--- canonical_url: https://www.stockexpertai.com/earnings/cah last_updated: 2026-05-05T21:47:24.369Z --- # Cardinal Health, Inc. (CAH) Q1 FY2027 Earnings Preview > This content was automatically generated with FMP live data + Q2 FY2026 earnings call transcript. Generated: 2026-05-05T21:47:24.051Z. Educational tool, not investment advice. --- ## Quick Summary | Field | Value | Source | |---|---|---| | Price | $197.00 (▼ -0.03%) | fmp:quote | | Market Cap | $46.4B | fmp:profile | | 52w range | $137.75 – $233.60 | fmp:quote | | Earnings | Tue 11 Aug | fmp:earnings-history | | EPS estimate | $2.38 (+14% YoY) | fmp:earnings-estimate | | Revenue estimate | $65.2B | fmp:earnings-estimate | | Beat streak | 8/4 | fmp:earnings-history | | Rating | C+ (overall 2/5) | fmp:ratings | | Analyst median target | $256 (+29.7% upside) | fmp:price-target-consensus | | MoonshotScore | 37/100 | derived | | Council | 3/6 bullish | derived | | Munger verdict | Undervalued | derived | ## Cardinal Health, Inc. — Q1 FY2027 Expectations Q1 consensus: revenue $65.2B^{[FMP est]}, EPS $2.38^{[FMP est]}. 8 consecutive quarters of beat^{[FMP earnings]}. ## Quick Take **Score:** C+ · **Stance:** BUY · **Council:** 3/6 · **Moonshot:** 37 = MoonshotScore 37^{[9-pillar formula]} + Council 3/6^{[6-lens rule]}. Form 4: 0 transactions^{[FMP Form 4]}. ## Watchlist (6 metrics) ### 1. Fy26 Eps Guidance Increase Cardinal Health is raising its fiscal year 2026 earnings per share guidance to a range of $10.15 to $10.35, representing year-over-year EPS growth of 23% to 26%. > "Our new range is $10.15 to $10.35, up from the at least $10 interim guidance update. This updated outlook represents year-over-year EPS growth of 23% to 26%." > — Aaron Alt, CFO, Expectation / Guide · Q2 FY2026 ### 2. Pharmaceutical Segment Profit Growth Cardinal Health is raising its pharma segment profit outlook to a range of 20% to 22% growth, up from the prior range of 16% to 19%. > "For pharma segment profit, we are pleased to raise our outlook to a range of 20% to 22% growth, up from the prior range of 16% to 19%." > — Aaron Alt, CFO, Investor Focus · Q2 FY2026 ### 3. Other Growth Businesses Profit Growth Cardinal Health is increasing its segment profit guidance for other to a range of 33% to 35% growth, up from the prior range of 29% to 31%. > "We are increasing our segment profit guidance for other to a range of 33% to 35% growth, up from the prior range of 29% to 31%." > — Aaron Alt, CFO, Investor Focus · Q2 FY2026 ### 4. Specialty Revenue Growth Cardinal Health anticipates its specialty revenues will surpass $50 billion in fiscal 2026. > "As we shared at a recent industry conference, we expect our specialty revenues will surpass $50 billion in fiscal 2026, a testament to our progress in this high-growth, higher-margin space." > — Jason Hollar, CEO, Investor Focus · Q2 FY2026 ### 5. Gnpd Profit Guidance Increase Cardinal Health is raising its guidance to approximately $150 million on GNPD segment profit. > "On GNPD segment profit, we are raising our guidance to approximately $150 million." > — Aaron Alt, CFO, Expectation / Guide · Q2 FY2026 ### 6. Capital Allocation Flexibility Cardinal Health, by protecting its balance sheet and getting back within its targeted leverage range, has the flexibility to assess how it will allocate capital to create shareholder value. > "And we've, two quarters in, fulfilled our baseline share repurchase commitment of $750 million. And what that means for a business that is continuing to generate strong cash is that we have flexibility to assess how we will create the most shareholder value as we carry forward." > — Aaron Alt, CFO, Investor Focus · Q2 FY2026 ## MoonshotScore Pillars | Pillar | Score | Level | Evidence | |---|---|---|---| | Revenue Growth | 1.0 | weak | Q3 vs Q4: growth slowing (+1.3%, below threshold) | | Gross Margin | 0.0 | weak | Q3: low margin (4.1%, capital-intensive or commodity) | | Operating Leverage | 0.0 | weak | op margin weak (0.8%, under pressure) | | Cash Runway | 10.0 | strong | FCF very strong ($1.7B, 11.5× CapEx) | | R&D Intensity | 3.0 | weak | low R&D investment (0.0%, weak innovation) | | Price Momentum | 4.0 | medium | RSI 38.1 weak momentum, 50d below | | News Sentiment | 8.0 | strong | strong buy consensus (83%) | **Formula:** sum(pillar.score) / (count * 10) * 100. Each pillar deterministic from FMP. Source maps in pillar.formula. ## Council (7-Lens) | Name | Stance | Context | |---|---|---| | Ray Dalio | bull | macro · target upside +29.7% | | Ken Griffin | bear | flow · 50d MA below | | Jim Simons | neutral | quant · RSI 38 | | Klarman | bull | value · target upside +29.7% | | Buffett | neutral | quality · ROE score 1/5 | | Munger | bull | valuation · target upside +29.7% | **Formula:** Each lens uses deterministic rule on bundle data. Logged in member.contextTr. ## Munger Lens - **Verdict:** Undervalued - **Financial Health:** Weak - **Margin of Safety:** Strong - **Interest Coverage:** Adequate - **ROIC vs WACC:** Tight **Formula:** verdict=upside>25?Undervalued:>0?Fairly Valued:Overvalued. Each lens deterministic from FMP ratings + priceTarget. ## Technical Levels - **RSI(14):** 38.1 — momentum zayıf — oversold yakınında değil ama alıcı baskısı az - **50d MA:** $212 — hisse %7.2 altında — kısa vadeli direnç - **200d MA:** $190 — hisse %3.9 üstünde — uzun vadeli destek - **Volume (10d):** -35% ## Past Performance (4 Quarters) | Quarter | EPS Actual | EPS Estimate | Result | Reaction | |---|---|---|---|---| | Q4 FY25 | $2.08 | $2.04 | BEAT | +1.2% | | Q1 FY26 | $2.55 | $2.18 | BEAT | +0.5% | | Q2 FY26 | $2.63 | $2.34 | BEAT | -0.4% | | Q3 FY26 | $3.17 | $2.79 | +13.6% EPS | +1.2% | Q2 (February 5, 2026): EPS $3.17 vs $2.79 est^[FMP], +13.6% beat. D+1 movement: +1.2%^{[FMP D+1]}. Decline despite beat — market reacted to guidance, not numbers. ## 3 Scenarios ### Scenario A · Beat **Q1 EPS > $2.38 + CapEx discipline** Threshold: EPS > $2.38^{[FMP est]}. Target: Break above median target $256^{[FMP target]}; high target $275^[FMP] upper bound. ### Scenario B · In-Line **EPS ≈ $2.38 + CapEx < $146.0M** Threshold: EPS ≈ $2.38^{[FMP est]}, Q1 CapEx < $146.0M^[FMP]. Target: Consolidation in the band between current $197^[FMP] and median $256^[FMP]. ### Scenario C · Miss **EPS < $2.31 or CapEx ≥ $146.0M** Threshold: EPS < $2.31^{[FMP est×0.97]}. Target: Current $197 below SMA200 $190^[FMP], if rejection continues, $161^[derived] support activates. ## Risk Notes ### Primary segment below threshold Q2: EPS $3.17 vs $2.79 beat^[FMP], stock +1.2% D+1^[FMP]. ### Backlog concentration No RPO/backlog concentration disclosed in Q2 earnings call. ### Insider trading Form 4 data is marked in the table — this page does not generate assumptions for this stock. | Executive | Action | Amount | Date | |---|---|---|---| **Net:** — (0 transactions · 0 sells · 0 buys) · Q3 FY26 ### CapEx shock Q2 CapEx $146.0M^{[FMP cashflow]}. Q2 op margin 0.8%^{[FMP op margin]} — this level in Q1 is sensitive to CapEx revision risk. ## Wall Street Consensus - **Median target:** $256 (+29.7% upside vs current $197) - **High / Low:** $275 / $235 - **Buy / Hold / Sell:** 15 / 3 / 0 - **Analyst count:** 9 (last quarter), 53 all-time ## Additional Transcript Insights ### 1. specialty_revenue_growth **Claim:** Cardinal Health anticipates its specialty revenues will surpass $50 billion in fiscal 2026. **Evidence (transcript):** "As we shared at a recent industry conference, we expect our specialty revenues will surpass $50 billion in fiscal 2026, a testament to our progress in this high-growth, higher-margin space." **Numbers:** $50 billion, 2026 ### 2. fy26_eps_guidance_increase **Claim:** Cardinal Health is raising its fiscal year 2026 earnings per share guidance to a range of $10.15 to $10.35, representing year-over-year EPS growth of 23% to 26%. **Evidence (transcript):** "Our new range is $10.15 to $10.35, up from the at least $10 interim guidance update. This updated outlook represents year-over-year EPS growth of 23% to 26%." **Numbers:** $10.15, $10.35, 23%, 26% ### 3. pharmaceutical_segment_profit_growth **Claim:** Cardinal Health is raising its pharma segment profit outlook to a range of 20% to 22% growth, up from the prior range of 16% to 19%. **Evidence (transcript):** "For pharma segment profit, we are pleased to raise our outlook to a range of 20% to 22% growth, up from the prior range of 16% to 19%." **Numbers:** 20%, 22%, 16%, 19% ### 4. gnpd_profit_guidance_increase **Claim:** Cardinal Health is raising its guidance to approximately $150 million on GNPD segment profit. **Evidence (transcript):** "On GNPD segment profit, we are raising our guidance to approximately $150 million." **Numbers:** $150 million ### 5. other_growth_businesses_profit_growth **Claim:** Cardinal Health is increasing its segment profit guidance for other to a range of 33% to 35% growth, up from the prior range of 29% to 31%. **Evidence (transcript):** "We are increasing our segment profit guidance for other to a range of 33% to 35% growth, up from the prior range of 29% to 31%." **Numbers:** 33%, 35%, 29%, 31% ### 6. capital_allocation_flexibility **Claim:** Cardinal Health, by protecting its balance sheet and getting back within its targeted leverage range, has the flexibility to assess how it will allocate capital to create shareholder value. **Evidence (transcript):** "And we've, two quarters in, fulfilled our baseline share repurchase commitment of $750 million. And what that means for a business that is continuing to generate strong cash is that we have flexibility to assess how we will create the most shareholder value as we carry forward." **Numbers:** $750 million --- *Data source: FMP (live query, 2026-05-05), Q2 FY2026 earnings call transcript (Translated to EN with Gemini 2.0 Flash). Educational tool, not investment advice.*