What Happened?

Shares of healthcare distributor and services company Cardinal Health (NYSE: CAH) jumped 10.1% in the afternoon session after the company reported better-than-expected fourth-quarter financial results and raised its full-year earnings guidance. 

The company announced adjusted earnings of $2.63 per share, ahead of the $2.37 analysts had expected. Revenue also impressed, growing 18.8% year-on-year to $65.63 billion and surpassing estimates of $64.85 billion. Following the strong results, management raised its full-year adjusted earnings per share guidance to a midpoint of $10.25, representing a 5.1% increase. Overall, it was a solid quarter for the company, as it beat Wall Street's revenue and earnings per share estimates.

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What Is The Market Telling Us

Cardinal Health’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. Moves this big are rare for Cardinal Health and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock gained 16.5% on the news that the company reported strong third-quarter 2025 earnings that beat expectations and raised its full-year guidance. 

The company's sales for the quarter jumped 22.4% year-over-year to $64.01 billion, surpassing analyst estimates by 7.8%. Adjusted earnings came in at $2.55 per share, which was 17.3% ahead of the consensus view. Buoyed by the strong performance, Cardinal Health increased its forecast for full-year adjusted earnings per share to a midpoint of $9.75. The company also reported a significant improvement in its finances, generating $865 million in free cash flow, a stark turnaround from the negative $1.74 billion in the same quarter last year. Overall, the strong top-and-bottom-line beats, coupled with an improved outlook, drove investor optimism.

Cardinal Health is up 11% since the beginning of the year, and at $228.26 per share, has set a new 52-week high. Investors who bought $1,000 worth of Cardinal Health’s shares 5 years ago would now be looking at an investment worth $4,207.

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