Cardinal Health Inc

Cardinal Health has extended its drug distribution agreement with CVS Health through June 2032, sending its shares up 3.7% in Thursday trading. The pharmaceutical distributor said it entered into a binding Letter of Intent to extend the existing distribution agreement through June 30, 2032, maintaining the current scope of distribution services. "We value our long-standing partnership with CVS Health and look forward to continuing to bring our best-in-class capabilities together to serve their customers," said Jason Hollar, CEO of Cardinal Health. In connection with the contract renewal, Cardinal Health reaffirmed its fiscal year 2027 non-GAAP EPS guidance of 13% to 15% growth, or $12.40 to $12.60, and maintained its long-term non-GAAP EPS growth rate guidance of 12% to 14%. The company said further updates may be provided during its upcoming first quarter earnings call on November 5, 2026.

Cardinal Health said it expects adjusted earnings per share to grow 13% to 15% in fiscal 2027, driven primarily by operating-income growth across its three reporting segments and five operating businesses. Speaking at the Morgan Stanley Global Healthcare Conference, CEO Jason Hollar said the company reiterated its longer-term EPS growth target of 12% to 14% and plans $1 billion in share repurchases, with lower interest expense and a slightly higher expected tax rate among below-the-line factors. Within Pharmaceutical and Specialty Solutions, generic-drug volume is expected to grow slightly above the usual 2% to 3% range, while specialty growth is expected to approach a double-digit rate after expanding 25% in fiscal 2026, and BioPharma Solutions is targeting $1 billion in revenue by fiscal 2028 from $550 million in fiscal 2025. Cardinal Health expects its other segment to deliver 15% to 18% adjusted operating-income growth in fiscal 2027, with about 2 percentage points from the Strive Medical acquisition and a small late-year contribution from AdaptHealth's diabetes business. In Global Medical Products and Distribution, the company absorbed a $450 million tariff impact in fiscal 2026 and mitigated about two-thirds through sourcing and other operating actions, and Hollar said the year-end renewal of the CVS distribution contract rests on a very strong relationship.

Cardinal Health reported fourth-quarter fiscal 2026 adjusted earnings per share of $2.91, beating the Zacks Consensus Estimate by 20.3% and up 40% year over year, while quarterly revenues rose 6% to $63.67 billion but missed the consensus estimate by 2.9%. GAAP earnings per share in the quarter was $1.70 compared with $1.00 a year earlier, and full-year fiscal 2026 adjusted EPS was $11.26, up 37% from fiscal 2025, with full-year revenues of $254.25 billion, up 14%. Within the quarter, Pharmaceutical and Specialty Solutions revenues rose 6% to $58.85 billion with segment profit of $645 million, up 21%, while Global Medical Products and Distribution revenues fell 2% to $3.13 billion even as segment profit rose to $150 million from $70 million, and the Other segment, comprising Nuclear and Precision Health Solutions, at-Home Solutions and OptiFreight Logistics, posted revenues of $1.72 billion, up 7%, with profit of $183 million, up 14%. Cardinal Health raised its fiscal 2027 earnings guidance to adjusted earnings per share of $12.40 to $12.60, implying growth of 13% to 15% from adjusted fiscal 2026 results excluding the IEEPA tariff refund benefit, and guided Pharmaceutical and Specialty Solutions revenue growth of 3% to 5% with segment profit up 8% to 11%, Global Medical Products and Distribution revenue growth of 2% to 4% with segment profit of $200 million to $220 million, and Other segment revenue growth of 11% to 13% with segment profit up 15% to 18%.

Cardinal Health enters fiscal 2027 with strong momentum across pharmaceutical distribution, specialty solutions and growth businesses. The company reported fourth-quarter fiscal 2026 pharmaceutical and specialty solutions revenue of $58.8 billion, up 6%, with segment profit rising 21% to $645 million. Management expects fiscal 2027 pharma revenue growth of 3-5% and segment profit growth of 8-11%, while specialty revenues are projected to grow double digits. The company also secured two additional gene-therapy commercialization agreements, bringing its exclusive coverage to nearly half of the cell-and-gene market. However, Inflation Reduction Act pricing changes, low growth in Global Medical Products and Distribution, and heavy capital expenditures are expected to constrain performance.

