Cardinal Health's stock plummeted 5.33% during intraday trading on Thursday, a sharp reversal from initial positive sentiment following its third-quarter earnings release. The healthcare distributor reported adjusted earnings per share of $3.17, surpassing analyst estimates of $2.79, and raised its full-year adjusted EPS guidance to a range of $10.70 to $10.80.

However, the market reaction turned negative as investors focused on several key concerns highlighted in the company's report and conference call. Cardinal Health's quarterly revenue of $60.9 billion fell short of the $61.7 billion consensus estimate. More significantly, the company's GAAP operating earnings dropped 30% to $509 million, primarily due to a substantial $184 million pre-tax goodwill impairment charge related to its Navista & ION segment.

Further pressure came from commentary during the earnings call, where executives noted that Inflation Reduction Act-related wholesale acquisition cost changes weighed on the overall growth rate. Additionally, while GLP-1 drug volumes continue to grow at more than 30%, the company acknowledged this growth is occurring at a slower pace than in previous periods, raising concerns about momentum in a key product category.