce Align’s long-term competitive moat.
CAH’s Price Performance, Valuation and EstimatesShares of CAH have gained 17.5% so far this year compared with the industry’s 7.3% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Cardinal Health trades at a forward price-to-earnings of 19.2X, above the industry average. However, it is trading lower than its five-year high of 22.19X. CAH carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Cardinal Health’s fiscal 2027 earnings implies an 11.5% rise from the year-ago reported number.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the latest trading session, Cardinal Health (CAH - Free Report) closed at $240.49, marking a -2.71% move from the previous day. This move lagged the S&P 500's daily loss of 0.58%. On the other hand, the Dow registered a loss of 1.18%, and the technology-centric Nasdaq decreased by 0.32%.
The stock of prescription drug distributor has risen by 4.22% in the past month, leading the Medical sector's gain of 2.73% and the S&P 500's loss of 0.36%.
The investment community will be paying close attention to the earnings performance of Cardinal Health in its upcoming release. It is anticipated that the company will report an EPS of $2.92, marking a 14.51% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $66.96 billion, up 4.6% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.55 per share and a revenue of $266.02 billion, indicating changes of +11.46% and +4.63%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Cardinal Health. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.23% higher. Cardinal Health presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Cardinal Health currently has a Forward P/E ratio of 19.7. This indicates a premium in contrast to its industry's Forward P/E of 18.24.
One should further note that CAH currently holds a PEG ratio of 1.49. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Medical - Dental Supplies industry stood at 1.82 at the close of the market yesterday.
The Medical - Dental Supplies industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 75, placing it within the top 31% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Key Takeaways Cardinal Health says generics remains an important, relatively steady profit contributor in Pharma.Generic volume growth topped the 2-3% long-term planning assumption in fiscal 2026.New generic launches, conversions and stable Red Oak dynamics are expected to support fiscal 2027 profits. Generics continues to function as an important, relatively steady profit contributor for Cardinal Health’s (CAH - Free Report) Pharma business, even though its revenue impact can be uncertain due to changes in brand pricing, IRA-related adjustments and GLP-1 volumes. In fiscal 2026, generic volume growth exceeded Cardinal Health’s long-term planning assumption of 2-3%, creating what management described as some of the company’s more profitable volume growth. Management expects generic volumes to moderate toward normalized levels in fiscal 2027, but still views the category as a meaningful earnings driver.
The economics are particularly attractive when branded drugs convert to generics. CFO Aaron Alt said Cardinal Health is focused on the profitability associated with generic conversions and noted that the company received an additional benefit from these conversions in the fourth quarter of fiscal 2026.
Management expects some of this benefit to contribute to Pharma segment profit in fiscal 2027. This highlights Cardinal Health’s focus on capturing the profitability benefits of generic conversions while maintaining attractive margins as its product mix changes.
The Red Oak-enabled generics program provides another layer of consistency. Cardinal Health expects fiscal 2027 to benefit from new generic item launches, including fiscal 2026 carryover products, alongside continued consistent market dynamics within the Red Oak program. The company also maintains a strategic relationship with CVS through Red Oak, reinforcing the program’s importance within its broader pharmaceutical ecosystem.
Overall, generics appears to be a stable margin contributor rather than a headline growth engine. With Pharma segment profit expected to grow 8-11% in fiscal 2027, continued strength in generic and brand volumes is explicitly identified as a key driver. The combination of higher generic volumes, favorable brand-to-generic conversions and stable Red Oak market dynamics should therefore continue to support Pharma profitability, even as revenue growth normalizes.
Peer UpdatesMcKesson’s (MCK - Free Report) generics portfolio remained a meaningful contributor to North American Pharmaceutical profitability in the first quarter of fiscal 2027. Prescription transaction volumes increased 5%, although revenues were partly constrained by branded-to-generic conversions. Those conversions supported gross profit, while the timing of new branded and generic product launches helped drive the segment’s 19% operating-profit growth to $894 million. Management also highlighted the strength of ClarusONE, McKesson’s generic sourcing program, which continues to create customer value and support supply stability. Although the company did not disclose a standalone generic margin, management noted that product mix, including generics, influences segment margins, as operating profit grew substantially faster than revenues.
Cencora (COR - Free Report) emphasizes broader pharmaceutical distribution, specialty growth and biosimilars. U.S. Healthcare Solutions revenues increased 5% to $74.9 billion, while operating income rose 16% to $966 million, with strength in specialty and underlying utilization supporting profitability.
Management specifically characterized Part B biosimilars as an incremental profit opportunity, given Cencora’s larger role through distribution, GPO and MSO services surrounding physician-administered products. By contrast, Part D biosimilar conversions can reduce revenues with less meaningful profit improvement. Thus, Cencora’s generics-related earnings opportunity appears more service- and mix-driven than volume-driven.
CAH’s Price Performance, Valuation and EstimatesShares of CAH have gained 19.4% so far this year compared with the industry’s 6.5% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Cardinal Health trades at a forward price-to-earnings ratio of 19.2X, above the industry average. However, it is trading lower than its five-year high of 22.19X. CAH carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Cardinal Health’s fiscal 2027 earnings implies an 11.5% rise from the year-ago period’s level.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cardinal Health (CAH - Free Report) Headquartered in Dublin, OH, Cardinal Health, Inc. is one of the world’s largest healthcare services and products providers, operating across Pharmaceutical and Specialty Solutions, Global Medical Products and Distribution (GMPD), and three Other growth businesses. The company serves nearly 90% of U.S. hospitals, delivers more than 43,000 pharmaceutical shipments daily, and manages a broad portfolio of medical, surgical, laboratory, and healthcare logistics offerings.
CAH is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. CAH has a Growth Style Score of A, forecasting year-over-year earnings growth of 11.5% for the current fiscal year.
For fiscal 2027, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.57 to $12.55 per share. CAH boasts an average earnings surprise of +14.7%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CAH should be on investors' short list.
Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of Cardinal Health, Inc. (NYSE:CAH – Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 3,554 shares of the company’s stock, valued at approximately $844,000.
Other large investors also recently bought and sold shares of the company. Investors Research Corp purchased a new position in Cardinal Health during the 2nd quarter valued at about $29,000. University of Texas Texas AM Investment Management Co. acquired a new stake in shares of Cardinal Health in the fourth quarter valued at approximately $26,000. Allied Private Wealth LLC acquired a new stake in shares of Cardinal Health in the second quarter valued at approximately $30,000. Bank of Jackson Hole Trust purchased a new position in shares of Cardinal Health during the 4th quarter worth approximately $27,000. Finally, Indiana Trust & Investment Management Co purchased a new position in shares of Cardinal Health during the 1st quarter worth approximately $29,000. Institutional investors and hedge funds own 87.17% of the company’s stock.
Cardinal Health Stock Performance Shares of NYSE CAH opened at $234.72 on Monday. Cardinal Health, Inc. has a 1 year low of $145.87 and a 1 year high of $258.30. The firm’s 50 day moving average price is $233.10 and its 200 day moving average price is $218.37. The firm has a market cap of $54.59 billion, a P/E ratio of 32.46, a price-to-earnings-growth ratio of 1.41 and a beta of 0.49.
Cardinal Health (NYSE:CAH – Get Free Report) last released its earnings results on Tuesday, August 11th. The company reported $2.91 EPS for the quarter, topping the consensus estimate of $2.42 by $0.49. Cardinal Health had a net margin of 0.67% and a negative return on equity of 98.53%. The firm had revenue of $63.67 billion during the quarter, compared to analysts’ expectations of $65.15 billion. During the same period in the previous year, the company earned $2.08 EPS. Cardinal Health’s revenue for the quarter was up 5.8% on a year-over-year basis. Cardinal Health has set its FY 2027 guidance at 12.400-12.600 EPS. As a group, equities analysts predict that Cardinal Health, Inc. will post 12.55 EPS for the current year. Cardinal Health Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be paid a $0.5158 dividend. This represents a $2.06 annualized dividend and a yield of 0.9%. The ex-dividend date is Thursday, October 1st. Cardinal Health’s dividend payout ratio is presently 28.49%.
