Cardinal Health (NYSE:CAH) Releases Quarterly Earnings Results, Beats Expectations By $0.38 EPS

Cardinal Health (NYSE:CAH) announced its quarterly earnings data on Thursday. The company reported $3.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.79 by $0.38, FiscalAI reports. The business had revenue of $60.94 billion for the quarter, compared to analysts’ expectations of $62.10 billion. Cardinal Health had a negative return on equity of 92.61% and a net margin of 0.62%.The company’s revenue for the quarter was up 11.0% compared to the same quarter last year. During the same period last year, the firm earned $2.35 earnings per share. Cardinal Health updated its FY 2026 guidance to 10.700-10.80 EPS.

Here are the key takeaways from Cardinal Health’s conference call:

• Cardinal reported a strong third quarter with revenue up 11% to $61B, gross profit +18%, and non‑GAAP EPS of $3.17 (35% growth), driven by Pharma and other growth businesses.
• The company raised full‑year fiscal 2026 outlook — non‑GAAP EPS to $10.70–$10.80 (≈$0.50 midpoint increase) and adjusted free cash flow to $3.3–$3.7B — and completed ~$1B of share repurchases YTD.
• Specialty and “Other” businesses remain a major growth driver: specialty revenue >20% growth (oncology >30%), Solaris integration and MSO expansion are on track, and management expects specialty to exceed $50B in FY26.
• Management recorded a $184M pre‑tax goodwill impairment on Navista tied to a shift in MSO risk profile and a pivot toward equity arrangements, signaling execution and valuation challenges in parts of the MSO portfolio (non‑GAAP results unaffected).
• GMPD faces tariff and macro uncertainty: Cardinal has paid ~$200M in IEEPA tariffs (no recovery recognized), the segment saw profit pressure (Q3 profit $25M), and any refund timing/amount remains uncertain despite management estimating a potential ~half‑share benefit if refunded.

Cardinal Health Stock Up 1.2%

Cardinal Health stock traded up $2.25 during midday trading on Friday, reaching $195.13. The company’s stock had a trading volume of 2,091,687 shares, compared to its average volume of 1,582,999. Cardinal Health has a fifty-two week low of $137.75 and a fifty-two week high of $233.60. The company has a market cap 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. The business has a 50-day simple moving average of $213.73 and a 200-day simple moving average of $205.46.

Cardinal Health Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Wednesday, April 1st were paid a $0.5107 dividend. The ex-dividend date was Wednesday, April 1st. This represents a $2.04 dividend on an annualized basis and a yield of 1.0%. Cardinal Health’s dividend payout ratio (DPR) is currently 29.35%.

More 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

Wall Street Analyst Weigh In

Several analysts have recently issued reports on CAH shares. JPMorgan Chase & Co. increased their price objective on Cardinal Health from $209.00 to $243.00 and gave the company a “neutral” rating in a research note on Tuesday, February 10th. Argus increased their price objective on Cardinal Health from $232.00 to $248.00 and gave the company a “buy” rating in a research note on Wednesday, February 11th. Citigroup reduced their price objective on Cardinal Health from $249.00 to $245.00 and set a “buy” rating on the stock in a research note on Friday. Robert W. Baird set a $248.00 price objective on Cardinal Health in a research note on Friday. Finally, Barclays increased their price objective on Cardinal Health from $243.00 to $258.00 and gave the company an “overweight” rating in a research note on Tuesday, February 24th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $243.67.

Institutional Trading of Cardinal Health

Hedge funds and other institutional investors have recently bought and sold shares of the business. Integrated Wealth Concepts LLC grew its holdings in shares of Cardinal Health by 6.9% during the first quarter. Integrated Wealth Concepts LLC now owns 4,363 shares of the company’s stock worth $601,000 after purchasing an additional 280 shares during the last quarter. Jones Financial Companies Lllp grew its holdings in shares of Cardinal Health by 198.3% during 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. Arrowstreet Capital Limited Partnership purchased a new position in shares of Cardinal Health during the second quarter worth about $1,935,000. Cerity Partners LLC grew its holdings in shares of Cardinal Health by 17.0% during the second quarter. Cerity Partners LLC now owns 40,426 shares of the company’s stock worth $6,792,000 after purchasing an additional 5,880 shares during the last quarter. Finally, Nebula Research & Development LLC grew its holdings in shares of Cardinal Health by 34.4% during the second quarter. Nebula Research & Development LLC now owns 10,334 shares of the company’s stock worth $1,736,000 after purchasing an additional 2,646 shares during the last quarter. 87.17% of the stock is currently owned by institutional investors and hedge funds.

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.