CNBC Investing Club raised its price target for Cardinal Health to $300 per share from $265 after the distributor reported stronger first-quarter results and raised its fiscal 2027 forecast.
For the three months through Sept. 30, 2026, Cardinal Health recorded $3.26 in non-GAAP diluted earnings per share (EPS), a 28% year-over-year increase, according to its Nov. 5 earnings release. Revenue reached $67.513 billion, 5% above the year-earlier quarter, while GAAP diluted EPS was $2.38, up 27%.
The company reset its fiscal 2027 non-GAAP diluted EPS range to $12.80-$13.00 from $12.40-$12.60. Cardinal Health measures projected growth of 17%-19% against fiscal 2026 adjusted EPS of $10.95, a baseline that excludes a tariff-refund benefit. Against reported fiscal 2026 EPS of $11.26, the new range represents 14%-15% growth. EconoTimes previously covered Cardinal Health's fiscal 2027 outlook increase.
Results varied across the company’s businesses. Pharmaceutical and Specialty Solutions revenue rose 6% to $62.6 billion, and segment profit increased 17% to $783 million. Cardinal Health attributed the gains to higher brand and specialty drug sales to existing customers and positive performance from its generics program.
Global Medical Products and Distribution revenue was approximately flat at $3.2 billion, while segment profit declined 28% to $33 million. The company cited distribution and foreign-exchange pressures, partly offset by growth in its Cardinal Health Brand.
Cardinal Health distributes pharmaceuticals and specialty products and makes and distributes medical and laboratory products. CNBC Investing Club retained its “2” rating, which it describes as equivalent to hold; the $300 price target is the Club’s own view.
