Baird Keeps Outperform on Cardinal Health (CAH) Following Earnings Update

Cardinal Health, Inc. (NYSE:CAH) is included among the 10 Best Stocks to Buy Now for a $1 Million Portfolio.

On May 1, Baird lowered its price recommendation on Cardinal Health, Inc. (NYSE:CAH) to $248 from $257. It reiterated an Outperform rating on the shares. The firm updated its model following the company’s first-quarter results and also raised its 2027 forecast.

A day earlier, on April 30, BofA lowered its price goal on Cardinal Health to $240 from $260 to reflect lower peer multiples. It kept a Buy rating on the stock. BofA said Cardinal Health reported mixed-to-positive fiscal third-quarter results and raised its fiscal 2026 EPS guidance. The firm noted that the increase was driven by below-the-line items and continued strength in the Pharma and Other segments. The firm also argued that the higher guidance could help ease investor concerns about a possible slowdown in industry growth.

During the company’s fiscal Q3 2026 earnings call, CFO Aaron Alt said Cardinal Health was raising its full-year fiscal 2026 non-GAAP EPS guidance to a range of $10.70 to $10.80. Alt also stated that the company had lowered its expected full-year non-GAAP effective tax rate to about 19%, compared with its earlier outlook of 21% to 23%.

In addition, Alt noted that Cardinal Health had raised and narrowed its full-year adjusted free cash flow guidance to between $3.3 billion and $3.7 billion. The prior range was $3 billion to $3.5 billion.

Cardinal Health, Inc. (NYSE:CAH) is one of the three largest pharmaceutical wholesalers in the United States. The company sources and distributes branded, generic, and specialty pharmaceutical products to retail pharmacy chains, independent pharmacies, mail-order pharmacies, hospital networks, and healthcare providers.

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