Cardinal Health, Inc. (NYSE: CAH) Overview and Financial Performance

Cardinal Health, Inc. (NYSE: CAH) is a prominent figure in the healthcare services and products industry, with operations spanning across the United States and internationally. The company's business is divided into two main segments: Pharmaceutical and Medical. The Pharmaceutical segment is responsible for the distribution of branded and generic pharmaceuticals, specialty products, and over-the-counter healthcare items. On the other hand, the Medical segment is focused on the manufacturing and distribution of medical, surgical, and laboratory products, aiming to provide comprehensive solutions to healthcare providers.

The consensus price target for Cardinal Health has experienced some fluctuations recently. Last month, the target was set at $150, a decrease from $170 in the previous quarter. This change may indicate a shift in analyst sentiment or market conditions affecting the company's outlook. Despite this quarterly decline, the price target has risen from $135.33 a year ago, suggesting a positive long-term outlook from analysts.

Cardinal Health's financial performance underscores this positive long-term perspective. In the fourth quarter of fiscal year 2025, the company reported revenues of $60.2 billion. Although this figure remained flat compared to the same period in fiscal year 2024, excluding the impact of a customer contract expiration, revenue actually increased by 21%. This demonstrates the company's ability to grow despite short-term challenges.

The company's earnings also reflect strength. Fourth quarter GAAP operating earnings were $428 million, with a GAAP diluted EPS of $1.00. On a non-GAAP basis, operating earnings rose by 19% to $719 million, and the non-GAAP diluted EPS increased by 13% to $2.08. For the entire fiscal year 2025, Cardinal Health achieved an adjusted free cash flow of $2.5 billion, highlighting its strong cash generation capabilities.

Looking ahead, Cardinal Health has raised its fiscal year 2026 non-GAAP EPS guidance to a range of $9.30 to $9.50, up from the previous guidance of $9.10 to $9.30. This upward revision reflects the company's confidence in its future performance. Additionally, the acquisition of Solaris Health, a leading urology management services organization, positions Cardinal Health for further growth in specialty areas, which are outpacing traditional pharmaceutical markets.