Cardinal Health, Inc.

Cardinal Health, Inc. (CAH) Market Cap

Cardinal Health, Inc. has a market capitalization of —.

No quote data available.

CEO: Jason Hollar

Sector: Healthcare

Industry: Medical - Distribution

IPO Date: 1983-08-04

Website: https://www.cardinalhealth.com

Cardinal Health, Inc. (CAH) - Company Information

Market Cap: -|Sector: Healthcare

Company Profile

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 surgery centers, clinical laboratories, physician offices, and patients in the home. The company operates in two segments, Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; repackages generic pharmaceuticals and over-the-counter healthcare products; and offers medication therapy management and patient outcomes services to hospitals, other healthcare providers, and payers, as well as provides pharmacy management services to hospitals. The Medical segment 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; compressions; incontinences; nutritional delivery products; wound care products; single-use surgical drapes, gowns, and apparels; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. The segment also 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. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.

Analyst Sentiment

79%
Strong Buy

From 17 Active Polls

1Y Forecast: $253.38

▲ +0.0% Potential Upside

Consensus Target Metrics

Low Bound

$235

Median

$256

High Bound

$275

Average

$253

Price & Moving Averages

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🎯 Wall Street Analyst Intelligence Report

1-Year structural target targets, chart projections, and sentiment maps.

Average 1Y Target
$253.38
▲ +23.17% Upside
Low Target
$235.00
14% Risk
Median Target
$255.50
24% Mid
High Target
$275.00
34% Max

Consensus Trend Projection

Trailing closures vs. 12-month metrics map.

Analyst Vote Distribution

Aggregate institutional coverage sentiment weights.

Sentiment volume allocation data unavailable.

valuation & financial ratiosdetailed financials

Historical valuation matrix unavailable.

📘 Full Research Report

ℹ️

AI-Generated Research: This report is for informational purposes only.

📘 CARDINAL HEALTH INC (CAH) — Investment Overview

🧩 Business Model Overview

Cardinal Health operates a large-scale healthcare supply chain across providers, pharmacies, and other healthcare customers. The company sits between manufacturers and end users, aggregating product flow, managing inventory, and converting complex pharmaceutical logistics needs into reliable, contract-based distribution and services.

The business model combines (1) distribution—moving a broad range of pharmaceuticals and medical products through established fulfillment networks—and (2) value-added services that improve procurement efficiency, compliance handling, specialty logistics, and operational execution for healthcare customers. Customer purchasing is typically governed by supply agreements and formulary/product access, which increases operational stickiness versus ad hoc sourcing.

💰 Revenue Streams & Monetisation Model

Revenue is generated primarily through:

  • Distribution revenue (transactional): driven by volume, product mix, and contract terms, with profitability influenced by gross margin rates and supply chain efficiency.
  • Services and solutions revenue (more recurring/contractual): includes logistics, clinical and operational support, and specialty-related services that can support steadier contribution margins than pure distribution.

Monetisation is linked to execution in three economic levers:

  • Gross margin discipline: pricing and reimbursement dynamics, mix shift across generic vs. branded products, and targeted contract coverage.
  • Cost-to-serve advantages: network density, warehouse and transportation productivity, and inventory optimization.
  • Working capital management: inventory turns and payables/receivables management, which affect cash conversion and financing needs.

🧠 Competitive Advantages & Market Positioning

Cardinal Health’s moat is best described as a combination of switching costs and cost advantages at scale, reinforced by regulatory and operational complexity.

  • Switching costs (operational + compliance): healthcare customers rely on established purchasing workflows, inventory availability, returns processes, and compliance capabilities. Replacing a distribution partner involves operational disruption and risk management overhead.
  • Cost advantage (scale and network density): the ability to service large, diverse customer bases through optimized routing, warehousing, and procurement leverage supports sustained cost-to-serve.
  • High barriers to entry (regulatory and execution): distribution requires rigorous controls, licensing, quality systems, and consistent service levels; new entrants face meaningful time and cost to replicate coverage and reliability.

Competitive benchmarking:

  • McKesson (MCK): a similarly diversified healthcare logistics and services platform, competing on scale, customer contracts, and service depth.
  • Cencora (formerly AmerisourceBergen) (COR): another major distributor with strong contract coverage and complementary healthcare services.
  • Owens & Minor (OMI): tends to emphasize broad medical-supplies and care settings focus, competing on distribution and supply solutions.

Positioning contrast: While all large distributors benefit from scale, Cardinal Health’s positioning emphasizes an integrated approach across distribution and services that can deepen customer relationships, making procurement less purely price-led and more dependent on operational performance and service integration.

