Financial Performance and Outlook - The company is targeting a 12% to 14% non-GAAP EPS CAGR [22, 72, 325, 369]. - The company expects to generate approximately $9 billion in adjusted free cash flow (FCF) [19]. - The company is raising FY25 EPS guidance to $8.15 - $8.20 [22, 311]. - The company provides FY26 EPS guidance for ~13% growth [22, 328]. - The company anticipates generating $10B+ in total adjusted free cash flow over the next 3 years [347]. Segment Performance and Strategy - Pharma segment profit growth is expected to be 8% CAGR [19]. - Other segment profit growth is expected to be 10% CAGR [19]. - Specialty is now over $40B in revenue, growing at a 14% CAGR over the last 3 years [104]. - GMPD delivered $92M of segment profit in FY24, a ~$240M increase over FY23 [278]. - The company is investing over $150M in NPHS over the next three years [53].

Core Insights - Cardinal Health is hosting an Investor Day to discuss growth strategies and long-term financial outlook [2][3] - The company emphasizes its strong foundation and significant future growth opportunities [3] Strategic Updates - Cardinal Health is focusing on expanding its Pharmaceutical and Specialty Solutions, particularly in Specialty and higher-margin businesses [4] - The Specialty Alliance platform will include the recently acquired GI Alliance and the new Urology Alliance [5] - The MSO platforms now support approximately 2,200 providers across 28 states [6] Biopharma Solutions - Continued investments in Biopharma Solutions are announced, with expansions into oncology and other therapeutic areas [7] - The Sonexus™ Access and Patient Support platform is expected to more than double its supported therapies by fiscal year 2028 [7] Pharmaceutical Distribution - The Consumer Health Logistics Center in Ohio is set to be fully operational by July 2025, aimed at increasing capacity and efficiency [8] - Plans for a new forward distribution center with advanced automation technology are underway [9] Financial Guidance - FY25 non-GAAP diluted EPS guidance is raised to $8.15 to $8.20, with preliminary FY26 guidance set at $9.10 to $9.30 [10][18] - Long-term targets for non-GAAP diluted EPS growth are set at 12% to 14% for FY26 to FY28 [20] Capital Deployment - The company plans to invest at least $600 million annually in capital expenditures and anticipates at least $750 million in share repurchases each year for the next three years [21]

Core Insights - Cardinal Health has launched the Kendall DL™ Multi System, a multi-parameter monitoring solution designed for continuous patient monitoring, which simplifies workflows for healthcare providers [1][4] Product Features - The Kendall DL™ Multi System allows for the monitoring of cardiac activity, blood oxygen levels, and temperature through a single connection, facilitating patient transport from admission to discharge [1] - The system features a proprietary design that reduces false "leads off" alarms and motion-related artifacts in ECG tracings, leading to clearer readings and improved prioritization of care [2] Clinical and Operational Benefits - As a single-patient use product, the system minimizes cross-contamination risks associated with reusable lead wires, thereby reducing infection rates and potential hospital readmissions [3] - The introduction of this system is expected to enhance clinical performance and support the financial performance of healthcare providers by streamlining workflows and addressing operational challenges [4]

