Cardinal Health Reports Q3 Earnings Decline Despite Profit Forecast Increase
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 20 2025
0mins
Should l Buy CAH?
Source: Yahoo Finance
Cardinal Health Inc's stock fell 3.71% as it hit a 20-day low amid mixed earnings results.
The company reported a significant decline in third-quarter earnings, with net income dropping to $399 million, or $1.69 per share, down from $506 million, or $2.10 per share, last year. Despite this, Cardinal Health raised its fiscal 2026 non-GAAP EPS guidance to a range of $10.70 to $10.80, reflecting strong demand for specialty drugs. However, total sales of $60.9 billion fell short of analyst expectations, indicating challenges in overall sales performance.
This mixed performance highlights the company's ongoing transition and the impact of market dynamics on profitability. While the raised guidance may instill confidence among investors, the decline in earnings could raise concerns about the sustainability of growth in the face of competitive pressures.
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Analyst Views on CAH
Wall Street analysts forecast CAH stock price to rise
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 197.000
Low
209.00
Averages
225.18
High
244.00
Current: 197.000
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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- Payment Schedule: The new dividend will be payable on July 15, 2026, with a record date of July 1, 2026, ensuring that shareholders receive timely returns, which further strengthens the relationship between the company and its investors.
- Company Overview: Cardinal Health is a global distributor of pharmaceuticals and medical products, focusing on delivering innovative solutions that improve people's lives, showcasing its significant position and influence in the healthcare industry.
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- Dividend Increase: Cardinal Health's Board of Directors has approved an increase in the quarterly dividend to $0.5158 per share, reflecting a proactive approach to capital surplus management aimed at rewarding shareholders and boosting investor confidence.
- Payment Schedule: The new dividend will be payable on July 15, 2026, with a record date of July 1, 2026, ensuring that shareholders receive timely returns, which further strengthens the relationship between the company and its investors.
- Company Overview: Cardinal Health is a global distributor of pharmaceuticals and medical products, focusing on delivering innovative solutions that improve people's lives, showcasing its significant position and influence in the healthcare industry.
- Customer-Centric Strategy: The company's customer-centric approach drives continuous improvement, aiming to meet market demands by providing high-quality products and services, thereby maintaining a competitive edge in the rapidly evolving healthcare sector.
See More
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- Dividend Growth Expectation: Cardinal Health is likely to announce a dividend increase in May, continuing its 31-year streak of consecutive dividend growth, with analysts projecting an annual dividend of $2.07 per share, implying a quarterly dividend of nearly $0.52, representing a 1.33% increase from the previous payout of $0.5107.
- Historical Dividend Performance: The company last declared a dividend of $0.5107 per share in February 2026, yielding 1.04%, and raised its dividend from $0.5056 to $0.5107 in May last year, reflecting a growth rate of approximately 1.01%.
- Financial Health Metrics: Cardinal Health has delivered a 5-year dividend growth rate of about 1% and maintains an annual payout ratio of 2.04%, indicating stability and sustainability in its dividend policy, with safety ratings of A-, growth ratings of B+, yield ratings of C+, and dividend consistency rated A+.
- Future Earnings Outlook: Cardinal Health is set to report its fourth-quarter 2026 financial results during market hours on August 12, 2026, which is expected to further influence investor confidence in the company's future performance.
See More
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- Share Increase: We purchased 50 shares of Cardinal Health (CAH) at approximately $199, raising the total holdings in Jim Cramer's Charitable Trust to 525 shares, which increases the portfolio weight from 2.50% to 2.75%, reflecting confidence in the company.
- Earnings Report Reaction: Despite a revenue miss and $184 million in impairment charges in Cardinal's quarterly report, both management and analysts remain optimistic about the company's ability to grow earnings per share in the low-to-mid teens over the long term.
- Earnings Estimates Raised: Following the earnings report, many analysts raised their fiscal year 2027 earnings per share estimates from about $11.60 to $11.91, indicating increased market confidence in the company's future profitability.
- Attractive Valuation: Cardinal Health shares are currently trading at roughly 16.5 times next 12 months' earnings estimates, down from about 20 times in early March, suggesting that the current valuation is attractive for long-term investment.
See More
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- DuPont Performance Focus: DuPont will also report on Tuesday, with its Healthcare & Water Technologies segment expected to achieve mid-single-digit organic growth, reflecting the company's strategic direction post-electronics spin-off, and investors will closely watch for commentary on changes in customer behavior.
- Arm Holdings First Earnings Call: Arm will report earnings on Wednesday, focusing on its newly launched AI central processing unit (CPU), which, although not yet on the market, is expected to drive future cloud revenue growth, with investors keen on the health of its smartphone royalty stream.
- Corning Investor Day: Corning will hold an investor day on Wednesday, expected to update its
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- Impact of Rising Memory Prices: Companies like Meta and Microsoft have raised their capital expenditure guidance due to surging memory prices, with Microsoft projecting $190 billion in capex for 2026, of which $25 billion is attributed to rising component costs, highlighting the tightness in the memory market.
- Multi-Year Supply Agreements: SanDisk has signed five multi-year supply agreements valued at over $11 billion, ensuring stable demand for its customers and indicating strong bargaining power for memory manufacturers, which could impact future sales and margins.
See More
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- Price Target Analysis: The average price target set by analysts is $249.07, reflecting a bullish sentiment towards the company's stock, and if achieved, it could yield significant returns for investors.
- Market Reaction: The rating upgrade could lead to a short-term increase in stock price, boosting investor confidence and enhancing the company's market position within the healthcare sector.
- Investor Strategy: With the rating improvement, investors may reassess their portfolios and consider increasing their holdings in Cardinal Health to capitalize on potential higher returns.
See More
