Cardinal Health (CAH)
NYSE:CAH
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Cardinal Health
(NYSE:CAH)
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Rating:65Neutral
Price Target:
$223.00
▲(4.12% Upside)
Action:DowngradedDate:03/23/26
The score is supported primarily by strong earnings momentum and raised FY26 guidance from the latest earnings call, plus robust free-cash-flow generation. Offsetting these positives are meaningful balance-sheet risk (negative equity and elevated leverage) and weak near-term technical momentum (negative MACD and price below key moving averages). Valuation is neutral-to-slightly-stretched with a modest dividend yield.
Positive Factors
Strong free cash flow
Large, growing free cash flow (TTM FCF $5.5B; +23.7%) provides durable ability to service debt, fund capex, execute buybacks and dividends, and absorb working-capital swings inherent in distribution. This cash engine supports strategic flexibility over the next 2–6 months.
Negative Factors
Elevated leverage & negative equity
High absolute debt and negative shareholders' equity materially weaken the balance sheet cushion. This reduces financial flexibility, increases refinancing and covenant risk if cash flow weakens, and constrains capital allocation choices during adverse cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Large, growing free cash flow (TTM FCF $5.5B; +23.7%) provides durable ability to service debt, fund capex, execute buybacks and dividends, and absorb working-capital swings inherent in distribution. This cash engine supports strategic flexibility over the next 2–6 months.
Read all positive factors
Cardinal Health (CAH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$50.72B
Dividend Yield0.98%
Average Volume (3M)1.74M
Price to Earnings (P/E)25.7
Beta (1Y)0.39
Revenue Growth4.37%
EPS Growth28.48%
CountryUS
Employees57,700
SectorHealthcare
Sector Strength45
IndustryMedical - Distribution
Share Statistics
EPS (TTM)2.63
Shares Outstanding235,316,010
10 Day Avg. Volume1,229,661
30 Day Avg. Volume1,735,186
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 Cap1.12
Enterprise Value/Revenue0.23
Enterprise Value/Gross Profit6.40
Enterprise Value/Ebitda17.53
Forecast
1Y Price Target
$250.20Price Target Upside16.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)10.32
Revenue Forecast (FY)$258.31B
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 su...
How the Company Makes Money
Cardinal Health makes money mainly by selling and distributing healthcare products through two primary operating segments: Pharmaceutical and Specialty Solutions, and Global Medical Products and Distribution. In its Pharmaceutical and Specialty So...
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 Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call communicated broad-based, strong operational and financial performance across segments with multiple upward guidance revisions (notably EPS and pharma profit), robust revenue and profit growth, and improved leverage and cash generation. Most negatives were transitory or tied to known acquisition and macro headwinds (interest costs, tariffs, timing-related GNPD inventory effects) that management is actively addressing. Given the weight and scale of positive results, guidance raises, and clear momentum in specialty and other growth businesses, positives substantially outweigh the negatives.Positive Updates
Raised Full-Year EPS Guidance
Updated fiscal 2026 non-GAAP diluted EPS guidance to $10.15–$10.35 (was at least $10), implying year-over-year EPS growth of ~23%–26% driven by strong Q1/Q2 performance and improved outlook for the remainder of the year.
Negative Updates
Acquisition-Related Financing Costs
Interest and other expense rose to $77 million in Q2 from $38 million a year ago, driven primarily by financing costs related to recent acquisitions (including Solaris Health), increasing near-term below-the-line expense.
Read all updates
Q2-2026 Updates
Positive
Negative
Raised Full-Year EPS Guidance
Updated fiscal 2026 non-GAAP diluted EPS guidance to $10.15–$10.35 (was at least $10), implying year-over-year EPS growth of ~23%–26% driven by strong Q1/Q2 performance and improved outlook for the remainder of the year.
