Cardinal Health (NYSE:CAH) Announces Quarterly Earnings Results

Key Points

• Cardinal Health reported Q3 non‑GAAP EPS of $3.17, beating estimates by $0.37, with revenue up 11% to $60.9B but below the ~$62.2B analyst forecast.
• Management raised FY‑2026 guidance to $10.70–$10.80 non‑GAAP EPS, lifted adjusted free cash flow guidance to $3.3–$3.7B, and has completed about $1B of share buybacks, driven by strong specialty pharma momentum.
• Offsetting positives, the company recorded a $184M pre‑tax goodwill impairment tied to Navista, faces ~$200M of unresolved tariffs pressuring GMPD profitability, and the mixed results sent the stock down roughly 4.7% intraday.

Cardinal Health (NYSE:CAH - Get Free Report) released its quarterly earnings data on Thursday. The company reported $3.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.80 by $0.37, FiscalAI reports. Cardinal Health had a negative return on equity of 92.50% and a net margin of 0.68%.The firm had revenue of $60.94 billion during the quarter, compared to analyst estimates of $62.21 billion. During the same period in the prior year, the company posted $2.35 earnings per share. The business's revenue for the quarter was up 11.0% compared to the same quarter last year. 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 Down 4.7%

CAH stock traded down $9.61 during midday trading on Thursday, reaching $193.21. The stock had a trading volume of 4,540,855 shares, compared to its average volume of 1,431,083. The business has a fifty day simple moving average of $213.73 and a two-hundred day simple moving average of $205.46. The firm has a market cap of $45.47 billion, a price-to-earnings ratio of 27.80, a PEG ratio of 1.31 and a beta of 0.64. Cardinal Health has a twelve month low of $136.71 and a twelve month high of $233.60.

Cardinal Health Announces Dividend

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

Key Headlines Impacting Cardinal Health

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

• Positive Sentiment: Raised and narrowed FY‑2026 non‑GAAP EPS guidance to $10.70–$10.80 (above Street consensus), signaling management confidence in specialty pharma demand. Cardinal Health lifts annual profit forecast on strong demand for specialty drugs — Reuters
• Positive Sentiment: Q3 non‑GAAP EPS beat — $3.17 vs. ~$2.80 consensus — and non‑GAAP operating earnings rose ~18%, showing margin improvement on pharma and specialty growth. Cardinal Health (CAH) Q3 Earnings Beat Estimates — Zacks
• Positive Sentiment: Returned capital and reduced leverage: completed an additional $250M buyback this quarter (bringing FY total to $1.0B), which supports EPS and buyback-driven shareholder returns. Cardinal Health Reports Third Quarter Fiscal Year 2026 Results and Raises Outlook — PR Newswire
• Neutral Sentiment: Earnings materials and call transcript are available for walk‑throughs of segment dynamics (pharma vs. Med/surg, specialty drug margins) for investors who want detail. Cardinal Health, Inc. (CAH) Q3 2026 Earnings Call Transcript — Seeking Alpha
• Neutral Sentiment: Analyst activity (e.g., new coverage/positive notes) and media pieces highlight differing views — some push the stock higher on guidance; others focus on the revenue miss. Cardinal Health Rises. A Guidance Hike Powers the Stock Past These Weak Points. — Barron's
• Negative Sentiment: Revenue missed expectations: Q3 sales ~$60.9B vs. ~$62.2B est., raising concerns about volume/price trends and muting the EPS beat. Cardinal Health is getting pummeled on mixed results — here's our plan for stock — CNBC
• Negative Sentiment: GAAP results were weaker: GAAP operating earnings and EPS fell (GAAP EPS down ~20%) after a $184M pre‑tax goodwill impairment in Navista & ION — a one‑time but visible hit to GAAP profitability. Cardinal Health Reports Third Quarter Fiscal Year 2026 Results and Raises Outlook — PR Newswire
• Negative Sentiment: Market reaction: despite the EPS beat and guidance raise, investors sold on mixed signals (top‑line miss + impairment), producing heavier volume and downward pressure. Why Is Cardinal Health Stock Sinking Thursday? — Benzinga

Institutional Trading of Cardinal Health

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CAH. Wellington Management Group LLP increased its position in Cardinal Health by 153.2% in the third quarter. Wellington Management Group LLP now owns 5,804,090 shares of the company's stock worth $911,010,000 after purchasing an additional 3,511,579 shares during the period. Marshall Wace LLP increased 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 during the period. Worldquant Millennium Advisors LLC acquired a new stake in Cardinal Health in the second quarter worth about $79,963,000. Invesco Ltd. increased its position in Cardinal Health by 14.7% in 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. increased its position in Cardinal Health by 33.0% in the third quarter. Ameriprise Financial Inc. now owns 1,455,196 shares of the company's stock worth $228,467,000 after purchasing an additional 360,725 shares during the period. 87.17% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on CAH shares. Argus raised their target price on Cardinal Health from $232.00 to $248.00 and gave the company a "buy" rating in a research note on Wednesday, February 11th. Leerink Partners restated an "outperform" rating and issued a $275.00 target price on shares of Cardinal Health in a research note on Monday, March 9th. Wall Street Zen lowered Cardinal Health from a "strong-buy" rating to a "buy" rating in a research note on Sunday, April 12th. TD Cowen raised their target price on Cardinal Health from $233.00 to $251.00 and gave the company a "buy" rating in a research note on Wednesday, February 11th. Finally, Morgan Stanley raised their target price on Cardinal Health from $245.00 to $255.00 and gave the company an "overweight" rating in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, Cardinal Health has an average rating of "Moderate Buy" and an average price target of $244.33.

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.

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