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

Cardinal Health (NYSE:CAH) released its earnings results on Thursday. The company reported $3.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.94 by $0.32, FiscalAI reports. The firm had revenue of $67.51 billion during 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 company’s revenue was up 5.5% on a year-over-year basis. During the same quarter in the prior year, the company 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 Price Performance

CAH opened at $267.15 on Friday. The company has a market capitalization of $61.86 billion, a PE ratio of 36.85, a price-to-earnings-growth ratio of 1.57 and a beta of 0.53. The business has a fifty day simple moving average of $239.73 and a 200 day simple moving average of $223.24. Cardinal Health has a 1 year low of $180.45 and a 1 year high of $286.29.

Cardinal Health Announces Dividend

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

Insider Activity at Cardinal Health

In related news, CAO Mary C. Scherer sold 2,302 shares of the company’s stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $237.39, for a total value of $546,471.78. Following the transaction, the chief accounting officer directly owned 2,811 shares in the company, valued at approximately $667,303.29. This represents a 45.02% decrease in their ownership of the stock. The transaction 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 dated Tuesday, August 18th. The stock was sold at an average price of $235.45, for a total transaction of $1,731,499.30. Following the transaction, the chief executive officer directly owned 77,901 shares in the company, valued at approximately $18,341,790.45. This represents a 8.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 210,271 shares of company stock valued at $49,626,657. 0.12% of the stock is currently owned by insiders.

Analysts Set New Price Targets

Several brokerages have commented on CAH. Leerink Partners set a $292.00 price target on shares of Cardinal Health in a research report on Tuesday, August 11th. Morgan Stanley raised their price target on Cardinal Health from $265.00 to $286.00 and gave the company an “overweight” rating in a research note on Friday, October 30th. Robert W. Baird raised 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, August 12th. Wells Fargo & Company boosted their target price 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, Wall Street Zen raised shares of Cardinal Health from a “buy” rating to a “strong-buy” rating in a research report on Sunday, October 25th. Sixteen 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 price target of $271.31.

Cardinal Health News Summary

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

• Positive Sentiment: Fiscal Q1 adjusted EPS was $3.26, beating estimates of about $2.94, while revenue rose 5% year over year to $67.5 billion and topped forecasts. Cardinal Health Q1 results and outlook
• Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $12.80–$13.00, above the cited FactSet estimate of $12.57. The company expects 17%–19% growth from its fiscal 2026 baseline excluding tariff refunds. Fiscal 2027 EPS outlook
• Positive Sentiment: Pharmaceutical sales growth and healthy demand were cited as key strengths, and Cardinal completed a $500 million share-repurchase program during the quarter. Demand and commodity pressures
• Negative Sentiment: Modest petroleum-related commodity pressure in medical distribution remains a headwind, though the article said robust pharmaceutical sales helped offset it. Demand and commodity pressures

Cardinal Health Company Profile

Cardinal Health, Inc is a healthcare services and products company that supports the distribution and delivery of pharmaceuticals, medical products and related services. The company serves hospitals, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices and other healthcare providers.

Its Pharmaceutical and Specialty Solutions segment distributes branded, generic and specialty pharmaceuticals, as well as consumer health products, to pharmacies and healthcare institutions.