At a glance
Cardinal Health Inc is worth $59.15B, about 35 times its fiscal 2026 earnings. Revenue grew 14.2% to $254.25B in fiscal 2026, with 0.7% kept as profit; over 5 years it has grown 9.4% a year. It pays a 0.81% dividend yield, raised every year for at least 9 years, and returned $8.44B to shareholders in dividends and buybacks over FY2022–FY2026. The stock returned +34.6% over the past year with dividends reinvested and +41.9% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 32.1% in the 2020 crash (S&P 500: 33.7%) and 21.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 12 months and 2 months after the lows.
The business in plain English
Cardinal Health sits between the makers of drugs and medical supplies and the places that use them: hospitals, pharmacies, surgery centers, labs, doctors' offices and patients at home. In the United States, its Pharmaceutical and Specialty Solutions segment distributes branded and generic prescription drugs and over-the-counter products to drugstore chains, independent pharmacies, supermarkets and hospitals. It also handles specialty drugs, such as cancer and rheumatology treatments. Through management services organizations (MSOs), which run the business side of a practice, it supports doctors' practices in fields such as urology and gastroenterology.
On generics, Cardinal earns discounts, rebates and fees. Its profits are highest after a new generic launches, because prices tend to fall over time. On brand-name drugs, it is usually paid a percentage of the list price manufacturers set. The Global Medical Products and Distribution segment makes and sources Cardinal Health brand gloves, syringes, surgical gowns, wound care and other supplies, which generally carry higher margins. It also distributes national brands. Smaller units run nuclear pharmacies, ship supplies to patients at home and manage shipping for healthcare providers.
Scale is large and margins thin: revenue was $254.2 billion in the fiscal year ended June 30, 2026, yet only 3.8% remained after the cost of the goods. CVS Health made up 28% of revenue, and the five largest customers 43%.
Price history
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CAH +34.6% over the year to Nov 2, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Dec 31, 2025), revenue was $65.63B, up 18.8% from a year earlier, and net income was $467.0M (+16.8%).
- For fiscal 2026, revenue was $254.25B (+14.2% year over year; +9.4% a year from FY2021 to FY2026) with a 0.7% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +9.4% good |
|---|---|
| Operating margin | 1% weak |
| Free cash flow margin | 1.8% watch |
| Return on assets (FY2026) | 3% watch |
| Net cash (cash minus debt) | $-4.03B watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $162.47B | $611.0M | $2.03B |
| FY2022 | $181.33B | $-938.0M | $2.79B |
| FY2023 | $204.98B | $330.0M | $2.36B |
| FY2024 | $226.83B | $852.0M | $3.25B |
| FY2025 | $222.58B | $1.56B | $1.85B |
| FY2026 | $254.25B | $1.71B | $4.53B |
Valuation snapshot
| Market value | $59.15B |
|---|---|
| P/E ratio | 35.2 |
| Dividend yield | 0.81% |
Rank among 1514 US companies
Market value at each year end
Cardinal Health’s market value went from $23.03B at the end of 2016 to $59.15B on Nov 2, 2026, about 2.6 times as much; since the end of 2025 it is up 21%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $59.15B | +21.1% |
| 2025 | $48.83B | +70.6% |
| 2024 | $28.62B | +15.2% |
| 2023 | $24.84B | +23.3% |
| 2022 | $20.15B | +38.9% |
| 2021 | $14.51B | -7.7% |
| 2020 | $15.72B | +6.2% |
| 2019 | $14.79B | +11.3% |
| 2018 | $13.29B | -32.2% |
| 2017 | $19.61B | -14.9% |
| 2016 | $23.03B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| CAH price data to Nov 2, 2026 | +24.9% | +34.6% | +41.5% | +41.9% | +17.2% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +24.9% |
| 2025 | +76.3% |
| 2024 | +19.0% |
| 2023 | +34.1% |
| 2022 | +54.2% |
| 2021 | -0.3% |
| 2020 | +10.1% |
| 2019 | +18.0% |
| 2018 | -24.5% |
| 2017 | -12.7% |
| 2016 | -17.5% |
| 2015 | +12.6% |
| 2014 | +23.0% |
| 2013 | +66.0% |
| 2012 | +3.9% |
| 2011 | +8.2% |
| 2010 | +20.4% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 30.9% over that stretch · deepest drop along the way 32.1%, back to its old high 11.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 33.9% over that stretch · deepest drop along the way 21%, back to its old high 1.8 months after the low |
Insider activity
Form 4 filings from 2025-10-27 to 2026-10-27 (25 read): 0 open-market purchases and 33 sales ($60.2M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 18, 2026 | Jason M. Hollar Chief Executive Officer | sell | $7.0M |
| Aug 18, 2026 | Jason M. Hollar Chief Executive Officer | sell | $5.0M |
| Aug 19, 2026 | Jason M. Hollar Chief Executive Officer | sell | $3.8M |
| Aug 18, 2026 | Jason M. Hollar Chief Executive Officer | sell | $3.8M |
| Aug 18, 2026 | Aaron E Alt Chief Financial Officer | sell | $3.2M |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 7.8% | Jan 31, 2025 |
| Vanguard Capital Management | 7.49% | Mar 31, 2026 |
| Wellington Management Group LLP | 6.3% | Jun 30, 2026 |
| Vanguard Portfolio Management | 5.85% | Mar 31, 2026 |
| BlackRock Portfolio Management LLC | 3.8% | Dec 31, 2025 |
ETFs with the most weight in CAH
| BLCR iShares Large Cap Core Active ETF | 4.52% |
| STNC Hennessy Stance ESG ETF | 4.02% |
| PEZ Invesco Dorsey Wright Consumer Cyclicals Momentum ETF | 3.92% |
| BLCV iShares Large Cap Value Active ETF | 3.56% |
| DVLU First Trust Dorsey Wright Momentum & Value ETF | 3.48% |
| VSMV VictoryShares US Multi-Factor Minimum Volatility ETF | 3.15% |
| IPDP Dividend Performers ETF | 2.66% |
| PINK Simplify Health Care ETF | 2.59% |
What could go wrong
- Heavy reliance on a few big customers. CVS Health made up 28% of fiscal 2026 revenue and the five largest customers 43%. Members of two purchasing groups, Vizient and Premier, accounted for 29%. Losing one big contract could hurt results.
