Cardinal Health CEO Surprises Jim Cramer with Recent Earnings Performance

Cardinal Health, Inc. (CAH) CEO Jason Hollar has impressed Jim Cramer with the company's recent earnings, despite missing fourth quarter analyst revenue estimates. Cramer notes that Cardinal Health has added high-value services, but this has not translated into strong performance. Despite this, Cramer remains optimistic about the company's potential.

Cardinal Health, Inc. (CAH) reported its fiscal 2025 Q4 earnings on August 12, 2025, delivering mixed results that exceeded some expectations but fell short of revenue projections. The company reported earnings per share (EPS) of $1.00, a 4.0% year-over-year (YoY) increase from $0.96 in the same quarter last year. Net income surged 4.3% to $243 million, compared to $233 million in 2024 Q4. Despite these gains, Cardinal Health missed revenue estimates, with revenues flat at $60 billion, compared to analyst expectations of $60.75 billion [3].

The company's strategic moves, including the acquisition of Solaris Health to expand its Specialty Alliances platform and launching a $500 million stock buyback program, were seen as positive steps. However, the stock price reacted negatively, with a 3.76% daily gain followed by a 9.11% monthly decline [1]. A 30-day buy-and-hold strategy yielded a 63.27% return over three years, indicating potential long-term benefits [1].

CEO Jason Hollar emphasized operational efficiency and growth investments, projecting 13–15% EPS growth for 2026. He highlighted the company's success in driving profitability across its operating segments and expressed confidence in its leadership in multi-specialty care. The company raised its fiscal 2026 EPS guidance to $9.30–$9.50, reflecting 13–15% growth [1].

Cardinal Health's recent performance shows a slowdown in demand, with annualized revenue growth of 4.2% over the last two years, below its five-year trend. However, analysts expect revenue to grow 11.8% over the next 12 months, indicating potential improvements in top-line performance. The company's operating margin has remained relatively stable, and its EPS growth aligns with its revenue performance [3].

Despite missing revenue estimates, Cardinal Health's Q4 results demonstrate solid profitability and a clear earnings beat. The company's strategic moves and long-term growth prospects remain promising, with CEO Hollar's optimistic outlook suggesting potential for future success.

References:
[1] https://www.ainvest.com/news/cardinal-health-2025-q4-earnings-strong-performance-net-income-surges-4-3-2508/
[2] https://finance.yahoo.com/news/cardinal-health-cah-falls-dismal-165039381.html
[3] https://finance.yahoo.com/news/cardinal-health-nyse-cah-misses-105958457.html