Cardinal Health Inc: Secular/demand trends support durable growth: BofA Conference Takeaways

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Cardinal Health Inc: Secular/demand trends support durable growth: BofA Conference Takeaways

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Cardinal Health Inc

Secular/demand trends support durable

growth: BofA Conference Takeaways

Maintain Rating: BUY | PO: 240.00 USD | Price: 182.56 USD

Strong momentum across Pharma and Specialty 13 May 2026

We hosted a fireside chat with Cardinal Health’s CFO Aaron Alt and VP of Investor Equity

Relations David Frost to discuss the durability and growth outlook in pharma

Allen Lutz, CFA

distribution, trends across medical distribution/growth businesses within the Other Research Analyst

segment, and long-term outlook. Overall, management was encouraged by FY3Q results BofAS +1 646 855 4380

with the recent guidance raise underscoring the durability and resiliency of the business allen.lutz@bofa.com

model. CAH is seeing broad strength across the portfolio including core pharma, Hanna Lee

specialty, biopharma services, GMPD, and Cardinal Health branded products. Within the Research Analyst BofAS

Pharmacy and Specialty Solutions segment, despite the revenue impacts from the IRA, +1 646 855 3682

lower WAC pricing, and GLP-1s CAH has maintained profitability on an EBIT basis and hanna.y.lee@bofa.com

was able to raise its annual FCF guidance. Additionally, in contrast to peer commentary DevResearchWeerasuriyaAnalyst

around challenges related to the transition from branded to generic, the generic BofAS

+1 646 855 5707

conversion dynamic is profitable for CAH with management noting consistent market dev.weerasuriya@bofa.com

dynamics in generics. Cardinal does not have exposure to large mail order pharmacies

that its peers do. Management also indicated the long-term guidance does not assume