Cardinal Health (NYSE:CAH) Reaches New 1-Year High After Better-Than-Expected Earnings

Shares of Cardinal Health, Inc. (NYSE:CAH) reached a new 52-week high during trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $258.30 and last traded at $240.0820, with a volume of 3007342 shares traded. The stock had previously closed at $237.18.

The company reported $2.91 EPS for the quarter, beating analysts’ consensus estimates of $2.42 by $0.49. The firm had revenue of $63.67 billion during the quarter, compared to analysts’ expectations of $65.15 billion. Cardinal Health had a negative return on equity of 98.74% and a net margin of 0.67%.The company’s revenue for the quarter was up 5.8% compared to the same quarter last year. During the same quarter last year, the firm posted $2.08 earnings per share. Cardinal Health has set its FY 2027 guidance at 12.400-12.600 EPS.

Cardinal Health Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be given a $0.5158 dividend. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $2.06 annualized dividend and a yield of 0.9%. Cardinal Health’s dividend payout ratio (DPR) is presently 28.49%.

Key Cardinal Health News

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

• Positive Sentiment: Cardinal Health reported fiscal fourth-quarter adjusted EPS of $2.91, well above the $2.42 analyst consensus and up from $2.08 a year earlier. Medtech profits nearly doubled, while specialty pharmaceuticals and At-Home Solutions provided additional growth momentum. Cardinal Health nearly doubles medtech profits, fueling Q4 earnings beat
• Positive Sentiment: Management’s fiscal 2027 outlook calls for EPS of $12.40-$12.60, or approximately 13%-15% growth, supported by normalized pharmaceutical demand, specialty-care expansion, strategic investments and share repurchases. The company also increased its buyback authorization. CAH Q4 Earnings Call Centers on Fiscal 2027 Growth Outlook
• Positive Sentiment: Several analysts raised their targets following the results: Citi moved to $280 with a buy rating, Wells Fargo to $277 with an overweight rating, and Baird to $274 with an outperform rating. JPMorgan also raised its target to $260, although it maintained a neutral rating. These revisions helped drive the initial move to a record high. Cardinal Health Analysts Increase Their Forecasts Following Q4 Results
• Neutral Sentiment: Revenue rose 5.8% year over year to $63.67 billion but missed the $65.15 billion consensus estimate. With CAH trading near its 12-month high at roughly 32 times earnings, investors may be taking profits and questioning how much of the expected improvement is already priced in. Cardinal Health Earnings: Can Perfection Get Priced In Twice?

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on CAH shares. Leerink Partners set a $292.00 price objective on shares of Cardinal Health in a research note on Tuesday. Zacks Research downgraded shares of Cardinal Health from a “strong-buy” rating to a “hold” rating in a research report on Friday, June 12th. Wall Street Zen upgraded shares of Cardinal Health from a “buy” rating to a “strong-buy” rating in a report on Saturday, July 4th. Citigroup boosted their price objective on Cardinal Health from $265.00 to $280.00 and gave the stock a “buy” rating in a report on Wednesday. Finally, TD Cowen increased their price objective on Cardinal Health from $275.00 to $280.00 and gave the stock a “buy” rating in a research note on Thursday. Fifteen equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $265.93.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the company. University of Texas Texas AM Investment Management Co. bought a new stake in Cardinal Health in the 4th quarter worth about $26,000. Bank of Jackson Hole Trust bought a new position in shares of Cardinal Health during the 4th quarter worth approximately $27,000. Jones Financial Companies Lllp boosted its stake in shares of 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 buying an additional 14,034 shares during the last quarter. Palladiem LLC bought a new position in shares of Cardinal Health in the fourth quarter valued at approximately $28,000. Finally, Indiana Trust & Investment Management Co bought a new position in shares of Cardinal Health in the first quarter valued at approximately $29,000. 87.17% of the stock is owned by institutional investors.

Cardinal Health Stock Down 1.2%

The company has a market capitalization of $53.79 billion, a PE ratio of 31.99, a P/E/G ratio of 1.38 and a beta of 0.49. The stock has a 50-day moving average of $229.72 and a 200 day moving average of $217.02.

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.