Healthcare distributor and services company Cardinal Health (NYSE:CAH) fell short of the market’s revenue expectations in Q1 CY2025, with sales flat year on year at $54.88 billion. Its non-GAAP profit of $2.35 per share was 9.4% above analysts’ consensus estimates.
Is now the time to buy CAH? Find out in our full research report (it’s free).
Cardinal Health (CAH) Q1 CY2025 Highlights:
StockStory’s Take
Cardinal Health’s Q1 results reflected a business in transition, as revenue came in just below Wall Street expectations while non-GAAP profit surpassed analyst forecasts. Management pointed to continued growth across its Pharmaceutical and Specialty Solutions segment, contributions from recent acquisitions, and operational improvements in its Global Medical Products and Distribution (GMPD) business as key performance drivers. The company also highlighted progress in onboarding new customers and expanding higher-margin services, which offset some external headwinds.
Looking ahead, Cardinal Health raised its non-GAAP EPS guidance for the year, citing strong demand for specialty pharmaceuticals, growth in at-Home Solutions, and early benefits from the integration of Advanced Diabetes Supply Group. Management noted ongoing cost control efforts and investments in U.S. manufacturing and automation, but remained cautious about tariff-related risks and the impact of regulatory changes. CEO Jason Hollar emphasized that, “the largest and highest growth parts of our business are resilient and well positioned to continue growth,” while acknowledging the company’s focus on mitigating the financial impact of tariffs in GMPD.
Key Insights from Management’s Remarks
Management attributed the quarter’s performance to resilient pharmaceutical demand, effective cost control, and growth in targeted business areas. The company’s ability to manage through supply chain challenges and tariffs, while integrating new acquisitions, was a recurring theme.
Drivers of Future Performance
Cardinal Health’s management anticipates continued earnings growth driven by demand for specialty pharmaceuticals, ongoing cost discipline, and successful integration of recent acquisitions, but flagged tariffs and regulatory actions as areas of uncertainty.
Top Analyst Questions
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will monitor (1) Cardinal Health’s ability to sustain specialty pharmaceutical growth and integrate new customer wins, (2) the effectiveness of tariff mitigation strategies within GMPD, and (3) progress in expanding higher-margin businesses such as At-Home Solutions and Nuclear. Updates at the upcoming Investor Day and further color on regulatory or tariff actions will also be important indicators of future performance.
Cardinal Health currently trades at a forward P/E ratio of 17×. Is the company at an inflection point that warrants a buy or sell? See for yourself in our free research report .
Our Favorite Stocks Right Now
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week . This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today .