Street View: Cardinal Health's quarterly results fall short of lofty expectations

Cardinal Health

13/08/2025 12:53

** Cardinal Health CAH.N to buy healthcare management firm Solaris Health for $1.9 billion as drug distributor looks to expand its specialty business

** Total quarterly sales came in below analysts' estimates - data compiled by LSEG

BAR WAS HIGH

** Citi ("Neutral", PT:$160) says CAH fell slightly short of high expectations driven by insignificant costs adding up

** Says urology-focused Solaris buy makes "strategic sense" as segment offers more diverse revenue stream, lessens potential most-favored-nation drug pricing risk

** Leerink Partners ("Outperform", PT:$186) says "bar was high" for Cardinal going into Q4 results

** Adds, "quarter was a pause on the back of what's been an incredibly strong multi-year run"

** Morgan Stanley ("Overweight", PT:$190) says heightened expectations for distributors "leaving little or no room for error" dragged CAH shares down post results

** Brokerage says more focus should be on strength in underlying fundamentals across pharma and specialty unit

** J.P.Morgan ("Neutral", PT:$178) says Solaris acquisition would modestly boost guidance in low single-digit increase, but CAH hasn't yet included this in its 2026 outlook

 (Reporting by Siddhi Mahatole)

 ((siddhi.mahatole@thomsonreuters.com))