Group 1 - Cardinal Health plans to release second-quarter financial results for fiscal year 2026 on February 5, prior to the opening of trading on the New York Stock Exchange [1] - A webcast discussion of these results will begin at 8:30 a.m. Eastern [1] - The webcast and corresponding slide presentation can be accessed on Cardinal Health's Investor Relations page without an access code [2] Group 2 - Cardinal Health is a distributor of pharmaceuticals and specialty products, a supplier of home-health and direct-to-patient products and services, and an operator of nuclear pharmacies and manufacturing facilities [3] - The company provides performance and data solutions and is a global manufacturer and distributor of medical and laboratory products [3] - Cardinal Health's customer-centric focus drives continuous improvement and leads to innovative solutions that improve people's lives [3]

Group 1 - Cardinal Health, Inc. (NYSE:CAH) is recognized as one of the 20 Best Performing Dividend Stocks in 2025, indicating strong market performance and investor confidence [1] - The company has shifted its focus towards higher-margin areas such as specialty pharmaceuticals and managed services, resulting in significant earnings growth, with forecasts estimating a growth of 19.3% in FY 2026 and 12.6% in FY 2027 [2] - The current payout ratio for dividends is at a modest 30.6%, providing the company with flexibility to potentially increase returns to shareholders in the future [3] Group 2 - Cardinal Health has raised its fiscal 2026 outlook, now expecting adjusted earnings per share between $9.65 and $9.85, an increase from the previous range of $9.30 to $9.50, reflecting a strong first-quarter performance [4] - The forecast includes contributions from the pending acquisition of Solaris Health, expected to close in early November, which may further enhance the company's growth prospects [4] - Cardinal Health operates as a global healthcare company, involved in the distribution of pharmaceuticals and medical products, manufacturing medical supplies, and providing various healthcare services [5]

Core Viewpoint - Cardinal Health, Inc. is poised to report strong fiscal second-quarter earnings for 2026, with significant growth in earnings per share (EPS) anticipated due to various strategic initiatives and market performance [1][2][5]. Financial Performance - Analysts expect Cardinal Health to report a profit of $2.31 per share on a diluted basis, reflecting a 19.7% increase from $1.93 per share in the same quarter last year [2]. - For the full fiscal year, EPS is projected to be $9.86, up 19.7% from $8.24 in fiscal 2025, with further growth expected to $10.90 in fiscal 2027, representing a year-over-year increase of 10.6% [3]. Stock Performance - Cardinal Health's stock has outperformed the S&P 500 Index, which gained 16.4% over the past 52 weeks, with CAH shares increasing by 74.3% during the same period [4]. - The company also significantly outperformed the Health Care Select Sector SPDR Fund, which returned 12.8% in the same timeframe [4]. Strategic Initiatives - The strong performance of Cardinal Health is attributed to the acquisition of Solaris Health, which added over 750 providers to its MSO platform, alongside robust organic growth in pharmaceuticals, generics, and specialty solutions [5]. - New customer acquisitions, effective cost controls, and investments in automation and logistics are enhancing profitability, with double-digit growth expected in specialty platforms such as autoimmune, urology, and oncology [5]. Recent Developments - On October 30, Cardinal Health shares rose more than 15% following the release of Q1 results, where adjusted EPS of $2.55 exceeded Wall Street expectations of $2.21, and revenue reached $64 billion, surpassing forecasts of $59.1 billion [6]. - The company anticipates full-year adjusted EPS to be in the range of $9.65 to $9.85 [6].

