Cardinal Health (NYSE:CAH) Shares Gap Up Following Earnings Beat

Cardinal Health, Inc. (NYSE:CAH)’s share price gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $206.85, but opened at $217.00. Cardinal Health shares last traded at $227.2750, with a volume of 627,667 shares.

The company reported $2.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.31 by $0.32. Cardinal Health had a negative return on equity of 84.37% and a net margin of 0.68%.The business had revenue of $65.63 billion during the quarter, compared to analysts’ expectations of $64.88 billion. During the same period in the prior year, the firm posted $1.93 EPS. The business’s quarterly revenue was up 18.8% compared to the same quarter last year.

Key Headlines Impacting Cardinal Health

Here are the key news stories impacting Cardinal Health this week:

• Positive Sentiment: Q2 EPS of $2.63 topped consensus and rose from $1.93 a year ago — a clear beat that helped lift the stock. Cardinal Health (CAH) Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Revenue of ~$65.6B (+~19% YoY) also beat estimates; company reported strong operating earnings growth and raised FY non‑GAAP EPS guidance to $10.15–$10.35. Cardinal Health Reports Second Quarter Fiscal Year 2026 Results and Raises Outlook
• Positive Sentiment: Management explicitly cited surging demand for specialty drugs (GLP‑1s) and across-segment strength as the basis for raising profit expectations, supporting upside to estimates. Cardinal Health boosts annual profit forecast banking on surging demand for specialty drugs
• Positive Sentiment: Company completed its $750M annual baseline share repurchase and says it has reached its targeted leverage range — both balance-sheet moves that often support multiple expansion. Cardinal Health Reports Second Quarter Fiscal Year 2026 Results and Raises Outlook
• Neutral Sentiment: Media and analyst previews had flagged specialty and pharma segments as the likely beat drivers ahead of results; today’s moves largely reflect those expectations being realized. Pharma, Specialty Units Likely to Drive Cardinal Health’s Q2 Earnings
• Negative Sentiment: Despite the beat, GAAP net margin remained low (~0.68%) and reported a negative return on equity; these metrics may keep some investors cautious about profitability quality. Cardinal Health Stock Performance
• Negative Sentiment: Valuation is elevated versus historical averages (P/E near mid‑30s), so further upside may rely on ongoing specialty momentum and margin expansion. Cardinal Health, Inc. (CAH) Hits Fresh High

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on CAH shares. Wall Street Zen upgraded shares of Cardinal Health from a “buy” rating to a “strong-buy” rating in a research note on Saturday, November 8th. TD Cowen reiterated a “buy” rating on shares of Cardinal Health in a research report on Tuesday, January 27th. Jefferies Financial Group upped their target price on Cardinal Health from $220.00 to $270.00 and gave the company a “buy” rating in a research report on Thursday, January 22nd. Evercore ISI lifted their price target on Cardinal Health from $190.00 to $220.00 and gave the stock an “outperform” rating in a research report on Friday, October 31st. Finally, Leerink Partners set a $240.00 price objective on Cardinal Health in a report on Tuesday, January 13th. Fourteen analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $230.43.

Hedge Funds Weigh In On Cardinal Health

A number of hedge funds and other institutional investors have recently bought and sold shares of CAH. SJS Investment Consulting Inc. lifted its stake in shares of Cardinal Health by 1,363.6% in the 3rd quarter. SJS Investment Consulting Inc. now owns 161 shares of the company’s stock worth $25,000 after acquiring an additional 150 shares during the period. Aventura Private Wealth LLC acquired a new stake in Cardinal Health in the fourth quarter valued at about $25,000. Jones Financial Companies Lllp boosted its holdings in Cardinal Health by 198.3% in the 1st quarter. Jones Financial Companies Lllp now owns 21,112 shares of the company’s stock valued at $27,000 after purchasing an additional 14,034 shares in the last quarter. Atlantic Edge Private Wealth Management LLC lifted its position in shares of Cardinal Health by 75.0% in the second quarter. Atlantic Edge Private Wealth Management LLC now owns 175 shares of the company’s stock valued at $29,000 after acquiring an additional 75 shares in the last quarter. Finally, JPL Wealth Management LLC acquired a new stake in shares of Cardinal Health during the third quarter valued at $31,000. 87.17% of the stock is currently owned by hedge funds and other institutional investors.

Cardinal Health Stock Performance

The business has a 50-day moving average of $206.34 and a 200 day moving average of $179.16. The stock has a market cap of $54.41 billion, a PE ratio of 34.52, a PEG ratio of 1.48 and a beta of 0.64.

About Cardinal Health

Cardinal Health is a multinational healthcare services and products company headquartered in Dublin, Ohio. Tracing its roots to the early 1970s, the company has grown into a major provider of supply chain and distribution services for the healthcare sector. Cardinal Health operates across a range of service lines that support hospitals, health systems, pharmacies, physician offices and clinical laboratories.

The company’s core activities include the wholesale distribution of branded and generic pharmaceuticals, the supply and distribution of medical-surgical products, and the provision of logistics and inventory management solutions.