We’re raising our price target on Cardinal Health after another stellar quarter of profits

Cardinal Health reported a stronger-than-expected start to fiscal 2027 and raised its full-year earnings outlook, reinforcing its position as a defensive healthcare stock. Its largest business returned to beating sales and profit expectations, while the results came amid investor interest in companies less tied to the AI boom.

Revenue was $67.51 billion, up 4% year on year and above the $66.6 billion consensus; adjusted earnings per share rose 28% to $3.26, versus expectations of $2.94. Pharmaceutical and Specialty Solutions benefited from demand for generic medicines and specialty treatments, with specialty sales growing at a high-teens rate. The smaller Other segment missed revenue and operating profit expectations.