Cardinal Health (NYSE:CAH) Issues Quarterly Earnings Results, Beats Expectations By $0.32 EPS

Cardinal Health (NYSE:CAH) issued its quarterly earnings data on Thursday. The company reported $2.63 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.31 by $0.32, FiscalAI reports. Cardinal Health had a net margin of 0.68% and a negative return on equity of 92.50%. The business had revenue of $65.63 billion for the quarter, compared to the consensus estimate of $64.88 billion. During the same period in the previous year, the firm earned $1.93 EPS. The company’s quarterly revenue was up 18.8% compared to the same quarter last year.

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

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

Cardinal Health Price Performance

Shares of Cardinal Health stock opened at $226.85 on Friday. Cardinal Health has a 1 year low of $120.72 and a 1 year high of $230.81. The firm’s 50-day moving average is $206.92 and its 200 day moving average is $179.97. The stock has a market cap of $53.90 billion, a price-to-earnings ratio of 32.64, a PEG ratio of 1.51 and a beta of 0.64.

Analysts Set New Price Targets

CAH has been the topic of a number of research analyst reports. Wells Fargo & Company upped their target price on Cardinal Health from $221.00 to $237.00 and gave the stock an “overweight” rating in a report on Thursday, January 15th. TD Cowen reaffirmed a “buy” rating on shares of Cardinal Health in a research note on Tuesday, January 27th. Barclays initiated coverage on Cardinal Health in a research report on Monday, December 8th. They set an “overweight” rating and a $243.00 price objective for the company. Argus boosted their target price on shares of Cardinal Health from $211.00 to $232.00 and gave the company a “buy” rating in a report on Friday, January 23rd. Finally, Morgan Stanley set a $255.00 price target on shares of Cardinal Health in a research note on Friday. Fifteen equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat.com, Cardinal Health presently has an average rating of “Moderate Buy” and a consensus target price of $239.93.

Key Cardinal Health News

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

• Positive Sentiment: Q2 results and raised outlook — Cardinal reported Q2 FY2026 revenue up ~19% to $65.6B and non‑GAAP EPS of $2.63 (beat), and raised fiscal‑year non‑GAAP EPS guidance to $10.15–$10.35; management cited strong specialty medicine demand and improved segment performance. PR Newswire
• Positive Sentiment: Analyst upgrade and price‑target lift — Leerink Partners raised its price target from $240 to $268 and kept an outperform rating, signaling more upside from current levels. MarketScreener
• Positive Sentiment: Street commentary and momentum coverage — Multiple outlets (Barron’s, Reuters, Zacks, TipRanks, 24/7 Wall St.) highlight the beat, raised guidance and accelerating specialty drug volumes, which has driven momentum interest in the stock. Examples: Reuters coverage on the outlook and Barron’s note on guidance lifts. Reuters
• Neutral Sentiment: Earnings call & transcripts available — Management commentary and slides from the Q2 call confirm the drivers behind the beat (specialty medicine, margin expansion, buybacks); these provide detail but no new surprises beyond the release. MSN Transcript
• Neutral Sentiment: Momentum stock analysis — Zacks highlights style‑score based momentum attributes, which can attract technical and quant funds but also increase volatility. Zacks
• Negative Sentiment: Valuation and historical ROE signal — After the rally the stock trades at an elevated P/E (~34x) and company data show a negative trailing return on equity metric, which could concern value‑focused investors and limit upside absent continued execution. Background valuation metrics

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. CIBC Bancorp USA Inc. purchased a new position in Cardinal Health in the 3rd quarter worth approximately $6,062,000. Danske Bank A S bought a new stake in shares of Cardinal Health in the 3rd quarter worth $28,817,000. Advisory Services Network LLC raised its stake in shares of Cardinal Health by 11.1% in the third quarter. Advisory Services Network LLC now owns 6,103 shares of the company’s stock worth $958,000 after purchasing an additional 611 shares during the last quarter. Palisade Asset Management LLC purchased a new position in shares of Cardinal Health in the third quarter worth $47,000. Finally, Jacobs Levy Equity Management Inc. lifted its holdings in shares of Cardinal Health by 8.3% during the third quarter. Jacobs Levy Equity Management Inc. now owns 118,961 shares of the company’s stock valued at $18,672,000 after purchasing an additional 9,116 shares in the last quarter. Institutional investors own 87.17% of the company’s stock.

About Cardinal Health

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

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