Cardinal Health (NYSE:CAH) Posts Earnings Results, Beats Expectations By $0.32 EPS

Key Points

• Cardinal Health beat quarterly expectations: Adjusted EPS was $3.26 versus $2.94 expected, while revenue rose 5.5% year over year to $67.51 billion.
• The company raised its fiscal 2027 adjusted EPS outlook to $12.80–$13.00 from $12.40–$12.60, citing strength in pharmaceuticals and other businesses; pharmaceutical segment profit increased 17%.
• Medical distribution faces pressure from elevated petroleum costs, which could push full-year segment profit toward the low end of guidance. Cardinal also renewed its largest customer, CVS Health, through June 2032.

Cardinal Health (NYSE:CAH - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $3.26 earnings per share for the quarter, beating the consensus estimate of $2.94 by $0.32, FiscalAI reports. Cardinal Health had a net margin of 0.67% and a negative return on equity of 98.53%. The company had revenue of $67.51 billion during the quarter, compared to the consensus estimate of $66.67 billion. During the same quarter last year, the firm earned $2.55 earnings per share. The firm's quarterly revenue was up 5.5% compared to the same quarter last year.

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%

Cardinal Health stock traded up $6.17 during trading on Thursday, reaching $268.10. The company had a trading volume of 2,996,850 shares, compared to its average volume of 1,754,847. The firm's 50-day simple moving average is $239.73 and its 200 day simple moving average is $223.24. Cardinal Health has a 52 week low of $180.45 and a 52 week high of $286.29. The firm has a market capitalization of $62.08 billion, a price-to-earnings ratio of 37.08, a price-to-earnings-growth ratio of 1.57 and a beta of 0.53.

Cardinal Health Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Thursday, October 1st were issued a $0.5158 dividend. This represents a $2.06 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend was Thursday, October 1st. Cardinal Health's dividend payout ratio (DPR) is currently 28.49%.

Insider Activity at Cardinal Health

In other news, insider Jessica L. Mayer sold 29,436 shares of the business's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $236.19, for a total value of $6,952,488.84. Following the transaction, the insider directly owned 33,076 shares in the company, valued at $7,812,220.44. The trade was a 47.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Mary C. Scherer sold 2,302 shares of the business's stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $237.39, for a total value of $546,471.78. Following the completion of the transaction, the chief accounting officer directly owned 2,811 shares in the company, valued at approximately $667,303.29. This represents a 45.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 210,271 shares of company stock worth $49,626,657 in the last 90 days. Insiders own 0.12% of the company's stock.

Analysts Set New Price Targets

CAH has been the subject of a number of research analyst reports. Mizuho set a $290.00 target price on Cardinal Health in a report on Thursday. UBS Group boosted their price target on Cardinal Health from $280.00 to $295.00 and gave the stock a "buy" rating in a research note on Friday, October 16th. Wells Fargo & Company upped their price target on Cardinal Health from $245.00 to $277.00 and gave the company an "overweight" rating in a report on Wednesday, August 12th. Barclays increased their price objective on Cardinal Health from $258.00 to $275.00 and gave the company an "overweight" rating in a research report on Thursday, August 13th. Finally, Leerink Partners set a $292.00 price objective on Cardinal Health in a report on Tuesday, August 11th. Sixteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $271.31.

More Cardinal Health News

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

Cardinal Health Company Profile

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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