Cardinal Health has drawn fresh attention after releasing its fourth quarter and full year 2026 results, paired with a new US$5b share repurchase authorization and a confirmed quarterly dividend. The latest numbers give an updated view of how the healthcare distributor is converting its large revenue base into profit and cash flow, and show how management is choosing to return capital to shareholders through buybacks and regular dividends. The earnings, dividend affirmation and expanded buyback program come after a strong run in the stock, with a 90 day share price return of 17.07% and a 5 year total shareholder return of 405.81%. Cardinal Health's most followed narrative sees fair value at $264.73 per share compared with the last close at $234.85, which puts the spotlight on the assumptions behind that gap. However, the current P/E of 31.9x is above both peers at 26.2x and the US Healthcare industry at 25x, raising the question of whether the stock represents a clear bargain or simply reflects fairly full pricing with limited margin for error.

Cardinal Health reported fourth-quarter fiscal 2026 results that beat expectations, but a significant portion of the earnings jump came from a one-time tariff refund. Non-GAAP diluted EPS rose 40% year over year to $2.91, with about $0.31 of that gain tied to a $100 million net benefit from IEEPA tariff refunds in the Global Medical Products and Distribution segment. Full-year adjusted free cash flow reached $5 billion, and the board authorized a $5 billion increase to its buyback program, bringing total authorization to $6.4 billion. However, guidance for fiscal 2027 points to slower growth, with Pharma segment revenue expected to rise just 3% to 5%, and GMPD's first quarter projected at roughly half of last year's level due to currency effects and distributor purchase timing. The company also flagged risks from Iran-related conflicts and rising fuel and commodity costs that could pressure GMPD profit.

Cardinal Health reported second quarter adjusted earnings per share of $2.60, beating analyst estimates of $2.42, while revenue of $63.67 billion fell short of the $65.42 billion consensus. The company issued adjusted EPS guidance for fiscal 2027 of $12.50 at the midpoint, above analyst expectations by 3.5%. CFO Aaron Alt attributed the profit strength to strong demand and execution in the Pharmaceutical and Specialty Solutions segment, while CEO Jason Hollar highlighted double-digit specialty growth and synergy realization from recent acquisitions. Management also addressed regulatory changes, generic conversions, and input cost pressures during the earnings call.

Cardinal Health CEO Jason Hollar detailed the company's M&A strategy and growth drivers in an interview with Yahoo Finance. Hollar said the company has invested heavily to acquire platforms that accelerate its specialty pharma strategy, which is the fastest growing part of the pharma market, and expects to continue bolt-on acquisitions in the specialty space. He noted that branded pharmaceuticals represent 90% of the US pharmaceutical market by value but only 10% by volume, and that volume is a much greater indicator of Cardinal Health's profitability than revenue. Hollar added that drug pricing set by manufacturers does not directly impact the company's profitability, and that lower drug prices from policies like the IRA and MFN could drive additional volume, which is good for the business.

Several biotech stocks reached 52-week highs on August 11, 2026, driven by quarterly reports and regulatory progress. Alamar Biosciences surged over 30% to $38.54 after reporting second-quarter revenue of $29.43 million and projecting full-year 2026 revenue between $116 million and $120 million. Dyne Therapeutics rose to $27.13 following FDA acceptance of its Biologics License Application for Z-Rostudirsen, with a decision expected in January 2027. Cullinan Therapeutics gained over 7% to $19.82 after narrowing its quarterly loss and announcing plans for Phase 2 trials in autoimmune diseases. Cardinal Health climbed to $258.30 on fiscal 2026 revenue of $254.2 billion and net earnings of $1.7 billion. DexCom reached $89.56 after reporting 13% second-quarter revenue growth to $1.31 billion and forecasting full-year revenue of $5.18 billion to $5.25 billion.

