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Cardinal Health, Inc.
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S&P 500
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$53.9B
Market Cap
26.0
P/E
1.20
PEG
18.7%
ROCE
-53.7%
ROE
-3.67
D/E
1.3%
OPM
-4.2%
% from 52W High
81
α RS
🔍 CAH is showing a multi-screen setup because it matches 5 of 39 tracked screener presets, RS Rating is 81, an ECS of 67.6 last quarter, and it has maintained a 20-day Near 52-Week High momentum persistence. The main caution: the Institutional Quality preset's Backtest win rate is only 44.1%. Net: Mixed signal stack, not a recommendation. ? Conviction RS Rating ECS Momentum Streaks Backtest
Sources
Conviction 5/39 · RS Rating 81 · ECS 67.6 · Near 52-Week High streak: 20d · Backtest win rate 44.1%
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🌏 Global Investor Returns
Currency-adjusted total returns for CAH including FX impact
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📈 Price History
Ratio Health
— Excellent
— Good
— Average
— Poor
By Category
📊 Peer Medians
About

Cardinal Health, Inc. operates as a healthcare services and products company in the United States and internationally. It operates in two segments: Pharmaceutical and Specialty Solutions, and Global Medical Products and Distribution. The company offers customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. It distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The company also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; pharmacy management services to hospitals; operates pharmacies, including pharmacies in community health centers; and repackages generic pharmaceuticals and over-the-counter healthcare products. In addition, it 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; compression, incontinence, nutritional delivery, and wound care products; single-use surgical drapes, gowns, and apparel products; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. Further, the company 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. Additionally, it manufactures, prepares, and delivers radiopharmaceuticals; and optimizes direct shipments through integrated technology solutions. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.

Key Ratios Snapshot
📈 Growth Pattern
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 420.4K $88.8M 0.11% Mar 2026
Jim Simons Renaissance Technologies LLC 344.8K $72.9M 0.11% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q4 2026
Revenue
$63.7B
+6% YoY
Operating Income
$935M
+30% YoY
Operating Margin
1.5%
+0.3pp YoY
Net Income
$682M
+36% YoY
What Went Right
  • Pharma segment profit grew 21% to $645M on strong brand/specialty demand
  • All five operating segments delivered double-digit profit growth in FY26, even excluding $100M IEEPA tariff refund
  • Enterprise adjusted free cash flow hit $5B, with full-year non-GAAP EPS up 37% to $11.26
What to Watch
  • GMPD revenue declined 2% due to tariff refund payments to customers and lower distribution volumes
  • Tariff/commodity cost headwinds (fuel, resins, Iran conflict) could push GMPD profit to lower end of guidance
  • IRA WAC changes create ~500 bps revenue headwind, offsetting GLP-1 growth tailwind
Management Guidance
  • FY27 non-GAAP EPS guidance of $12.40-$12.60 (+13%-15% vs $10.95 ex-IEEPA baseline)
  • FY27 segment profit growth: Pharma 8%-11%, GMPD $200M-$220M, Other 15%-18%
  • FY27 adjusted free cash flow of $3.5B-$4B, CapEx ~$700M, share repurchases ≥$1B
Investor Lens
The thesis is stronger after this call — Cardinal Health delivered broad-based double-digit profit growth across all segments, generated $5B in adjusted free cash flow, raised its buyback authorization by $5B, and guided FY27 EPS growth above its long-term target. The main overhang remains GMPD margin recovery and tariff/commodity volatility, but management’s disciplined execution and specialty/Other momentum provide confidence. The stock appears set up for continued rerating if FY27 guidance is achieved.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong quarter — revenue +6%, EPS +40%, all segments growing double-digits
Revenue
Q4 revenue grew 6% to $63.7B, led by Pharma (+6% to $58.8B) and Other (+7% to $1.7B); GMPD fell 2% to $3.1B due to tariff repayments and lower volumes. Full-year revenue rose 14% to $254.2B.
Profitability
Non-GAAP operating earnings jumped 30% to $935M (including $100M IEEPA tariff refund in GMPD); non-GAAP net income rose 36% to $682M. Adjusted EPS of $2.91 grew 40% YoY.
Margins
Operating margin expanded to roughly 1.5% (from 1.2% prior year) as gross profit gained 16% to $2.6B, outpacing SG&A growth of 9.5%. Pharma segment profit grew 21%, Other +14%, GMPD more than doubled to $150M (ex-refund: $50M).
Balance Sheet
Generated $5B adjusted free cash flow in FY26, ending with $4.9B cash. Completed $1.35B buybacks in FY26, and approved a $5B incremental repurchase authority (total $6.4B). New $4B revolver simplifies liquidity.
Key Risks
Management flagged tariff and commodity cost pressure (fuel, resins, Iran conflict) as potential drags on GMPD, while noting IRA WAC changes and GLP-1 growth roughly offset each other in Pharma revenue. GMPD profitability remains a work in progress, with Q1 FY27 profit expected to be roughly half of Q1 FY26 due to FX and distributor purchase timing.
Outlook
FY27 guided to non-GAAP EPS of $12.40–$12.60 (+13–15% off $10.95 baseline), above the long-term 12–14% target. Pharma profit growth of 8–11%, GMPD profit of $200–$220M, and Other profit growth of 15–18% are embedded.
Generated by AI · Q4 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q4 2026 Q4 2026 2026-08-11
Q4 and fiscal 2026 saw strong revenue, profit, and cash flow growth, led by Pharmaceutical and Specialty Solutions and other growth businesses. Fiscal 2027 guidance calls for double-digit EPS and profit growth, continued investment, and robust capital returns, with risks from tariffs, input costs, and regulatory changes.
Q3 2026 Q3 2026 2026-04-30
Q3 saw double-digit revenue and profit growth, led by specialty and pharma, with robust results in other growth businesses. Guidance for EPS and free cash flow was raised, reflecting operational strength, tax benefits, and successful M&A integration.
Q2 2026 Q2 2026 2026-02-05
Q2 saw 19% revenue growth and 36% EPS growth, with all segments delivering double-digit profit gains. Fiscal 2026 EPS guidance was raised, driven by strong specialty, generics, and growth businesses, while disciplined capital allocation and operational improvements support long-term value.
Q1 2026 Q1 2026 2025-10-30
Strong Q1 results featured 22% revenue growth and 36% EPS growth, with all segments contributing and robust demand in pharma and specialty. Guidance was raised for EPS, cash flow, and segment profits, supported by acquisitions and investments in capacity and automation.
Q4 2025 Q4 2025 2025-08-12
Q4 and FY2025 saw double-digit profit growth across all segments, with strong cash flow, margin expansion, and strategic acquisitions like Solaris Health. FY2026 EPS guidance was raised 20%, driven by robust demand, operational efficiencies, and growth in specialty and home solutions.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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