Cardinal Health, Inc. (NYSE:CAH) is included among
12 Unstoppable Dividend Stocks to Buy According to Analysts.
Morgan Stanley boosted its price recommendation on Cardinal Health, Inc. (NYSE:CAH) to $255 from $245 on February 6. The firm kept an Overweight rating on the stock. In a research note, the analyst said the firm updated its view on the stock’s risk-reward profile following what it described as “strong” second-quarter results.
A day earlier, on February 5, Cardinal Health lifted its 2026 profit outlook after posting quarterly results that beat expectations. The upside was driven by solid demand for specialty medicines, which pushed the stock up more than 9% in morning trading.
Drug distributors such as Cardinal Health, Cencora, and McKesson are benefiting from rising demand for higher-margin treatments used in complex conditions, including cancer and autoimmune diseases. The group is also seeing support from the rollout of biosimilars tied to blockbuster drugs that have lost patent protection.
At the same time, these companies are expanding further into specialty medicines by acquiring cancer center operators. The strategy helps them diversify beyond traditional drug distribution while strengthening their core operations. During the post-earnings call, CEO Jason Hollar downplayed GLP-1 drugs as a meaningful profit driver. While the products continue to support revenue, he said the company does not expect the fast-growing category to materially change earnings. On oral GLP-1 drugs, Hollar said adoption remains “slow” and is unlikely to be material this fiscal year, though he expects uptake to accelerate over time.
Cardinal Health now expects adjusted earnings in the range of $10.15 to $10.35 per share, compared with its previous forecast of at least $10 per share. Quarterly revenue totaled $65.63 billion, topping analysts’ average estimate of $64.14 billion, according to data from LSEG. Adjusted profit came in at $2.63 per share, above estimates of $2.36.
Cardinal Health, Inc. (NYSE:CAH) is a global healthcare services and products company. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home, along with a broad range of pharmaceuticals and medical products.
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