Why Cardinal Health Stock Triumphed on Thursday

One of the higher-flying birds in the healthcare space Thursday was the stock of Cardinal Health (NYSE: CAH). It soared by over 15% in value, thanks largely to a quarterly earnings release that was very pleasing to investors. Cardinal Health did far better that day than the benchmark S&P 500 (SNPINDEX: ^GSPC); the closely followed indicator closed the day 1% lower.

A most impressive flight

For its fiscal first quarter of 2026, Cardinal Health managed to boost its revenue by 22% year over year to $64 billion. The healthcare services provider did even better on the bottom line, with net income not according to generally accepted accounting principles (GAAP) zooming 37% higher to $857 million, or $2.55 per share.

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Those figures beat the consensus analyst estimates into the ground. The average pundit projection for revenue was slightly above $59 million, while those prognosticators were collectively anticipating merely $2.19 per share for non-GAAP (adjusted) net income.

All five of Cardinal Health's operating segments posted growth in the quarter. Pharmaceutical and specialty solutions, by far the largest of the quintet, set the pace with a 23% year-over-year improvement to over $59 billion.

More altitude to gain

These tailwinds compelled Cardinal Health to raise full-year fiscal 2026 guidance for selected items for the second time in a row. The company now believes it will book adjusted earnings per share of $9.65 to $9.85, anticipating year-over-year growth of at least 17%. The previous forecast was $9.30 to $9.50.

Similarly, it's estimating that adjusted free cash flow will be $3 billion to $3.5 billion, up from the preceding guidance of $2.75 billion to $3.25 billion.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.