Wall Street Analysts Forecast Growth A number of equities research analysts recently issued reports on the company. Royal Bank Of Canada started coverage on Cardinal Health in a research note on Wednesday, August 19th. They issued an “outperform” rating and a $276.00 target price on the stock. Robert W. Baird raised their price target on Cardinal Health from $251.00 to $274.00 and gave the stock an “outperform” rating in a research report on Wednesday, August 12th. Evercore reissued an “outperform” rating and issued a $270.00 price target on shares of Cardinal Health in a report on Wednesday, August 12th. JPMorgan Chase & Co. upped their price objective on Cardinal Health from $215.00 to $260.00 and gave the company a “neutral” rating in a research report on Thursday, August 13th. Finally, Leerink Partners set a $292.00 price objective on Cardinal Health in a research note on Tuesday, August 11th. Sixteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, Cardinal Health presently has an average rating of “Moderate Buy” and a consensus target price of $266.56.
Read Our Latest Stock Analysis on Cardinal Health
Insider Activity In other Cardinal Health news, insider Jessica L. Mayer sold 29,436 shares of the firm’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $236.19, for a total value of $6,952,488.84. Following the sale, the insider directly owned 33,076 shares of the company’s stock, valued at approximately $7,812,220.44. This trade represents a 47.09% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Jason M. Hollar sold 80,000 shares of Cardinal Health stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $235.74, for a total value of $18,859,200.00. Following the completion of the sale, the chief executive officer owned 235,132 shares of the company’s stock, valued at $55,430,017.68. This trade represents a 25.39% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 210,271 shares of company stock valued at $49,626,657 in the last three months. Company insiders own 0.12% of the company’s stock.
Cardinal Health Company Profile (Free Report)
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.
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Algert Global LLC grew its holdings in shares of Cardinal Health, Inc. (NYSE:CAH – Free Report) by 246.9% during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 36,993 shares of the company’s stock after purchasing an additional 26,330 shares during the quarter. Algert Global LLC’s holdings in Cardinal Health were worth $8,788,000 at the end of the most recent quarter.
Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Integrated Wealth Concepts LLC raised its holdings in Cardinal Health by 6.9% in the first quarter. Integrated Wealth Concepts LLC now owns 4,363 shares of the company’s stock valued at $601,000 after buying an additional 280 shares during the period. Jones Financial Companies Lllp lifted its holdings in Cardinal Health by 198.3% in the 1st quarter. Jones Financial Companies Lllp now owns 21,112 shares of the company’s stock worth $27,000 after buying an additional 14,034 shares in the last quarter. Arrowstreet Capital Limited Partnership purchased a new position in Cardinal Health in the 2nd quarter valued at about $1,935,000. Cerity Partners LLC grew its stake in shares of Cardinal Health by 17.0% during the second quarter. Cerity Partners LLC now owns 40,426 shares of the company’s stock valued at $6,792,000 after acquiring an additional 5,880 shares in the last quarter. Finally, Nebula Research & Development LLC grew its stake in shares of Cardinal Health by 34.4% during the second quarter. Nebula Research & Development LLC now owns 10,334 shares of the company’s stock valued at $1,736,000 after acquiring an additional 2,646 shares in the last quarter. Hedge funds and other institutional investors own 87.17% of the company’s stock.
Cardinal Health Stock Performance Shares of CAH stock opened at $238.61 on Thursday. The business’s fifty day moving average is $232.59 and its 200-day moving average is $218.25. The stock has a market cap of $55.50 billion, a PE ratio of 33.00, a price-to-earnings-growth ratio of 1.43 and a beta of 0.49. Cardinal Health, Inc. has a 1 year low of $145.87 and a 1 year high of $258.30.
Cardinal Health (NYSE:CAH – Get Free Report) last released its earnings results on Tuesday, August 11th. The company reported $2.91 EPS for the quarter, beating the consensus estimate of $2.42 by $0.49. Cardinal Health had a net margin of 0.67% and a negative return on equity of 98.53%. The business had revenue of $63.67 billion during the quarter, compared to analyst estimates of $65.15 billion. During the same period in the prior year, the business earned $2.08 earnings per share. The business’s quarterly revenue was up 5.8% on a year-over-year basis. Cardinal Health has set its FY 2027 guidance at 12.400-12.600 EPS. Equities research analysts predict that Cardinal Health, Inc. will post 12.55 earnings per share for the current year. Cardinal Health Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st will be issued a dividend of $0.5158 per share. The ex-dividend date is Thursday, October 1st. This represents a $2.06 dividend on an annualized basis and a dividend yield of 0.9%. Cardinal Health’s payout ratio is currently 28.49%.
Insider Buying and Selling at Cardinal Health In related news, CEO Jason M. Hollar sold 80,000 shares of the company’s stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $235.74, for a total transaction of $18,859,200.00. Following the transaction, the chief executive officer directly owned 235,132 shares of the company’s stock, valued at approximately $55,430,017.68. The trade was a 25.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Stephen M. Mason sold 35,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $236.40, for a total transaction of $8,274,000.00. Following the sale, the chief executive officer owned 18,061 shares of the company’s stock, valued at approximately $4,269,620.40. This represents a 65.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 210,271 shares of company stock valued at $49,626,657 in the last ninety days. Company insiders own 0.12% of the company’s stock.
Wall Street Analyst Weigh In Several research analysts recently commented on CAH shares. Morgan Stanley boosted their price target on Cardinal Health from $255.00 to $265.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 12th. Bank of America increased their price objective on shares of Cardinal Health from $240.00 to $260.00 and gave the company a “buy” rating in a research note on Thursday, July 2nd. Weiss Ratings cut shares of Cardinal Health from a “buy (b+)” rating to a “buy (b)” rating in a report on Wednesday, August 19th. Zacks Research lowered shares of Cardinal Health from a “strong-buy” rating to a “hold” rating in a report on Friday, June 12th. Finally, Mizuho upped their target price on Cardinal Health from $240.00 to $250.00 and gave the company an “outperform” rating in a report on Wednesday, August 12th. Sixteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, Cardinal Health has a consensus rating of “Moderate Buy” and an average price target of $266.56.
Check Out Our Latest Stock Analysis on CAH
Cardinal Health Profile (Free Report)
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.
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What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cardinal Health (CAH - Free Report) Headquartered in Dublin, OH, Cardinal Health, Inc. is one of the world’s largest healthcare services and products providers, operating across Pharmaceutical and Specialty Solutions, Global Medical Products and Distribution (GMPD), and three Other growth businesses. The company serves nearly 90% of U.S. hospitals, delivers more than 43,000 pharmaceutical shipments daily, and manages a broad portfolio of medical, surgical, laboratory, and healthcare logistics offerings.
CAH is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Medical stock. CAH has a Momentum Style Score of A, and shares are up 3.6% over the past four weeks.
For fiscal 2027, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.57 to $12.55 per share. CAH boasts an average earnings surprise of +14.7%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CAH should be on investors' short list.
Key Takeaways Cardinal Health expects Pharma segment profit to grow 8-11%, supported by specialty and generic launches.Cell-and-gene therapy capabilities and non-core businesses are expanding CAH's growth opportunities.IRA pricing changes, GMPD execution challenges and $700 million in CapEx could pressure performance. Cardinal Health (CAH - Free Report) enters fiscal 2027 with strong momentum across pharmaceutical distribution, specialty solutions and growth businesses. Specialty pharmaceuticals, cell-and-gene therapy capabilities and expanding non-core operations should support earnings growth, while IRA-related pricing changes, GMPD execution challenges, tariffs and elevated operating costs could constrain its overall performance.
Shares of this Zacks Rank #3 (Hold) company have risen 11.7% so far this year compared with the industry's 5.2% growth and the S&P 500 Index’s 11.7% gain.
Cardinal Health, with a market capitalization of $53.38 billion, is a global specialty medical device company.
CAH’s bottom line is estimated to improve 14.9% over the next five years. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 14.72%.
Image Source: Zacks Investment Research
What's Driving CAH’s Performance?Pharma and Specialty Solutions Driving Robust Earnings Growth: Cardinal Health enters fiscal 2027 with strong momentum in its largest business, Pharmaceutical and Specialty Solutions. Revenues increased 6% to $58.8 billion in the fourth quarter of fiscal 2026, while segment profit rose 21% to $645 million, driven by brand and specialty portfolios and continued strength in generics.
Management expects Pharma revenues to grow 3-5% in fiscal 2027, with segment profit increasing 8-11%, supported by higher-margin Specialty growth, generic launches and distribution wins. Specialty revenues are expected to grow double digits, including new BioPharma Solutions customers, providing a favorable mix shift toward higher-margin businesses and reducing reliance on traditional pharmaceutical distribution.
Specialty and Cell-and-Gene Therapy Expand Addressable Market: Cardinal Health continues to build higher-value capabilities around specialty pharmaceuticals, particularly complex cell and gene therapies. Its 3PL business secured two additional gene-therapy commercialization agreements, bringing Cardinal Health's exclusive coverage to nearly half of the cell-and-gene market and approximately three-quarters of the total market. The newly opened Innovative Care Pharmacy further integrates specialty distribution, clinical support and financial solutions for high-cost therapies.
