Cardinal Health (NYSE:CAH) Announces Earnings Results

Cardinal Health (NYSE:CAH) issued its quarterly earnings data on Tuesday. The company reported $2.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.42 by $0.49, FiscalAI reports. The company had revenue of $63.67 billion during the quarter, compared to the consensus estimate of $65.15 billion. Cardinal Health had a net margin of 0.62% and a negative return on equity of 92.61%. Cardinal Health’s revenue for the quarter was up 5.8% on a year-over-year basis. During the same quarter last year, the company earned $2.08 earnings per share. Cardinal Health updated its FY 2027 guidance to 12.400-12.600 EPS.

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

• Fiscal 2026 results exceeded expectations: fourth-quarter operating earnings rose 30% and EPS increased 40% to $2.91, while full-year adjusted free cash flow reached $5 billion.
• Cardinal Health guided fiscal 2027 adjusted EPS to $12.40-$12.60, representing 13%-15% growth from the normalized fiscal 2026 baseline, above its reaffirmed long-term 12%-14% annual growth target.
• Pharmaceutical and Specialty Solutions continued to lead performance, with fourth-quarter segment profit up 21%; management expects 8%-11% profit growth in fiscal 2027, supported by specialty, generics, distribution wins, and previously completed acquisitions.
• The company authorized an additional $5 billion share-repurchase authorization, bringing total authorization to $6.4 billion, and plans to repurchase at least $1 billion of shares in fiscal 2027.
• The quarter included a non-recurring $100 million net benefit from IEEPA tariff refunds, or $0.31 of EPS, while ongoing replacement tariffs, fuel and commodity costs, foreign exchange, and geopolitical risks could pressure GMPD results toward the low end of its $200 million-$220 million fiscal 2027 profit outlook.

Cardinal Health Stock Performance

Shares of Cardinal Health stock traded down $4.12 on Wednesday, reaching $236.14. 313,924 shares of the company were exchanged, compared to its average volume of 2,030,036. The firm has a market cap of $55.31 billion, a price-to-earnings ratio of 36.07, a P/E/G ratio of 1.16 and a beta of 0.49. Cardinal Health has a 1-year low of $145.47 and a 1-year high of $258.30. The company’s 50-day moving average is $228.37 and its two-hundred day moving average is $216.66.

Cardinal Health Announces Dividend

The business also recently announced 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 of this dividend is Thursday, October 1st. This represents a $2.06 annualized dividend and a dividend yield of 0.9%. Cardinal Health’s dividend payout ratio is 31.50%.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on CAH. William Blair started coverage on shares of Cardinal Health in a research note on Tuesday, April 28th. They issued an “outperform” rating for the company. Mizuho raised their price objective on shares of Cardinal Health from $240.00 to $250.00 and gave the stock an “outperform” rating in a report on Wednesday. JPMorgan Chase & Co. dropped their target price on shares of Cardinal Health from $243.00 to $215.00 and set a “neutral” rating for the company in a research report on Monday, May 4th. Robert W. Baird upped their target price on shares of Cardinal Health from $251.00 to $274.00 and gave the company an “outperform” rating in a research note on Wednesday. Finally, Bank of America increased their price target 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. Fifteen investment 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, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $260.47.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Wellington Management Group LLP raised its stake in shares of Cardinal Health by 153.2% in the 3rd quarter. Wellington Management Group LLP now owns 5,804,090 shares of the company’s stock valued at $911,010,000 after acquiring an additional 3,511,579 shares in the last quarter. Marshall Wace LLP raised its position in Cardinal Health by 1,328.1% in the fourth quarter. Marshall Wace LLP now owns 951,259 shares of the company’s stock worth $195,484,000 after purchasing an additional 884,648 shares in the last quarter. Worldquant Millennium Advisors LLC bought a new position in Cardinal Health during the second quarter worth about $79,963,000. Invesco Ltd. lifted its stake in Cardinal Health by 14.7% during the third quarter. Invesco Ltd. now owns 3,483,207 shares of the company’s stock worth $546,724,000 after purchasing an additional 445,425 shares during the period. Finally, Ameriprise Financial Inc. boosted its holdings in Cardinal Health by 33.0% during the third quarter. Ameriprise Financial Inc. now owns 1,455,196 shares of the company’s stock valued at $228,467,000 after purchasing an additional 360,725 shares in the last quarter. 87.17% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Cardinal Health

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

• Positive Sentiment: Cardinal Health reported fourth-quarter adjusted EPS of $2.91, well above the $2.42 consensus and up from $2.08 a year earlier. Growth was supported by pharmaceutical demand, specialty drugs and sharply higher Medical segment profits. Cardinal Health Reports Fourth Quarter and Fiscal Year 2026 Results
• Positive Sentiment: Management projected fiscal 2027 adjusted EPS of $12.40 to $12.60, representing approximately 13% to 15% growth and exceeding the roughly $12.05 analyst consensus. The outlook assumes normalized pharmaceutical demand, with specialty, At-Home and operational execution serving as key growth drivers. CAH Q4 Earnings Call Centers on Fiscal 2027 Growth Outlook
• Positive Sentiment: The board authorized an additional $5 billion share-repurchase capacity, after the company repurchased $1.4 billion of stock in fiscal 2026. Analysts responded by raising price targets, including Wells Fargo to $277 and Baird to $274, both maintaining bullish ratings. Cardinal Health Analysts Increase Their Forecasts Following Q4 Results
• Neutral Sentiment: Cardinal Health declared a quarterly dividend of $0.5158 per share, payable October 15 to shareholders of record October 1. The roughly 0.9% yield provides modest shareholder support but is unlikely to be the main trading catalyst. Cardinal Health Board Approves Quarterly Dividend
• Negative Sentiment: Fourth-quarter revenue of $63.67 billion missed expectations near $65.15 billion, despite rising 5.8% year over year. Investors may also be discounting the earnings beat because it included a $0.31-per-share benefit from a tariff refund, making underlying growth less pronounced. CAH Q4 Earnings Beat on Pharma Strength, Revenues Miss

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.