Cardinal Health (NYSE:CAH) Posts Quarterly Earnings Results

Cardinal Health (NYSE:CAH) released its quarterly earnings data on Thursday. The company reported $3.17 EPS for the quarter, beating the consensus estimate of $2.79 by $0.38, FiscalAI reports. Cardinal Health had a net margin of 0.68% and a negative return on equity of 92.50%. The business had revenue of $60.94 billion during the quarter, compared to the consensus estimate of $62.10 billion. During the same quarter in the prior year, the firm earned $2.35 EPS. The business’s revenue was up 11.0% on a year-over-year basis. Cardinal Health updated its FY 2026 guidance to 10.700-10.80 EPS.

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

• Cardinal reported a strong third quarter with revenue up 11% to $61B, gross profit +18%, and non‑GAAP EPS of $3.17 (35% growth), driven by Pharma and other growth businesses.
• The company raised full‑year fiscal 2026 outlook — non‑GAAP EPS to $10.70–$10.80 (≈$0.50 midpoint increase) and adjusted free cash flow to $3.3–$3.7B — and completed ~$1B of share repurchases YTD.
• Specialty and “Other” businesses remain a major growth driver: specialty revenue >20% growth (oncology >30%), Solaris integration and MSO expansion are on track, and management expects specialty to exceed $50B in FY26.
• Management recorded a $184M pre‑tax goodwill impairment on Navista tied to a shift in MSO risk profile and a pivot toward equity arrangements, signaling execution and valuation challenges in parts of the MSO portfolio (non‑GAAP results unaffected).
• GMPD faces tariff and macro uncertainty: Cardinal has paid ~$200M in IEEPA tariffs (no recovery recognized), the segment saw profit pressure (Q3 profit $25M), and any refund timing/amount remains uncertain despite management estimating a potential ~half‑share benefit if refunded.

Cardinal Health Stock Performance

NYSE CAH traded up $0.96 during trading on Friday, hitting $193.84. The stock had a trading volume of 1,178,161 shares, compared to its average volume of 1,750,120. The stock has a market capitalization of $45.61 billion, a price-to-earnings ratio of 27.88, a P/E/G ratio of 1.31 and a beta of 0.64. Cardinal Health has a one year low of $137.75 and a one year high of $233.60. The stock has a 50 day simple moving average of $213.73 and a 200 day simple moving average of $205.46.

Cardinal Health Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Wednesday, April 1st were paid a $0.5107 dividend. The ex-dividend date of this dividend was Wednesday, April 1st. This represents a $2.04 annualized dividend and a yield of 1.1%. Cardinal Health’s dividend payout ratio (DPR) is presently 29.35%.

Institutional Trading of Cardinal Health

Institutional investors have recently added to or reduced their stakes in the company. University of Texas Texas AM Investment Management Co. bought a new stake in Cardinal Health in the fourth quarter worth about $26,000. Bank of Jackson Hole Trust bought a new stake in Cardinal Health in the fourth quarter worth about $27,000. Kemnay Advisory Services Inc. bought a new stake in Cardinal Health in the fourth quarter worth about $38,000. Turning Point Benefit Group Inc. bought a new stake in Cardinal Health in the third quarter worth about $31,000. Finally, JPL Wealth Management LLC bought a new stake in Cardinal Health in the third quarter worth about $31,000. Institutional investors own 87.17% of the company’s stock.

Analyst Upgrades and Downgrades

CAH has been the subject of several research reports. Evercore dropped their price objective on shares of Cardinal Health from $260.00 to $240.00 and set an “outperform” rating for the company in a report on Wednesday, April 8th. Mizuho increased their price target on shares of Cardinal Health from $222.00 to $235.00 and gave the company an “outperform” rating in a report on Friday, February 6th. TD Cowen reaffirmed a “buy” rating on shares of Cardinal Health in a report on Friday. Leerink Partners reaffirmed an “outperform” rating and issued a $275.00 price target on shares of Cardinal Health in a report on Monday, March 9th. Finally, JPMorgan Chase & Co. increased their price target on shares of Cardinal Health from $209.00 to $243.00 and gave the company a “neutral” rating in a report on Tuesday, February 10th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $243.33.

Trending Headlines about Cardinal Health

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

• Positive Sentiment: Q3 adjusted EPS topped expectations ($3.17 vs. ~2.79) and management raised FY2026 non‑GAAP EPS guidance to $10.70–$10.80, above Street consensus — a clear driver of renewed investor confidence. Cardinal Health Reports Third Quarter Fiscal Year 2026 Results and Raises Outlook
• Positive Sentiment: Company completed an additional $250M share repurchase (bringing FY26 buybacks to $1.0B) and reduced debt — actions that support EPS accretion and signal capital allocation discipline. Cardinal Health Reports Third Quarter Fiscal Year 2026 Results and Raises Outlook
• Positive Sentiment: Some sell‑side support remains: Wells Fargo cut its price target slightly (from $256 to $245) but kept an “overweight” rating, implying meaningful upside from current levels. Benzinga
• Neutral Sentiment: Extensive coverage and the full earnings/earnings‑call transcripts are available for investors who want the line‑by‑line details and management commentary. Cardinal Health (CAH) Q3 2026 Earnings Transcript
• Neutral Sentiment: Analyst writeups (Zacks, Seeking Alpha presentations) highlight where key metrics beat or missed consensus, useful for modeling forward earnings and margin assumptions. CAH Gains on Q3 Earnings Beat, ’26 EPS View Up Despite Revenue Miss
• Negative Sentiment: Revenue missed expectations ($60.9B vs. ~$62.1B) and GAAP results were hit by a $184M pre‑tax goodwill impairment in a reporting unit, pressuring GAAP operating income and headline perception. Cardinal Health lifts annual profit forecast on strong demand for specialty drugs
• Negative Sentiment: Mixed market reaction and news headlines called out the revenue shortfall and profit quality concerns, which earlier pressured the stock despite the EPS beat and guidance raise. Cardinal Health is getting pummeled on mixed results — here’s our plan for stock

Cardinal Health Company Profile

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.