These investments should allow Cardinal to capture more economics across the pharmaceutical value chain as specialty drug utilization expands. The opportunity is particularly attractive because specialized services typically generate higher margins than traditional drug distribution.
Other Growth Businesses Provide Diversification: Cardinal's non-core growth businesses are increasingly becoming meaningful contributors to consolidated earnings. The group generated $1.7 billion in revenues during the fiscal fourth quarter, up 7%, while segment profit increased 14% to $183 million.
Management expects revenue growth of 11-13% and segment profit growth of 15-18% in fiscal 2027. Nuclear and Precision Health Solutions should benefit from strong Theranostics and PET demand, while OptiFreight continues to generate strong core volume growth. At-Home Solutions also has additional scale opportunities through Strive Medical and the planned AdaptHealth diabetes acquisition. This diversification should support faster profit growth than the core distribution business.
What’s Hurting CAH’s ProspectIRA Pricing Changes Will Continue to Constrain Growth: Cardina Health's Pharma business faces a recurring revenue headwind from changes associated with the Inflation Reduction Act (IRA). Management expects fiscal 2027 Pharma revenue growth of only 3-5%, partly because of the annualization of 2026 IRA price changes and implementation of 2027 changes. The company estimates that the 2027 impact on revenue growth will be generally consistent with the headwind experienced during the second half of fiscal 2026. Although management expects no adverse profit impact, lower reported revenue growth could limit the pace of top-line expansion. Uncertainty over whether these changes will ultimately be reflected in rebates or a lower WACC also complicates forecasting.
GMPD Remains a Low-Growth Business: Global Medical Products and Distribution continues to represent a structural challenge despite meaningful improvement. Cardinal Health expects GMPD revenues to increase only 2-4% in fiscal 2027, while segment profit is projected to be $200-$220 million, approximately $50 million above the fiscal 2026 figure, excluding the IEEPA refund.
The improvement depends on continued simplification, Cardinal Health brand growth and cost optimization. Management expects fiscal first-quarter GMPD profit to be roughly half of the prior-year level because of foreign currency and distributor purchase timing, with profit weighted toward the second half. This cadence creates execution risk and limits near-term earnings visibility.
Heavy CapEx Could Pressure Near-Term Cash Conversion: Cardinal Health's transformation increasingly depends on continued capital expenditure to support investment in infrastructure, automation, technology and acquisitions. The company expects $700 million in capital expenditures and $3.5-$4 billion in adjusted free cash flow in fiscal 2027, down from $5 billion in fiscal 2026. Recent acquisitions in At-Home Solutions, including Strive Medical and the planned AdaptHealth diabetes business, introduce integration and execution requirements even as management pursues additional tuck-in opportunities.
Although these investments are intended to generate future scale and synergies, they can constrain near-term cash conversion and increase complexity. The company must therefore balance investment in growth with its commitment to at least $1 billion in annual share repurchases.
Estimate TrendThe Zacks Consensus Estimate for fiscal 2027 revenues is pegged at $267.75 billion, implying growth of 5.3% from the year-ago reported figure. The consensus mark for adjusted EPS is pinned at $12.49, indicating an improvement of 10.9% from the previous year’s recorded level.
In the past 60 days, CAH’s earnings estimate for fiscal 2027 has improved 4%.
Stocks to ConsiderSome better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , Veracyte (VCYT - Free Report) andWest Pharmaceutical (WST - Free Report) .
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Veracyte, currently flaunting a Zacks Rank #1, reported a second-quarter 2026 adjusted EPS of 54 cents, which surpassed the Zacks Consensus Estimate by 25.6%. Revenues of $150.3 million beat the Zacks Consensus Estimate by 4.1%.
VCYT has an estimated earnings growth rate of 8.4% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 41.8%.
West Pharmaceutical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.
WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%.
EP Wealth Advisors LLC bought a new position in shares of Cardinal Health, Inc. (NYSE:CAH – Free Report) in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 6,745 shares of the company’s stock, valued at approximately $1,602,000.
Several other hedge funds and other institutional investors also recently modified their holdings of CAH. Investors Research Corp bought a new position in Cardinal Health in the 2nd quarter worth approximately $29,000. University of Texas Texas AM Investment Management Co. purchased a new stake in shares of Cardinal Health during the fourth quarter worth $26,000. Allied Private Wealth LLC purchased a new stake in shares of Cardinal Health during the second quarter worth $30,000. Bank of Jackson Hole Trust bought a new position in shares of Cardinal Health in the fourth quarter worth $27,000. Finally, Indiana Trust & Investment Management Co bought a new position in shares of Cardinal Health in the first quarter worth $29,000. Institutional investors own 87.17% of the company’s stock.
Insider Buying and Selling In related news, CEO Stephen M. Mason sold 35,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $236.40, for a total value of $8,274,000.00. Following the sale, the chief executive officer directly owned 18,061 shares of the company’s stock, valued at $4,269,620.40. This trade represents a 65.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Jessica L. Mayer sold 29,436 shares of Cardinal Health stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $236.19, for a total transaction of $6,952,488.84. Following the sale, the insider owned 33,076 shares of the company’s stock, valued at approximately $7,812,220.44. The trade was a 47.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 210,271 shares of company stock valued at $49,626,657 in the last 90 days. 0.12% of the stock is owned by company insiders.
Cardinal Health Stock Performance NYSE:CAH opened at $229.48 on Friday. Cardinal Health, Inc. has a 52-week low of $145.87 and a 52-week high of $258.30. The stock has a fifty day moving average of $232.02 and a 200 day moving average of $217.86. The firm has a market capitalization of $53.37 billion, a price-to-earnings ratio of 31.74, a P/E/G ratio of 1.23 and a beta of 0.49. Cardinal Health (NYSE:CAH – Get Free Report) last announced its earnings results on Tuesday, August 11th. The company reported $2.91 earnings per share for the quarter, topping analysts’ consensus estimates of $2.42 by $0.49. Cardinal Health had a negative return on equity of 98.53% and a net margin of 0.67%.The business had revenue of $63.67 billion for the quarter, compared to analyst estimates of $65.15 billion. During the same period in the prior year, the company earned $2.08 EPS. The company’s quarterly revenue was up 5.8% compared to the same quarter last year. Cardinal Health has set its FY 2027 guidance at 12.400-12.600 EPS. Equities analysts forecast that Cardinal Health, Inc. will post 12.54 earnings per share for the current fiscal year.
Cardinal Health Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be given a $0.5158 dividend. This represents a $2.06 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Thursday, October 1st. Cardinal Health’s dividend payout ratio is 28.49%.
Wall Street Analyst Weigh In A number of analysts recently issued reports on CAH shares. UBS Group boosted their price objective on Cardinal Health from $274.00 to $280.00 and gave the company a “buy” rating in a research note on Wednesday, August 12th. Citigroup lifted their target price on Cardinal Health from $265.00 to $280.00 and gave the company a “buy” rating in a report on Wednesday, August 12th. TD Cowen upped their price target on Cardinal Health from $275.00 to $280.00 and gave the company a “buy” rating in a research report on Thursday, August 13th. Wells Fargo & Company increased their price target on shares of Cardinal Health from $245.00 to $277.00 and gave the stock an “overweight” rating in a report on Wednesday, August 12th. Finally, JPMorgan Chase & Co. raised their price objective on shares of Cardinal Health from $215.00 to $260.00 and gave the company a “neutral” rating in a research report on Thursday, August 13th. Sixteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, Cardinal Health has an average rating of “Moderate Buy” and a consensus target price of $266.56.
