Cardinal Health Raises FY2026 EPS Outlook to $10.00 Amid Strong Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 13 2026
0mins
Should l Buy CAH?
Source: PRnewswire
Cardinal Health's stock rose 4.61% during regular trading, reaching a 20-day high.
The company has raised its fiscal year 2026 non-GAAP diluted EPS outlook to at least $10.00, up from the previous range of $9.65 to $9.85, reflecting strong performance across its five operating segments. This upgrade is driven by robust demand in specialty distribution, with projected specialty revenues exceeding $50 billion, representing a 16% CAGR. Additionally, Cardinal Health successfully navigated changes related to the Medicare Drug Price Negotiation Program, ensuring its critical role in pharmaceutical distribution.
This positive outlook is expected to attract further investor interest, especially with the upcoming presentation at the J.P. Morgan Healthcare Conference, where the company will showcase its strategic growth initiatives.
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Analyst Views on CAH
Wall Street analysts forecast CAH stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CAH is 225.18 USD with a low forecast of 209.00 USD and a high forecast of 244.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 227.180
Low
209.00
Averages
225.18
High
244.00
Current: 227.180
Low
209.00
Averages
225.18
High
244.00
About CAH
Cardinal Health, Inc. is a global healthcare services and products company. The Company is engaged in providing customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices and patients in the home. The Company also provides pharmaceuticals and medical products. Its segments include Pharmaceutical and Specialty Solutions and Global Medical Products and Distribution (GMPD). The Pharmaceutical and Specialty Solutions segment distributes branded and generic pharmaceuticals, specialty pharmaceuticals and over-the-counter healthcare and consumer products in the United States, as well as it owns urology MSO. Its GMPD segment manufactures, sources and distributes Cardinal Health branded medical, surgical and laboratory products, which are sold in the United States, Canada, Europe, Asia and other markets. The Company connects patients, providers, payers, pharmacists and manufacturers for integrated care coordination.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Impact of Subsidy Changes: As the Trump administration's healthcare policies evolve, particularly with the expiration of Affordable Care Act subsidies at the end of 2025, Cardinal Health has not yet observed a decline in demand, indicating the company's resilience in the face of potential patient cost increases.
- Trends in Healthcare Demand: With the aging American population, healthcare demand continues to rise, and Cardinal Health aligns with government goals to enhance access, affordability, and innovation, aiming to optimize the overall efficiency of the healthcare ecosystem.
- Tariff Pressure Management: In response to tariff pressures, Cardinal Health has adopted a transparent pricing strategy within its medical products business, where, despite efforts to enhance operational efficiency, the company has raised prices on key products to offset rising costs, reflecting market realities.
- Market Adaptability: Despite facing policy and market challenges, Cardinal Health is committed to maintaining accessibility and innovation in healthcare services through collaboration with the government, ensuring competitiveness in a rapidly changing healthcare environment.
See More
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- Healthcare Sector Performance: In Thursday's trading, healthcare stocks emerged as the best-performing sector, rising by 0.2%, with McKesson Corp (MCK) leading the charge with a 16.6% gain, indicating strong market demand that could attract more investor interest in the sector.
- Cardinal Health's Gains: Cardinal Health, Inc. (CAH) also performed well, with a 9.0% increase, suggesting a solid position in the healthcare supply chain that may further enhance its market share and investor confidence.
- ETF Trends: Despite the overall positive performance in healthcare, the Health Care Select Sector SPDR ETF (XLV) fell by 0.5%, indicating a preference for individual stocks over ETFs, which may lead to a shift in capital towards more promising equities.
- Utilities Sector Stability: The utilities sector showed relative stability, with CMS Energy Corp (CMS) up 2.4% and PPL Corp (PPL) up 1.4%, reflecting investor preference for stable returns, which may attract more capital into this sector in the future.
See More
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See More
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- Positive Financial Performance: The company’s recent adjustments indicate strong financial performance and confidence in future growth.
See More
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- Strong Earnings Report: Cardinal Health reported a non-GAAP diluted EPS of $2.63 for Q2 FY2026, a 36% increase from $1.93 in the same period last year, indicating a significant improvement in profitability.
- Robust Revenue Growth: The pharmaceutical and specialty solutions segment saw a 19% year-over-year revenue growth, reaching $60.7 billion, reflecting strong market demand and the company's competitive position in the industry.
- Upgraded Full-Year Guidance: The company raised its FY2026 non-GAAP diluted EPS guidance to $10.15 to $10.35, up from the previous range of $9.65 to $9.85, demonstrating confidence in future performance.
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