Cardinal Health Surges 12.6% on Q3 Beat, Strategic Moves Ignite Bullish Momentum

Summary
• Cardinal Health (CAH) rockets 12.6% intraday to $185.255, hitting 52-week high of $195.15
• Q3 revenue surges 22.4% to $64B, beating estimates by 7.8%
• Non-GAAP EPS jumps 36% to $2.55, driving $2.6B cash flow swing
• Strategic acquisitions and margin expansion fuel investor optimism

Cardinal Health’s explosive 12.6% rally on October 30, 2025, reflects a perfect storm of outperforming Q3 results, strategic acquisitions, and margin expansion. The stock’s surge to a 52-week high of $195.15 underscores confidence in its diversified healthcare distribution model and value-added services. With a $2.6 billion cash flow turnaround and a 10.38% margin in its 'Other' segment, CAH is redefining its growth narrative.

Q3 Earnings Surge and Strategic Acquisitions Drive CAH’s Rally
Cardinal Health’s 12.6% intraday surge stems from a combination of outperforming Q3 results and strategic momentum. The company reported $64.01 billion in revenue, a 22.4% year-over-year increase, with non-GAAP EPS of $2.55 (36% growth). Margin expansion in the Pharmaceutical and Specialty Solutions segment (1.13% margin) and a 60% profit jump in the 'Other' segment (10.38% margin) highlighted operational leverage. Additionally, the acquisition of Solaris Health and the $375 million accelerated share repurchase program signaled aggressive growth intentions, while a 26% increase in segment profit for the Global Medical Products division confirmed a long-awaited turnaround.

Healthcare Distributors Rally as CAH Outpaces McKesson
The Healthcare Distributors sector saw mixed momentum, with Cardinal Health outperforming peers like McKesson (MCK), which rose 2.35%. CAH’s 12.6% surge reflects its unique focus on high-margin value-added services (e.g., At-Home Solutions, Nuclear) and strategic acquisitions, while MCK’s more traditional distribution model limited its upside. CAH’s 10.38% margin in its 'Other' segment versus MCK’s flat margins highlights CAH’s superior diversification into higher-margin offerings.

Capitalizing on CAH’s Bullish Momentum: ETFs and Options Playbook
• MACD: 2.52 (above signal line 1.81), RSI: 67.4 (neutral), 200D MA: $146.04 (below price)
• Bollinger Bands: Price at $185.255 (above upper band $164.41), Support/Resistance: 30D $154.27–154.61, 200D $153.81–154.70

Cardinal Health’s technicals and fundamentals align for a continuation of its bullish trend. Key levels to watch include the 52-week high of $195.15 and the 200-day moving average ($146.04). Short-term traders should target a retest of the $190–195 range, while long-term investors may consider the $185–190 zone for entry. The XHE ETF (Healthcare Select Sector SPDR) offers leveraged exposure to the sector, though its 2.35% gain lags CAH’s momentum.

Top Options Picks:
• CAH20251107C195 (Call, $195 strike, Nov 7):
- IV: 53.32% (high volatility)
- Leverage: 72.49% (high)
- Delta: 0.278 (moderate sensitivity)
- Theta: -0.439 (rapid time decay)
- Gamma: 0.0217 (moderate sensitivity to price swings)
- Turnover: 17,862 (liquid)
- Payoff at 5% upside ($194.52): $9.52/share. This contract balances volatility and liquidity, ideal for a 5–7 day holding period.
• CAH20251121C180 (Call, $180 strike, Nov 21):
- IV: 30.95% (moderate)
- Leverage: 21.49% (moderate)
- Delta: 0.656 (high sensitivity)
- Theta: -0.249 (moderate decay)
- Gamma: 0.0256 (high sensitivity to price swings)
- Turnover: 79,920 (highly liquid)
- Payoff at 5% upside ($194.52): $14.52/share. This option offers aggressive upside with strong liquidity for longer-term holding (up to 21 days).

Aggressive bulls should prioritize CAH20251107C195 into a break above $195.15.

Backtest Cardinal Health Stock Performance
It turns out that Cardinal Health (CAH) has not experienced any daily close-to-close gains of at least 13 percent between 2022-01-01 and 2025-10-30. Because the event list was empty, the event-backtest engine had no data to work with and returned an internal error.Next step options:1. Lower the threshold slightly (e.g., 12 % or 10 %) so that we capture the handful of large moves CAH actually had (for example, the 12.90 % jump on 2025-10-30). 2. Use a different definition of “intraday surge” (e.g., compare the day’s high vs. previous close), although that would require pulling intraday high/low data, which we haven’t retrieved yet.Please let me know which approach you prefer—or provide another threshold/definition—and I’ll re-run the back-test accordingly.

Cardinal Health’s Momentum Unstoppable—Act Now on Strategic Entry Points
Cardinal Health’s 12.6% surge is underpinned by structural momentum: margin expansion, strategic acquisitions, and a $2.6 billion cash flow turnaround. The stock’s technicals (MACD above signal line, RSI in neutral territory) and fundamentals (10.38% margin in high-margin segments) suggest the rally is sustainable. Investors should prioritize the CAH20251107C195 option for short-term gains or the XHE ETF for sector exposure. Watch for a retest of the $195.15 52-week high and a breakdown below $185 (support level). Meanwhile, sector leader McKesson (MCK) at +2.35% validates healthcare distribution tailwinds. Act now: Buy CAH20251107C195 if $195.15 breaks, or accumulate shares at $185–190.