Cardinal Health, Inc. (CAH) Stock

Cardinal Health, Inc. (CAH) is a Consumer Discretionary stock trading at $248.54 (as of 2026-09-03), with a market capitalization of $57.81B and a trailing P/E of 34.8. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Cardinal Health, Inc. operates as an integrated healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. The company operates in two segments, Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; repackages generic pharmaceuticals and over-the-counter healthcare products; and offers medication therapy management and patient outcomes services to hospitals, other healthcare providers, and payers, as well as provides pharmacy management services to hospitals. The Medical segment manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products and devices that include exam and surgical gloves; needles, syringe, and sharps disposals; compressions; incontinences; nutritional delivery products; wound care products; single-use surgical drapes, gowns, and apparels; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. The segment also distributes a range of national brand products, including medical, surgical, and laboratory products; provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers; and assembles and sells sterile, and non-sterile procedure kits. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.

Understand Cardinal Health, Inc.: how it makes money

Cardinal Health moves drugs, medical supplies, and specialty products to hospitals, pharmacies, and clinics across the U.S. and abroad, earning a thin distribution spread on enormous volume. About 85% of the $65.6 billion quarterly revenue flows through the pharmaceutical segment, where pricing is set by government reimbursement rules rather than by the company itself.

Profit here is a function of volume velocity on a 3.7% gross margin: the company trades working capital, logistics scale, and regulatory relationships for a razor-thin percentage-point spread on $65 billion of quarterly product flow.

Revenue by segment (latest quarter)
Pharmaceutical$56.1B
Medical$3.7B
Global Medical Products$3.3B
Other$2.5B

Business quality (Solid): Solid: dominant U.S. pharma-distribution position with sticky hospital and pharmacy relationships, though structural thinness in margins (1.1% operating) means earnings quality depends heavily on volume growth and cost discipline.

Valuation: At 33× earnings, CAH trades 38% above the Wholesale average (24×).

Bull case

  • Double-Digit EPS Growth Guided: Management guided fiscal 2027 adjusted EPS to grow 13% to 15%, the clearest forward signal in a business where structural margins leave most of the upside in revenue velocity and specialty mix.
  • Meaningful Buyback Expansion: The board raised total share-repurchase authorization to $6.4 billion, a concrete commitment to return capital in a company where free cash flow tracks directly off the distribution spread on $65 billion of quarterly volume.
  • Growth Beyond Core Pharma: Management expects the other growth businesses to deliver accelerating revenue and double-digit profit growth, adding a structurally higher-margin layer above the commodity-like pharmaceutical distribution base.

Bear case

  • Q4 Earnings Flattered by One-Off: The Q4 tariff refund boosted reported earnings but will not recur, so the underlying run-rate profit is materially lower than the headline number implies for anyone extrapolating forward.
  • IRA Price Cuts Compounding: Fiscal 2027 pharma revenue guidance already embeds annualized and newly implemented IRA price headwinds, and those negotiated savings will propagate across additional drug classes in coming quarters, pressuring the 85% pharmaceutical revenue base.
  • Premium Multiple on Thin Margins: At 32.5x earnings versus a 23.5x wholesale-industry average (38% above peers), the stock carries a meaningful valuation premium despite a 1.1% operating margin that affords very little cushion for execution slippage or volume softness.
Valuation — source: SEC EDGAR (first-party)
Price$248.54
Market Cap$57.81B
P/E Ratio34.8
EV / EBITDA15.2
Price / Sales0.24
FCF Yield7.8%
DCF Value (model)$397.57
DCF Upside vs Price60.0%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$254.25B
Net Margin0.7%
Revenue Growth (YoY)14.2%
EPS Growth (YoY)12.2%
FCF Growth (YoY)144.6%
Financial Health — source: SEC EDGAR
Altman Z-Score5.11 (safe)
Valuation vs Sector & Industry
Stock P/E34.8
Sector P/E (Consumer Discretionary)20.2
Industry P/E (Wholesale)23.9
vs Sector72.5%
vs Industry45.8%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderVANGUARD GROUP INC ($6.46B)
Institutional Holders Tracked10
Congressional Trades (recent)10
Company
SectorConsumer Discretionary
IndustryWholesale
CEOJason Hollar
Employees47,922
CountryUS
IPO Date1983-08-04

Cardinal Health, Inc. earnings call transcripts

  • CAH Q4 FY26 earnings call transcript (reported 2026-08-11) · analysis
  • CAH Q1 FY26 earnings call transcript (reported 2025-10-30) · analysis
  • CAH Q4 FY25 earnings call transcript (reported 2025-08-12) · analysis
  • CAH Q3 FY25 earnings call transcript (reported 2025-05-01) · analysis
  • CAH Q2 FY25 earnings call transcript (reported 2025-01-30) · analysis
  • CAH Q1 FY25 earnings call transcript (reported 2024-11-01) · analysis

All CAH earnings calls

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CAH earnings history · CAH institutional & insider holders · CAH KPIs & operating metrics · CAH financials · CAH investor presentations & press releases · CAH SEC filings · CAH peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-03.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.