Cardinal Health Surges 7.07% on Earnings Outperformance, Hits 52-Week High

Cardinal Health’s share price rose to its highest level since the start of this month on Nov. 8, with an intraday gain of 2.87%. The stock has now climbed 7.07% over the past four sessions, extending a multi-month rally that has propelled it to a 52-week high. The move reflects growing investor confidence in the healthcare distributor’s earnings momentum and strategic positioning.

Underpinning the rally is Cardinal Health’s consistent outperformance of earnings and revenue forecasts. In its most recent report on Oct. 30, the company surpassed expectations by 15.3% on earnings and 8.39% on revenue, signaling strong operational execution. Analysts project further upside, with fiscal 2026 EPS expected to hit $9.73, a 18.08% increase from the prior year. The company’s diversified business model, spanning pharmacy services and medical products, benefits from industry tailwinds including rising demand for healthcare supplies and an aging population.

Despite its premium valuation—trading at a current P/E of 20.2X versus the industry average of 14.8X—Cardinal Health’s growth prospects justify the multiple. A Zacks Rank of #2 (Buy) and an A-grade VGM Score highlight its favorable earnings trajectory and momentum. The stock’s 66.4% year-to-date gain far outpaces the Zacks Medical sector’s 1.3% return, underscoring its resilience amid broader market volatility. With healthcare’s defensive characteristics and CAH’s strong balance sheet, the stock remains a key player in a sector poised for long-term demand growth.