View Our Latest Analysis on Cardinal Health
More Cardinal Health News Here are the key news stories impacting Cardinal Health this week:
Positive Sentiment: Royal Bank of Canada initiated coverage with an “outperform” rating and a $276 price target, implying meaningful upside from recent trading levels. RBC cited Cardinal Health’s higher-margin services as a potential earnings-growth driver. RBC initiates coverage of Cardinal Health Positive Sentiment: Wall Street remains broadly constructive, with 16 analysts rating CAH a Buy and three assigning a Hold rating. The consensus rating is “Moderate Buy,” with an average price target of approximately $266.56. Zacks also identified Cardinal Health as a potentially attractive long-term value stock. Zacks value-stock analysis Positive Sentiment: Cardinal Health’s latest quarter delivered adjusted earnings per share of $2.91, well above the $2.42 consensus estimate, while revenue increased 5.8% year over year. Fiscal 2027 EPS guidance of $12.40–$12.60 supports the longer-term earnings case. Neutral Sentiment: The company declared a quarterly dividend of $0.5158 per share, equivalent to $2.06 annually and a yield of about 0.9%. The payout offers modest income support but is unlikely to be a major near-term catalyst. Negative Sentiment: Several executives sold sizable holdings around $235–$237 per share. CEO Jason Hollar sold 124,529 shares worth about $29.4 million, while other executive and insider sales—including those by Deborah Weitzman, Stephen Mason, Michelle Greene, Jessica Mayer and Mary Scherer—totaled roughly $20 million more. The concentrated selling and substantial reductions in insider ownership may encourage profit-taking concerns after CAH’s strong advance. Cardinal Health insider sales Negative Sentiment: Investors may also question the durability of the latest earnings beat because part of the improvement reportedly reflected a one-time tariff refund, potentially limiting the stock’s upside if recurring earnings growth does not match expectations. Cardinal Health earnings analysis Cardinal Health Company Profile (Free Report)
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.
Further Reading Five stocks we like better than Cardinal Health 2 Biotech Stocks Shaping Up for Major Breakouts 3 Stocks Came Roaring Back—Now They’re Flashing Warning Signs 3 Beaten-Down Stocks That Haven’t Gotten the Message About the S&P 500’s Record Run Darden Restaurants Just Hit a 52-Week High–Is the Olive Garden Comeback Story Legit?
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Callan Family Office LLC purchased a new stake in shares of Cardinal Health, Inc. (NYSE:CAH – Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 11,365 shares of the company’s stock, valued at approximately $2,700,000.
A number of other large investors have also added to or reduced their stakes in the stock. Gambit Capital Management LLC purchased a new position in Cardinal Health in the second quarter valued at about $229,000. Laidlaw Wealth Management LLC bought a new position in shares of Cardinal Health during the 2nd quarter valued at approximately $609,000. C M Bidwell & Associates Ltd. purchased a new stake in shares of Cardinal Health during the 2nd quarter worth approximately $683,000. Keebeck Wealth Management bought a new stake in shares of Cardinal Health in the 2nd quarter worth approximately $348,000. Finally, Keating Financial Advisory Services Inc. bought a new stake in shares of Cardinal Health in the 2nd quarter worth approximately $56,000. Hedge funds and other institutional investors own 87.17% of the company’s stock.
Trending Headlines about Cardinal Health Here are the key news stories impacting Cardinal Health this week:
Positive Sentiment: Royal Bank of Canada initiated coverage with an “outperform” rating and a $276 price target, implying meaningful upside from recent trading levels. RBC cited Cardinal Health’s higher-margin services as a potential earnings-growth driver. RBC initiates coverage of Cardinal Health Positive Sentiment: Wall Street remains broadly constructive, with 16 analysts rating CAH a Buy and three assigning a Hold rating. The consensus rating is “Moderate Buy,” with an average price target of approximately $266.56. Zacks also identified Cardinal Health as a potentially attractive long-term value stock. Zacks value-stock analysis Positive Sentiment: Cardinal Health’s latest quarter delivered adjusted earnings per share of $2.91, well above the $2.42 consensus estimate, while revenue increased 5.8% year over year. Fiscal 2027 EPS guidance of $12.40–$12.60 supports the longer-term earnings case. Neutral Sentiment: The company declared a quarterly dividend of $0.5158 per share, equivalent to $2.06 annually and a yield of about 0.9%. The payout offers modest income support but is unlikely to be a major near-term catalyst. Negative Sentiment: Several executives sold sizable holdings around $235–$237 per share. CEO Jason Hollar sold 124,529 shares worth about $29.4 million, while other executive and insider sales—including those by Deborah Weitzman, Stephen Mason, Michelle Greene, Jessica Mayer and Mary Scherer—totaled roughly $20 million more. The concentrated selling and substantial reductions in insider ownership may encourage profit-taking concerns after CAH’s strong advance. Cardinal Health insider sales Negative Sentiment: Investors may also question the durability of the latest earnings beat because part of the improvement reportedly reflected a one-time tariff refund, potentially limiting the stock’s upside if recurring earnings growth does not match expectations. Cardinal Health earnings analysis Cardinal Health Trading Up 0.4% Shares of CAH stock opened at $229.48 on Friday. The firm’s 50 day moving average is $232.02 and its 200 day moving average is $217.86. The stock has a market capitalization of $53.37 billion, a P/E ratio of 31.74, a PEG ratio of 1.23 and a beta of 0.49. Cardinal Health, Inc. has a 12 month low of $145.87 and a 12 month high of $258.30. Cardinal Health (NYSE:CAH – Get Free Report) last released its quarterly earnings data on Tuesday, August 11th. The company reported $2.91 earnings per share for the quarter, beating analysts’ consensus estimates of $2.42 by $0.49. Cardinal Health had a net margin of 0.67% and a negative return on equity of 98.53%. The business had revenue of $63.67 billion during the quarter, compared to analyst estimates of $65.15 billion. During the same period in the previous year, the business earned $2.08 EPS. Cardinal Health’s revenue was up 5.8% compared to the same quarter last year. Cardinal Health has set its FY 2027 guidance at 12.400-12.600 EPS. On average, equities analysts predict that Cardinal Health, Inc. will post 12.54 EPS for the current year.
Cardinal Health Dividend Announcement The business also recently declared 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 payout ratio is 28.49%.
Insider Buying and Selling In related news, CEO Jason M. Hollar sold 80,000 shares of the business’s stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $235.74, for a total transaction of $18,859,200.00. Following the sale, the chief executive officer directly owned 235,132 shares in the company, valued at approximately $55,430,017.68. The trade was a 25.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Stephen M. Mason sold 35,000 shares of the stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $236.40, for a total value of $8,274,000.00. Following the sale, the chief executive officer directly owned 18,061 shares in the company, valued at $4,269,620.40. This trade represents a 65.96% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 210,271 shares of company stock valued at $49,626,657 in the last 90 days. Corporate insiders own 0.12% of the company’s stock.
Wall Street Analysts Forecast Growth Several brokerages have weighed in on CAH. Morgan Stanley increased their price objective on Cardinal Health from $255.00 to $265.00 and gave the company an “overweight” rating in a report on Wednesday, August 12th. Bank of America boosted their target price on Cardinal Health from $240.00 to $260.00 and gave the company a “buy” rating in a research note on Thursday, July 2nd. Barclays upped their price target on Cardinal Health from $258.00 to $275.00 and gave the company an “overweight” rating in a research report on Thursday, August 13th. TD Cowen increased their price target on Cardinal Health from $275.00 to $280.00 and gave the stock a “buy” rating in a research note on Thursday, August 13th. Finally, Evercore reissued an “outperform” rating and issued a $270.00 price objective on shares of Cardinal Health in a report on Wednesday, August 12th. Sixteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Cardinal Health has an average rating of “Moderate Buy” and a consensus price target of $266.56.
Read Our Latest Stock Report on CAH
Cardinal Health Profile (Free Report)
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.
Featured Articles Five stocks we like better than Cardinal Health 2 Biotech Stocks Shaping Up for Major Breakouts 3 Stocks Came Roaring Back—Now They’re Flashing Warning Signs 3 Beaten-Down Stocks That Haven’t Gotten the Message About the S&P 500’s Record Run Darden Restaurants Just Hit a 52-Week High–Is the Olive Garden Comeback Story Legit?
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Chief Executive Officer Jason M. Hollar sold nearly 125,000 shares of Cardinal Health, Inc. (CAH +0.46%) for $29.4 million on August 18 and August 19, according to an SEC Form 4 filing.
Transaction summaryMetricValueShares sold124,529Transaction value~$29.4 millionPost-transaction shares (directly held)190,603Post-transaction value~$44.76 millionTransaction value based on SEC Form 4 weighted average sale price ($235.89); post-transaction value based on the August 19 market close ($234.85).
Key questionsWhat is the current equity stake of the Chief Executive Officer following this sale?
Hollar retains 190,603 shares held directly, representing a 0.0814% ownership interest in the $55.0 billion company.What pricing ranges were utilized for this $29.4 million disposition?
According to the SEC filing footnotes, the shares were sold in multiple tranches with execution prices ranging from $232.75 to $238.07 per share.What are the primary operational segments of Cardinal Health?
