New York, Feb 5, 2026, 10:02 EST — Regular session
- Shares of Cardinal Health jumped roughly 9% in early trading following an upgrade to its full-year profit forecast.
- Revenue for the quarter jumped 19%, while adjusted profit exceeded Wall Street forecasts.
- Demand for specialty drug distribution continues to be the crucial variable for the group.
Shares of Cardinal Health surged roughly 9% to hit $226.05 in Thursday’s morning session, bouncing back from Wednesday’s $206.85 close.
The drug distributor stands out among healthcare supply-chain companies profiting from a steady stream of high-cost specialty medicines, a segment that remains resilient despite investor debates over how major spending cycles will impact returns.
Cardinal upped its fiscal 2026 adjusted earnings forecast to $10.15-$10.35 per share following a second quarter that surpassed estimates. CEO Jason Hollar highlighted “at least double-digit segment profit growth across all five of our operating segments” as the driver behind the strong showing. (Cardinal Health News & Media)
Drug distributors like Cardinal, McKesson, and Cencora are increasingly focusing on specialty medicines—those aimed at treating complex illnesses such as cancer and autoimmune disorders—and expanding their service offerings to physician practices. At the same time, they’re bracing for a looming “patent cliff,” when major drugs lose exclusivity and cheaper generics flood the market. (Reuters)
During the earnings call, management pointed to ongoing robust demand in pharmaceuticals, noting that roughly six percentage points of revenue growth in the pharma-and-specialty segment stemmed from GLP-1 drugs, a rapidly expanding category for diabetes and obesity. They also mentioned tariff pressures on medical products and rising financing costs related to recent transactions. (The Motley Fool)
Other players have shared their figures as well. McKesson released its fiscal third-quarter results late Wednesday, putting the spotlight on whether distributors can hold margins steady amid rising volumes. (McKesson)
Cencora released its earnings on Wednesday, offering fresh insight into specialty-drug demand and growth trends among major distributors. (MarketScreener)
But the trade isn’t without risks. Distributors often take a hit when big customer contracts expire or shift, and Cardinal’s stock has faltered during these resets before, despite its push into higher-margin specialty care via acquisitions. (Reuters)
Traders are adjusting to a changing U.S. data calendar following a short government shutdown. The Labor Department pushed back its January jobs report to Feb. 11, while the January CPI report now lands on Feb. 13. Several other releases have been shuffled too. (Bureau of Labor Statistics)
Cardinal now faces a critical challenge: can management sustain profit gains from rising specialty-drug volume without eroding them through pricing, contract shifts, or rising costs? The broader market will also be testing its resilience once key U.S. macroeconomic reports arrive on Feb. 11 and Feb. 13.
