Cardinal Health, Inc. (CAH), headquartered in Dublin, Ohio, is a global healthcare distributor and manufacturer serving hospitals, pharmacies, and laboratories. The company distributes pharmaceuticals, including branded and generic drugs and manufactures and distributes medical and laboratory products, such as surgical supplies and diagnostic tools.
It also provides performance and data solutions to help healthcare facilities optimize operations and supply chain management across several countries. The company has a market capitalization of $52.43 billion, which classifies it as a “large-cap” stock.
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Cardinal Health’s shares reached a 52-week high of $233.60 on Mar. 2, but are down 4.2% from that level. It is having a fine time on Wall Street, with surging demand for high-margin specialty drugs. Over the past three months, the stock has gained 2.2%. The broader State Street Health Care Select Sector SPDR ETF (XLV) is up by 2.4% over the past three months.
Over the past 52 weeks, the stock has gained 39.5%, while the Health Care Select Sector SPDR ETF is up 12.4%. CAH’s stock is up 8.9% year-to-date (YTD), while the broader ETF is down marginally. The company’s shares have been trading above its 200-day moving average since Mid-May and higher than its 50-day moving average since early June.
For the third quarter of fiscal 2026, Cardinal Health’s revenue increased 11% year-over-year (YOY) to $60.90 billion, while its non-GAAP operating earnings increased 18% from the prior-year period to $956 million. Its pharmacy and specialty solutions segment added $56.10 billion to the topline and recorded $784 million in profit. Its non-GAAP EPS was $3.17 for the quarter, up 35% YOY. Cardinal Health raised its fiscal 2026 guidance for non-GAAP EPS to a range of $10.70 to $10.80, reflecting a 30% to 31% growth.
We compare Cardinal Health’s performance with that of another medical distribution stock, Cencora, Inc. (COR), which is down 4.5% over the past 52 weeks, 16.6% YTD, and 20.1% over the past three months. Therefore, CAH has been the clear outperformer over these periods.
Wall Street analysts are strongly bullish on Cardinal Health’s stock. The stock has a consensus rating of “Strong Buy” from the 17 analysts covering it. The mean price target of $247.47 implies a 10.6% upside from current levels. The Street-high price target of $275 indicates a 22.9% upside.
On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com