The company functions as a global integrated healthcare services provider organized into two core divisions, Pharmaceutical and Medical, serving hospitals, pharmacies, and physician practices.What is the scale of the company's recent financial performance?
Cardinal Health reported trailing twelve-month revenue of $254.2 billion and net income of $1.7 billion, reflecting its position as a major distributor in the healthcare sector.Company OverviewMetricValueShare Price (as of market close 2026-08-19)$234.85Market Capitalization$55.0 billionRevenue (TTM)$254.2 billionNet Income (TTM)$1.7 billionCompany SnapshotCardinal Health operates as a global, integrated healthcare services and products provider, delivering pharmaceutical distribution, medical-surgical products, and healthcare solutions across the United States, Canada, Europe, Asia, and international markets.The company generates revenue through its two core operating divisions--Pharmaceutical and Medical--which provide distribution, sourcing, and specialty services to healthcare providers, with a business model centered on supply chain optimization and value-added services.Cardinal Health serves a diverse customer base, including hospitals, healthcare networks, pharmacies, outpatient surgical centers, clinical laboratories, physician practices, and patients receiving home care services.Cardinal Health is one of the largest healthcare services and products companies globally, with a presence spanning multiple continents and serving over 58,700 employees. The company maintains a competitive advantage through its extensive distribution infrastructure, integrated service offerings, and deep relationships with healthcare providers across multiple care settings. With TTM revenue of $254.2 billion and a market capitalization of $55.0 billion, Cardinal Health represents a critical intermediary in the global healthcare supply chain.
What this transaction means for investorsHollar has done this before: He sold 124,529 shares on Aug. 18 and 19, almost exactly the block that vested three days earlier from restricted stock and performance units, and last August he cleared about $16 million days after the same vest. Despite the $29.4 million headline, his directly held stake sits about where it did a year ago.
Meanwhile, he's selling into a stock that has run hard. Cardinal closed fiscal 2026 with revenue up 14% to $254 billion and $5 billion in adjusted free cash flow, and on Aug. 11 the board tacked another $5 billion onto the buyback authorization. Non-GAAP earnings per share have more than doubled since fiscal 2022, to $11.26 from $5.07, the stretch Hollar had in mind when he told analysts earlier this month the company is "in a very different place."
The soft spot, however, is medical products and distribution, where fiscal 2027 guidance assumes tariff relief cancels out rising diesel and resin costs. CFO Aaron Alt said a drawn-out Iran conflict would push that segment to the bottom of its $200 million to $220 million profit range, and management has already told investors to model first-quarter profit there at about half of last year's.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Jessica L. Mayer, chief legal officer of Cardinal Health, Inc. (CAH +0.46%), sold 29,436 shares of common stock at $236.19 per share on August 18, according to an SEC Form 4 filing.
Transaction summaryMetricValueShares sold29,436Transaction value~$7.0 millionPost-transaction shares (directly held)33,076Post-transaction value$7.77 millionTransaction value based on SEC Form 4 weighted average sale price ($236.19); post-transaction value based on the August 18 market close ($234.98).
Key questionsWhat were the execution details of the transaction?
The shares were sold in multiple transactions at price intervals ranging from $234.07 to $237.67 per share.How does this move impact the insider's total ownership?
Following the disposition, Mayer direct ownership interest in the company is 0.01%.What is the current scale and valuation of the company?
Cardinal Health operates as a global healthcare services provider with a $55.0 billion market capitalization and trailing twelve-month revenue of $254.2 billion as of the August 19 market close.Company OverviewMetricValueShare Price (as of market close 2026-08-19)$234.85Market Capitalization$55.0 billionRevenue (TTM)$254.2 billionNet Income (TTM)$1.7 billionCompany SnapshotCardinal Health operates as a global, integrated healthcare services and products provider, delivering pharmaceutical distribution, medical supplies, and healthcare solutions across the United States, Canada, Europe, Asia, and international markets.The company generates revenue through its two core operating divisions--Pharmaceutical and Medical--which provide distribution, logistics, and specialized healthcare services to institutional and individual customers.Cardinal Health serves a diverse customer base, including hospitals, healthcare networks, pharmacies, outpatient surgical centers, clinical laboratories, physician practices, and patients receiving home-based care.Cardinal Health is one of the largest healthcare services and products companies globally. The company maintains a competitive position through its integrated distribution network, broad customer relationships, and diversified service offerings across pharmaceutical and medical segments. Cardinal Health's scale and operational infrastructure enable it to serve as a critical intermediary within the healthcare supply chain, supporting healthcare providers and patients across multiple geographies and care settings.
What this transaction means for investorsMayer wasn't alone on Aug. 18. CFO Aaron Alt sold 42,000 shares the same day, and CIO Michelle Greene sold 11,650, for example, and all three had performance share units settle on Aug. 15. Though the filing seems routine, Mayer's seat is what makes the filing worth reading. Analysts spent much of the Aug. 11 earnings call pressing management on 340B, the federal program requiring discounted drug prices for hospitals that serve low-income patients, plus Medicare price setting under the Inflation Reduction Act. CEO Jason Hollar was blunt about it, saying "we don't see our role changing and we don't believe our compensation should change."
Fiscal 2027 pharma revenue growth of 3% to 5% already builds in IRA pricing pressure, and Alt said the company is assuming the same percentage impact it just absorbed, roughly 500 basis points off segment revenue in the fourth quarter, offset almost exactly by GLP-1 volume. The January rate changes are the first live test of whether that offset holds.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Michelle D. Greene, chief information officer of Cardinal Health, Inc. (CAH +0.46%), sold 11,650 shares of common stock on August 18, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueShares sold (directly held)11,650Transaction value$2.7 millionPost-transaction shares (directly held)10,330Post-transaction value$2.43 millionTransaction value based on SEC Form 4 weighted average sale price ($235.72); post-transaction value based on the August 18 market close ($234.98).
Key questionsHow was the price execution structured for this disposition?
The shares were sold in multiple transactions at prices ranging from $234.07 to $237.32 per share, resulting in the reported weighted average of $235.72.What is the current scale of the company's market position?
The company is a global provider of healthcare services and products, with a market capitalization of $55.0 billion and a workforce of 58,788 employees as of the August 19 market close.What does the insider's remaining equity exposure look like?
Following this sale, Greene retains direct ownership of 10,330 shares.What are the primary segments driving the company's financial results?
The company is organized into Pharmaceutical and Medical divisions, which collectively generated trailing-twelve-month revenue of $254.2 billion and net income of $1.7 billion.Company OverviewMetricValueShare Price (as of market close 2026-08-19)$234.85Market Capitalization$55.0 billionRevenue (TTM)$254.2 billionNet Income (TTM)$1.7 billionCompany SnapshotCardinal Health operates as a global, integrated healthcare services and products provider, delivering pharmaceutical distribution, medical supplies, and healthcare solutions across the United States, Canada, Europe, Asia, and international markets.The company generates revenue through its two core operating divisions--Pharmaceutical and Medical--which provide distribution, logistics, and specialized healthcare services to institutional and individual customers.Cardinal Health serves a diverse customer base, including hospitals, healthcare networks, pharmacies, outpatient surgical centers, clinical laboratories, physician practices, and patients receiving home-based care.Cardinal Health is one of the largest healthcare services and products companies globally, with TTM revenue of $254.2 billion. The company maintains a competitive position through its integrated distribution network, broad customer relationships, and diversified service offerings across pharmaceutical and medical segments. Cardinal Health's scale and operational infrastructure enable it to serve as a critical intermediary within the healthcare supply chain, supporting healthcare providers and patients across multiple geographies and care settings.
What this transaction means for investorsGreene finished Cardinal's August award cycle holding less stock than she went into it with. She had 12,230 shares before performance units landed on Aug. 4 and 10,330 after the selling stopped, a cut of roughly 16%. CEO Jason Hollar and chief legal officer Jessica Mayer sold in the same window and both finished within about 5% of where they started, so Greene went meaningfully deeper, though not as deep as CFO Aaron Alt.
Meanwhile, her role maps onto what management spent the Aug. 11 earnings call selling. Cardinal's chief information officer runs the automation and technology budget that Hollar credited for record service levels and order accuracy, and the spending is real. Capital expenditures hit $649 million in fiscal 2026 and are expected to step up to roughly $700 million this year. Alt told analysts the company is "executing on a multiyear investment plan." Meanwhile adjusted free cash flow is guided to $3.5 billion to $4 billion for fiscal 2027, down from the $5 billion it just posted. Alt chalked it up to business growth, working capital discipline and cash-focused initiatives, which are reasons the number should climb rather than drop by more than a billion. Long-term investors should keep an eye on how that number eoles.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Deborah Weitzman, CEO of the PSS Segment, reported a sale of 7,354 shares of Cardinal Health, Inc. (CAH +0.46%) in a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value~$1.7 millionShares sold7,354Post-transaction shares (directly held)77,901Post-transaction value~$18.31 millionTransaction value based on SEC Form 4 weighted average sale price ($235.45); post-transaction value based on the August 18 market close ($234.98).
