Cardinal Health (NYSE:CAH) Announces Quarterly Earnings Results

Cardinal Health (NYSE:CAH) announced its quarterly earnings results 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 84.37%. The firm had revenue of $65.63 billion for the quarter, compared to the consensus estimate of $64.88 billion. During the same quarter last year, the firm posted $1.93 EPS. The business’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 Trading Up 10.1%

Shares of Cardinal Health stock opened at $227.78 on Friday. The firm has a market cap of $54.12 billion, a PE ratio of 34.36, a PEG ratio of 1.40 and a beta of 0.64. The stock has a 50 day moving average of $206.63 and a 200 day moving average of $179.50. Cardinal Health has a 12 month low of $120.72 and a 12 month high of $229.76.

Key Headlines Impacting Cardinal Health

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

• Positive Sentiment: Q2 beat — Cardinal reported non-GAAP EPS of $2.63 and revenue of $65.6B, up ~19% year-over-year, topping consensus and signaling broad-based strength across segments. Cardinal Health Reports Second Quarter Fiscal Year 2026 Results and Raises Outlook
• Positive Sentiment: Guidance lift — Management raised fiscal 2026 non-GAAP EPS guidance to $10.15–$10.35 (a second boost), citing sustained demand for specialty drugs (including GLP‑1 therapies). That outlook upgrade is the primary catalyst for the rally. Cardinal Health boosts annual profit forecast banking on surging demand for specialty drugs
• Positive Sentiment: Capital return & balance-sheet progress — Cardinal completed its $750M annual baseline share repurchase and says it has reached its targeted leverage range, reducing financial risk and supporting EPS per share. Cardinal Health Reports Second Quarter Fiscal Year 2026 Results and Raises Outlook
• Positive Sentiment: Market reaction — Shares hit multi‑week/52‑week highs as analysts and media highlighted the beat and guidance raise, driving intraday momentum. Cardinal Health Smashes 52-Week High After Strong Quarter
• Neutral Sentiment: Detailed disclosures available — The full earnings call transcript, slide deck and regulatory filings were posted (useful for modeling revenue mix and margin drivers). Cardinal Health, Inc. (CAH) Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Analyst and media takeaways — Multiple outlets and analysts highlight specialty/pharma units (and GLP‑1 tailwinds) as the growth engine; these are positive if sustainable but could be cyclical. CAH Q2 Earnings Beat Estimates, ’26 EPS View Up, Stock Gains
• Negative Sentiment: Margin/return metrics — Despite top-line growth, reported net margin is thin and prior reporting shows a negative ROE figure, which could concern value-focused investors about capital efficiency and profit conversion. Cardinal Health (CAH) Earnings & Transcript Summary

Institutional Investors Weigh In On Cardinal Health

Several large investors have recently bought and sold shares of the business. CIBC Bancorp USA Inc. purchased a new position in Cardinal Health during the third quarter worth $6,062,000. Danske Bank A S bought a new position in Cardinal Health during the 3rd quarter valued at about $28,817,000. Advisory Services Network LLC lifted its stake in 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 during the third quarter valued at approximately $47,000. Finally, Jacobs Levy Equity Management Inc. grew its stake 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 buying an additional 9,116 shares during the last quarter. Institutional investors own 87.17% of the company’s stock.

Analyst Upgrades and Downgrades

CAH has been the subject of a number of research reports. Mizuho set a $222.00 price objective on Cardinal Health in a research report on Monday, January 12th. TD Cowen reiterated a “buy” rating on shares of Cardinal Health in a research note on Tuesday, January 27th. Evercore ISI reiterated an “outperform” rating and set a $260.00 target price on shares of Cardinal Health in a research report on Thursday. Argus raised their price objective on Cardinal Health from $211.00 to $232.00 and gave the stock a “buy” rating in a research note on Friday, January 23rd. Finally, Wall Street Zen upgraded shares of Cardinal Health from a “buy” rating to a “strong-buy” rating in a research note on Saturday, November 8th. Fourteen equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, Cardinal Health presently has a consensus rating of “Moderate Buy” and a consensus target price of $233.29.

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.