Cardinal Health (CAH) · Q2 2026 results and valuation

At 7.4% growth a year (3-year revenue growth), the model's fair value is $368.01 a share — the stock trades 25% below it. Today's price assumes 3.7% growth a year.

1. Key theme

   Strong demand, strong execution, strong profit, strong adjusted free cash flow, strong liquidity, targeted and increased investments in the business…

   Source quote

   “Strong demand, strong execution, strong profit, strong adjusted free cash flow, strong liquidity, targeted and increased investments in the business... We did what we said we would do, and as a result, delivered a successful financial fourth quarter to close out a successful fiscal '26, even before including the positive impact of the anticipated tariff recovery.”

2. Guidance

   However, for fiscal year '27, Cardinal Health is guiding EPS growth of 13% to 15% against the baseline, and expect fiscal '27 EPS to be between $12.40 and $12.60.

3. Guidance

   CAH updated guidance to expect 3% to 5% Pharma segment revenue growth in the coming year, outlining future revenue expectations.

   Source quote

   “We expect Pharma segment revenue to show 3% to 5% growth in the coming year.”

4. Dropped

   Cardinal Health's continued focus on the core with investments in infrastructure, technology and its people are delivering measurable improvements across the network.

   Source quote

   “Our continued focus on the core with investments in infrastructure, technology and our people are delivering measurable improvements across the network. Our Pharma segment once again led our performance, providing proof points of our strategy to strengthen the core and expand in Specialty. As an example, we continue to invest in our existing distribution centers through automation and productivity initiatives, which both improves our cost and expands our capacity.”

Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 92% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.

Sentences that drove the tone

“In terms of Pharma segment profit cadence, we expect Q1 profit growth to be near the high end of our full year guidance range due in part to the benefit...”

“This is evidenced by our above-market growth in our core business and rapid expansion in our Theranostics and PET portfolios, with PET growing over 20% and Theranostics growing nearly 30%...”

“And so we are executing on a multiyear investment plan, all in service of growth and efficient growth that is also taking advantage of the increasing economies of scale here...”