Wall Street Zen Upgrades Cardinal Health (NYSE:CAH) to Strong-Buy

Key Points

• Wall Street Zen upgraded Cardinal Health (NYSE:CAH) from a "buy" to a "strong‑buy", making it the only analyst with that top rating amid mostly buy/hold coverage.
• Q3 beat and stronger outlook: Cardinal reported $3.17 EPS (above consensus), raised FY‑2026 guidance to $10.70–$10.80, and announced an additional $250M share repurchase while reducing debt—supporting the bullish case.
• Mixed results increase risk: Revenue missed expectations (~$60.9B vs ~$62.1B est.) and GAAP figures were weighed down by a $184M pre‑tax goodwill impairment, prompting short‑term selling and potential volatility despite the EPS beat.

Cardinal Health (NYSE:CAH - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research note issued to investors on Saturday.

A number of other brokerages have also commented on CAH. Evercore reduced their target price on shares of Cardinal Health from $260.00 to $240.00 and set an "outperform" rating on the stock in a research report on Wednesday, April 8th. TD Cowen lifted their target price on Cardinal Health from $251.00 to $255.00 and gave the company a "buy" rating in a research report on Friday. Jefferies Financial Group increased their price target on Cardinal Health from $220.00 to $270.00 and gave the stock a "buy" rating in a research report on Thursday, January 22nd. Robert W. Baird set a $248.00 price objective on Cardinal Health in a report on Friday. Finally, Barclays increased their target price on shares of Cardinal Health from $243.00 to $258.00 and gave the stock an "overweight" rating in a report on Tuesday, February 24th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $243.67.

Cardinal Health Trading Up 1.2%

Shares of CAH opened at $195.13 on Friday. The firm has a fifty day moving average price of $213.73 and a 200-day moving average price of $205.46. The firm has a market capitalization of $45.92 billion, a P/E ratio of 28.08, a P/E/G ratio of 1.19 and a beta of 0.53. Cardinal Health has a 12-month low of $137.75 and a 12-month high of $233.60.

Cardinal Health (NYSE:CAH - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported $3.17 EPS for the quarter, topping the consensus estimate of $2.79 by $0.38. Cardinal Health had a net margin of 0.62% and a negative return on equity of 92.61%. The company had revenue of $60.94 billion for the quarter, compared to the consensus estimate of $62.10 billion. During the same quarter last year, the firm posted $2.35 EPS. The firm's revenue was up 11.0% compared to the same quarter last year. Cardinal Health has set its FY 2026 guidance at 10.700-10.80 EPS. Analysts predict that Cardinal Health will post 10.79 earnings per share for the current year.

Institutional Investors Weigh In On Cardinal Health

Institutional investors have recently added to or reduced their stakes in the stock. SJS Investment Consulting Inc. lifted its position in shares of Cardinal Health by 1,363.6% during the third quarter. SJS Investment Consulting Inc. now owns 161 shares of the company's stock valued at $25,000 after buying an additional 150 shares during the last quarter. Aventura Private Wealth LLC purchased a new stake in Cardinal Health during the fourth quarter valued at approximately $25,000. University of Texas Texas AM Investment Management Co. acquired a new stake in Cardinal Health in the fourth quarter valued at approximately $26,000. Bank of Jackson Hole Trust acquired a new stake in Cardinal Health in the fourth quarter valued at approximately $27,000. Finally, Jones Financial Companies Lllp grew its holdings in Cardinal Health by 198.3% in the first quarter. Jones Financial Companies Lllp now owns 21,112 shares of the company's stock worth $27,000 after purchasing an additional 14,034 shares during the last quarter. Institutional investors own 87.17% of the company's stock.

Key Cardinal Health News

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

• Positive Sentiment: Q3 non‑GAAP earnings beat estimates and company raised FY‑2026 guidance to $10.70–$10.80, above consensus — the core bullish catalyst. PR Newswire: Q3 Results & Outlook
• Positive Sentiment: Company executed $250M additional share repurchase (bringing FY26 repurchases to $1.0B) and reduced debt — shareholder‑friendly actions that support the share price. PR Newswire: Buybacks & Debt Reduction
• Neutral Sentiment: Wells Fargo cut its price target from $256 to $245 but kept an "overweight" rating, signaling continued analyst confidence despite the trim. Benzinga: Wells Fargo PT Change
• Neutral Sentiment: Full earnings call and transcripts are available for investors who want details on segment performance and management commentary. Yahoo Finance: Earnings Transcript Seeking Alpha: Call Transcript
• Negative Sentiment: Revenue missed expectations ($60.9B reported vs. ~$62.1B est.), which prompted media coverage and short‑term selling pressure despite the EPS beat. Benzinga: Revenue Miss Coverage
• Negative Sentiment: GAAP results were weaker: GAAP operating earnings and GAAP EPS declined, driven in part by a $184M pre‑tax goodwill impairment in the Navista & ION reporting unit — a one‑time charge that reduces headline profitability. PR Newswire: Goodwill Impairment
• Negative Sentiment: Several outlets highlighted the "mixed" nature of the report (EPS/guidance vs. revenue/GAAP weakness), which can increase volatility and keep some investors on the sidelines. CNBC: Mixed Results Coverage

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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