Core Viewpoint - The market is experiencing volatility with mixed signals from various sectors, prompting investors to seek safer, less volatile assets like blue-chip stocks amidst economic uncertainty [1][2][3]. Group 1: Market Overview - Recent economic data indicates resilience in consumer spending and the job market, yet public sentiment is declining, and inflation expectations are rising [1]. - The S&P 500 has seen a rally of over 15% since April 8, but uncertainty remains, keeping it below February's all-time high [2]. Group 2: Investment Strategy - Investors are advised to consider blue-chip stocks that align with Benjamin Graham's 'margin of safety' principle, focusing on assets trading below their intrinsic value [2][3]. - Three stocks are highlighted as potential safe havens during market volatility, selected based on fundamental and technical metrics [4]. Group 3: Company Analysis - Philip Morris International - Philip Morris International (PM) is forecasted to have a 12-month stock price of $169.20, indicating a downside of 5.06% from the current price of $178.23, with a moderate buy rating based on 11 analyst ratings [5]. - PM offers a 3% dividend yield and has a beta of 0.52, making it attractive in uncertain times [5]. - The company is focusing on smokeless products, generating over 40% of Q1 2025 revenue from these sources, with ZYN nicotine pouches seeing a shipment increase of over 50% [6]. Group 4: Company Analysis - Cardinal Health - Cardinal Health (CAH) has a 12-month stock price forecast of $146.43, with a downside of 4.12% from the current price of $152.73, and a moderate buy rating based on 14 analyst ratings [9]. - The stock has increased over 25% in 2025, with a strong dividend payout ratio under 35% and a history of 29 years of payment increases [10]. - The company reported fiscal Q3 2025 earnings that exceeded analyst estimates by 9%, with year-over-year growth of over 13% [10][11]. Group 5: Company Analysis - Alphabet Inc. - Alphabet Inc. (GOOGL) is trading at less than 20 times earnings for the first time since 2012, with a beta of 1.01, indicating volatility similar to the S&P 500 [14]. - The company has recently paid its first dividend, suggesting a focus on shareholder returns alongside reinvestment in research and development [14]. - Analysts have set an average price target of $199 for GOOGL, indicating potential upside of over 15% [15].

Core Viewpoint - Cardinal Health (CAH) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [4]. Cardinal Health's Earnings Outlook - For the fiscal year ending June 2025, Cardinal Health is expected to earn $8.09 per share, representing a 7.4% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Cardinal has risen by 2.3%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Cardinal's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Group 1 - atai Life Sciences N.V. (ATAI) is outperforming its peers in the Medical sector with a year-to-date return of approximately 43.6%, while the average return for Medical companies is -6.3% [4] - The Zacks Rank for atai Life Sciences N.V. is 2 (Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings outlooks [3] - The Zacks Consensus Estimate for ATAI's full-year earnings has increased by 0.8% over the past quarter, reflecting improved analyst sentiment [4] Group 2 - atai Life Sciences N.V. is part of the Medical - Outpatient and Home Healthcare industry, which ranks 84 in the Zacks Industry Rank, and this industry has an average year-to-date return of 3.7% [6] - Cardinal Health (CAH), another stock in the Medical sector, has a year-to-date return of 29.6% and also holds a Zacks Rank of 2 (Buy) [5] - The Medical - Dental Supplies industry, to which Cardinal Health belongs, is currently ranked 42 and has experienced a year-to-date decline of -1% [7]

Core Insights - 16 dividend growth companies announced increases in the second half of April, indicating a positive trend in dividend policies among these firms [1] - Predictions are made for an additional 7 companies expected to announce dividend increases in the first half of May, suggesting ongoing confidence in dividend growth [1] Group 1 - The article highlights the effectiveness of investing in dividend growth stocks and reinvesting dividends as a strategy for long-term wealth growth [1] - The author operates a blog, HarvestingDividends.com, which focuses on S&P Dividend Aristocrats and other dividend growth stocks, providing valuable insights for investors [1]

Group 1 - Cardinal Health Inc. reported third-quarter 2025 adjusted EPS of $2.35, a 13% increase year over year, surpassing the consensus estimate of $2.17 [1] - Sales remained flat at $54.9 billion, missing the consensus of $55.35 billion, while adjusted operating earnings increased by 21% to $807 million [1] - The Pharmaceutical and Specialty Solutions segment's sales were unchanged at $50.6 billion [1] Group 2 - Revenue for the Global Medical Products and Distribution (GMPD) segment rose by 2% to $3.2 billion, driven by volume growth from existing customers [2] - Segment profit increased by 14% to $662 million in the third quarter, supported by brand and specialty products, MSO platforms, and positive generics program performance [6] - The company raised its fiscal year 2025 adjusted EPS guidance from $7.85-$8.00 to $8.05-$8.15, compared to the consensus of $7.96 [3] Group 3 - Cardinal Health anticipates double-digit non-GAAP EPS growth in fiscal 2026 despite evolving macroeconomic conditions [4] - The outlook for the Pharmaceutical and Specialty Solutions segment profit was increased to 11.5% to 12.5% growth, up from a previous range of 10% to 12% [6] - The company expects GMPD segment profit to be consistent with fiscal 2025 segment profit amid macro uncertainty [6] Group 4 - CAH stock is trading 2.30% higher at $144.53 [5] - The company plans to discuss its fiscal 2026 and beyond expectations at its upcoming Investor Day on June 12 [6]

