Cardinal Health (NYSE:CAH) Sets New 52-Week High After Earnings Beat

Key Points

• Cardinal Health shares reached a new 52-week high after quarterly adjusted EPS of $2.91 beat estimates of $2.42, while revenue rose 5.8% year over year to $63.67 billion but missed expectations.
• Management issued fiscal 2027 adjusted EPS guidance of $12.40–$12.60, above the $12.05 consensus, and authorized an additional $5 billion share repurchase program.
• The company maintained its $0.5158 quarterly dividend, while investors should weigh growth opportunities in specialty pharmaceuticals and cell-and-gene-therapy logistics against revenue weakness, a one-time tariff benefit, and elevated valuation concerns.

Cardinal Health, Inc. (NYSE:CAH - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The company traded as high as $258.30 and last traded at $240.0820, with a volume of 3007342 shares. The stock had previously closed at $237.18.

The company reported $2.91 EPS for the quarter, topping the consensus estimate of $2.42 by $0.49. The business had revenue of $63.67 billion during the quarter, compared to the consensus estimate of $65.15 billion. Cardinal Health had a negative return on equity of 92.61% and a net margin of 0.62%.The firm's revenue was up 5.8% compared to the same quarter last year. During the same quarter last year, the company earned $2.08 EPS. Cardinal Health has set its FY 2027 guidance at 12.400-12.600 EPS.

Cardinal Health Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st will be given a $0.5158 dividend. This represents a $2.06 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Thursday, October 1st. Cardinal Health's dividend payout ratio (DPR) is 31.50%.

Key Headlines Impacting Cardinal Health

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

• Positive Sentiment: Earnings beat expectations: Fourth-quarter non-GAAP EPS was $2.91, well above the $2.42 analyst consensus and up from $2.08 a year earlier. Revenue rose 6% year over year to $63.7 billion, although it fell short of estimates near $65.15 billion. CAH Q4 Earnings Beat on Pharma Strength, Revenues Miss, Stock Up
• Positive Sentiment: Above-consensus fiscal 2027 guidance: Cardinal Health forecast adjusted EPS of $12.40 to $12.60, representing 13% to 15% growth and exceeding the $12.05 consensus. Management cited continued strength in specialty pharmaceuticals. Cardinal Health forecasts full-year profit above estimates on specialty drug strength
• Positive Sentiment: Large buyback authorization: The board approved an additional $5 billion for share repurchases, following $1.4 billion of buybacks completed during fiscal 2026. The authorization could support EPS growth and shareholder returns.
• Positive Sentiment: Growth in cell- and gene-therapy logistics: Cardinal added two commercialization agreements and now exclusively serves nearly half of the cell- and gene-therapy market, a higher-margin growth opportunity than traditional drug distribution. Cardinal Health Says It Now Exclusively Serves Nearly Half The Cell-And-Gene Therapy Market
• Positive Sentiment: Dividend maintained: Cardinal Health declared a quarterly dividend of $0.5158 per share, payable October 15 to shareholders of record October 1. Cardinal Health Board of Directors Approves Quarterly Dividend
• Neutral Sentiment: Mixed quarter and valuation concerns: The revenue shortfall and weakness in Global Medical Products and Distribution tempered the results. About $0.31 of quarterly adjusted EPS benefited from a one-time tariff refund, while the stock’s recent rally and elevated valuation may encourage profit-taking.

Wall Street Analyst Weigh In

CAH has been the topic of a number of analyst reports. William Blair began coverage on shares of Cardinal Health in a report on Tuesday, April 28th. They set an "outperform" rating on the stock. Wall Street Zen upgraded shares of Cardinal Health from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 4th. Mizuho upped their price target on shares of Cardinal Health from $235.00 to $240.00 and gave the stock an "outperform" rating in a report on Thursday, July 23rd. JPMorgan Chase & Co. lowered their price objective on Cardinal Health from $243.00 to $215.00 and set a "neutral" rating on the stock in a research report on Monday, May 4th. Finally, UBS Group lifted their price objective on Cardinal Health from $260.00 to $274.00 and gave the company a "buy" rating in a research note on Monday, July 20th. Fifteen analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $252.87.

Institutional Investors Weigh In On Cardinal Health

A number of large investors have recently added to or reduced their stakes in CAH. BlackRock Inc. bought a new stake in Cardinal Health in the second quarter worth $6,293,115,000. Norges Bank bought a new position in shares of Cardinal Health during the fourth quarter valued at about $790,344,000. Wellington Management Group LLP increased its holdings in shares of 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 buying an additional 3,511,579 shares during the period. Bank of New York Mellon Corp purchased a new position in shares of Cardinal Health in the second quarter worth about $308,640,000. Finally, Deutsche Bank AG bought a new stake in shares of Cardinal Health in the 2nd quarter valued at about $238,933,000. Hedge funds and other institutional investors own 87.17% of the company's stock.

Cardinal Health Stock Performance

The company has a market cap of $56.23 billion, a P/E ratio of 36.71, a price-to-earnings-growth ratio of 1.16 and a beta of 0.49. The business has a 50 day moving average price of $228.37 and a two-hundred day moving average price of $216.66.

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.

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