Industry Overview - The MedTech industry has demonstrated resilience and steady growth through 2025, with the Dow Jones U.S. Select Medical Equipment Index advancing about 8% in 2025, indicating the sector's adaptability and consistent performance despite challenges [1] - The MedTech market was valued at $549.51 billion in 2025 and is projected to reach $853.37 billion by 2035, with a CAGR of 4.5% [5] Growth Drivers for 2026 - Improving fundamentals in the MedTech industry are expected to drive growth in 2026, as procedure volumes normalize and healthcare providers prioritize technologies that enhance clinical outcomes and operational efficiency [2] - The expanding role of artificial intelligence and data-driven solutions is anticipated to be a key growth driver, with the global AI in healthcare market projected to grow from $26.57 billion in 2024 to $505.59 billion by 2033, reflecting a CAGR of 38.81% from 2025 to 2033 [3] - Continued momentum in minimally invasive and robotics-assisted procedures is expected to support MedTech growth, with the global minimally invasive surgery market projected to grow from $94.45 billion in 2025 to $199.3 billion by 2030, reflecting a CAGR of 16.1% [4] Company-Specific Insights Cardinal Health (CAH) - Cardinal Health is a leading healthcare services and products company with a market capitalization of around $48 billion, focusing on pharmaceuticals and medical supplies distribution [6] - The company is positioned for growth in 2026, benefiting from disciplined cost management, pricing actions, and normalization of volumes, with an earnings growth rate for fiscal 2026 pegged at 19.7% [7][9] - CAH's stock has surged more than 71% year-to-date, with a projected revenue increase of 16.2% year-over-year for fiscal 2026 [9] Medtronic (MDT) - Medtronic is a diversified global leader in medical technology, with a strong portfolio across various health conditions and a large installed base [10] - The company reported a revenue increase of approximately 5.5% organically in its latest results, driven by double-digit growth in cardiac ablation solutions [11] - MDT's stock has improved 23.5% year-to-date, with a projected revenue increase of 7.5% year-over-year for fiscal 2026 [12] Intuitive Surgical (ISRG) - Intuitive Surgical is the leader in robotic-assisted minimally invasive surgery, known for its da Vinci Surgical System [13] - The company is poised for growth in 2026 as robotic surgery adoption expands, with an earnings growth rate for 2026 estimated at 11.2% and a projected revenue increase of 14.3% year-over-year [15] - ISRG's stock has grown by 9.7% year-to-date [15] Edwards Lifesciences (EW) - Edwards Lifesciences focuses on structural heart disease and critical care technologies, with a strong reputation in transcatheter aortic valve replacement [16] - The company is expected to benefit from the growing adoption of TAVR procedures, with an earnings growth rate for 2026 estimated at 10.4% and a projected revenue increase of 9.6% year-over-year [18] - EW's stock has improved more than 15% year-to-date [18]

Core Viewpoint - Cardinal Health's stock performance has been mixed, with a recent increase but a decline over the past month, and upcoming earnings are anticipated to show significant growth in both EPS and revenue [1][2][3]. Company Performance - Cardinal Health's stock rose by 1.93% to $202.95, outperforming the S&P 500's gain of 0.88% [1] - Over the past month, the stock has decreased by 4.23%, underperforming the Medical sector's gain of 1.2% and the S&P 500's gain of 2.48% [1]. Earnings Forecast - The upcoming earnings report is expected to show an EPS of $2.31, reflecting a 19.69% increase from the same quarter last year [2]. - Revenue is forecasted to reach $64.07 billion, indicating a 15.94% rise compared to the previous year [2]. Annual Estimates - For the annual period, earnings are projected at $9.86 per share, with revenue expected to be $258.58 billion, representing increases of 19.66% and 16.18% respectively from last year [3]. Analyst Estimates - Recent modifications to analyst estimates for Cardinal Health are crucial, as positive revisions indicate optimism regarding business and profitability [3]. - The Zacks Consensus EPS estimate has seen a slight downward shift of 0.17% over the past month, and Cardinal Health currently holds a Zacks Rank of 3 (Hold) [5]. Valuation Metrics - Cardinal Health has a Forward P/E ratio of 20.19, which is higher than the industry average of 17.72 [6]. - The company’s PEG ratio stands at 1.45, compared to the Medical - Dental Supplies industry's average PEG ratio of 2.36 [6]. Industry Context - The Medical - Dental Supplies industry, part of the Medical sector, has a Zacks Industry Rank of 151, placing it in the bottom 39% of over 250 industries [7]. - Historically, industries in the top 50% outperform those in the bottom half by a factor of 2 to 1 [7].

