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Cardinal Health
(NYSE:CAH)
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Rating:63Neutral
Price Target:
$253.00
▲(18.23% Upside)
Action:Reiterated
Date:05/01/26
The score is driven mainly by the constructive earnings outlook (raised FY2026 EPS and free-cash-flow guidance) and strong cash generation, partially offset by balance-sheet weakness (negative equity and sizable debt) and currently bearish technical momentum.
Positive Factors
Cash generation & FCF
Sustained, sizable operating cash flow and strong free cash flow guidance provide durable financial flexibility. This cash generation supports debt reduction, buybacks and reinvestment, improving resilience to cyclical pressures and enabling continued capital allocation to growth initiatives over the medium term.
Negative Factors
Weak balance sheet
A negative equity position and large absolute debt burden materially weaken the capital cushion and distort leverage metrics. This reduces financial flexibility, raises refinancing and covenant risk as interest rates rise, and constrains capacity to fund M&A or absorb shocks without aggressive cash use or equity actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & FCF
Sustained, sizable operating cash flow and strong free cash flow guidance provide durable financial flexibility. This cash generation supports debt reduction, buybacks and reinvestment, improving resilience to cyclical pressures and enabling continued capital allocation to growth initiatives over the medium term.
Read all positive factors
Cardinal Health Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across various business units, showing which segments are leading growth and contributing most to the company’s top line.
Breaks down sales across various business units, showing which segments are leading growth and contributing most to the company’s top line.
Data provided by:
The Fly
The FlyCardinal Health (CAH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$55.54B
Dividend Yield0.98%
Average Volume (3M)2.23M
Price to Earnings (P/E)36.1
Beta (1Y)0.31
Revenue Growth12.80%
EPS Growth2.04%
CountryUS
Employees57,700
SectorHealthcare
Sector Strength45
IndustryMedical - Distribution
Share Statistics
EPS (TTM)6.56
Shares Outstanding234,205,860
10 Day Avg. Volume2,077,825
30 Day Avg. Volume2,228,745
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)-14.56
Price to Sales (P/S)0.18
P/FCF Ratio21.89
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue0.23
Enterprise Value/Gross Profit6.28
Enterprise Value/Ebitda19.16
Forecast
1Y Price Target
$250.00Price Target Upside16.83% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)12.01
Revenue Forecast (FY)$277.11B
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 makes money primarily by purchasing pharmaceuticals and medical products from manufacturers and distributing them to healthcare providers, earning a margin (spread) between its acquisition cost and selling price, plus fees for valu...
Cardinal Health Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Positive
The call highlighted broad-based operational strength: solid top-line growth, outsized EPS improvement, robust free cash flow generation, meaningful outperformance in Specialty and other growth businesses, and a raised, narrowed FY26 outlook. Challenges noted include a $184M goodwill impairment for Navista, tariff-related pressure in the GMPD business with uncertain refunds (paid ~ $200M to date), higher headline SG&A and rising interest costs, and revenue mix headwinds from IRA/WAC adjustments and GLP-1 moderation. On balance the company emphasized durable fundamentals, disciplined capital deployment (including $1B of buybacks), successful integration of acquisitions and confidence in long-term targets.Positive Updates
Top-line and EPS Growth
Total company revenue rose 11% year-over-year to $61.0 billion in Q3; gross profit increased 18% to $2.5 billion; enterprise operating earnings grew 18% to $956 million; third quarter non-GAAP EPS was $3.17, up 35%.
Negative Updates
Navista Goodwill Impairment
Recorded a $184 million pretax, noncash goodwill impairment related to the Navista business on a GAAP basis due to changes in the business risk profile and higher discount rates; impairment did not affect non-GAAP results but signals a contraction in part of the MSO strategy.
Read all updates
Q3-2026 Updates
Positive
Negative
Top-line and EPS Growth
Total company revenue rose 11% year-over-year to $61.0 billion in Q3; gross profit increased 18% to $2.5 billion; enterprise operating earnings grew 18% to $956 million; third quarter non-GAAP EPS was $3.17, up 35%.
