Robert W. Baird Raises Cardinal Health (NYSE:CAH) Price Target to $274.00

Key Points

• Robert W. Baird raised Cardinal Health’s price target from $251 to $274 while maintaining an “outperform” rating, implying approximately 14% upside from the prior close.
• Cardinal Health reported quarterly EPS of $2.91, beating the $2.42 consensus estimate, while revenue increased 5.8% year over year to $63.67 billion but fell short of forecasts.
• Analyst sentiment remains favorable, with 15 Buy ratings and three Holds and a consensus price target of $254.60; however, investors should note the stock’s elevated valuation and that part of the earnings beat came from a one-time tariff refund.

Cardinal Health (NYSE:CAH - Get Free Report) had its price target boosted by research analysts at Robert W. Baird from $251.00 to $274.00 in a report released on Wednesday,Benzinga reports. The firm presently has an "outperform" rating on the stock. Robert W. Baird's price target suggests a potential upside of 14.13% from the company's previous close.

CAH has been the subject of a number of other reports. TD Cowen upped their price target on shares of Cardinal Health from $255.00 to $275.00 and gave the stock a "buy" rating in a research report on Thursday, July 9th. Citigroup boosted their price target on Cardinal Health from $245.00 to $265.00 and gave the company a "buy" rating in a report on Friday, July 24th. JPMorgan Chase & Co. dropped their price objective on shares of Cardinal Health from $243.00 to $215.00 and set a "neutral" rating on the stock in a research note on Monday, May 4th. UBS Group raised their target price on Cardinal Health from $260.00 to $274.00 and gave the company a "buy" rating in a research note on Monday, July 20th. Finally, William Blair initiated coverage on shares of Cardinal Health in a research report on Tuesday, April 28th. They set an "outperform" rating for the company. Fifteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $254.60.

Cardinal Health Stock Performance

Shares of NYSE:CAH opened at $240.08 on Wednesday. The company has a 50-day simple moving average of $228.37 and a 200-day simple moving average of $216.66. Cardinal Health has a one year low of $137.75 and a one year high of $258.30. The stock has a market capitalization of $56.23 billion, a price-to-earnings ratio of 36.71, a PEG ratio of 1.16 and a beta of 0.49.

Cardinal Health (NYSE:CAH - Get Free Report) last announced its quarterly earnings results on Tuesday, August 11th. The company reported $2.91 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 net margin of 0.62% and a negative return on equity of 92.61%. The business's revenue was up 5.8% compared to the same quarter last year. During the same quarter last year, the firm posted $2.08 EPS. Cardinal Health has set its FY 2027 guidance at 12.400-12.600 EPS. As a group, research analysts forecast that Cardinal Health will post 10.77 EPS for the current fiscal year.

Hedge Funds Weigh In On Cardinal Health

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. University of Texas Texas AM Investment Management Co. purchased a new stake in shares of Cardinal Health in the fourth quarter worth approximately $26,000. Bank of Jackson Hole Trust acquired a new position in Cardinal Health during the fourth quarter valued at approximately $27,000. Jones Financial Companies Lllp raised its holdings in Cardinal Health by 198.3% in the 1st quarter. Jones Financial Companies Lllp now owns 21,112 shares of the company's stock worth $27,000 after acquiring an additional 14,034 shares during the period. Palladiem LLC acquired a new position in shares of Cardinal Health during the 4th quarter worth about $28,000. Finally, Indiana Trust & Investment Management Co acquired a new position in shares of Cardinal Health during the first quarter worth approximately $29,000. Institutional investors and hedge funds own 87.17% of the company's stock.

Key Stories Impacting Cardinal Health

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

• Positive Sentiment: Profit and guidance beat expectations. Cardinal Health reported fiscal Q4 non-GAAP EPS of $2.91, up from $2.08 a year earlier and $0.49 above consensus. Fiscal 2027 adjusted EPS guidance of $12.40–$12.60 also exceeded the approximately $12.05 analyst estimate, implying 13%–15% growth. Cardinal Health forecasts full-year profit above estimates on specialty drug strength
• Positive Sentiment: Specialty-drug and medtech performance supported earnings. Sustained demand for specialty pharmaceuticals helped drive the outlook, while medical technology profits nearly doubled in the quarter. Cardinal also said it now exclusively serves nearly half of the cell-and-gene therapy market, strengthening its position in a higher-margin growth niche. Cardinal Health nearly doubles medtech profits, fueling Q4 earnings beat
• Positive Sentiment: Large buyback authorization added support. The board approved an additional $5 billion for share repurchases after Cardinal bought back $1.4 billion of stock during fiscal 2026. The company also declared a quarterly dividend of $0.5158 per share, payable October 15. Cardinal Health Reports Fourth Quarter and Fiscal Year 2026 Results
• Neutral Sentiment: Revenue growth was solid but missed forecasts. Fourth-quarter revenue rose 6% year over year to $63.67 billion, but fell short of the roughly $65.15 billion consensus estimate. Fiscal 2026 operating cash flow reached $5.2 billion and adjusted free cash flow was $5.0 billion. Cardinal Health shares rise as profit beats estimates and outlook tops forecasts
• Negative Sentiment: Some earnings quality and valuation concerns remain. About $0.31 of quarterly adjusted EPS came from a one-time IEEPA tariff refund, while the Global Medical Products and Distribution segment reported declining revenue. With CAH trading near its 52-week high and at an elevated valuation, investors may demand continued execution to justify further gains. Can Cardinal Health's Strong Earnings Guidance Offset a Mixed Quarter?

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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