Cardinal Health (NYSE:CAH) Shares Gap Up on Better-Than-Expected Earnings

Shares of Cardinal Health, Inc. (NYSE:CAH) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $206.85, but opened at $217.00. Cardinal Health shares last traded at $227.2750, with a volume of 627,667 shares changing hands.

The company reported $2.63 EPS for the quarter, topping analysts’ consensus estimates of $2.31 by $0.32. The business had revenue of $65.63 billion during the quarter, compared to the consensus estimate of $64.88 billion. Cardinal Health had a net margin of 0.68% and a negative return on equity of 84.37%. The company’s quarterly revenue was up 18.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.93 earnings per share.

Cardinal Health News Roundup

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

• Positive Sentiment: Q2 EPS of $2.63 topped consensus and rose from $1.93 a year ago — a clear beat that helped lift the stock. Cardinal Health (CAH) Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Revenue of ~$65.6B (+~19% YoY) also beat estimates; company reported strong operating earnings growth and raised FY non‑GAAP EPS guidance to $10.15–$10.35. Cardinal Health Reports Second Quarter Fiscal Year 2026 Results and Raises Outlook
• Positive Sentiment: Management explicitly cited surging demand for specialty drugs (GLP‑1s) and across-segment strength as the basis for raising profit expectations, supporting upside to estimates. Cardinal Health boosts annual profit forecast banking on surging demand for specialty drugs
• Positive Sentiment: Company completed its $750M annual baseline share repurchase and says it has reached its targeted leverage range — both balance-sheet moves that often support multiple expansion. Cardinal Health Reports Second Quarter Fiscal Year 2026 Results and Raises Outlook
• Neutral Sentiment: Media and analyst previews had flagged specialty and pharma segments as the likely beat drivers ahead of results; today’s moves largely reflect those expectations being realized. Pharma, Specialty Units Likely to Drive Cardinal Health’s Q2 Earnings
• Negative Sentiment: Despite the beat, GAAP net margin remained low (~0.68%) and reported a negative return on equity; these metrics may keep some investors cautious about profitability quality. Cardinal Health Stock Performance
• Negative Sentiment: Valuation is elevated versus historical averages (P/E near mid‑30s), so further upside may rely on ongoing specialty momentum and margin expansion. Cardinal Health, Inc. (CAH) Hits Fresh High

Analysts Set New Price Targets

CAH has been the subject of a number of research analyst reports. Jefferies Financial Group upped their price objective on Cardinal Health from $220.00 to $270.00 and gave the stock a “buy” rating in a report on Thursday, January 22nd. UBS Group upped their price target on Cardinal Health from $185.00 to $220.00 and gave the stock a “buy” rating in a research note on Friday, October 31st. Robert W. Baird set a $250.00 price objective on Cardinal Health in a report on Wednesday, January 14th. TD Cowen reiterated a “buy” rating on shares of Cardinal Health in a report on Tuesday, January 27th. Finally, Evercore ISI increased their target price on shares of Cardinal Health from $190.00 to $220.00 and gave the stock an “outperform” rating in a research report on Friday, October 31st. Fourteen equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $230.43.

Institutional Investors Weigh In On Cardinal Health

Several hedge funds have recently modified their holdings of CAH. Vanguard Group Inc. grew its position in Cardinal Health by 2.0% in the fourth quarter. Vanguard Group Inc. now owns 31,441,258 shares of the company’s stock valued at $6,461,179,000 after acquiring an additional 617,775 shares in the last quarter. Geode Capital Management LLC grew its holdings in Cardinal Health by 3.3% during the 2nd quarter. Geode Capital Management LLC now owns 6,389,049 shares of the company’s stock valued at $1,069,005,000 after purchasing an additional 205,539 shares in the last quarter. Wellington Management Group LLP increased its stake in Cardinal Health by 153.2% during the 3rd quarter. Wellington Management Group LLP now owns 5,804,090 shares of the company’s stock worth $911,010,000 after buying an additional 3,511,579 shares during the period. Bank of America Corp DE lifted its holdings in Cardinal Health by 3.2% in the 3rd quarter. Bank of America Corp DE now owns 3,592,775 shares of the company’s stock worth $563,922,000 after buying an additional 111,582 shares in the last quarter. Finally, Invesco Ltd. boosted its position in Cardinal Health by 14.7% in the 3rd quarter. Invesco Ltd. now owns 3,483,207 shares of the company’s stock valued at $546,724,000 after buying an additional 445,425 shares during the last quarter. 87.17% of the stock is currently owned by hedge funds and other institutional investors.

Cardinal Health Stock Up 10.7%

The company has a market capitalization of $54.41 billion, a price-to-earnings ratio of 34.52, a P/E/G ratio of 1.48 and a beta of 0.64. The firm has a 50 day moving average price of $206.34 and a two-hundred day moving average price of $179.16.

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.