Why Is Cardinal Health Stock Sinking Thursday?

Cardinal Health Inc. (NYSE:CAH) stock fell on Thursday as the healthcare services company reported mixed earnings performance for the third quarter of 2026.

Earnings Beat But Revenue Falls Short

The company reported adjusted earnings of $3.17 per share, beating the consensus of $2.79.

Sales increased 11% year over year to $60.94 billion, missing the consensus estimate of $61.70 billion. Adjusted operating earnings jumped 18% to $956 million.

Third quarter revenue for the Pharmaceutical and Specialty Solutions segment increased 11% to $56.1 billion, driven by brand and specialty pharmaceutical sales growth from existing customers.

Revenue for the Global Medical Products and Distribution segment was generally flat at $3.1 billion compared to the prior year, reflecting lower distribution volumes, offset by Cardinal Health brand growth.

Raised Outlook Signals Confidence

“An excellent third quarter extends our FY26 momentum, due to the durability and resilience of our business,” said Jason Hollar, CEO of Cardinal Health. “We were pleased to see strong operating performance led by Pharmaceutical and Specialty Solutions and our three growth businesses, positioning us for long-term value creation and giving us the confidence to again raise our fiscal 2026 outlook.”

Cardinal Health raised its fiscal 2026 adjusted earnings guidance from $10.15-$10.35 per share to $10.70-$10.80 per share compared to the consensus of $10.31.

The company raised and narrowed profit growth in the Pharmaceutical and Specialty Solutions segment to 22% to 23%, from the prior range of 20% to 22%

Cardinal Health raised and narrowed adjusted free cash flow 2026 guidance to $3.3 billion to $3.7 billion, from prior guidance of $3.0 billion to $3.5 billion.

Expansion In Nuclear Medicine Capabilities

During the quarter, Cardinal Health announced a significant expansion of its Actinium-225 production capabilities at its Nuclear and Precision Health Solutions Center for Theranostics Advancement in Indianapolis, Indiana, substantially increasing supply for use in investigational therapeutic drug products and future commercial manufacturing therapies.

Cardinal Health Stock Tumbles

CAH Price Action: Cardinal Health shares were down 8.23% at $186.12 at the time of publication on Thursday, according to Benzinga Pro data.

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