Cardinal Health recently appointed Robert Musslewhite and Sudhakar Ramakrishna to its Board of Directors, which may have reinforced investor confidence, culminating in a 5% share price increase over the last quarter. These appointments enhance the company's governance with expertise from healthcare and cybersecurity sectors. Despite the Dow Jones and other major indices facing declines due to economic concerns and tariff-related uncertainty, Cardinal Health sustained positive momentum. The company's Q2 2025 earnings demonstrated an increase in net income to $400 million from $368 million YoY, and diluted EPS rose to $1.65. Additionally, the firm's affirmation of a quarterly dividend of $0.51 and their active share buyback program of $75 million indicate a commitment to returning value to shareholders, potentially contributing to the stock's upward trajectory amid a backdrop of broader market challenges.

See the full analysis report here for a deeper understanding of Cardinal Health.

The past five years have been rewarding for Cardinal Health's shareholders, with the company achieving a 231.41% total return, including share price appreciation and dividends. While accounting for its performance, several key developments have emerged. In 2024, Cardinal Health successfully expanded its operational footprint, opening a 350,000 sq. ft. facility in South Carolina. The earnings growth over the past year was impressive at a sensational pace compared to the healthcare industry average, contributing to a favorable outlook. Notably, the company maintained attractive valuations, trading at good value relative to both its peers and the estimated fair value, further enhancing its long-term appeal. Additionally, the successful execution of share buyback programs, with over 3.4 million shares repurchased by the end of 2024, signaled management's focus on enhancing shareholder value.

Despite reporting a 4% decline in sales in early 2025, net income for the quarter increased, underscoring the company's ability to boost profitability even in challenging circumstances. Furthermore, Cardinal Health's earnings per share guidance for 2025 was raised, reflecting successful acquisitions that positively impacted revenue. Alongside strategic client partnerships, such as the agreement with T2 Biosystems for selling rapid sepsis diagnostics, these efforts have fortified the company's market position. While Cardinal Health's one-year return lagged behind the overall US market by a small margin, it markedly outpaced the US healthcare industry, which bore a 4.4% decrease over the same period. This performance underscores Cardinal Health's resilience and adaptability in a rapidly evolving landscape.

• Analyze Cardinal Health's fair value against its market price in our detailed valuation report—access it here.
• Explore the potential challenges for Cardinal Health in our thorough risk analysis report.
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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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