🚀 Multi-Year Growth Drivers

Growth over a 5–10 year horizon is primarily supported by structural demand and increasing complexity in healthcare supply chains:

  • Healthcare utilization and aging demographics: greater volume of prescriptions, medical products, and facility-based consumption drives baseline distribution activity.
  • Rising treatment complexity: increasing therapeutic diversity, specialty product handling needs, and tighter service expectations elevate the value of experienced logistics operators.
  • Specialty and care-setting expansion: growth in specialty therapies and non-hospital care settings supports demand for differentiated logistics and service capabilities.
  • Outpatient migration: a shift in care delivery patterns changes distribution dynamics and increases the importance of responsive networks.
  • Contract penetration and share stability: distribution relationships frequently depend on negotiated supply agreements; continued performance can support steady share and favorable mix.

TAM expansion is driven less by “new categories” of distribution and more by complexity-adjusted supply chain spend: as healthcare systems buy more specialized handling and services, the industry supports value capture beyond simple commodity-like throughput.

⚠ Risk Factors to Monitor

  • Margin pressure from pricing and mix: changes in reimbursement regimes, customer contract terms, and product mix (including branded vs. generic dynamics) can compress distribution economics.
  • Regulatory and compliance exposure: healthcare distribution is heavily regulated; enforcement, audits, and compliance costs can rise.
  • Litigation and policy risk: opioid-related and broader healthcare-related legal or regulatory actions can create material financial uncertainty.
  • Supply chain disruption: transportation constraints, inventory imbalances, and manufacturing shortages can increase costs and impact service levels.
  • Technology and cyber risk: operational networks rely on sophisticated information systems; cyber incidents can impair order fulfillment and compliance controls.
  • Inventory and working-capital volatility: forecasting errors can increase markdowns, obsolescence risk, or cash usage.

📊 Valuation & Market View

The market typically values healthcare distributors and services platforms using a mix of EV/EBITDA and P/S multiples, with attention to cash generation quality, margin durability, and working-capital conversion.

Key valuation drivers commonly include:

  • Operating margin sustainability and the durability of gross margin in distribution versus services mix.
  • Cash conversion: working capital efficiency and resilience of free cash flow through cycle variations.
  • Service mix shift: growth in higher-return solutions and services that can offset commodity-like distribution pressure.
  • Balance sheet and capital discipline: leverage and capital intensity relative to peers and service growth needs.

🔍 Investment Takeaway

Cardinal Health offers an institutional-quality exposure to healthcare supply chain economics, anchored by scale-driven cost advantages and switching costs created by operational integration and compliance complexity. The long-term thesis rests on the structural need for reliable distribution and increasingly specialized logistics services as treatment complexity rises, while the primary risks center on margin volatility, regulatory/legal uncertainty, and supply chain execution.


⚠ AI-generated — informational only. Validate using filings before investing.

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📊 AI Financial Analysis

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Earnings Data: Q Ending 2026-03-31

"CAH (as of 2026-03-31 quarter) reported Revenue of $60.94B and Net Income of $399M (EPS: $1.69). QoQ, Revenue declined from $64.44B (2025-12-31) to $60.94B (-5.5%). Net Income fell from $471M to $399M (-15.3%). YoY, Revenue rose from $54.88B (2025-03-31) to $60.94B (+11.0%), while Net Income decreased from $508M to $399M (-21.5%), indicating weaker earnings conversion despite top-line growth. Profitability is mixed to softer: gross margin remains low but ticked down (from 3.87% YoY at 2025-03-31 and 3.38% in 2025-12-31 to 4.10% in 2026-03-31). Operating and net margins are modest and contracted YoY (net margin 0.92% -> 0.65%). Cash flow quality improved sequentially: operating cash flow increased to $1.82B (from $686M in 2025-12-31) and free cash flow was $1.68B, supported by working-capital and operating items. The company returned capital via buybacks (repurchased $758M) and dividends ($120M) in the quarter. On shareholder returns, the stock shows strong momentum with a +59.3% 1-year change (dividend yield ~0.24% is small), boosting total return despite earnings pressure."

Revenue Growth

Positive

QoQ revenue -5.5% (from $65.44B to $60.94B) but YoY +11.0% ($54.88B -> $60.94B), showing solid underlying demand despite sequential slowdown.

Profitability

Caution

Net income QoQ -15.3% and YoY -21.5%. Net margin declined to 0.65% from 0.92% YoY, signaling weaker earnings conversion.

Cash Flow Quality

Positive

Operating cash flow improved QoQ to $1.82B; free cash flow $1.68B. Capital returns included buybacks ($758M) and dividends ($120M), supporting shareholder-friendly cash generation.

