Cardinal Health Stock Is on Pace for Its Highest Close on Record. Here’s Why.

Cardinal Health posted better-than-expected results for the fiscal first quarter and hiked its fiscal-year guidance range. (Ty Wright/Bloomberg)

Key Points

• Cardinal Health raised its fiscal 2026 adjusted earnings forecast to $9.65-$9.85 per share, up from $9.30-$9.50 per share.
• First-quarter adjusted earnings were $2.55 per share, exceeding analyst expectations of $2.18 per share.
• Revenue increased 22% to $64 billion in the quarter, surpassing Wall Street’s projection of $59 billion.

Pharmaceutical distributor Cardinal Health posted a strong fiscal first quarter and raised its full-year outlook on Thursday, causing shares to surge toward their highest closing level on record.

For fiscal 2026, Cardinal Health expects adjusted earnings in the range of $9.65 to $9.85 a share. This compares to a prior forecast of $9.30 to $9.50 a share. Analysts polled by FactSet were looking for $9.44.

In addition to the guidance boost, the drug distributor’s fiscal first quarter was solid. Adjusted earnings came in at $2.55 a share, above the $2.18 analysts had anticipated, according to FactSet. Revenue surged 22% to $64 billion in the quarter, blowing past Wall Street’s calls for $59 billion.

The stock popped, gaining 16% to $191.52 and putting Cardinal Health on pace for an all-time closing high, according to Dow Jones Market Data.

The company saw growth across multiple lines of business in the quarter. Revenue in the pharmaceuticals and specialty-solutions divisions grew 23% to just over $59 billion, driven partly by recent acquisitions.

Revenue in its global medical products and distribution segment, meanwhile, increased slightly to $3.2 billion from $3.1 billion last year, driven by volume growth across existing customers.

CEO Jason Hollar described the latest quarterly results as “outstanding,” saying they reflected Cardinal Health’s “focused execution across each of our operating segments.”

Shares sank in August after the company announced its acquisition of Solaris Health, a urology management services organization.

The guidance raise partly reflects “expected contributions from the acquisition of Solaris Health,” the company said Thursday. Cardinal Health expects to close the deal in early November.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com