Core Viewpoint - Brown Advisory Mid-Cap Growth Strategy underperformed its benchmark, the Russell Midcap® Growth Index, which increased approximately 3% in the third quarter of 2025 [1] Company Overview - Cardinal Health, Inc. (NYSE:CAH) is a healthcare services and products company with a market capitalization of $47.305 billion as of December 18, 2025, and its stock closed at $199.10 per share [2] - The one-month return for Cardinal Health, Inc. was -4.96%, while its shares gained 68.33% over the last 52 weeks [2] Performance and Strategy - In the third quarter of 2025, Cardinal Health, Inc. continues to benefit from rising demand for complex specialty and biologic therapies, expanding its value-added service offerings [3] - The company is also involved in adjacent markets such as third-party logistics and nuclear medicine, with its medical distribution business undergoing a turnaround under new management [3] Financial Highlights - Cardinal Health, Inc. reported a revenue increase of 22% year-over-year to $64 billion in the first quarter of fiscal 2026 [4] - The number of hedge fund portfolios holding Cardinal Health, Inc. decreased from 59 to 55 in the third quarter [4]

Group 1 - Cardinal Health, Inc. (NYSE:CAH) is recognized as one of the 15 Best Stocks to Buy for the Long Term [1] - Barclays initiated coverage on Cardinal Health with an Overweight rating and a price target of $243, expressing optimism particularly about drug distributors within the US healthcare technology and distribution space [2] - The stock has increased nearly 68% since the beginning of 2025, reflecting the company's transformation towards higher-margin areas, especially in specialty pharmaceuticals and managed services [3] Group 2 - In fiscal Q1 2026, Cardinal Health's revenue from the Pharmaceutical and Specialty Solutions segment rose 23% to $59.2 billion, driven by strong brand and specialty drug sales [3] - Total revenue for the quarter reached $64 billion, marking a 22% increase from the previous year, and the company completed the acquisition of Solaris Health, enhancing its scale in the urology sector [4] - Cardinal Health is one of the largest healthcare services and products companies in the US, supplying pharmaceuticals and medical equipment to a diverse range of providers [5]

Company Performance - Aurinia Pharmaceuticals (AUPH) has returned approximately 72.9% since the beginning of the calendar year, significantly outperforming the average return of 3.9% for Medical companies [4] - The Zacks Consensus Estimate for AUPH's full-year earnings has increased by 20.3% over the past 90 days, indicating improved analyst sentiment and a stronger earnings outlook [3] Industry Comparison - Aurinia Pharmaceuticals is part of the Medical - Drugs industry, which includes 146 individual stocks and currently ranks 84 in the Zacks Industry Rank. The average gain for stocks in this group is 5% year-to-date, highlighting AUPH's superior performance [5] - In contrast, Cardinal Health, which belongs to the Medical - Dental Supplies industry, has returned 67.4% year-to-date, while its industry ranks 99 and has moved up by 9.1% [6]

Core Insights - Cardinal Health, Inc. is a significant player in the healthcare services and products sector, with a market capitalization of $47.04 billion, focusing on the distribution of pharmaceuticals and medical supplies [1] Stock Performance - Cardinal Health's shares reached a 52-week high of $214.93 on November 26 but have since declined by 7.9% from that peak [2] - The stock has experienced a 31.2% increase over the past three months, outperforming the Nasdaq Composite index, which gained 7.8% during the same period [2] - Over the past 52 weeks, Cardinal Health's stock has gained 62.9%, and 28.9% over the past six months, while the Nasdaq Composite gained 19.5% and 20.3%, respectively [3] Financial Performance - For the first quarter of fiscal 2026, Cardinal Health reported revenues of $64.01 billion, a 22% year-over-year increase, surpassing Wall Street's expectation of $59.05 billion [4] - The company's non-GAAP EPS rose by 36% year-over-year to $2.55, exceeding the analysts' estimate of $2.21 [4] - Cardinal Health raised its fiscal 2026 non-GAAP EPS outlook from a range of $9.30-$9.50 to $9.65-$9.85, indicating projected growth of 17%-20% [5] Strategic Developments - The stock rose 15.4% intraday on October 30 following the strong quarterly results and updated outlook [5] - Cardinal Health completed the acquisition of urology MSO Solaris Health, adding over 750 providers to its multi-specialty MSO platform [5] Competitive Positioning - Compared to Cencora, Inc., which gained 40.2% over the past 52 weeks and 18.8% over the past six months, Cardinal Health has demonstrated superior performance [6]

Group 1 - The company is participating in the Citi Global Healthcare Conference, with key representatives including the CFO and Head of Investor Relations [1] - The CFO expressed satisfaction with the Q1 results, indicating positive performance across all five operating segments [4]