- Opioid lawsuits and settlement costs. Cardinal still faces opioid-related legal proceedings and has entered into an opioid settlement agreement. The company warns both could bring extra or unexpected costs and hurt its results or business.
- Thin margins in drug distribution. Gross margin was just 3.8% in fiscal 2026. Generic profits fade as prices fall after launch, and brand-name pay is tied to manufacturer list prices, so industry changes Cardinal misjudges could squeeze profit.
- Costly push into doctor-practice businesses. Cardinal has spent billions acquiring doctor-practice managers and specialty networks, including $2.8 billion for 73% of GI Alliance. Poor integration could hurt results and force write-downs of the premium paid (goodwill).
- Strict rules and government investigations. Cardinal needs many licenses and must follow complex healthcare fraud laws. The Justice Department began probing a 2022 deal in November 2023 under anti-kickback rules. Sanctions can include losing Medicare and Medicaid access.
- Sterilization chemical rules and lawsuits. Cardinal relies on ethylene oxide to sterilize certain medical products. Tighter emission rules could raise costs or cause supply shortages, and Cardinal has been named in several personal-injury lawsuits over these emissions.
Recent events
- Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
- Major agreement signed; Major agreement ended; New debt or financial obligation
- Executive or board change
- Quarterly results released; Investor presentation or announcement
- Executive or board change; Investor presentation or announcement
- Executive or board change
- Quarterly results released; Investor presentation or announcement
- Investor presentation or announcement
- Shareholder vote results
For income and retirement investors
Cardinal Health has raised its dividend for at least 9 straight fiscal years through fiscal 2026 (which ended June 30, 2026), but the increases are small: from $1.94 a share in fiscal 2021 to $2.04 in fiscal 2026, about 1% a year. In fiscal 2026 the dividend used 28.6% of earnings and 10.9% of free cash flow (cash left after running and investing in the business). The yield was just 0.84% as of October 28, 2026. Buybacks get more cash: $5.9 billion from fiscal 2022 to 2026, against $2.6 billion in dividends, helping cut the share count by 17.5% between late 2021 and mid-2026.
In the 2020 COVID crash the shares fell 32.1% and needed about 12 months to recover. In 2022 they dropped 21% between April and June but regained the loss by August. From the market's January peak to its October low, they gained 33.9%. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Cardinal Health make money?
By acting as a middleman: it moves drugs and medical supplies from manufacturers to pharmacies, hospitals, clinics and patients' homes, keeping a small slice of each sale. In the fiscal year ended June 30, 2026, revenue was $254.2 billion and net income $1.7 billion, a 0.7% margin. It earns discounts, rebates and fees on generic drugs, usually a percentage of list price on brand-name drugs, and higher margins on its own Cardinal Health brand gloves, syringes and other supplies.
Does Cardinal Health raise its dividend every year?
Yes, so far. Cardinal has raised its dividend for at least 9 straight fiscal years through fiscal 2026, and the streak may be longer. The raises are small: dividends per share went from $1.94 in fiscal 2021 to $2.04 in fiscal 2026, about 1% a year. The payout used 28.6% of fiscal 2026 earnings. The yield was 0.84% as of October 28, 2026, so the stock provides modest income. Past increases do not guarantee future ones.
How much of Cardinal Health's revenue comes from CVS?
About 28%. CVS Health was Cardinal's largest customer in fiscal 2026, and its five largest customers together made up 43% of revenue. The two companies also run Red Oak Sourcing, a venture that negotiates generic drug supply contracts for both, with a term through June 2029. Separately, sales to members of the Vizient and Premier purchasing groups made up 29%. Losing or repricing a major relationship could hurt results.
How has Cardinal Health stock performed?
Strongly since 2022, after a weak stretch. As of October 28, 2026, the share price had gained 51.8% over one year, about 41.5% a year over five years and 16.9% a year over ten years. It rose 76.3% in 2025 but fell in 2016, 2017 and 2018, losing 24.5% in 2018 alone. After that run, the stock traded at 33.9 times fiscal 2026 earnings as of the same date. Past returns do not predict future results.
Who are Cardinal Health's competitors?
McKesson and Cencora in drug distribution, and Medline and Owens & Minor in medical products. Cardinal also competes with regional and specialty distributors, pharmacy chains that run their own warehouses, logistics firms and drugmakers that ship directly to customers. Competition turns on price, service and product range, and margins are thin: gross margin was 3.8% in fiscal 2026, so Cardinal kept about 3.8 cents of each sales dollar after paying for the goods.