Cardinal Health’s Share Price Surges 2.46% on Strong Earnings, Strategic Shift to Specialty Services

Cardinal Health’s share price reached its highest level since the start of this month, surging 2.46% intraday on Tuesday, as the stock extended its two-day winning streak with a 3.45% cumulative gain. The rally reflects renewed investor confidence in the healthcare distributor’s strategic shift toward high-margin specialty services and robust earnings performance.

The recent momentum follows Cardinal Health’s Q3 2025 earnings report, which exceeded revenue, EPS, and EBITDA estimates. The company’s Pharmaceutical and Specialty Solutions division drove growth, fueled by new customer acquisitions, demand for specialty drugs, and integration of recent acquisitions like Solaris Health. Management attributed the results to cost discipline and operational efficiency, with full-year adjusted EPS guidance raised to $9.75. The strategic pivot to specialty healthcare—bolstered by acquisitions in oncology and bioservices—has positioned the firm to capitalize on industry trends favoring complex therapies and managed services.

Valuation metrics suggest the stock remains undervalued relative to peers, trading at an EV/Sales multiple of 0.21x compared to industry averages. However, challenges persist, including a 70% rise in long-term debt to $8.98 billion and regulatory risks tied to past opioid-related settlements. Analysts note that disciplined execution and margin expansion could justify a re-rating, though liquidity management and integration of recent acquisitions will be critical to sustaining growth. As Cardinal Health navigates its transformation, the market’s focus on its specialty healthcare ambitions may drive further gains, provided operational and financial execution aligns with expectations.