Cardinal Health (CAH) AI Stock Analysis

• Market Cap: $48.12B
• Dividend Yield: 0.98%
• Average Volume (3M): 1.90M
• Price to Earnings (P/E): 31.4
• Beta (1Y): 0.34
• Revenue Growth: 4.37%
• EPS Growth: 28.48%
• Country: US
• Employees: 47,922
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): 2.55
• Shares Outstanding: 237,595,050
• 10 Day Avg. Volume: 1,416,024
• 30 Day Avg. Volume: 1,896,022
• PEG Ratio: 0.30
• Price to Book (P/B): -14.56
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 21.89
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 4.90
• Enterprise Value/Ebitda: 12.91
• 1Y Price Target: $230.42
• Price Target Upside: 10.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 9.86
• Revenue Forecast (FY): $257.56B

• Rating: 67 Neutral
• Price Target: $220.00 ▲(5.64% Upside)

The score is driven by strong operating momentum and raised guidance from the latest earnings call, supported by robust cash flow. This is tempered by balance-sheet weakness (negative equity/leverage) and a relatively expensive valuation, while technical signals are neutral-to-mixed.

Positive Factors

Free Cash Flow Strength

Sustained, outsized free cash flow growth provides durable internal funding for strategic initiatives, acquisitions, debt reduction and shareholder returns. Strong cash conversion reduces reliance on external financing and supports long-term financial flexibility and resilience.

Scale and Diversified Revenue Base

Broad-based revenue growth across five operating segments demonstrates scale and diversification. Large, multi-segment revenue reduces customer concentration risk, strengthens negotiating leverage with suppliers, and stabilizes cash flow across healthcare cycles over the medium term.

Specialty & Strategic Build-Out

Accelerating specialty distribution and management-services expansion (including Solaris Health) shifts mix toward higher-growth, differentiated services. This structural move can expand margins, deepen customer stickiness and create barriers to entry versus commodity distributors over the next several years.

Negative Factors

Balance Sheet Leverage

Negative equity and elevated leverage materially weaken financial flexibility. High indebtedness increases refinancing and covenant risk, raises vulnerability to rate shocks, and constrains capital allocation choices, limiting the firm's ability to withstand prolonged industry stress or fund growth without raising costly capital.

Thin Net Profitability

Very slim net margins limit the firm's capacity to absorb cost inflation, regulatory headwinds or competitive pricing pressure. Low profitability reduces return on invested capital and increases reliance on volume, scale, and cost discipline to sustain shareholder value over the medium term.

Tariff and Financing Cost Headwinds

Persisting tariff exposure and elevated interest costs from acquisition financing can structurally erode margins and free cash flow. In a higher-rate, protectionist environment these recurring cost pressures reduce earnings durability and raise sensitivity to macro and policy shifts over the medium term.

Cardinal Health Business Overview & Revenue Model

Company Description

Cardinal Health, Inc. operates as an integrated healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. The company operates in two segments, Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; repackages generic pharmaceuticals and over-the-counter healthcare products; and offers medication therapy management and patient outcomes services to hospitals, other healthcare providers, and payers, as well as provides pharmacy management services to hospitals. The Medical segment manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products and devices that include exam and surgical gloves; needles, syringe, and sharps disposals; compressions; incontinences; nutritional delivery products; wound care products; single-use surgical drapes, gowns, and apparels; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. The segment also distributes a range of national brand products, including medical, surgical, and laboratory products; provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers; and assembles and sells sterile, and non-sterile procedure kits. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.

How the Company Makes Money

Cardinal Health generates revenue through multiple key streams, primarily from its Pharmaceutical and Medical segments. The Pharmaceutical segment earns revenue by distributing branded and generic pharmaceutical products to healthcare providers and pharmacies, including specialty pharmaceuticals and biosimilars. The Medical segment generates income by supplying medical and surgical products, including surgical instruments, diagnostic equipment, and consumables. Additionally, Cardinal Health has strategic partnerships with manufacturers and healthcare organizations, which enhance its distribution capabilities and expand its product offerings. The company also benefits from value-added services such as inventory management solutions and pharmacy management services, further contributing to its revenue model. Factors including market demand for healthcare products, operational efficiencies, and innovations in supply chain management play significant roles in driving Cardinal Health's earnings.

Cardinal Health Financial Statement Overview

Summary

Cardinal Health shows strong revenue growth and robust cash flow performance, with a significant free cash flow growth rate. However, the company faces challenges with profitability and financial leverage, as indicated by a negative stockholders' equity and high debt-to-equity ratio.

Income Statement

Cardinal Health shows a solid revenue growth rate of 5.27% in the TTM, indicating a positive trajectory. The gross profit margin is stable at 3.67%, but the net profit margin is relatively low at 0.70%, suggesting limited profitability. The EBIT and EBITDA margins are modest, reflecting operational efficiency challenges. Overall, the income statement reflects growth but with room for improvement in profitability.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, leading to a concerning debt-to-equity ratio of -3.31. This high leverage poses a risk to financial stability. The return on equity is negative, indicating inefficiencies in generating returns from equity. The equity ratio is also negative, highlighting the need for strengthening the financial position. Overall, the balance sheet suggests financial vulnerability.

