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Cardinal Health
(NYSE:CAH)
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Rating:62Neutral
Price Target:
$273.00
▲(14.74% Upside)
Action:Reiterated
Date:10/01/26
CAH scores as a mid-range opportunity: strong cash generation and improved profitability support the rating, reinforced by upbeat FY27 EPS/FCF guidance. Offsetting these positives are material balance-sheet concerns (negative equity and higher debt), weak current technical momentum, and a valuation that is not especially attractive given the low dividend yield.
Positive Factors
Revenue and earnings growth
Broad-based revenue and operating earnings growth indicates Cardinal Health is converting its distribution scale and healthcare demand into improved financial performance. Continued expansion across pharmaceutical, specialty, and other businesses supports durable earnings momentum beyond a single quarter.
Negative Factors
Negative equity and rising debt
Persistently negative equity and higher debt weaken financial flexibility and make the capital structure more dependent on continued cash generation. This can constrain the company’s ability to absorb operating setbacks, fund expansion, or allocate capital while maintaining a resilient balance sheet.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and earnings growth
Broad-based revenue and operating earnings growth indicates Cardinal Health is converting its distribution scale and healthcare demand into improved financial performance. Continued expansion across pharmaceutical, specialty, and other businesses supports durable earnings momentum beyond a single quarter.
Read all positive factors
Cardinal Health Key Performance Indicators (KPIs)
Any
Profit by Segment
Shows profitability across different business units, highlighting which areas drive earnings and where there might be challenges or opportunities for growth.
Shows profitability across different business units, highlighting which areas drive earnings and where there might be challenges or opportunities for growth.
Data provided by:
The Fly
The FlyCardinal Health (CAH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$59.64B
Dividend Yield0.8%
Average Volume (3M)1.83M
Price to Earnings (P/E)35.4
Beta (1Y)0.30
Revenue Growth14.23%
EPS Growth12.28%
CountryUS
Employees61,344
SectorHealthcare
Sector Strength45
IndustryMedical - Distribution
Share Statistics
EPS (TTM)7.27
Shares Outstanding231,559,340
10 Day Avg. Volume1,730,587
30 Day Avg. Volume1,832,026
Financial Highlights & Ratios
PEG Ratio2.68
Price to Book (P/B)-19.45
Price to Sales (P/S)0.22
P/FCF Ratio12.39
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue0.24
Enterprise Value/Gross Profit6.25
Enterprise Value/Ebitda17.56
Forecast
1Y Price Target
$275.08Price Target Upside15.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)12.54
Revenue Forecast (FY)$265.80B
Cardinal Health Business Overview & Revenue Model
Company Description
Cardinal Health, Inc. operates as a global, integrated provider of healthcare services and products, with its reach spanning the United States, Canada, Europe, Asia, and other international markets. The company delivers bespoke support to a divers...
How the Company Makes Money
Cardinal Health generates revenue primarily by buying healthcare products from manufacturers and reselling them to healthcare providers, earning distribution-related margin for managing procurement, inventory, logistics, and related services. Its ...
Cardinal Health Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call emphasized strong, broad-based fiscal '26 performance across revenue, profit, EPS (Q4 EPS +40% YoY) and cash flow ($5B adjusted FCF), with clear operational momentum in Pharma, Specialty and Other growth businesses and disciplined capital return (share buybacks and increased repurchase authorization). Key risks highlighted include reliance on a nonrecurring $100M IEEPA tariff refund that materially boosted GMPD profitability and $0.31 of Q4 EPS, input cost pressures (fuel and commodity resins), regulatory headwinds (IRA/340B impacts ~500 bps mentioned), and expected near-term cadence softness (Q1 FY27 headwind). Overall, positives around scale, cash generation, segment momentum and reconfirmed long‑term targets materially outweigh the transitory and manageable challenges discussed.Positive Updates
Strong FY26 Financial Results
Full-year revenue $254B (+14% YoY); gross margin $9.8B (+20% YoY); total operating earnings $3.6B (+30% YoY); adjusted free cash flow $5.0B for the year.
Negative Updates
GMPD Revenue Decline and One-Time Tariff Effect
GMPD Q4 revenue $3.1B (down 2% YoY), impacted by expected payables to customers tied to the anticipated IEEPA tariff refund; the $100M net IEEPA refund is nonrecurring and contributed ~$0.31 EPS (~15 percentage points of the reported 40% Q4 EPS growth).
Read all updates
Q4-2026 Updates
Positive
Negative
Strong FY26 Financial Results
Full-year revenue $254B (+14% YoY); gross margin $9.8B (+20% YoY); total operating earnings $3.6B (+30% YoY); adjusted free cash flow $5.0B for the year.
