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

Cardinal Health (NYSE:CAH) posted its earnings results on Thursday. The company reported $3.26 EPS for the quarter, beating the consensus estimate of $2.94 by $0.32, FiscalAI reports. The firm had revenue of $67.51 billion for the quarter, compared to analysts’ expectations of $66.67 billion. Cardinal Health had a negative return on equity of 98.53% and a net margin of 0.67%. The firm’s revenue was up 5.5% compared to the same quarter last year. During the same period last year, the firm earned $2.55 EPS.

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

• Cardinal Health reported a strong first quarter, with revenue up 5%, operating income up 17% to $1 billion, and adjusted EPS up 28% to $3.26. It raised fiscal 2027 adjusted EPS guidance to $12.80–$13.00 from $12.40–$12.60.
• Pharmaceutical segment profit rose 17%, supported by strong specialty demand (up 18%), generics, and core distribution. The company raised its Pharma segment profit growth outlook to 10%–12%, while noting IRA-related WAC reductions remain a revenue headwind.
• The three businesses in “Other” delivered broad-based growth: revenue increased 7% and profit rose 16%. Cardinal Health raised its revenue and profit growth outlook for the group, citing demand and progress integrating acquisitions.
• Global Medical Products and Distribution revenue was roughly flat, and the company said elevated petroleum costs are pushing full-year segment profit toward the low end of its $200 million–$220 million guidance range.
• Cardinal Health renewed its largest customer, CVS Health, through June 2032 and said it has renewed contracts representing nearly two-thirds of enterprise revenue over the past 12 months, providing a stable base for investment.

Cardinal Health Trading Up 1.2%

Shares of CAH opened at $270.99 on Friday. Cardinal Health has a twelve month low of $180.45 and a twelve month high of $286.29. The company has a market cap of $62.75 billion, a P/E ratio of 35.06, a P/E/G ratio of 1.53 and a beta of 0.53. The company’s fifty day simple moving average is $240.45 and its 200-day simple moving average is $223.55.

Cardinal Health Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Thursday, October 1st were issued a $0.5158 dividend. This represents a $2.06 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Thursday, October 1st. Cardinal Health’s payout ratio is presently 28.49%.

Cardinal Health News Roundup

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

• Positive Sentiment: Fiscal Q1 adjusted EPS was $3.26, ahead of analyst expectations, while revenue rose 5% year over year to $67.5 billion and also topped estimates. The company raised its FY2027 adjusted EPS guidance to $12.80–$13.00, above the FactSet estimate of $12.57. Cardinal Health reports first-quarter results and raises outlook
• Positive Sentiment: Management cited specialty growth, strong demand for generics and customer renewals as supports for the raised outlook. Cardinal Health also completed a $500 million share repurchase program during the quarter. Q1 earnings call highlights
• Positive Sentiment: Royal Bank of Canada raised its price target to $295 from $276 and reiterated an “outperform” rating, signaling continued analyst optimism. Royal Bank of Canada recommendations
• Negative Sentiment: Medical distribution faced pressure, including modest commodity and petroleum-related headwinds. The company’s results and raised forecast indicate these pressures were outweighed by strength in pharmaceuticals and specialty. Cardinal Health sees healthy demand despite commodity pressure

Analyst Ratings Changes

A number of analysts recently commented on CAH shares. Barclays upped their price target on shares of Cardinal Health from $258.00 to $275.00 and gave the company an “overweight” rating in a research note on Thursday, August 13th. Citigroup increased their price target on shares of Cardinal Health from $265.00 to $280.00 and gave the stock a “buy” rating in a research report on Wednesday, August 12th. Royal Bank Of Canada boosted their target price on Cardinal Health from $276.00 to $295.00 and gave the stock an “outperform” rating in a research note on Friday. UBS Group increased their price objective on Cardinal Health from $280.00 to $295.00 and gave the company a “buy” rating in a research note on Friday, October 16th. Finally, Morgan Stanley boosted their price objective on shares of Cardinal Health from $265.00 to $286.00 and gave the company an “overweight” rating in a research report on Friday, October 30th. Sixteen investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $272.50.

Insider Activity

In other news, CEO Stephen M. Mason sold 35,000 shares of the firm’s stock in a transaction on 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 transaction, the chief executive officer owned 18,061 shares in the company, valued at approximately $4,269,620.40. This trade represents a 65.96% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Michelle D. Greene sold 11,650 shares of the firm’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $235.72, for a total value of $2,746,138.00. Following the sale, the insider directly owned 10,330 shares of the company’s stock, valued at $2,434,987.60. This represents a 53.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 210,271 shares of company stock valued at $49,626,657. Insiders own 0.12% of the company’s stock.

Cardinal Health Company Profile

Cardinal Health is a healthcare services and products company that distributes pharmaceuticals and medical supplies. Its customers include pharmacies, hospitals, surgery centers, physician offices and other healthcare providers.

The company’s businesses include pharmaceutical distribution and specialty services, as well as the sourcing and distribution of medical and surgical products. Its offerings support areas such as specialty medications, medication management and supply-chain operations.

Cardinal Health traces its roots to a wholesale business founded in Ohio in 1971 and later expanded into pharmaceutical distribution.