RBC Capital Initiates Cardinal Health at Outperform Following Strong Earnings

Key Facts

1RBC Capital initiated coverage on Cardinal Health with an 'Outperform' rating at a stock price of $234.98.

2The company reported fiscal Q4 adjusted EPS of $2.91, significantly beating analyst expectations of $2.42.

3Cardinal Health increased its share repurchase authorization by $5 billion and provided an optimistic FY2027 outlook.

In a move reflecting optimism within the healthcare services sector, RBC Capital has initiated coverage on Cardinal Health with an 'Outperform' rating. This positive stance follows the company's fiscal fourth-quarter results, where it reported adjusted earnings per share of $2.91, significantly beating the $2.42 analyst consensus. The company further bolstered investor sentiment by increasing its share repurchase authorization by $5 billion and providing an optimistic outlook for fiscal year 2027.

Per market data, the initiation comes as the stock was priced at $234.98, supported by a 40% year-over-year increase in adjusted earnings. Although quarterly sales of $63.67 billion fell short of estimates, robust profitability and double-digit profit growth across all five operating segments offset the revenue miss. Analysts noted that the fiscal 2027 guidance exceeds market consensus, reinforcing the bullish thesis for the instrument.

CAH shares stood at $234.98 (at close August 18, 2026), having reached a day high of $238.24. Traders are now watching for price stability above the $233.94 support level. While the upcoming economic calendar lacks direct corporate catalysts for Cardinal Health, broader US market sentiment may be influenced by upcoming data such as Initial Jobless Claims.

Sources:

Financial Modeling Prep