Dublin, Ohio, August 11, 2026, 10:42 EDT
- Cardinal Health projected its adjusted earnings for fiscal 2027 to be between $12.40 and $12.60 per share, surpassing the LSEG consensus estimate of $12.04.
- Adjusted earnings per share for the fourth quarter reached $2.91. Without the 31-cent benefit from a tariff refund, EPS was $2.60, topping the estimate of $2.42.
- The stock gained 3.6% to close at $245.64. The average analyst target ahead of earnings stands at $252.40, indicating an implied upside of under 3%.
Cardinal Health, Inc. NYSE:CAH stock climbed near an all-time high on Tuesday after the drug distributor projected fiscal 2027 earnings ahead of analysts’ expectations.
The forecast carries greater importance than the topline quarterly beat. A tariff refund contributed 31 cents to adjusted earnings. Profit would have exceeded consensus even without this boost.
As a result, investors now face a more straightforward challenge. Growth in specialty-drug demand and improved medical margins will need to support earnings once the temporary boost disappears.
Cardinal forecast adjusted earnings per share between $12.40 and $12.60 for fiscal 2027. The midpoint of $12.50 is 3.8% higher than the $12.04 estimated by LSEG.
| Fourth-quarter measure | Reported | Benchmark | Difference |
|---|---|---|---|
| Revenue | $63.67 billion | $65.03 billion LSEG estimate | -2.1% |
| Adjusted EPS | $2.91 | $2.42 LSEG estimate | +20.2% |
| Adjusted EPS, excluding tariff refund | $2.60 | $2.42 LSEG estimate | +7.4% |
| GAAP net income | $398 million | $239 million in the previous year | +66.5% |
Revenue increased by 6%, falling short of the LSEG estimate. Adjusted EPS surpassed expectations by 49 cents. Of that outperformance, a $100 million tariff refund accounted for 31 cents, resulting in a 7.4% underlying beat. GAAP profit climbed from $239 million to $398 million.
Pharmaceutical and Specialty Solutions revenue increased by 6% to $55.4 billion, supported by higher sales of branded and specialty medicines. These drugs address complex health issues and generally offer stronger economics than standard distribution.
Ryan Daniels, an analyst at William Blair, highlighted the company’s operating factors. “Healthy pharmaceutical demand and continued margin expansion within the medical segment drove better-than-anticipated profitability,” he wrote in a note to clients. Investor’s Business Daily
| Fiscal 2027 outlook | Company view | Investor benchmark |
|---|---|---|
| Adjusted EPS | $12.40-$12.60 | $12.04 LSEG consensus |
| Pharmaceutical revenue growth | 3%-5% | Below 6% reported in fiscal Q4 |
| Medical-products revenue growth | 2%-4% | Dropped 2% in fiscal Q4 |
| Other-segment revenue growth | 11%-13% | Acquisitions contribute to growth |
| Share repurchases | About $1 billion | Bolsters per-share results |
The composition is inconsistent. Pharmaceutical sector expansion is projected to decelerate after the fourth quarter. Growth in medical distribution is anticipated to resume, and acquisitions are set to support the smaller Other segment. Additionally, the company intends to execute approximately $1 billion in share repurchases.
Cardinal is expanding further in home care with recent acquisitions. The company purchased Strive Medical and reached a deal to buy AdaptHealth Corp.’s (NASDAQ:AHCO) diabetes segment for a total of around $360 million. These transactions will boost direct-to-patient distribution of glucose monitors and urology products.
The stock movement intensified the discussion over valuation. Cardinal shares rose 3.6% to $245.64 during the morning session in New York, positioning the stock for a potential all-time closing high.
| Pre-earnings analyst assessment | Number or figure |
|---|---|
| Strong Buy | 12 |
| Buy | 2 |
| Hold | 3 |
| Sell / Strong Sell | 0 / 0 |
| Average price target | $252.40 |
| Median price target | $258.00 |
| Price target range | $215-$275 |
| Implied gain to mean target at $245.64 | 2.8% |
S&P Global’s July report tracked 17 analysts, with 14 assigning a Buy or Strong Buy recommendation. However, Tuesday’s gain brought shares within 2.8% of the prior consensus target. The forecast range is still broad.
Recent trends back the new valuation. Adjusted EPS for the fourth quarter increased from $1.84 in fiscal 2024 to $2.08 in 2025, and then to $2.91 in 2026. Revenue grew at a slower pace, moving from $59.9 billion to $63.67 billion.
Risks: The sales shortfall this quarter indicates profit gains are limited. Tariff impacts may shift direction. Margins could also come under strain from drug pricing, reimbursement updates and challenges integrating acquisitions.
The next focus is performance within the $12.40-$12.60 band. Investors require solid earnings growth—rather than additional refunds—to support a price level that is approaching the previous analyst target.