Read all positive updates
Company Guidance
Cardinal Health raised its FY26 non‑GAAP EPS outlook to $10.15–$10.35 (vs. prior at least $10), implying 23%–26% YoY EPS growth, supported by strong Q2 results (total revenue +19% to $66.0B; gross margin +24% to $2.4B; operating earnings $877M, +38%; non‑GAAP diluted EPS $2.63, +36%). Segment guidance: Pharma & Specialty revenue guidance unchanged but pharma segment profit now expected to grow 20%–22% (up from 16%–19%); GNPD revenue 1%–3% with segment profit ~ $150M; Other growth businesses revenue 26%–28% and profit 33%–35% (up from 29%–31%). Other metrics: updated tax rate 21%–23% (down 1ppt), diluted shares ~237–238M, adjusted free cash flow $3.0–3.5B, Moody’s adjusted leverage 3.2x (inside 2.75–3.25 target), YTD adj. FCF $1.8B, cash $2.8B, YTD CapEx ~$240M, and $1.0B returned to shareholders YTD (≈$250M dividends, $750M repurchases; Q2 repurchases $375M at a $173 average).Cardinal Health Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
34
Negative
Cash Flow
78
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 244.49B | 222.58B | 226.83B | 204.98B | 181.33B | 162.47B |
| Gross Profit | 8.86B | 8.17B | 7.41B | 6.89B | 6.48B | 6.78B |
| EBITDA | 3.23B | 3.11B | 1.96B | 1.44B | 55.00M | 1.29B |
| Net Income | 1.67B | 1.56B | 852.00M | 330.00M | -938.00M | 611.00M |
Balance Sheet | ||||||
| Total Assets | 58.08B | 53.12B | 45.12B | 43.35B | 43.88B | 44.45B |
| Cash, Cash Equivalents and Short-Term Investments | 2.78B | 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 | 60.78B | 55.76B | 48.33B | 46.31B | 44.58B | 42.66B |
| Stockholders Equity | -2.70B | -2.78B | -3.21B | -2.96B | -709.00M | 1.79B |
Cash Flow | ||||||
| Free Cash Flow | 5.51B | 1.85B | 3.25B | 2.36B | 2.73B | 2.03B |
| Operating Cash Flow | 6.10B | 2.40B | 3.76B | 2.84B | 3.12B | 2.43B |
| Investing Cash Flow | -6.66B | -5.61B | -1.85B | -454.00M | 567.00M | -378.00M |
| Financing Cash Flow | -468.00M | 1.95B | -847.00M | -3.05B | -2.46B | -1.32B |
Cardinal Health Technical Analysis
Positive
214.18
Price Trends
217.23
Negative
211.13
Positive
185.25
Positive
Market Momentum
-0.56
Negative
53.57
Neutral
84.52
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 214.18 is above the 20-day moving average (MA) of 211.49, below the 50-day MA of 217.23, and above the 200-day MA of 185.25, indicating a neutral trend. The MACD of -0.56 indicates Negative momentum. The RSI at 53.57 is Neutral, neither overbought nor oversold. The STOCH value of 84.52 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 10 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $2.68B | 15.81 | 10.16% | ― | -0.02% | -1.87% | |
68 Neutral | $106.03B | 21.30 | -245.27% | 0.37% | 17.23% | 66.17% | |
65 Neutral | $50.72B | 25.74 | -58.93% | 0.98% | 4.37% | 28.48% | |
65 Neutral | $8.64B | 23.11 | 11.92% | ― | 3.51% | 29.65% | |
64 Neutral | $62.41B | 29.30 | 101.43% | 0.66% | 9.31% | 5.92% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
CAH
Cardinal Health
214.18
81.43
61.34%
COR
Cencora
319.12
36.61
12.96%
HSIC
Henry Schein
75.99
11.71
18.22%
MCK
McKesson
864.57
174.44
25.28%
PBH
Prestige Consumer Healthcare
56.84
-24.10
-29.78%
Cardinal Health Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Cardinal Health Announces Board Chair Transition and Outlook
Positive
Mar 23, 2026
Cardinal Health, based in Dublin, Ohio, is a major distributor of pharmaceuticals and specialty products, a global manufacturer and distributor of medical and laboratory supplies, and a supplier of home-health and direct-to-patient products and se...
Executive/Board Changes
Cardinal Health Announces Planned Chief Accounting Officer Transition
Neutral
Mar 5, 2026
On March 2, 2026, Cardinal Health announced that Senior Vice President and Chief Accounting Officer Mary Scherer plans to retire in February 2027, marking a scheduled leadership transition in its finance organization. The company will launch a sea...
Business Operations and StrategyStock BuybackFinancial Disclosures
Cardinal Health posts strong Q2 results, raises guidance
Positive
Feb 5, 2026
On February 5, 2026, Cardinal Health reported strong second-quarter fiscal 2026 results, with revenue rising 19% year over year to $65.6 billion, GAAP operating earnings up 29% to $707 million and non-GAAP operating earnings up 38% to $877 million...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Cardinal Health Raises 2026 EPS Outlook, Highlights Growth
Positive
Jan 13, 2026
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 continu...
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.