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

Cardinal Health (NYSE:CAH) announced its quarterly earnings results on Thursday. The company reported $3.26 earnings per share for the quarter, topping analysts’ consensus estimates 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 firm had revenue of $67.51 billion during the quarter, compared to analysts’ expectations of $66.67 billion. During the same period in the prior year, the company earned $2.55 EPS. The firm’s revenue was up 5.5% on a year-over-year basis.

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%

NYSE:CAH traded up $6.17 on Thursday, reaching $268.10. The stock had a trading volume of 2,996,850 shares, compared to its average volume of 1,754,847. The company has a 50-day moving average of $239.73 and a 200 day moving average of $223.24. The stock has a market cap of $62.08 billion, a P/E ratio of 37.08, a price-to-earnings-growth ratio of 1.57 and a beta of 0.53. Cardinal Health has a 12-month low of $180.45 and a 12-month high of $286.29.

Cardinal Health Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st were given 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 is presently 28.49%.

Insider Activity at Cardinal Health

In other news, insider Jessica Mayer sold 29,436 shares of Cardinal Health stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $236.19, for a total transaction of $6,952,488.84. Following the sale, the insider directly owned 33,076 shares of the company’s stock, valued at approximately $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 can be accessed through this hyperlink. Also, insider Michelle Greene sold 11,650 shares of the business’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $235.72, for a total value of $2,746,138.00. Following the completion of the transaction, the insider owned 10,330 shares in the company, valued at approximately $2,434,987.60. This trade represents a 53.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 210,271 shares of company stock valued at $49,626,657. 0.12% of the stock is currently owned by insiders.

Cardinal Health News Summary

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

Analyst Ratings Changes

Several equities research analysts have recently weighed in on CAH shares. Morgan Stanley upped their target price on Cardinal Health from $265.00 to $286.00 and gave the stock an “overweight” rating in a research report on Friday, October 30th. Robert W. Baird raised their target price on Cardinal Health from $251.00 to $274.00 and gave the company an “outperform” rating in a report on Wednesday, August 12th. TD Cowen raised their target price on Cardinal Health from $275.00 to $280.00 and gave the company a “buy” rating in a report on Thursday, August 13th. Evercore reissued an “outperform” rating and set a $270.00 price target on shares of Cardinal Health in a research report on Wednesday, August 12th. Finally, UBS Group upped their price target on Cardinal Health from $280.00 to $295.00 and gave the stock a “buy” rating in a report on Friday, October 16th. Sixteen equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $271.31.

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.