Cardinal Health Sets 52-Week High After Price Target Raised to $237
Cardinal Health shares hit a 52-week high after Wells Fargo lifted its price target to $237 and other brokers raised theirs to $208-$244. The company posted Q1 revenue of $64.01 billion, up 22.4%, EPS of $2.55 beating estimates by $0.33, and set FY 2026 EPS guidance at $9.65-9.85.
1. Company Reaches New 52-Week High
Cardinal Health recently climbed to its highest level in the past year, driven by robust demand for its pharmaceutical distribution and medical-surgical supply services. Trading volume surged to over 100,000 shares on the day of the high, reflecting heightened investor interest in its resilience and scale. The company’s market capitalization now stands at approximately $50.7 billion, underscoring its position as one of the largest healthcare services providers in the United States.
2. Analyst Upgrades Boost Outlook
Several major brokerages have raised their recommendations on Cardinal Health in recent months. Wells Fargo increased its price target from $221 to $237 and reaffirmed an overweight rating, while UBS boosted its target from $185 to $220 with a buy rating. Citigroup moved from neutral to buy and lifted its target to $244. As of the latest consensus data, 14 analysts rate the stock as a buy and two as a hold, yielding an average target of $216.33. These upgrades reflect confidence in the company’s continued margin expansion and integration of recent acquisitions.
3. Fiscal Q1 Earnings and Guidance
In the quarter ended October 30, Cardinal Health reported earnings of $2.55 per share, beating consensus estimates by $0.33, on revenue of $64.01 billion, up 22.4% year-over-year. Net margin improved to 0.68%, and the company generated positive free cash flow despite working capital investments. Management has set full-year guidance at $9.65–$9.85 EPS, compared with analyst projections of $7.95 for the current fiscal year. Return on equity was negative 84.37% due to a prior goodwill impairment, but operating cash flow remains strong.
4. Dividend Increase and Shareholder Returns
Cardinal Health declared a quarterly dividend of $0.5107 per share, equivalent to an annualized payout of $2.04 and a yield of approximately 1.0%. The dividend was paid on January 15 to shareholders of record as of January 2. At a payout ratio of 30.8%, the company balances income returns with reinvestment in supply chain expansion. Institutional investors hold 87.2% of shares outstanding, indicating strong long-term confidence among large asset managers.