Core Viewpoint - Cardinal Health, Inc. reported strong adjusted earnings per share (EPS) for the third quarter of fiscal 2025, beating estimates, while revenues remained flat and slightly missed expectations [1][12]. Financial Performance - Adjusted EPS for Q3 fiscal 2025 was $2.35, exceeding the Zacks Consensus Estimate of $2.15 by 9.3% and improving 12.4% year over year [1]. - GAAP EPS was $2.10, compared to $1.07 in the same quarter last year [1]. - Total revenue was $54.89 billion, flat year over year, but missed the Zacks Consensus Estimate by 0.2% [1]. Segmental Analysis - **Pharmaceutical and Specialty Solutions**: Revenues decreased 0.4% to $50.4 billion year over year, primarily due to the expiration of a customer contract with OptumRx, although sales grew 20% when excluding this impact [2]. - **Pharmaceutical Profit**: Totaled $662 million, up 14% from the previous year, driven by growth in brand and specialty products [3]. - **Global Medical Products and Distribution**: Revenues increased 2% to $3.2 billion, supported by growth from existing customers [3]. - **Other Segment**: Sales reached $1.3 billion, up 13% year over year, with profits of $134 million, a 22% increase from the prior year [4][5]. Margin Analysis - Gross profit rose 9.7% year over year to $2.12 billion, with a gross margin of 3.9%, expanding nearly 30 basis points [6]. - Operating income was $730 million, up 97.8% year over year, while adjusted operating income increased 21% to $807 million [6]. Financial Update - Cash and cash equivalents at the end of the quarter were $3.33 billion, down from $3.81 billion in the previous quarter [8]. - Net cash provided by operating activities was $2.91 billion, a significant increase from $27 million used in the same period last year [8]. 2025 Guidance Update - Cardinal Health updated its fiscal 2025 earnings guidance, now expecting adjusted EPS between $8.05 and $8.15, up from $7.85-$8.00 [9]. - Pharmaceutical segment revenues are anticipated to decline 4-6%, while segment profit is expected to increase 11.5-12.5% [9]. - Medical segment revenues are projected to grow 3-5%, with profits expected between $130-$140 million [10]. Future Outlook - The company expects double-digit EPS growth for fiscal 2026, driven by strong segment profit growth across various divisions [11]. - Continued strong demand for Pharmaceutical and Specialty Solutions is anticipated, with growth from existing customers offsetting contract expirations [12]. Market Performance - Despite mixed results, Cardinal Health's shares rose 0.5% in pre-market trading, with a year-to-date gain of 19.5% compared to the industry’s 0.9% growth [13].

Core Insights - Cardinal Health reported revenue of $54.88 billion for the quarter ended March 2025, a slight decrease of 0.1% year-over-year, with an EPS of $2.35, up from $2.08 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $55.03 billion by 0.27%, while the EPS exceeded the consensus estimate of $2.15 by 9.30% [1] Financial Performance Metrics - Revenue from Pharmaceutical and Specialty Solutions was $50.43 billion, slightly above the average estimate of $50.33 billion, reflecting a year-over-year decline of 0.4% [4] - Revenue from Other segments was reported at $1.30 billion, slightly exceeding the estimated $1.29 billion [4] - Revenue from Medical Products and Distribution was $3.16 billion, below the average estimate of $3.21 billion, but showed a year-over-year increase of 1.5% [4] - Segment profit for Pharmaceutical and Specialty Solutions was $662 million, surpassing the estimated $635.77 million [4] - Segment profit for Other was $134 million, exceeding the average estimate of $119.24 million [4] - Segment profit for Global Medical Products and Distribution was $39 million, below the average estimate of $44.16 million [4] Stock Performance - Cardinal Health's shares have returned +1.9% over the past month, contrasting with a -0.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]