Key Stats for Cardinal Health Stock
- Past-Week Performance: -2.4%
- 52-Week Range: $121 to $231
- Current Price: $226
- Valuation Model Target: $467
What Happened to Cardinal Health Stock?
Cardinal Health Inc. (CAH) peaked near $230 in early February 2026 before pulling back to $225.58 by February 17, returning +9.7% year-to-date despite falling 2.44% in the past week.
Cardinal Health stock reported Q2 FY2026 non-GAAP diluted EPS of $2.63 on February 5, beating the $2.37 Street estimate by 11.17%, with revenue of $65.6B beating the $65.2B estimate by 0.60%.
All five operating segments delivered at least double-digit profit growth in Q2, with non-GAAP operating earnings rising 38% to $877M and FCF of $0.56B beating the ($0.32B) estimate by 271.30%.
Cardinal Health raised FY2026 non-GAAP EPS guidance to $10.15–$10.35 on February 5, representing +23% to +26% YoY growth, marking the second consecutive guidance raise in the fiscal year.
Pharmaceutical and Specialty Solutions segment profit rose 29% to $687M in Q2, with GLP-1 sales contributing approximately 6 percentage points of revenue growth and specialty revenues on track to surpass $50B for FY2026.
GMPD segment profit rose 106% to $37M in Q2, driven by Cardinal Health brand revenue growth of 10% in the U.S., partially offset by tariff headwinds; management noted 3–4 percentage points of Q2 growth reflected distributor inventory restocking timing.
Cardinal Health completed its full FY2026 baseline share repurchase of $750M in Q2 at a weighted average price of $173, reached its targeted Moody’s leverage ratio of 3.2x ahead of schedule, and approved a quarterly dividend of $0.5107 per share on February 12.
Buy and Outperform ratings total 13 of 17 analysts as of February 17, 2026, with Holds falling from 9 at December 2024 to 3 and the sole Sell rating removed; the consensus mean target of $247.80 sits 9.9% above the current $225.58 close.
What the Market is Telling Us About Cardinal Health Stock
Cardinal Health has gained 9.7% this year and is up 80% since the last twelve months, with Q2 earnings delivering the second consecutive guidance raise and all five operating segments hitting at least double-digit profit growth simultaneously.
- Clean sweep across all five segments: Every operating segment delivered at least double-digit profit growth in Q2, with non-GAAP EPS of $2.63 beating the $2.37 estimate by 11%.
- Second consecutive guidance raise: FY2026 non-GAAP EPS guidance lifted to $10.15–$10.35, representing +23% to +26% YoY growth, with Pharma segment profit growth raised to 20%–22% from 16%–19%.
- Analyst sentiment shifted sharply: Buy and Outperform ratings rose from 7 to 13 since December 2024, Holds fell from 9 to 3, and the sole Sell rating was removed entirely.
The Solaris Health acquisition, closed last November, added the country’s leading urology MSO with over 750 providers, expanding the specialty platform alongside existing oncology and autoimmune MSO businesses.
Management committed to $1B in biopharma services revenue by fiscal 2028, with Sonexus representing half of that growth after winning hub programs covering over 1 million new patients.
Cardinal Health completed $750M in share repurchases at a weighted average price of $173, returned to its targeted leverage range of 2.75x–3.25x ahead of schedule, and approved a $0.51 quarterly dividend last February.
Cardinal Health’s revenue trajectory, specialty mix expansion, and margin execution across its five segments set up meaningfully different results through June 2030.
Low Case: If specialty growth stalls and margin improvement stays flat near 0.9%, revenue grows around 8.5% with returns near breakeven at (0.3%) annualized.
Mid Case: With specialty revenues scaling and Sonexus reaching targets, revenue grows near 9.5% and margins hold at 1.0% → 5.0% annualized return.
High Case: If Solaris distribution converts, biopharma hits $1B, and all three growth businesses accelerate, revenue reaches 10.4% growth and margins approach 1.0% → 9.7% annualized return.
The mid-case target of $279 requires continued specialty expansion and EPS growth of 13.4% CAGR, consistent with the guidance trajectory already in place.
With FY2026 guidance raised twice, leverage back within target, and Sonexus winning new programs, the mid-case rests on execution already underway rather than new assumptions.
How Much Upside Does CAH Stock Have From Here?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