Key questionsHow does this liquidation impact the insider's equity position?
The sale of 7,354 shares reduced Weitzman's direct stake by 9%, leaving the executive with 77,901 direct shares valued at $18.31 million as of the August 18 transaction date close.What were the specific execution details of the trade?
The shares were disposed of at a weighted average price of $235.45, though individual execution prices ranged from $235.17 to $237.63 across multiple transactions.What is the broader financial context for Cardinal Health at the time of this filing?
As of the August 19 market close, shares were priced at $234.85, supporting a market capitalization of $55.0 billion for the Dublin-based firm, which reported trailing twelve-month revenue of $254.2 billion.Company OverviewMetricValueShare Price (as of market close 2026-08-19)$234.85Market Capitalization$55.0 billionRevenue (TTM)$254.2 billionNet Income (TTM)$1.7 billionCompany SnapshotCardinal Health operates as a global integrated provider of healthcare products and services, delivering pharmaceutical distribution, medical products, and healthcare services across the United States, Canada, Europe, Asia, and other international markets.The company generates revenue through its two core divisions--Pharmaceutical and Medical--which provide distribution, logistics, and value-added services to hospitals, healthcare networks, pharmacies, outpatient surgical centers, clinical labs, and physician practices.Cardinal Health serves a diverse customer base, including healthcare providers, hospital systems, retail and specialty pharmacies, outpatient surgical centers, clinical laboratories, and physician practices, with additional reach into home healthcare and patient populations.Cardinal Health is one of the largest healthcare services and products companies globally, with a TTM revenue base of $254.2 billion and a market capitalization of $55.0 billion. The company maintains a competitive advantage through its integrated distribution network, scale across pharmaceutical and medical segments, and established relationships with a broad spectrum of healthcare providers across multiple geographies. With 58,788 employees worldwide, Cardinal Health is positioned as a critical infrastructure provider within the healthcare supply chain, supporting the delivery of care across institutional and individual patient settings.
What this transaction means for investorsWeitzman sold 7,354 shares and still finished August owning far more Cardinal stock than she did at the start of it. She held 52,877 shares before performance units landed on Aug. 4, and 77,901 once the dust settled, an increase of about 47%. The CEO, CFO, legal chief and CIO all came out of the same window roughly flat or down, so she's the one who took the award and mostly kept it.
Meanwhile, and importantly for long-term investors, Weitzman runs the segment that carried the quarter. Pharmaceutical and Specialty Solutions brought in $58.8 billion of revenue in the fourth quarter, up 6%, and segment profit rose 21% to $645 million. Specialty grew more than 25% across fiscal 2026. CEO Jason Hollar told analysts the company still sees "fantastic growth in our Biopharma Solutions business." For fiscal 2027, segment revenue is guided to 3% to 5% growth and profit to 8% to 11%, with 2 to 3 points of that profit coming from acquisitions already announced. CFO Aaron Alt said first-quarter profit growth should run near the top of the range before the Solaris deal laps in the second quarter, which is when the organic number gets its first clean look.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Stephen M. Mason, CEO of the firm's GMPD Segment, sold 35,000 shares of Cardinal Health, Inc. (CAH +0.46%) on August 18, according to an SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$8.3 millionShares sold35,000Post-transaction shares (directly held)18,061Post-transaction value$4.24 millionTransaction value based on SEC Form 4 weighted average sale price ($236.40); post-transaction value based on the August 18 market close ($234.98).
Key questionsWhat is the scale of this transaction relative to the insider's remaining position?
The sale of 35,000 shares represents a majority of the insider's position, leaving a direct holding of 18,061 shares. These remaining shares have a market value of $4.24 million based on the August 18 market close.How has the stock performed leading up to this transaction?
As of the transaction date, the company has seen a one-year total return of 57%. The sale was executed at a weighted average price of $236.40 per share, while the stock finished the following day, August 19, at $234.85.What is the company's current financial profile and market standing?
Cardinal Health reports a market capitalization of $55.0 billion. For the most recent trailing-twelve-month period, the company generated $254.2 billion in revenue and $1.7 billion in net income.Company OverviewMetricValueShare Price (as of market close 2026-08-19)$234.85Market Capitalization$55.0 billionRevenue (TTM)$254.2 billionNet Income (TTM)$1.7 billionCompany SnapshotCardinal Health operates as a global, integrated healthcare services and products provider, delivering pharmaceutical distribution, medical products, and healthcare services across the United States, Canada, Europe, Asia, and other international markets.The company generates revenue through its two core divisions--Pharmaceutical and Medical--which provide distribution, logistics, and value-added services to hospitals, healthcare networks, pharmacies, outpatient surgical centers, clinical labs, and physician practices.Cardinal Health serves a diverse customer base, including healthcare providers, hospital systems, retail and specialty pharmacies, outpatient surgical centers, clinical laboratories, and physician practices, with additional reach into home healthcare and patient populations.Cardinal Health is one of the largest healthcare services and products companies globally, with a TTM revenue base of $254.2 billion and a market capitalization of $55.0 billion. The company maintains a competitive advantage through its integrated distribution network, scale across pharmaceutical and medical segments, and established relationships with a broad spectrum of healthcare providers across multiple geographies. Cardinal Health is positioned as a critical infrastructure provider within the healthcare supply chain, supporting the delivery of care across institutional and individual patient settings.
What this transaction means for investorsMason cut his own position by 29% across August's award cycle, a steeper reduction than either the CEO or the CFO took. He went into the Aug. 4 performance-unit award holding 25,490 shares and came out the far side with 18,061, and he did roughly the same thing last August, selling 42,635 shares for about $6.2 million. So the habit isn't new, but the base seems to keep shrinking.
Meanwhile, he's running the segment that's still being fixed. Global Medical Products and Distribution posted $3.1 billion of fourth-quarter revenue, down 2%, and reported profit of $150 million that falls to $50 million once you strip out a one-time refund on emergency-powers tariffs that have since been replaced. CFO Aaron Alt said on the Aug. 11 earnings call that "this industry and our business remain a work in progress." Based on projections, fiscal 2027 asks for $200 million to $220 million from the segment, and Alt already told analysts that a drawn-out Iran conflict would push it to the low end. Meanwhile the profit is weighted to the back half of the year, so the fourth quarter will be critical to understand how projections ultimately hold up.
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About the Author
Jonathan Ponciano is a contributing stock market analyst at The Motley Fool. He has nearly a decade of experience as a financial journalist, most recently as an editor and senior reporter at Forbes focused on markets, technology, and entrepreneurship. Jonathan has also written for Investopedia and the Los Angeles Business Journal. He holds a dual B.A. in Business Journalism and Economics from the University of North Carolina at Chapel Hill and an M.B.A. from Columbia Business School. A North Carolina native now based in New York City, Jonathan has also lived in Mexico City and Los Angeles.
Aaron E. Alt, the chief financial officer of Cardinal Health, Inc. (CAH +0.46%), sold 42,000 shares of common stock on August 18, according to an SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$9.9 millionShares sold42,000Post-transaction shares (directly held)20,495Post-transaction value$4.82 millionTransaction value based on SEC Form 4 weighted average sale price ($236.34); post-transaction value based on the August 18 market close ($234.98).
Key questionsWhat was the proportional impact of this sale on the insider's direct investment?
The disposal of 42,000 shares resulted in a reduction of the CFO's direct equity holdings, leaving a remaining balance of 20,495 shares.How did the execution price compare to the market's valuation on the transaction date?
The shares were sold at a weighted-average price of $236.34, slightly higher than the $234.98 market close on August 18.What is the current scale of the insider's remaining direct exposure?
