Cardinal Health Shares Reach Unprecedented Heights Following Stellar Earnings

Cardinal Health concluded the trading week on an exceptionally strong note, with its stock price surging to an unprecedented peak of $190.77 this Friday. This significant upward movement was propelled by the release of the company's robust first-quarter fiscal 2026 results, which handily surpassed market projections for both revenue and profit.

The healthcare services provider reported an adjusted earnings per share of $2.55 for the quarter, substantially outpacing the consensus estimate of $2.22 by $0.33. Revenue demonstrated remarkable growth, climbing 22% to reach $64 billion and exceeding expectations that stood at approximately $59.4 billion.

This impressive performance was supported by gains across the organization:
* Adjusted operating earnings jumped 37% to $857 million
* The pharmaceutical segment expanded 23% to over $59 billion
* All five of the company's business divisions reported growth

Strategic Expansion Through Acquisition

Alongside these powerful financial results, Cardinal Health is advancing its strategic growth initiatives. The company confirmed it anticipates finalizing the acquisition of Solaris Health for approximately $1.9 billion in early November.

Should investors sell immediately? Or is it worth buying Cardinal Health?

This strategic move significantly enhances Cardinal Health's footprint within the healthcare services market and further develops its multi-specialty platform, The Specialty Alliance. Through this acquisition, the company is strategically establishing itself as a key participant in physician management and specialized care delivery.

Revised Guidance and Market Perspective

In response to the stronger-than-anticipated quarterly performance, Cardinal Health has raised its full-year fiscal 2026 earnings guidance. The company now projects adjusted earnings per share between $9.65 and $9.85. Additionally, the adjusted free cash flow forecast has been increased to a range of $3.0 to $3.5 billion.

Despite the record-breaking share price, financial analysts present a divided outlook. The average price target among 15 covering analysts sits at $176.87, below the current trading level, though individual targets extend as high as $232.00.

The critical factors that will determine whether Cardinal Health can maintain its current momentum include the successful integration of Solaris Health and continued strong performance in high-margin segments such as Nuclear and Precision Health Solutions.