Cash Flow

Cardinal Health demonstrates robust cash flow performance with a significant free cash flow growth rate of 140.65% in the TTM. The operating cash flow to net income ratio is healthy, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also solid at 77.18%, reflecting efficient cash utilization. Overall, the cash flow statement indicates strong liquidity and cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	234.31B	222.58B	226.83B	204.98B	181.33B	162.47B
Gross Profit	8.59B	8.17B	7.41B	6.89B	6.48B	6.78B
EBITDA	3.26B	3.11B	1.96B	1.44B	55.00M	1.29B
Net Income	1.59B	1.56B	852.00M	330.00M	-938.00M	611.00M
Balance Sheet
Total Assets	55.23B	53.12B	45.12B	43.35B	43.88B	44.45B
Cash, Cash Equivalents and Short-Term Investments	4.59B	3.87B	5.13B	4.08B	4.72B	3.41B
Total Debt	9.03B	9.35B	5.61B	5.18B	5.80B	6.71B
Total Liabilities	57.96B	55.76B	48.33B	46.31B	44.58B	42.66B
Stockholders Equity	-2.88B	-2.78B	-3.21B	-2.96B	-709.00M	1.79B
Cash Flow
Free Cash Flow	4.45B	1.85B	3.25B	2.36B	2.73B	2.03B
Operating Cash Flow	5.02B	2.40B	3.76B	2.84B	3.12B	2.43B
Investing Cash Flow	-5.66B	-5.61B	-1.85B	-454.00M	567.00M	-378.00M
Financing Cash Flow	2.38B	1.95B	-847.00M	-3.05B	-2.46B	-1.32B

Cardinal Health Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 208.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 208.26 is above the 20-day moving average (MA) of 204.10, above the 50-day MA of 203.17, and above the 200-day MA of 164.38, indicating a bullish trend. The MACD of 1.56 indicates Positive momentum. The RSI at 60.57 is Neutral, neither overbought nor oversold. The STOCH value of 31.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CAH.

Cardinal Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSIC	73 Outperform	$8.96B	23.96	11.39%	―	3.51%	29.65%
COR	70 Neutral	$66.38B	43.44	144.31%	0.66%	9.31%	5.92%
CAH	67 Neutral	$48.12B	31.44	―	0.98%	4.37%	28.48%
PBH	66 Neutral	$3.14B	16.05	11.29%	―	-0.02%	-1.87%
MCK	62 Neutral	$101.90B	25.65	―	0.37%	17.23%	66.17%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Cardinal Health Corporate Events

Cardinal Health Raises 2026 EPS Outlook, Highlights Growth

On January 13, 2026, Cardinal Health raised its fiscal 2026 non-GAAP diluted earnings per share outlook to at least $10.00, up from a prior range of $9.65 to $9.85, citing strong performance across its five operating segments and signaling continued operational momentum ahead of a detailed update on February 5. The company also projected that its Specialty revenues would exceed $50 billion in fiscal 2026, reflecting a three-year compounded annual growth rate of 16%, underpinned by robust demand in specialty distribution, expansion of its management services organization platforms and more than 30% anticipated revenue growth in BioPharma Solutions, including major new patient-support hub wins such as Sanofi and Regeneron’s Dupixent My Way program. In addition, Cardinal Health reported it had successfully transitioned manufacturer distribution service agreements for all branded drugs affected by the 2026 Medicare Drug Price Negotiation Program before the January 1 implementation, aiming to preserve compensation for its distribution role, and launched the ContinuCare Pathway program within its at-Home Solutions business to streamline medical-benefit diabetes supply delivery through a pharmacy-to-supplier referral model, already adopted by Publix’s nearly 1,400 pharmacies and expanding the program’s reach to more than 11,000 retail and grocery pharmacies. These moves, highlighted during the 44th Annual J.P. Morgan Healthcare Conference on January 13, 2026, underscore Cardinal Health’s efforts to strengthen its specialty and direct-to-patient platforms while adapting early to U.S. drug pricing reforms, with implications for earnings visibility and competitive positioning across its healthcare distribution and services portfolio.

The most recent analyst rating on (CAH) stock is a Buy with a $244.00 price target. To see the full list of analyst forecasts on Cardinal Health stock, see the CAH Stock Forecast page.

Cardinal Health Elects Board, Approves Executive Compensation

At its 2025 Annual Meeting of Shareholders on November 5, Cardinal Health elected 12 directors to its Board, approved executive compensation, and ratified Ernst & Young LLP as its auditor for the fiscal year ending June 30, 2026. These decisions reflect shareholder support for the company’s leadership and financial oversight, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (CAH) stock is a Buy with a $225.00 price target. To see the full list of analyst forecasts on Cardinal Health stock, see the CAH Stock Forecast page.

Cardinal Health Reports Strong Q1 2026 Revenue Growth

On October 30, 2025, Cardinal Health reported a 22% increase in first-quarter fiscal year 2026 revenues, reaching $64 billion. The company’s non-GAAP operating earnings rose 37% to $857 million, driven by growth across all five operating segments. The company raised its fiscal 2026 non-GAAP EPS guidance and adjusted free cash flow outlook, reflecting strong financial performance and strategic execution. Cardinal Health also announced the anticipated completion of its acquisition of Solaris Health in early November, which is expected to bolster its market position.

The most recent analyst rating on (CAH) stock is a Buy with a $190.00 price target. To see the full list of analyst forecasts on Cardinal Health stock, see the CAH Stock Forecast page.