Cardinal Health Inc. (NYSE: CAH) shares jumped nearly 7% on Tuesday after the company reported better-than-expected fourth-quarter earnings and issued an upbeat fiscal 2027 outlook. The stock hit a new 52-week high, a sign that investors are liking what they see.
Cardinal Health's Gene Therapy Bet Is Paying Off
MarketDash
CAH stock hits a new 52-week high as the company beats Q4 estimates, boosts its FY27 outlook, and expands its buyback program by $5 billion.
Get Cardinal Health Alerts
Weekly insights + SMS alerts
Cardinal Health Earnings Beat Estimates
For the fourth quarter, Cardinal Health reported adjusted earnings of $2.91 per share, comfortably topping the analyst consensus estimate of $2.42. Revenue came in at $63.67 billion, up 6% year over year, though it fell short of the $65.03 billion analysts had expected.
Adjusted operating earnings rose 30% year over year to $935 million. The Pharmaceutical and Specialty Solutions segment saw revenue increase 6% to $58.8 billion, driven by growth in brand and specialty pharmaceutical sales to existing customers. Global Medical Products and Distribution revenue slipped 2% to $3.1 billion, weighed down by lower distribution volumes and the recognition of an expected IEEPA tariff refund repayment to customers. Growth in Cardinal Health-branded products partially offset the decline.
During the earnings call, CEO Jason Hollar highlighted the company's growing position in cell and gene therapies. Cardinal Health secured two additional gene therapy commercialization agreements through its third-party logistics business. With those wins, the company now exclusively serves nearly half of the cell and gene therapy market and about three-quarters of the total market, Hollar said. The company also recently opened a specialty pharmacy designed to support high-cost, complex cell and gene therapies.
Cardinal Health Expands Buyback Program
Cardinal Health increased its share repurchase authorization by $5 billion, bringing its total remaining authorization to $6.4 billion as of August 2026. The company also renewed its long-term wholesaler distribution agreement with Kroger Company (NYSE: KR).
Separately, Cardinal Health plans to open a new distribution center in Indianapolis in 2027. The facility will use advanced robotics and automation to increase capacity and improve operational flexibility.
Cardinal Health Sees Stronger Fiscal 2027 Earnings
"Fiscal 2026 was a standout year for Cardinal Health…," Hollar said. "The broad-based operational strength for the year, with all five of our operating segments growing profit double-digits, even before recognition of IEEPA tariff recoveries in GMPD, reflects the disciplined execution of our strategy and our investments for growth."
"We enter Fiscal 2027 with momentum and confidence in our ability to deliver continued shareholder value creation," Hollar added.
The company expects fiscal 2027 adjusted earnings of $12.40 to $12.60 per share, above the analyst consensus estimate of $12.04.
William Blair remained positive on the company following the results. "We continue to believe that Cardinal Health's strong execution in core distribution, combined with robust higher-margin specialty growth and its differentiated other businesses, positions the company as one of the highest-quality companies in healthcare," the firm wrote Tuesday.
CAH Price Action: Cardinal Health shares were up 6.87% at $253.47 at the time of publication on Tuesday. The stock is trading at a new 52-week high, according to market data.
More News
Inflation Cools to 3.4% as Expected in July: Is This Enough for the Fed? (UPDATED)
Get a Stake in OpenAI and Anthropic — Today
AI Earnings and a Benign CPI Give Stocks a Midweek Boost
CoreWeave Stock Surges on AI Price Hikes and Raised Guidance
Nokia Stock Jumps 10% as AI Data Center Demand Fuels a Beat-and-Raise Story
Trump's Secret Retirement Fund
Intel's $20 Billion Raise: A Bold Bet on Foundry, Not a Bailout
Nebius Says AI Demand Is So Hot It Could Sell Out 2027 Today
Get Cardinal Health Alerts
Real-time alerts on price moves, news, and trading opportunities.
Join 20,000+ investors. No spam, ever.
Featured Articles
View all newsInflation Cools to 3.4% as Expected in July: Is This Enough for the Fed? (UPDATED)
By MarketDash
August 12, 2026
Trump and Elon Are Back (Ad)
By Stansberry Research
AI Earnings and a Benign CPI Give Stocks a Midweek Boost
By MarketDash
August 12, 2026
CoreWeave Stock Surges on AI Price Hikes and Raised Guidance
By MarketDash
August 12, 2026
Nokia Stock Jumps 10% as AI Data Center Demand Fuels a Beat-and-Raise Story
By MarketDash
August 12, 2026
Elon “xPhone” Exposed (Ad)
By Timothy Sykes
Intel's $20 Billion Raise: A Bold Bet on Foundry, Not a Bailout
By MarketDash
August 12, 2026
Nebius Says AI Demand Is So Hot It Could Sell Out 2027 Today
By MarketDash
August 12, 2026