U.S. stock indexes were mixed on Tuesday as crude oil prices reversed early gains on signs of progress in U.S.-Iran talks over the Strait of Hormuz, pulling bond yields lower. The S&P 500 edged up 0.04%, the Dow rose 0.32%, and the Nasdaq 100 slipped 0.07%. WTI crude gave up an overnight advance of more than 2% after Pakistan's defense minister said signals suggest an agreement is near, while the 10-year Treasury yield fell 2 basis points to 4.68%. Chipmakers and AI-infrastructure stocks provided support, with ASML and KLA up over 4%, while software names lagged. In earnings, Cardinal Health gained over 4% after beating estimates and issuing strong guidance, while ON Holding tumbled more than 21% on disappointing sales.

AdaptHealth is selling its roughly $600 million diabetes business to Cardinal Health and exiting certain e-commerce and drop-ship operations to simplify the company and focus on sleep, respiratory and home medical equipment. CEO Suzanne Foster said the diabetes segment did not offer expected cross-selling opportunities and would have required further investment in pharmacy capabilities and distribution infrastructure. The transaction will leave about $60 million of overhead costs with continuing operations, with roughly half expected to be removed in the first year after closing. The company reported 16% second-quarter revenue growth, but its new West Coast capitated contract covering 13 million members is facing higher-than-expected service costs due to utilization and hospital-ordering issues. Management sees strong growth potential in sleep care through higher referrals, home testing and digital tools, and capital priorities include organic growth, reducing leverage to 2.5 times and pursuing targeted sleep and respiratory acquisitions.

Several stocks made notable premarket moves on Thursday. Riot Platforms surged nearly 20% after second-quarter revenue of $174.2 million exceeded the $154.3 million FactSet consensus, and the crypto miner announced a 191-megawatt data center lease deal with a Leading Frontier AI Lab. Hims & Hers Health fell 6% after trimming the upper end of its full-year EBITDA outlook and posting a net loss of 37 cents per share for Q2, versus a profit of 17 cents a year earlier. Intel edged lower after upsizing a common stock offering to $20 billion from $15 billion for general corporate purposes. Plug Power rallied 13% on a smaller-than-expected second-quarter loss, while First Solar gained more than 3% after Baird upgraded the stock to outperform and raised its price target to $318, citing a strong utility-scale market. Cardinal Health moved nearly 2% higher as adjusted earnings of $2.60 per share beat the $2.42 estimate, though revenue of $63.67 billion missed the $65.15 billion consensus, and full-year EPS guidance topped expectations.

Cardinal Health announced that its Board of Directors approved a quarterly dividend of $0.5158 per share, payable from the company's capital surplus. The dividend will be paid on October 15, 2026 to shareholders of record as of the close of business on October 1, 2026.

Zacks Investment Research has identified four medical-sector companies with the right setup to beat second-quarter earnings expectations. The picks are CVS Health, Cardinal Health, Humana, and ACADIA Pharmaceuticals, each combining a positive Earnings ESP with a Zacks Rank of 1 or 2. Humana carries a Zacks Rank of 1 and an Earnings ESP of plus 1.71 percent, with consensus revenue estimates of 40.65 billion dollars implying 25.5 percent growth. CVS Health holds a Zacks Rank of 2 and an Earnings ESP of plus 1.42 percent, with consensus revenue of 100.18 billion dollars. Cardinal Health also has a Zacks Rank of 2 and an Earnings ESP of plus 1.24 percent, with fiscal fourth-quarter revenue pegged at 65.61 billion dollars. ACADIA Pharmaceuticals rounds out the list with a Zacks Rank of 2 and an Earnings ESP of plus 25.00 percent, driven by expected growth from Daybue and Nuplazid.

