Cardinal Health, Inc. (CAH) Stock Analysis
Healthcare · Medical Distribution
Sell if holding. Engine safety override at $223.85: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Elevated put/call ratio: 1.40; Below-average business quality.
Cardinal Health distributes branded and generic pharmaceuticals and medical products to hospitals, pharmacies, ambulatory surgery centers, and patients at home, serving customers through its Pharmaceutical and Specialty Solutions segment and Global Medical Products and... Read more
Sell if holding. Engine safety override at $223.85: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Elevated put/call ratio: 1.40; Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Score 4.9/10, moderate confidence.
Passes 6/8 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 67d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
About Cardinal Health, Inc.
About Cardinal Health, Inc.
CVS Health accounted for 30% of Cardinal Health's fiscal 2025 revenue, while the five largest customers combined — including CVS Health — represented 43% of fiscal 2025 revenue. The company employed approximately 57,700 people globally at June 30, 2025, serving hospitals, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients at home through two primary segments: Pharmaceutical and Specialty Solutions and Global Medical Products and Distribution (GMPD), with additional operating segments in nuclear pharmacy, at-home solutions, and logistics.
Cardinal Health earns margin in the Pharmaceutical and Specialty Solutions segment primarily through its generic pharmaceutical program (price discounts, rebates, and service fees from manufacturers) and through distribution services agreements with branded manufacturers, where compensation is typically a percentage of wholesale acquisition cost. A sourcing joint venture with CVS Health — Red Oak Sourcing, LLC — negotiates generic pharmaceutical supply contracts on behalf of both companies, with the term extending through June 2029. The GMPD segment manufactures and sources Cardinal Health-branded medical and surgical products at higher margins and distributes a broad range of national brand medical, surgical, and laboratory products. The company has expanded specialty managed-service platforms through the acquisitions of GI Alliance ($2.8 billion, January 2025), Integrated Oncology Network ($1.1 billion, December 2024), and Specialty Networks ($1.2 billion, March 2024). In the Pharma segment, the company competes primarily with McKesson Corporation and Cencora, Inc.; in GMPD, with Medline Industries and Owens & Minor.
Show full overview
CVS Health's 30% share of fiscal 2025 revenue and its concurrent role as joint-venture partner in Red Oak Sourcing creates a dual dependency: if CVS Health reduces volumes, negotiates less favorable terms, or the sourcing venture relationship changes, both Cardinal Health's distribution revenue and its generic sourcing economics could be simultaneously affected. The 10-K identifies the loss of any significant customer or GPO agreement as a risk that could adversely affect the business; the five largest customers' 43% combined share and the two largest GPOs' (Vizient and Premier) 27% share compound this exposure. In some instances, the company also procures certain components and raw materials from a sole supplier, subject to supply interruption risk.
See also: Healthcare · Medical Distribution
From Cardinal Health, Inc.'s most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated 2026-06-13Recent Developments — Cardinal Health, Inc.
Latest news
- NEWS Top 3 Health Care Stocks That May Collapse This Quarter — benzinga Jun 15, 2026 negative
- NEWS 10 Health Care Stocks Whale Activity In Today's Session — benzinga May 6, 2026 neutral
- NEWS JP Morgan Maintains Neutral on Cardinal Health, Lowers Price Target to $215 — benzinga May 4, 2026 neutral
- NEWS If You Invested $100 In Cardinal Health Stock 5 Years Ago, You Would Have This Much Today — benzinga May 4, 2026
- NEWS Citigroup Maintains Buy on Cardinal Health, Lowers Price Target to $245 — benzinga May 1, 2026 positive
Generated 2026-06-15T18:11:46Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomerCVS Health30%10-K Item 1: 'Our largest customer, CVS Health, accounted for 30 percent of our fiscal 2025 revenue'
- MEDIUMCustomerfive largest customers43%10-K Item 1: 'our five largest customers, including CVS Health, accounted for 43 percent of our fiscal 2025 revenue'
- MEDIUMCustomerVizient and Premier GPOs27%10-K Item 1: 'Our two largest GPO relationships in terms of revenue are with Vizient, Inc. and Premier, Inc. ... collectively accounted for 27 percent of our revenue in fiscal 2025'
- HIGHSuppliersole supplier10-K Item 1A: 'we procure certain components and raw materials from a sole supplier'
Material Events(8-K, last 90d)
- 2026-03-23Item 5.02LOWGregory B. Kenny retired as Board Chair effective March 20, 2026; departure not due to any disagreement with the Company. Patricia A. Hemingway Hall, current director, appointed Board Chair effective immediately. No successor named for the director seat.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
3 floor-breakers
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $223.85: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Elevated put/call ratio: 1.40; Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $214.05. Score 4.9/10, moderate confidence.
Take-profit target: $220.38 (-1.6% upside). Prior stop was $214.05. Stop-loss: $214.05.
Concentration risk — Supplier: sole supplier; Target reached (-1.4% upside); Quality below floor (3.5 < 4.0).
Cardinal Health, Inc. trades at a P/E of 33.8 (forward 18.4). TrendMatrix value score: 5.6/10. Verdict: Sell.
23 analysts cover CAH with a consensus score of 4.2/5. Average price target: $245.
What does Cardinal Health, Inc. do?Cardinal Health distributes branded and generic pharmaceuticals and medical products to hospitals, pharmacies,...
Cardinal Health distributes branded and generic pharmaceuticals and medical products to hospitals, pharmacies, ambulatory surgery centers, and patients at home, serving customers through its Pharmaceutical and Specialty Solutions segment and Global Medical Products and Distribution segment. CVS Health accounted for 30% of fiscal 2025 revenue; the five largest customers combined represented 43%; the company employed approximately 57,700 people globally as of June 30, 2025.