The remaining 20,495 shares represent a total market value of $4.82 million based on the market close at the time of the transaction, while the company's broader insider ownership level is reported at 0.0088%.Company OverviewMetricValueShare Price (as of market close 2026-08-19)$234.85Market Capitalization$55.0 billionRevenue (TTM)$254.2 billionNet Income (TTM)$1.7 billionCompany SnapshotCardinal Health operates as a global, integrated healthcare services and products provider, delivering pharmaceutical distribution, medical supplies, and healthcare solutions across the United States, Canada, Europe, Asia, and international markets.The company generates revenue through its two core operating divisions--Pharmaceutical and Medical--which provide distribution, logistics, and specialized healthcare services to institutional and individual customers.Cardinal Health serves a diverse customer base, including hospitals, healthcare networks, pharmacies, outpatient surgical centers, clinical laboratories, physician practices, and patients receiving home-based care.Cardinal Health is one of the largest healthcare services and products companies globally, with TTM revenue of $254.2 billion. The company maintains a competitive position through its integrated distribution network, broad customer relationships, and diversified service offerings across pharmaceutical and medical segments. Cardinal Health's scale and operational infrastructure enable it to serve as a critical intermediary within the healthcare supply chain, supporting healthcare providers and patients across multiple geographies and care settings.
What this transaction means for investorsAlt held 26,408 shares before an Aug. 4 performance-unit award for Cardinal Health executives and then had 20,495 once the Aug. 18 selling was done, which brought in roughly $9.9 million and marked a slight reduction in the overall stake.
It's not unusual to see an executive manage their awards in such a way, and more important for long-term investors is what Alt ultimately heads up as CFO. Fourth-quarter EPS came in at $2.91, up 40%, but $0.31 of it was a one-time tariff refund, so Alt stripped it out and set the fiscal 2026 comparison at $10.95 rather than the $11.26 the company actually reported. Fiscal 2027 guidance of $12.40 to $12.60 is 13% to 15% growth against $10.95. Measured against $11.26, it's closer to 10% to 12%. "We did what we said we would do," Alt told analysts on the Aug. 11 call. Beyond those projections, he noted that the firm's plans and priorities remain unchanged, with planned capital expenditures of about $700 million, no significant actions needed to protect the firm's balance sheet, and at least $1 billion in share repurchases expected in the 2027 fiscal year.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Mary C. Scherer, the chief accounting officer of the firm, sold 2,302 shares of Cardinal Health, Inc. (CAH +0.46%) on August 19, according to an SEC Form 4 filing.
Transaction summaryMetricValueShares sold2,302Transaction value$546,500Post-transaction shares (directly held)2,811Post-transaction value$660,163.35Transaction value based on SEC Form 4 weighted average sale price ($237.39); post-transaction value based on the August 19 market close ($234.85).
Key questionsWhat is the current scale of equity ownership for the Chief Accounting Officer following this sale?
Scherer retains direct ownership of 2,811 shares, which represents a tiny 0.001% stake in the company.How does the transaction price compare to the trade-date market close?
The shares were sold at a weighted-average price of $237.39, while the common stock ended the August 19 session at $234.85.What are the fundamental metrics for the company over the most recent trailing 12-month period?
The company reported $254.2 billion in revenue and $1.7 billion in net income for the trailing 12 months as of the transaction date.What is the primary operational structure of the company?
It functions as a healthcare services provider through two primary segments, Pharmaceutical and Medical, serving hospitals, pharmacies, and clinical laboratories.Company OverviewMetricValueShare Price (as of market close 2026-08-19)$234.85Market Capitalization$55.0 billionRevenue (TTM)$254.2 billionNet Income (TTM)$1.7 billionCompany SnapshotCardinal Health operates as a global, integrated healthcare services and products provider, delivering pharmaceutical distribution, medical-surgical products, and healthcare solutions across the United States, Canada, Europe, Asia, and international markets.The company generates revenue through its two core operating divisions--Pharmaceutical and Medical--which provide distribution, sourcing, and specialty services to healthcare providers, with a business model centered on supply chain optimization and value-added services.Cardinal Health serves a diverse customer base, including hospitals, healthcare networks, pharmacies, outpatient surgical centers, clinical laboratories, physician practices, and patients receiving home care services.Cardinal Health is one of the largest healthcare services and products companies globally, with a presence spanning multiple continents and serving tens of thousands of employees. The company maintains a competitive advantage through its extensive distribution infrastructure, integrated service offerings, and deep relationships with healthcare providers across multiple care settings. With TTM revenue of $254.2 billion and a market capitalization of $55.0 billion, Cardinal Health represents a critical intermediary in the global healthcare supply chain.
What this transaction means for investorsScherer owns about $660,000 of Cardinal stock after this trade, and her 2,811 remaining shares are down from 3,495 before the Aug. 4 award, roughly a 20% cut. Several other Cardinal Health executives sold this week, but her August performance grant seems to sit several rungs below others. That said, she's still getting awards each year, so her incentives are still clearly tied to company performance.
Meanwhile, one notable accounting note from the firm's latest release is that Cardinal, like many other companies recently, booked a tariff-related windfall this past quarter; the firm saw a $100 million net operating benefit in its medical segment from tariff refunds, recognized on the expectation of collecting roughly $200 million. The refund added $0.31 to fourth-quarter EPS of $2.91, or about 15 of the 40 percentage points of growth. At the same time, the tariffs that replaced the ones being refunded are still costing the company money, so the benefit is one-time, even while the drag isn't. Long-term investors might want to keep an eye on how that ultimately plays out.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
B. Metzler seel. Sohn & Co. AG acquired a new stake in Cardinal Health, Inc. (NYSE:CAH – Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 26,592 shares of the company’s stock, valued at approximately $6,317,000.
Several other large investors have also added to or reduced their stakes in CAH. Kornitzer Capital Management Inc. KS increased its holdings in shares of Cardinal Health by 100.8% in the 4th quarter. Kornitzer Capital Management Inc. KS now owns 18,164 shares of the company’s stock worth $3,733,000 after buying an additional 9,120 shares during the last quarter. Abacus FCF Advisors LLC purchased a new position in shares of Cardinal Health in the 4th quarter worth about $7,182,000. Byrne Financial Freedom LLC bought a new position in shares of Cardinal Health during the 4th quarter valued at about $1,574,000. Belleair Asset Management LLC purchased a new position in shares of Cardinal Health in the fourth quarter worth about $1,100,000. Finally, Axecap Investments LLC bought a new position in shares of Cardinal Health in the fourth quarter worth approximately $2,371,000. Institutional investors own 87.17% of the company’s stock.
Analyst Ratings Changes CAH has been the subject of a number of recent analyst reports. Wells Fargo & Company upped their target price on Cardinal Health from $245.00 to $277.00 and gave the company an “overweight” rating in a report on Wednesday, August 12th. William Blair began coverage on Cardinal Health in a report on Tuesday, April 28th. They issued an “outperform” rating on the stock. Evercore restated an “outperform” rating and set a $270.00 price objective on shares of Cardinal Health in a research note on Wednesday, August 12th. Bank of America lifted their target price on shares of Cardinal Health from $240.00 to $260.00 and gave the stock a “buy” rating in a report on Thursday, July 2nd. Finally, Royal Bank Of Canada assumed coverage on shares of Cardinal Health in a research report on Wednesday. They set an “outperform” rating and a $276.00 price target for the company. Sixteen equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Cardinal Health has a consensus rating of “Moderate Buy” and an average target price of $266.56.
Check Out Our Latest Research Report on Cardinal Health Insider Buying and Selling at Cardinal Health In other news, CEO Jason M. Hollar sold 44,529 shares of the company’s stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $236.18, for a total value of $10,516,859.22. Following the completion of the sale, the chief executive officer directly owned 190,603 shares of the company’s stock, valued at approximately $45,016,616.54. This represents a 18.94% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Deborah Weitzman sold 7,354 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $235.45, for a total transaction of $1,731,499.30. Following the completion of the transaction, the chief executive officer directly owned 77,901 shares in the company, valued at approximately $18,341,790.45. The trade was a 8.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 210,271 shares of company stock worth $49,626,657. 0.12% of the stock is owned by insiders.
Cardinal Health Trading Up 0.4% Shares of Cardinal Health stock opened at $229.48 on Friday. The firm has a market cap of $53.37 billion, a PE ratio of 31.74, a PEG ratio of 1.22 and a beta of 0.49. Cardinal Health, Inc. has a 12 month low of $145.87 and a 12 month high of $258.30. The stock has a 50 day moving average of $232.02 and a 200 day moving average of $217.86.
Cardinal Health (NYSE:CAH – Get Free Report) last announced its quarterly earnings results on Tuesday, August 11th. The company reported $2.91 EPS for the quarter, beating analysts’ consensus estimates of $2.42 by $0.49. Cardinal Health had a net margin of 0.67% and a negative return on equity of 98.53%. The business had revenue of $63.67 billion for the quarter, compared to analyst estimates of $65.15 billion. During the same quarter in the prior year, the business earned $2.08 EPS. Cardinal Health’s quarterly revenue was up 5.8% on a year-over-year basis. Cardinal Health has set its FY 2027 guidance at 12.400-12.600 EPS. As a group, equities research analysts forecast that Cardinal Health, Inc. will post 12.54 earnings per share for the current fiscal year.