Leverage & Balance Sheet

Neutral

Total assets edged up QoQ ($53.1B -> $56.7B). Equity remains negative/low (total equity about -$2.7B), but liquidity is reasonable for CAH with cash & equivalents $3.94B. Debt increased slightly (net debt to ~$5.0B).

Shareholder Returns

Strong

Strong price momentum: +59.3% 1-year change. Dividend yield is modest (~0.24%), but buybacks plus the price trend drive total shareholder return.

Analyst Sentiment & Valuation

Fair

Consensus price target ~$250 vs current ~$214 implies moderate upside (~+17%). Without valuation multiples improving alongside earnings, sentiment appears only moderately supported.

Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.

RevenueEarningsP/E RatioSharesDebtMargin %

Fundamentals Overview

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CAH delivered a strong Q3 FY2026 with broad-based demand and improving profitability: revenue grew 11% to $61B and enterprise operating earnings rose 18% to $956M. Non-GAAP EPS was $3.17 (+35%), supported by operating execution and favorable discrete tax planning (Q3 ETR 10.2%; multiyear benefit ~ $0.35). Specialty remained the key engine—>20% revenue growth—and management reiterated Specialty should exceed $50B in FY2026, with MSO platform expansion (Specialty Alliances) and integration work (Solaris) on track. GLP-1 demand was a major tailwind (+6ppt revenue growth; >30% GLP-1 revenue growth) partially offset by WAC inflation-reduction effects (-6ppt). Tariffs remain a concentrated GMPD headwind (profit $25M; tariff-driven adverse net impact), though management highlighted the Feb 2026 Supreme Court IEPA ruling and possible ~50% recovery of $200M paid via refunds. Management raised and narrowed full-year guidance (EPS $10.70–$10.80; FCF $3.3B–$3.7B) while increasing Other profit outlook to 36%–38%.

AI IconGrowth Catalysts

  • Specialty expansion: Specialty Alliances multi-specialty MSO offerings delivering differentiated value and exceeding 20% revenue growth; company expects Specialty revenue to exceed $50B in FY2026
  • Solaris integration into Specialty Alliance remains on track; management highlighted synergy realization as a key driver for inorganic comparisons into FY2026
  • GLP-1 demand acceleration: GLP-1s added 6 percentage points to revenue growth with over 30% GLP-1 revenue growth
  • Other growth businesses: at-Home Solutions, Nuclear & Precision Health Solutions, and OptiFreight Logistics delivered 31% revenue growth and 34% profit growth, supported by ADS acquisition and Theranostics scale-up
  • Actinium 225 capacity expansion: announced significant expansion of Actinium 225 production capabilities at the Center for Theranostics to increase capacity for targeted cancer therapies

Business Development

  • Specialty Alliance multi-specialty MSO network expansion including three tuck-in acquisitions since last quarter, adding physicians and extending geographic reach into the 33rd state
  • New multi-specialty study partnership: Specialty Networks + Specialty Alliance partnering with a pharmaceutical company on real-world outcomes in community gastroenterology clinics (Specialty Networks to perform analysis)
  • SY MEXYS patient support onboarded 3 new pharmaceutical therapies in Q3 with another 10 scheduled over the next 2 quarters (biopharma services momentum)
  • Supply agreement: recent agreement where Specialty Alliance is the nuclear business’ largest user of allusix for prostate cancer imaging
  • At-Home/ADS integration: ADS volume migrated into distribution centers; management cited onboarding nearly 500,000 new patients and integration progress (platform buildout)

AI IconFinancial Highlights

  • Total revenue +11% to $61.0B; enterprise operating earnings +18% to $956M
  • Non-GAAP effective tax rate (ETR) 10.2% in Q3 driven by discrete tax planning benefits; multiyear benefit contributed ~ $0.35 in the quarter
  • Non-GAAP EPS $3.17 (+35%); average diluted shares ~236M reflecting completion of prior ASR in January plus an additional $250M accelerated share repurchase completed in April
  • Gross profit +18% to $2.5B; driven by acquisitions/segment performance
  • Pharma segment revenue +11% to $56.1B; Specialty revenue growth >20% in Q3
  • GLP-1s impact: +6 percentage points to revenue growth; GLP-1 revenue growth >30% moderated sequentially
  • WAC inflation-reduction headwind: 6 percentage point impact to revenue from inflation reduction at WAC pricing adjustments
  • GMPD revenue flat to prior year; GMPD profit decreased to $25M due to adverse net impact of tariffs (tariff exposure concentrated in GMPD)
  • GAAP earnings impacted by $184M pretax goodwill impairment charge related to Navista (non-GAAP unaffected); impairment due to changes in risk profile of business plans increasing the discount rate

