Cardinal Health reported its Q3 2025 earnings, revealing a 94% increase in net income over the previous year, which may have buoyed investor confidence, leading to its 10% share price rise over the last quarter. This occurred alongside generally robust earnings reports from major indices like S&P 500, which increased as tech giants like Microsoft and Meta saw strong performance. CAH’s quarterly dividend approval and a new partnership with Telix Pharmaceuticals could have added further momentum. While market indices were positively influenced by tech earnings, CAH's performance was strengthened by its improved profitability and strategic alliances.

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The recent surge in Cardinal Health's share price following its impressive Q3 2025 earnings and strategic developments, such as the partnership with Telix Pharmaceuticals, aligns with the company's narrative of focusing on high-margin businesses and strategic alliances to drive growth. This improved profitability and the approved quarterly dividend may positively influence revenue and earnings forecasts, suggesting potential enhancements in financial performance despite existing integration costs and trade policies. Analysts forecast Cardinal Health's revenue to grow to $268.9 billion by 2028, reflecting a 6.6% annual increase. However, uncertainty remains due to potential interest rate increases and evolving trade policies.

Over the past five years, Cardinal Health's total shareholder return, inclusive of share price appreciation and dividends, demonstrated a robust performance with a 243.16% increase. This long-term gain is notably higher than the 1-year return of over 85.8%, which also surpassed that of the broader U.S. market's growth of 9.9% and the 10.4% decline in the healthcare industry during the same period. Despite the share's current price of US$139.84 showing a modest 2.7% discount to the consensus analyst price target of US$143.74, the close alignment suggests that market participants view the stock as fairly valued, potentially indicating limited upside based solely on current valuations.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:CAH.

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