On October 1, Cardinal Health rose 3.1% in regular trading, trading at approximately $228.84 per share, with turnover of $136 million. The rally was driven by the announcement that Cardinal Health has signed a binding letter of intent with CVS Health to extend their existing pharmaceutical distribution agreement through June 30, 2032, maintaining the current scope of services.

CVS Health is one of Cardinal Health's largest distribution clients, and the renewal provides strong revenue visibility for the company over the coming years. In addition, Evercore ISI raised its price target on Cardinal Health to $270 from $265 while maintaining an Outperform rating. According to FactSet, the stock carries an average analyst rating of Overweight with a mean price target of $272.87.

The agreement extension comes amid broader positive momentum for Cardinal Health, which recently reported fiscal Q4 adjusted EPS of $2.91, significantly beating the $2.42 consensus estimate, and issued fiscal 2027 EPS guidance of $12.40–$12.60 versus the $12.08 estimate. The company has also been pursuing strategic acquisitions and approved an incremental $5 billion share repurchase authorization.

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