Cardinal Health, Inc.

🇺🇸New York Stock Exchange
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Cardinal Health, Inc. stock analysis CAH overview
Somewhat Bullish +45

Cardinal Health (NYSE:CAH) Sets New 12-Month High - What's Next?

📈 Cardinal Health stock hit a new 52-week high of $240.93 with significant trading volume.

💰 Q1 EPS beat estimates at $3.17 versus the consensus of $2.79.

📉 Revenue missed analyst expectations, coming in at $60.94 billion against a forecast of $62.10 billion.

📈 Revenue grew 11% year-over-year to reach $60.94 billion for the quarter.

💸 Net margin was low at 0.62% with a negative return on equity of 92.61%.

🎯 FY 2026 guidance set between $10.70 and $10.80 EPS by management.

📊 Analysts expect full-year 2026 EPS of $10.76, slightly above company guidance.

💵 Quarterly dividend increased to $0.5158 per share with a yield of 0.9%.

🏦 Institutional ownership stands at 87.17% of the company's total shares.

📈 Wellington Management Group increased its stake by 153.2% in the third quarter.

🚀 Marshall Wace LLP grew its position by 1,328.1% during the fourth quarter.

🏥 Cardinal Health operates as a major provider of supply chain and distribution services for healthcare.

📦 Core business includes wholesale distribution of pharmaceuticals and medical-surgical products.

🌍 The company serves hospitals, pharmacies, physician offices, and clinical laboratories globally.

📅 Earnings data was last announced on Thursday, April 30th.

Bullish Signals
  • Stock price reached a new 52-week high of $240.93, indicating strong market momentum.
  • Reported EPS of $3.17 significantly beat the consensus estimate of $2.79 by $0.38.
  • Revenue grew 11% year-over-year to reach $60.94 billion despite missing absolute expectations.
  • Quarterly dividend increased from $0.51 to $0.5158 per share, signaling confidence in cash flow.
  • Wellington Management Group lifted its stake by 153.2%, adding over 3.5 million shares.
  • Marshall Wace LLP grew its position by 1,328.1%, acquiring nearly 900k additional shares.
  • Institutional ownership remains robust at 87.17%, indicating strong investor confidence.
  • Morgan Stanley raised its price target to $255.00 and maintained an 'overweight' rating.
Risk Factors
  • Revenue of $60.94 billion missed analyst expectations of $62.10 billion by over $1 billion.
  • Net margin was extremely low at just 0.62%, indicating potential pressure on profitability.
  • Return on equity is negative at -92.61%, suggesting significant leverage or accounting adjustments.
  • Zacks Research lowered its rating from 'strong-buy' to 'hold' in a recent report.
  • Weiss Ratings cut the stock rating from 'buy (b+)' to 'buy (b)', reflecting cautious sentiment.
Full Analysis
Cardinal Health (NYSE:CAH) shares reached a new 52-week high, trading as high as $240.93 with a volume of over 1.9 million shares. The stock recently closed at $237.92, reflecting continued investor interest despite mixed analyst sentiment regarding the company's recent performance and future outlook. In its latest quarterly earnings report released on April 30th, Cardinal Health reported EPS of $3.17, significantly beating the consensus estimate of $2.79. However, revenue came in at $60.94 billion, falling short of analyst expectations of $62.10 billion. The company achieved an 11% year-over-year revenue increase but posted a net margin of only 0.62% and a negative return on equity of 92.61%. Looking ahead, Cardinal Health has set full-year 2026 guidance between $10.70 and $10.80 per share, while analysts currently expect $10.76 EPS for the fiscal year. The company also declared a quarterly dividend of $0.5158 per share, payable on July 15th to shareholders of record on July 1st, representing an increase from the previous quarter's payout and a yield of approximately 0.9%. Institutional ownership remains strong at 87.17%, with notable activity from major funds including Wellington Management Group, which lifted its stake by 153.2%, and Marshall Wace LLP, which increased its position by over 1,300%. These institutional moves suggest continued confidence in the company's long-term positioning within the healthcare distribution sector.