Cardinal Health has acquired urology-focused medical supplier Strive Medical and the diabetes business of AdaptHealth in a pair of deals totaling $360 million, advancing its at-home solutions business. The diabetes unit purchase follows Cardinal's buyout of Advanced Diabetes Supply in April 2025, while the Strive Medical deal builds on recent urology acquisitions including the $1.9 billion Solaris Health transaction in August 2025. CEO Jason Hollar said the transactions expand the company's depth across diabetes management and urology, strengthening its leadership in home care. The at-home solutions business has already migrated all Advanced Diabetes Supply volume onto its distribution network, onboarded nearly 500,000 new customers, and launched a digital referral pathway program.

AdaptHealth is divesting its Diabetes Health business to Cardinal Health in a $235 million cash deal. The unit provides continuous glucose monitors, insulin pumps, and related services for diabetes treatment. AdaptHealth says the sale will allow it to redeploy capital toward its core sleep and respiratory care segments, strengthen its balance sheet, and pursue growth opportunities. The transaction is subject to regulatory review and other closing conditions, with a financial update expected during AdaptHealth's second quarter 2026 earnings call on August 4. Deutsche Bank Securities is advising AdaptHealth, while J.P. Morgan Securities is advising Cardinal Health.

Jim Cramer said Cardinal Health deserves to trade higher, calling it the best in its group alongside McKesson and Cencora. He noted the company had a great quarter that was obscured by a rotation out of healthcare. Cramer, whose charitable trust owns the stock, described Cardinal Health as a real stalwart and said he does not think it is done.

Cardinal Health is showing signs of being undervalued according to several valuation metrics. The stock holds a Zacks Rank #2, or Buy, and a Value grade of A. Its price-to-earnings ratio stands at 15.48, below the industry average of 16.51, while its PEG ratio of 1.24 is also lower than the industry's 1.85. Additionally, the price-to-cash-flow ratio of 15.27 compares favorably to the industry average of 17.54. These figures, combined with a strong earnings outlook, suggest the stock may be a compelling value opportunity.

StockStory identifies Flex as a large-cap stock to sell, citing its below-average annual revenue growth of 2.8% over the last two years, a low free cash flow margin of 2.8% over five years, and shrinking returns on capital. In contrast, the firm names Cencora and Cardinal Health as attractive large-cap stocks. Cencora benefits from its $328.7 billion revenue scale, share buybacks that boosted earnings per share growth, and strong returns on capital, trading at 15.3 times forward earnings. Cardinal Health, with $250.7 billion in revenue, is projected to grow revenue 8.9% in the next twelve months and has grown annual earnings per share by 12.4% over five years, trading at 20.2 times forward earnings.

Cardinal Health shares reached a new 52-week high of $235.71, gaining 16.6% over the past month and 13.4% year-to-date, outperforming the Zacks Medical sector's decline of 2.7%. The company has consistently beaten earnings estimates, most recently reporting EPS of $3.17 versus a consensus of $2.80 on April 30, 2026. For the current fiscal year, analysts expect earnings of $10.76 per share on revenues of $256.24 billion, representing a 30.58% increase in EPS. The stock carries a Zacks Rank of #2 (Buy) and a VGM Score of A, with a Value Score of A, Growth Score of A, and Momentum Score of C, though it trades at a forward P/E of 21.7X, above the peer industry average of 16X.

Cardinal Health shares have risen nearly 8% year to date, building on a 74% gain in 2025 and outperforming peers McKesson and Cencora. Over the same period, shares of McKesson have lost 8.5%, while those of Cardinal Health have declined 19.5%. The company raised its fiscal 2026 earnings guidance after reporting 35% EPS growth in the third quarter, driven by an 11% revenue increase in its Pharmaceutical and Specialty Solutions segment to $56.1 billion and an 18% jump in segment profit. Management expects specialty revenues to exceed $50 billion for the full year, supported by expanding manufacturer partnerships and physician practice penetration. Cardinal Health is also scaling newer businesses, with its Other Growth Businesses segment posting 31% revenue growth and a 34% profit increase, led by more than 30% growth in Nuclear and Precision Health Solutions.