Read all positive updates
Company Guidance
Cardinal raised its fiscal 2026 guidance, boosting non‑GAAP EPS to $10.70–$10.80 (a ~$0.50 midpoint increase, implying ~30–31% annual EPS growth), and increasing adjusted free cash flow to $3.3–$3.7B (from $3.0–$3.5B); it also lowered full‑year non‑GAAP effective tax rate to ~19% (from 21–23%), updated interest & other to ~$340M (from $325M), and now models ~237M weighted average shares. Segment guidance: Pharma revenue is expected at the low end of the prior 15–17% range with segment profit growth raised and narrowed to 22–23% (vs. 20–22% prior); GMPD revenue reiterated at 1–3% with profit guidance of $150M; Other growth businesses revenue guidance remains 26–28% while profit growth was lifted to 36–38% (from 33–35%). Management said the hike reflects ~ $0.13 of operational strength (Pharma and Other) with the remainder below the line, and pointed to Q3 momentum (Q3 non‑GAAP EPS $3.17, +35%; total revenue $61B, +11%; gross profit $2.5B, +18%; enterprise operating earnings $956M, +18%; Q3 adjusted FCF $1.7B; cash ≈$4B) as the basis for confidence.Cardinal Health Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
28
Negative
Cash Flow
74
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 250.55B | 222.58B | 226.83B | 204.98B | 181.33B | 162.47B |
| Gross Profit | 9.23B | 8.17B | 7.41B | 6.89B | 6.48B | 6.78B |
| EBITDA | 3.03B | 3.11B | 1.96B | 1.44B | 55.00M | 1.29B |
| Net Income | 1.56B | 1.56B | 852.00M | 330.00M | -938.00M | 611.00M |
Balance Sheet | ||||||
| Total Assets | 56.69B | 53.12B | 45.12B | 43.35B | 43.88B | 44.45B |
| Cash, Cash Equivalents and Short-Term Investments | 3.94B | 3.87B | 5.13B | 4.08B | 4.72B | 3.41B |
| Total Debt | 8.92B | 9.35B | 5.61B | 5.18B | 5.80B | 6.71B |
| Total Liabilities | 59.36B | 55.76B | 48.33B | 46.31B | 44.58B | 42.66B |
| Stockholders Equity | -2.83B | -2.78B | -3.21B | -2.96B | -709.00M | 1.79B |
Cash Flow | ||||||
| Free Cash Flow | 4.39B | 1.85B | 3.25B | 2.36B | 2.73B | 2.03B |
| Operating Cash Flow | 5.01B | 2.40B | 3.76B | 2.84B | 3.12B | 2.43B |
| Investing Cash Flow | -3.95B | -5.61B | -1.85B | -454.00M | 567.00M | -378.00M |
| Financing Cash Flow | -444.00M | 1.95B | -847.00M | -3.05B | -2.46B | -1.32B |
Cardinal Health Technical Analysis
Positive
213.99
Price Trends
209.36
Positive
212.07
Positive
201.45
Positive
Market Momentum
8.61
Negative
69.65
Neutral
65.41
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 213.99 is below the 20-day moving average (MA) of 229.54, above the 50-day MA of 209.36, and above the 200-day MA of 201.45, indicating a bullish trend. The MACD of 8.61 indicates Negative momentum. The RSI at 69.65 is Neutral, neither overbought nor oversold. The STOCH value of 65.41 is Neutral, 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 12 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $2.29B | 12.26 | 10.29% | ― | -4.31% | -8.94% | |
65 Neutral | $95.85B | 21.19 | -265.44% | 0.37% | 12.36% | 48.80% | |
63 Neutral | $55.54B | 36.15 | -55.72% | 0.98% | 12.80% | 2.04% | |
62 Neutral | $60.23B | 23.60 | 115.93% | 0.66% | 5.95% | 51.04% | |
60 Neutral | $9.48B | 24.92 | 11.86% | ― | 5.64% | 2.92% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
CAH
Cardinal Health
237.15
74.58
45.88%
COR
Cencora
309.57
11.66
3.91%
HSIC
Henry Schein
83.22
9.06
12.22%
MCK
McKesson
818.66
94.38
13.03%
PBH
Prestige Consumer Healthcare
48.29
-30.57
-38.76%
Cardinal Health Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Cardinal Health Posts Strong Q3 2026 Non-GAAP Results
Positive
Apr 30, 2026
On April 30, 2026, Cardinal Health reported third-quarter fiscal 2026 revenue of $60.9 billion, up 11% year on year, driven largely by growth in brand and specialty pharmaceutical sales to existing customers. GAAP operating earnings fell 30% to $5...
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.