Cardinal Health Declares Dividend and Raises Fiscal 2027 Earnings Forecast

Cardinal Health Inc. announced a quarterly dividend of $0.5158 per share on November 11, 2026, holding its payout steady with a forward yield of 0.74%. The dividend will be paid on January 15, 2027, to shareholders of record as of January 4, 2027, with the ex-dividend date falling on the same day. Cardinal Health also placed ninth on Jim Cramer's published list of top ten dividend stocks.

Alongside the dividend announcement, the pharmaceutical distributor raised its fiscal year 2027 non-GAAP diluted earnings per share forecast to a range between $12.80 and $13.00, up from the prior outlook of $12.40 to $12.60. Chief Financial Officer Aaron Alt stated the upward revision reflects ongoing operating momentum and confidence in profit expansion. The company's earnings visibility received an additional boost from a renewed partnership contract with CVS Health that extends through June 2032.

The guidance increase follows strong first-quarter financial results. Cardinal Health reported revenue of $67.5 billion, up 5%, while non-GAAP diluted earnings per share rose 28% to $3.26. Operating income increased 17% to $1 billion, crossing that mark in a single quarter for the first time. In the pharmaceutical and specialty solutions division, revenue grew 6% to $62.6 billion and profit climbed 17% to $783 million, aided by specialty revenue growth of 18%. GLP-1 medications added roughly 5 percentage points to segment revenue growth, counterbalanced by a 4-percentage-point headwind tied to Inflation Reduction Act cost adjustments. Consequently, management raised its annual pharmaceutical profit growth target to 10% to 12%, though elevated petroleum expenses are leaning the medical segment's profit projection toward the bottom of its $200 million to $220 million range.

Analyst perspectives on the stock's valuation remain mixed. According to GuruFocus, shares traded at $277.45, approximately 54.7% above its proprietary intrinsic GF Value of $179.33, with a trailing price-to-earnings ratio of 35.88x. GuruFocus also pointed to cautious insider sentiment, recording zero insider purchases and $61.6 million in insider sales over the past 12 months. Conversely, Zacks highlighted Cardinal Health as an attractive value pick, assigning the stock a Zacks Rank #2 (Buy) and a Value grade of A, noting its forward price-to-earnings ratio of 15.48 and PEG ratio of 1.24 compared favorably to industry averages, alongside a strong interest coverage ratio.