adjusted eps
5.05–5.4 $per share
FY 2023
official guidance
CARDINAL HEALTH, INC.
Last · NYSE$247.76+8.045 (+3.36%)close · yahoo · 14h ago
Market cap$57.37B231.6M sh
P/E · TTM34.4fwd 17.6 · eps 7.21
Beta0.50vs S&P 500
Div yield0.85%annual · TTM
52w range
$152.46$258.30
Volume1.4Msession
| Revenue | $250.7B |
|---|---|
| Operating income | $2.3B |
| Net income | $1.6B |
| Free cash flow | $4.4B |
| Operating margin | 0.9% |
| Net margin | 0.6% |
| Period | TTM 2026-03-31 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Capital returns and Pharma resilience are attractive, but the Medical turnaround remains unproven.
Hold: FY23 adjusted EPS guidance of $5.05-$5.40 is essentially flat to FY22’s $5.06, with Pharma profit growth of 2%-5% offset by Medical revenue pressure and a segment-profit range of -10% to +10%.
The bull case is strong Pharma execution, $1.5-$2.0 billion of planned buybacks and a potential Medical recovery; the bear case is that the $650 million Medical profit target by FY25 depends on several years of pricing, supply-chain and execution improvements that analysts repeatedly challenged.
Themes
- Medical Turnaround
- Pharma Distribution
- Inflation Mitigation
- Share Repurchase
- Leadership Transition
- Cardinal Health Brand
Near term
Medical segment profit is guided to a loss of $20 million to profit of $20 million in Q1 FY23, with $150 million of gross inflation and supply-chain impact and only about 25% mitigation.
Pharma Q1 segment profit is guided to $400-$420 million, with FY23 growth back-half weighted as inflationary costs ease and ERP investments become a tailwind.
Medical pricing and supplier-fee actions are expected to increase mitigation from roughly 25% in Q1 to a 50% exit-rate in FY23; execution and customer acceptance are key near-term stock catalysts.
The CEO transition to Jason Hollar and interim CFO appointment add governance and execution uncertainty, even though the succession is internal.
Longer term
Management targets at least $650 million of Medical segment profit by FY25, supported by Cardinal Health Brand growth, at-Home Solutions, cost savings and inflation mitigation.
Medical’s recovery requires mitigation of 100% of inflation and supply-chain impacts by the end of FY24, while management expects the gross impact to decline over time.
Cardinal Health Brand sales are targeted to grow at least 3% annually, with $75 million or more of incremental Medical segment profit over three years; a new $125 million surgical-glove facility adds capacity but also raises execution and capital-deployment requirements.
At-Home Solutions is a potentially higher-growth, higher-margin business, currently generating $2.4 billion of revenue and growing around 10%, while Specialty and biosimilars remain key Pharma growth avenues.
Competitive pricing remains unresolved: management argued that inflation should ultimately flow through to customers, but acknowledged a choppy, multi-year contracting process and did not quantify potential volume or share losses.
Management said portfolio evaluation will continue and did not rule out a future change to the Pharma-Medical structure, preserving strategic optionality but also signaling that the long-term portfolio remains unsettled.
Red flags
The Medical improvement plan is heavily dependent on unproven pricing and contracting actions; management declined to provide a clear future Cardinal Health Brand revenue or profit mix and offered limited evidence of customer acceptance.
Medical suffered an approximately $300 million FY22 headwind from inflation and supply-chain constraints, and management expects a similar net impact in FY23 despite mitigation.
PPE demand, margins and customer inventory remain volatile, with lower volumes and pandemic-era customer losses still affecting Medical.
Analysts pressed on whether price increases could weaken competitiveness and cause further share loss; management provided general industry logic rather than quantified retention, pricing or market-share data.
The FY25 Medical target is back-end loaded and requires execution across manufacturing capacity, supply-chain resilience, cost savings and growth businesses, while the new CEO and interim CFO transition at the same time.
Forward outlook
revenue growth
10–14 pct
FY 2023
official guidance
revenue growth
-6–-3 pct
FY 2023
official guidance
revenue growth
—
FY 2025
management target
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-08-11
- Revenue Growth
- Customer Concentration
- Cv S Health Dependence
- Debt Maturities
- Opioid Settlement
- Goodwill Impairment
- Healthcare Regulation
- Supplier Dependence
Red flags
- CVS Health accounted for 28% of fiscal 2026 revenue and 22% of gross trade receivables; it represented 30% of revenue in fiscal 2025.
- OptumRx represented 17% of fiscal 2024 revenue before its pharmaceutical distribution contracts expired at the end of June 2024, illustrating material customer-renewal risk.
- Total debt and finance lease obligations were $8.886 billion, with $1.882 billion due in fiscal 2027; subsidiary trade payables were $38.3 billion and effectively senior to Cardinal Health’s unsecured notes.
- A $184 million pre-tax goodwill impairment was recorded for the Navista & Integrated Oncology Network reporting unit in fiscal 2026.
- Sales to members of Vizient and Premier GPOs collectively represented 29% of fiscal 2026 revenue, up from 27% in fiscal 2025, increasing exposure to purchasing-agent and provider consolidation dynamics.
Upcoming earnings
1:30 PM UTC+1
Period
Sep 2026
Est. EPS
$2.94
Est. revenue
66.5B
Earnings transcripts
Documents
FormReporting forFiledFlags