Cardinal Health on Thursday reported a beat-and-raise quarter to kick off its new fiscal year, further solidifying the healthcare distributor as an underappreciated yet attractive defensive stock to own. Revenue in Cardinal's fiscal 2027 first quarter totaled $67.51 billion, up 4% year over year, and ahead of the $66.6 billion consensus, according to LSEG. Adjusted earnings per share (EPS) rose 28% on an annual basis to $3.26, well ahead of the $2.94 consensus, LSEG data showed. CAH YTD mountain Cardinal Health's year-to-date stock performance. Shares of Cardinal Health were up more than 3% on Thursday, off their highs of the session but still one of the few bright spots amid the market's steep sell-off. We booked big profits in Cardinal and Eli Lilly . We have loved these stocks all year as a way to diversify beyond the AI trade. We remain long-term believers, but the trims were out of discipline. Bottom line Cardinal Health turned in a cleaner quarter than last time around in August. The highlight was its largest operating segment — Pharmaceutical and Specialty Solutions — getting…
We're raising our price target on Cardinal Health after another stellar quarter of profits
In short
Cardinal Health surpassed Wall Street projections as first-quarter revenue reached $67.51 billion and adjusted earnings surged 28% to $3.26 per share. High-teens growth across oncology and urology therapies propelled the central Pharmaceutical and Specialty Solutions division beyond expectations. Meanwhile, the Global Medical Products and Distribution unit delivered $33 million in operating profit, which exceeded internal targets despite representing a 28% year-over-year decline.
Key points
- The core pharmaceutical business continues to see high-teens growth fueled by specialty o…: The core pharmaceutical business continues to see high-teens growth fueled by specialty oncology and urology drugs.
- Management remains open to pursuing additional acquisitions within the managed services o…: Management remains open to pursuing additional acquisitions within the managed services organization sector.
- Softness persists in the logistics and nuclear pharmacy units after they missed sales and…: Softness persists in the logistics and nuclear pharmacy units after they missed sales and profit targets.