Cardinal Health (NYSE:CAH) Announces Quarterly Earnings Results

by · The Markets Daily

Cardinal Health (NYSE:CAH – Get Free Report) announced its quarterly earnings results on Thursday. The company reported $3.26 EPS for the quarter, beating analysts’ consensus estimates of $2.94 by $0.32, FiscalAI reports. The firm had revenue of $67.51 billion during the quarter, compared to the consensus estimate of $66.67 billion. Cardinal Health had a net margin of 0.67% and a negative return on equity of 98.53%. The firm’s revenue for the quarter was up 5.5% compared to the same quarter last year. During the same quarter last year, the firm 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 Trading Up 2.4%

Shares of CAH traded up $6.17 during trading hours on Thursday, hitting $268.10. The company had a trading volume of 2,996,850 shares, compared to its average volume of 1,754,847. The company has a market capitalization of $62.08 billion, a PE ratio of 37.08, a price-to-earnings-growth ratio of 1.57 and a beta of 0.53. Cardinal Health has a one year low of $180.45 and a one year high of $286.29. The company’s fifty day moving average price is $239.73 and its two-hundred day moving average price is $223.24.

Cardinal Health Announces Dividend

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

Cardinal Health News Summary

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

  • Positive Sentiment: Adjusted EPS was $3.26, above the roughly $2.94 analyst consensus and up 28% year over year. Revenue rose 5% to $67.5 billion, also topping expectations. Cardinal Health Q1 results and outlook
  • Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $12.80–$13.00, signaling confidence in continued growth. Robust pharmaceutical sales helped drive the quarter. Q1 earnings beat on pharmaceutical strength
  • Positive Sentiment: Cardinal completed a $500 million share-repurchase program during the quarter. The results also drew favorable analyst attention, including a price-target increase. Analyst raises price target
  • Neutral Sentiment: The shares also advanced while the broader market was under pressure, suggesting the earnings and guidance news were a company-specific catalyst. Cardinal gains amid broader market declines
  • Negative Sentiment: Management noted modest commodity and petroleum-related pressure in medical distribution, a potential headwind against otherwise healthy demand. Demand and commodity pressures

Insider Activity at Cardinal Health

In other Cardinal Health news, insider Michelle D. Greene sold 11,650 shares of Cardinal Health stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $235.72, for a total value of $2,746,138.00. Following the transaction, the insider owned 10,330 shares in the company, valued at $2,434,987.60. The trade was a 53.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Mary C. Scherer sold 2,302 shares of the business’s stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $237.39, for a total transaction of $546,471.78. Following the completion of the transaction, the chief accounting officer owned 2,811 shares of the company’s stock, valued at $667,303.29. This represents a 45.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 210,271 shares of company stock valued at $49,626,657 over the last 90 days. Company insiders own 0.12% of the company’s stock.

Analyst Ratings Changes

CAH has been the subject of a number of analyst reports. Royal Bank Of Canada began coverage on Cardinal Health in a research report on Wednesday, August 19th. They issued an “outperform” rating and a $276.00 price target for the company. Evercore reiterated an “outperform” rating and issued a $270.00 target price on shares of Cardinal Health in a research note on Wednesday, August 12th. UBS Group lifted their target price on Cardinal Health from $280.00 to $295.00 and gave the stock a “buy” rating in a research report on Friday, October 16th. Wall Street Zen raised shares of Cardinal Health from a “buy” rating to a “strong-buy” rating in a research note on Sunday, October 25th. Finally, TD Cowen increased their price objective on Cardinal Health from $275.00 to $280.00 and gave the stock a “buy” rating in a research note on Thursday, August 13th. Sixteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $271.31.

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Cardinal Health Company Profile

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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.

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