Read all positive updates
Company Guidance
Cardinal guided fiscal 2027 non‑GAAP EPS of $12.40–$12.60 (13–15% growth off a $10.95 baseline that excludes the $0.31 IEEPA tariff benefit) and reconfirmed long‑term EPS growth of 12–14% per year; segment guidance calls for Pharma revenue growth of 3–5% and Pharma profit growth of 8–11% (with 2–3 percentage points of profit contribution from announced M&A and Q1 Pharma profit expected near the high end due to Solaris), GMPD revenue growth of 2–4% and segment profit of $200–$220 million (≈$50M growth ex‑IEEPA, H2‑weighted with Q1 roughly half of prior Q1 on FX and purchase timing), and Other businesses revenue growth of 11–13% with profit up 15–18% (including ~2 points of profit from the Strive and AdaptHealth tuck‑ins); below the line, interest and other expense is expected to be $240–$290M, the effective tax rate 19–20%, adjusted free cash flow $3.5–$4.0B, CapEx ~$700M, at least $1B of share repurchases (implying ~233M diluted shares), no material M&A assumed but modest tuck‑in capacity retained, and liquidity supported by a new $4B revolver.Cardinal Health Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
32
Negative
Cash Flow
74
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 254.25B | 222.58B | 226.83B | 204.98B | 181.33B |
| Gross Profit | 9.77B | 8.17B | 7.41B | 6.89B | 6.48B |
| EBITDA | 3.48B | 3.11B | 1.96B | 1.44B | 55.00M |
| Net Income | 1.71B | 1.56B | 852.00M | 330.00M | -938.00M |
Balance Sheet | |||||
| Total Assets | 57.30B | 53.12B | 45.12B | 43.35B | 43.88B |
| Cash, Cash Equivalents and Short-Term Investments | 4.86B | 3.87B | 5.13B | 4.08B | 4.72B |
| Total Debt | 9.95B | 9.35B | 5.61B | 5.18B | 5.80B |
| Total Liabilities | 60.02B | 55.76B | 48.33B | 46.31B | 44.58B |
| Stockholders Equity | -2.88B | -2.78B | -3.21B | -2.96B | -709.00M |
Cash Flow | |||||
| Free Cash Flow | 4.53B | 1.85B | 3.25B | 2.36B | 2.73B |
| Operating Cash Flow | 5.17B | 2.40B | 3.76B | 2.84B | 3.12B |
| Investing Cash Flow | -2.58B | -5.61B | -1.85B | -454.00M | 567.00M |
| Financing Cash Flow | -1.60B | 1.95B | -847.00M | -3.05B | -2.46B |
Cardinal Health Technical Analysis
Positive
237.92
Price Trends
235.10
Positive
230.66
Positive
219.72
Positive
Market Momentum
6.76
Negative
74.83
Negative
93.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAH, the sentiment is Positive. The current price of 237.92 is above the 20-day moving average (MA) of 237.08, above the 50-day MA of 235.10, and above the 200-day MA of 219.72, indicating a bullish trend. The MACD of 6.76 indicates Negative momentum. The RSI at 74.83 is Negative, neither overbought nor oversold. The STOCH value of 93.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CAH.
Cardinal Health Risk Analysis
Cardinal Health disclosed 13 risk factors in its most recent earnings report. Cardinal Health reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cardinal Health Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.34B | 13.35 | 9.22% | 1.25% | -1.36% | -16.45% | |
71 Outperform | $65.51B | 25.18 | 106.43% | 0.70% | 5.09% | 38.10% | |
71 Outperform | $120.10B | 27.06 | -194.39% | 0.33% | 8.84% | 48.98% | |
62 Neutral | $59.64B | 35.41 | -59.73% | 0.80% | 14.23% | 12.28% | |
61 Neutral | $9.47B | 24.57 | 12.37% | ― | 6.49% | 10.41% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
CAH
Cardinal Health
255.64
97.97
62.14%
COR
Cencora
338.48
12.41
3.80%
HSIC
Henry Schein
86.00
22.41
35.24%
MCK
McKesson
1,012.34
222.48
28.17%
PBH
Prestige Consumer Healthcare
49.46
-13.13
-20.98%
Cardinal Health Corporate Events
Business Operations and StrategyFinancial Disclosures
Cardinal Health Extends CVS Distribution Deal, Reaffirms Outlook
Positive
Oct 1, 2026
On October 1, 2026, Cardinal Health announced it had entered into a binding letter of intent to extend its existing pharmaceutical distribution agreements with CVS Health through June 30, 2032, preserving the current scope of distribution services...
Business Operations and StrategyStock BuybackFinancial Disclosures
Cardinal Health Posts Strong Fiscal 2026 Results, Boosts Outlook
Positive
Aug 11, 2026
On August 11, 2026, Cardinal Health reported strong fourth quarter and full-year fiscal 2026 results, highlighted by 6% quarterly revenue growth to $63.7 billion and a 70% jump in GAAP diluted EPS to $1.70. Non-GAAP diluted EPS for the quarter ros...
Business Operations and StrategyPrivate Placements and Financing
Cardinal Health Restructures Credit Facilities and Financing Programs
Neutral
Aug 11, 2026
On August 7, 2026, Cardinal Health terminated a five-year revolving credit facility established in February 2023 that provided $2.0 billion in liquidity, as well as a separate 364-day revolving credit facility from October 2025 that offered an add...
Business Operations and StrategyExecutive/Board Changes
Cardinal Health appoints new Chief Accounting Officer
Positive
Aug 5, 2026
On August 4, 2026, Cardinal Health appointed Anita Zielinski as Chief Accounting Officer, effective November 5, 2026, succeeding Mary Scherer, who will remain in the role until that date to ensure continuity. Zielinski will join the company as Sen...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.