Cardinal Health Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st will be paid a dividend of $0.5158 per share. 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 currently 28.49%.
Key Headlines Impacting Cardinal Health Here are the key news stories impacting Cardinal Health this week:
Positive Sentiment: Royal Bank of Canada initiated coverage with an “outperform” rating and a $276 price target, implying meaningful upside from recent trading levels. RBC cited Cardinal Health’s higher-margin services as a potential earnings-growth driver. RBC initiates coverage of Cardinal Health Positive Sentiment: Wall Street remains broadly constructive, with 16 analysts rating CAH a Buy and three assigning a Hold rating. The consensus rating is “Moderate Buy,” with an average price target of approximately $266.56. Zacks also identified Cardinal Health as a potentially attractive long-term value stock. Zacks value-stock analysis Positive Sentiment: Cardinal Health’s latest quarter delivered adjusted earnings per share of $2.91, well above the $2.42 consensus estimate, while revenue increased 5.8% year over year. Fiscal 2027 EPS guidance of $12.40–$12.60 supports the longer-term earnings case. Neutral Sentiment: The company declared a quarterly dividend of $0.5158 per share, equivalent to $2.06 annually and a yield of about 0.9%. The payout offers modest income support but is unlikely to be a major near-term catalyst. Negative Sentiment: Several executives sold sizable holdings around $235–$237 per share. CEO Jason Hollar sold 124,529 shares worth about $29.4 million, while other executive and insider sales—including those by Deborah Weitzman, Stephen Mason, Michelle Greene, Jessica Mayer and Mary Scherer—totaled roughly $20 million more. The concentrated selling and substantial reductions in insider ownership may encourage profit-taking concerns after CAH’s strong advance. Cardinal Health insider sales Negative Sentiment: Investors may also question the durability of the latest earnings beat because part of the improvement reportedly reflected a one-time tariff refund, potentially limiting the stock’s upside if recurring earnings growth does not match expectations. Cardinal Health earnings analysis Cardinal Health Company Profile (Free Report)
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.
Recommended Stories Five stocks we like better than Cardinal Health Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates? Want to see what other hedge funds are holding CAH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cardinal Health, Inc. (NYSE:CAH – Free Report).
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Bank of New York Mellon Corp acquired a new position in shares of Cardinal Health, Inc. (NYSE:CAH – Free Report) in the second quarter, according to the company in its most recent disclosure with the SEC. The firm acquired 1,299,209 shares of the company’s stock, valued at approximately $308,640,000. Bank of New York Mellon Corp owned 0.55% of Cardinal Health as of its most recent filing with the SEC.
Several other institutional investors have also recently added to or reduced their stakes in the stock. University of Texas Texas AM Investment Management Co. acquired a new stake in shares of Cardinal Health in the fourth quarter valued at $26,000. Bank of Jackson Hole Trust acquired a new position in Cardinal Health during the 4th quarter worth about $27,000. Jones Financial Companies Lllp boosted its holdings in Cardinal Health by 198.3% during the 1st quarter. Jones Financial Companies Lllp now owns 21,112 shares of the company’s stock valued at $27,000 after acquiring an additional 14,034 shares during the period. Palladiem LLC purchased a new position in Cardinal Health during the 4th quarter valued at about $28,000. Finally, Indiana Trust & Investment Management Co acquired a new position in Cardinal Health in the 1st quarter valued at about $29,000. Institutional investors and hedge funds own 87.17% of the company’s stock.
Insider Buying and Selling at Cardinal Health In related news, CEO Stephen M. Mason sold 35,000 shares of the business’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $236.40, for a total transaction of $8,274,000.00. Following the sale, the chief executive officer owned 18,061 shares of the company’s stock, valued at approximately $4,269,620.40. The trade was a 65.96% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Michelle D. Greene sold 11,650 shares of the company’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $235.72, for a total transaction of $2,746,138.00. Following the transaction, the insider owned 10,330 shares in the company, valued at $2,434,987.60. The trade was a 53.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 210,271 shares of company stock worth $49,626,657. Company insiders own 0.12% of the company’s stock.
Wall Street Analyst Weigh In Several equities research analysts recently weighed in on CAH shares. Wall Street Zen raised shares of Cardinal Health from a “buy” rating to a “strong-buy” rating in a research note on Saturday, July 4th. Wells Fargo & Company raised their price target on shares of Cardinal Health from $245.00 to $277.00 and gave the company an “overweight” rating in a research report on Wednesday, August 12th. Bank of America boosted their price target on shares of Cardinal Health from $240.00 to $260.00 and gave the stock a “buy” rating in a research note on Thursday, July 2nd. William Blair assumed coverage on Cardinal Health in a research report on Tuesday, April 28th. They set an “outperform” rating on the stock. Finally, Evercore reiterated an “outperform” rating and issued a $270.00 price objective on shares of Cardinal Health in a research note on Wednesday, August 12th. Sixteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $266.56. Get Our Latest Research Report on Cardinal Health
Key Stories Impacting Cardinal Health Here are the key news stories impacting Cardinal Health this week:
Positive Sentiment: Royal Bank of Canada initiated coverage with an “outperform” rating and a $276 price target, implying meaningful upside from recent trading levels. RBC cited Cardinal Health’s higher-margin services as a potential earnings-growth driver. RBC initiates coverage of Cardinal Health Positive Sentiment: Wall Street remains broadly constructive, with 16 analysts rating CAH a Buy and three assigning a Hold rating. The consensus rating is “Moderate Buy,” with an average price target of approximately $266.56. Zacks also identified Cardinal Health as a potentially attractive long-term value stock. Zacks value-stock analysis Positive Sentiment: Cardinal Health’s latest quarter delivered adjusted earnings per share of $2.91, well above the $2.42 consensus estimate, while revenue increased 5.8% year over year. Fiscal 2027 EPS guidance of $12.40–$12.60 supports the longer-term earnings case. Neutral Sentiment: The company declared a quarterly dividend of $0.5158 per share, equivalent to $2.06 annually and a yield of about 0.9%. The payout offers modest income support but is unlikely to be a major near-term catalyst. Negative Sentiment: Several executives sold sizable holdings around $235–$237 per share. CEO Jason Hollar sold 124,529 shares worth about $29.4 million, while other executive and insider sales—including those by Deborah Weitzman, Stephen Mason, Michelle Greene, Jessica Mayer and Mary Scherer—totaled roughly $20 million more. The concentrated selling and substantial reductions in insider ownership may encourage profit-taking concerns after CAH’s strong advance. Cardinal Health insider sales Negative Sentiment: Investors may also question the durability of the latest earnings beat because part of the improvement reportedly reflected a one-time tariff refund, potentially limiting the stock’s upside if recurring earnings growth does not match expectations. Cardinal Health earnings analysis Cardinal Health Stock Performance Shares of Cardinal Health stock opened at $229.48 on Friday. The company has a market capitalization of $53.37 billion, a P/E ratio of 31.74, a PEG ratio of 1.22 and a beta of 0.49. Cardinal Health, Inc. has a 1 year low of $145.87 and a 1 year high of $258.30. The company’s fifty day moving average is $232.02 and its two-hundred day moving average is $217.86.
Cardinal Health (NYSE:CAH – Get Free Report) last announced its quarterly earnings data on Tuesday, August 11th. The company reported $2.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.42 by $0.49. The company had revenue of $63.67 billion for the quarter, compared to analysts’ expectations of $65.15 billion. Cardinal Health had a net margin of 0.67% and a negative return on equity of 98.53%. Cardinal Health’s revenue was up 5.8% compared to the same quarter last year. During the same period in the previous year, the company posted $2.08 EPS. Cardinal Health has set its FY 2027 guidance at 12.400-12.600 EPS. As a group, equities analysts expect that Cardinal Health, Inc. will post 12.54 earnings per share for the current year.
Cardinal Health Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be given a dividend of $0.5158 per share. This represents a $2.06 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Thursday, October 1st. Cardinal Health’s payout ratio is presently 28.49%.
Cardinal Health Company Profile (Free Report)
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.
See Also Five stocks we like better than Cardinal Health Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates? Want to see what other hedge funds are holding CAH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cardinal Health, Inc. (NYSE:CAH – Free Report).
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