AI IconCapital Funding

  • Cash balance nearly $4B at quarter end
  • Adjusted free cash flow $1.7B in the quarter
  • CapEx $385M so far in FY2026 (heavy ongoing investment across businesses)
  • Prepaid $100M on outstanding term loan; Moody’s adjusted leverage reduced to 3.0x
  • Leverage target range: 2.75x to 3.25x (management stated compliance/comfort with BAA2 rating commitment)
  • Additional $250M accelerated share repurchase in the quarter; FY2026 total share repurchases $1.0B, exceeding baseline target by $250M year-to-date

AI IconStrategy & Ops

  • Automation and productivity initiatives in distribution centers to improve cost and expand capacity; management cited record high service levels
  • Integration execution: Solaris integration into Specialty Alliance on track; ADS integration into at-Home Solutions progressing (migrated ADS volume into distribution centers; onboarded ~1,000 new employees and ~500,000 new patients)
  • Care pathway growth: continued care pathway program now serving 165,000 patients and growing ~20% since January
  • Supply chain resilience and commercial excellence actions ongoing amid dynamic tariff environment; company referenced heightened winter storm activity and operational agility
  • GMPD improvement plan: simplification and cost optimization initiatives producing tangible results, while tariffs remain concentrated headwind

AI IconMarket Outlook

  • FY2026 non-GAAP EPS raised to $10.70–$10.80 (from prior guidance midpoint increased by ~$0.50; operational strength contributes ~$0.13 at midpoint; annual EPS growth guided ~30%–31%)
  • FY2026 Pharma revenue expected at lower end of 15%–17% range
  • FY2026 segment profit outlook raised and narrowed to 22%–23% (from 20%–22%); anticipated high-teens profit growth in Q4 at midpoint
  • FY2026 GMPD: revenue outlook reiterated 1%–3% growth; profit guidance held at $150M
  • FY2026 Other growth businesses: revenue guidance unchanged at 26%–28% growth; profit growth raised to 36%–38% (from 33%–35%)
  • FY2026 below-the-line: interest/other expense outlook updated to ~ $340M (from ~$325M prior estimate)
  • FY2026 non-GAAP effective tax rate lowered to ~19% (from prior range 21%–23%)
  • FY2026 weighted average shares outstanding updated to ~237M (previous guidance 237M–238M)
  • FY2026 adjusted free cash flow raised and narrowed to $3.3B–$3.7B (from $3.0B–$3.5B)
  • FY2027 commentary: no numeric guidance provided; management to share details during Q4 earnings call

AI IconRisks & Headwinds

  • Tariff exposure concentrated in GMPD: Supreme Court ruling (Feb 2026) declared IEPA tariffs unlawful; refund process under development with timing/administration uncertain; no financial impact recognized in Q3
  • Management stated approximately $200M in IEPA tariffs paid to date; potential future net benefit anticipated to be about half ($~100M) if circumstances become more certain (driven by repayment/pricing taken to customers)
  • GAAP volatility from noncash goodwill impairment: $184M pretax Navista goodwill impairment due to changes in risk profile and higher discount rate (non-GAAP unaffected)
  • Revenue mix fluctuations impact revenue line: GLP-1/IRA/generics mix; WAC pricing inflation reduction created a 6 percentage point revenue impact
  • Macro/weather operations: management cited winter storm complexity affecting operations but executed through it

Q&A: Analyst Interest

  • SG&A investment quantification and future-growth rationale: Management said SG&A rose 17% overall but only 7% excluding M&A, emphasizing disciplined investments in technology and teams. They did not provide incremental SG&A dollars, but framed spend as purposeful and growth-enabling rather than discretionary.
  • Specialty portfolio build-out gaps and inorganic discipline: Management indicated current acquisitions (GIA, Solaris, ION) are partnering as expected with existing Specialty capabilities (e.g., Specialty Networks). For the next steps, they prioritized autoimmune and urology, but emphasized selecting right assets at right timing and price to sustain Specialty momentum.
  • Navista/ION impairment mechanics and strategy impact: Management reinforced Specialty strategy durability and high Specialty growth, positioning Navista as a component within MSO/oncology. They referenced Navista having both an acquisition and organic elements, with an equity strategy involving collaboration agreements, then began explaining whether impairment changes were near- versus long-term.

Sentiment: POSITIVE

Note: This summary was synthesized by AI from the CAH Q3 2026 (FY2026) — results reported 2026-04-30 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.

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© 2026 Stock Market Info — Cardinal Health, Inc. (CAH) Financial Profile