| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 60 | 32.3x | 17.8x | Around median | |
Growth | 73 | 14.3% | 7.1% | Top tier | |
Quality | 70 | 29.2% | 4.5% | Top tier | |
Safety | 60 | 1.7x | 2.6x | Around median | |
Capital Return | 24 | 0.90% | 2.12% | Bottom tier | |
Momentum | 86 | 57.8% | 2.9% | Top tier | |
Sentiment | 44 | 11 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Cardinal Health operates in pharmaceutical and medical product distribution and provides specialized healthcare services. In Q4 fiscal 2026, the Pharmaceutical and Specialty Solutions segment generated $58.8 billion in revenue, representing about 92% of the company’s quarterly revenue, while the Global Medical Products and Distribution segment recorded $3.1 billion in revenue, and the other growth businesses, which include at-Home Solutions, Nuclear and Precision Health Solutions, and OptiFreight Logistics, generated $1.7 billion in revenue. Profit generation depends on pharmaceutical distribution volumes, branded-to-generic drug conversions, growth in the higher-margin Specialty business, as well as medical products and specialized logistics and pharmaceutical services.
In Q4 fiscal 2026, revenue increased 6% to $63.7 billion, and gross profit grew 16% to $2.6 billion, equivalent to a gross margin of approximately 4.1%. Operating income increased 30% to $935 million, and non-GAAP diluted earnings per share reached $2.91, up 40%, though $0.31 of that was related to a non-recurring benefit from an IEEPA tariff refund. The Pharmaceutical and Specialty Solutions segment generated segment profit of $645 million, up 21%, and Global Medical Products and Distribution recorded profit of $150 million, or $50 million after excluding the $100 million refund benefit, while profit from the other growth businesses increased 14% to $183 million.
For fiscal 2026, according to EDGAR data, revenue reached $254.2 billion, compared with $222.6 billion in fiscal 2025, and gross profit increased to $9.8 billion from $8.2 billion. Net income was $1.7 billion and earnings per share were $7.23, compared with $1.6 billion and $6.45, respectively, in fiscal 2025. According to management’s non-GAAP presentation, the company generated $5 billion in adjusted free cash flow during fiscal 2026 and ended the year with $4.9 billion in cash.
The analyst consensus on CAH stock is “Buy,” with an average price target of $273.22 and a range of $250 to $292. The average target is approximately 5.8% above the 52-week range high of $258.30, reflecting expectations for continued earnings growth and repurchase execution, but it increases the valuation’s sensitivity to any slowdown relative to fiscal 2027 earnings per share guidance. The context does not include a valid earnings multiple that can be used as an additional valuation anchor.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Pharmaceutical and Specialty Solutions remains the largest driver after recording $58.8 billion in revenue and $645 million in segment profit in Q4 fiscal 2026. Management expects the segment’s revenue to grow 3% to 5% and its profit to grow 8% to 11% in fiscal 2027. Drivers include branded and generic drug volumes, growth in the higher-margin Specialty business, and expansion of the MSO and Biopharma Solutions platforms. The company expects previously announced acquisitions to add two to three percentage points to segment profit growth during fiscal 2027.
Non-GAAP diluted earnings per share reached $2.91, up 40% from the comparable period, versus the $2.42 estimate reported in the news. The result benefited from profit growth in Pharmaceutical and Specialty Solutions, improvement in Global Medical Products and Distribution, and contributions from the other growth businesses. However, $0.31 of earnings per share came from a non-recurring IEEPA tariff refund benefit, equivalent to approximately 15 percentage points of the 40% growth rate. Management therefore used $10.95 as an adjusted baseline when developing fiscal 2027 guidance.
Automated analysis for informational purposes only — not investment advice.
On August 11, 2026, the board increased the share repurchase authorization by $5 billion, bringing the total authorization to $6.4 billion. The company had repurchased $1.35 billion of shares during fiscal 2026 at an average of $187 per share, including an additional $350 million program in Q4. Management expects to spend at least $1 billion on repurchases in fiscal 2027, with an expected weighted average diluted share count of approximately 233 million shares. This supports earnings per share, but remains tied to expected adjusted free cash flow of $3.5 billion to $4 billion in fiscal 2027.
Specialty growth exceeded 25% in fiscal 2026, driven by distribution, services, and acquisitions. Management expects continued double-digit growth in fiscal 2027, but it will be slower than the fiscal 2026 rate and closer to the mid-teens pace the company has historically used in planning. Biopharma Solutions is targeting $1 billion by fiscal 2028, with expected and achieved growth of more than 20%. The 3PL business also secured two additional commercialization agreements for gene therapies expected to enter the market in fiscal 2028, and the company opened an innovative therapies pharmacy in La Vergne, Tennessee.
Global Medical Products and Distribution revenue declined 2% to $3.1 billion in Q4 fiscal 2026, affected by expected amounts due to customers related to tariff refunds and lower distribution volumes. Segment profit was $150 million, but falls to $50 million after excluding the non-recurring $100 million IEEPA benefit. Management expects profit of $200 million to $220 million in fiscal 2027, with greater weighting toward the second half, particularly Q4. Persistently elevated fuel and raw material costs or an extended conflict in Iran could push the result toward the low end of the range.
at-Home Solutions, Nuclear and Precision Health Solutions, and OptiFreight Logistics collectively recorded $1.7 billion in revenue and $183 million in segment profit in Q4 fiscal 2026, growing 7% and 14%, respectively. Management expects revenue growth of 11% to 13% and profit growth of 15% to 18% in fiscal 2027. PET grew by more than 20% and Theranostics by approximately 30% in Q4 fiscal 2026, while Theranostics grew by more than 30% for fiscal 2026 as a whole. Strive Medical and AdaptHealth’s Diabetes Health business are expected to add two percentage points to the group’s profit growth during fiscal 2027.
