Henry Schein vs Cardinal Health: why the prices moved differently

Weekly · monthly · quarterly news summaries, side by side in time

Henry Schein Inc (HSIC)

Cardinal Health Inc (CAH)

Q3 202620 Jul – 6 Oct 2026

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Cardinal Health expands home care, raises guidance, but faces pricing and valuation risks

Home care expansion and strong guidance Cardinal Health is spending about $360 million to buy home care businesses, adding over 245,000 patients. It also guided fiscal 2027 earnings per share to $12.40–$12.60, a 13–15% increase, above its long-term target, and plans at least $1 billion in stock buybacks.
This shows a major growth push and confident outlook that likely lifted investor sentiment.
CVS deal extended and strong FY26 results Cardinal Health extended its distribution agreement with CVS through 2032, reaffirmed guidance, and reported strong fiscal 2026 results with earnings per share up 37%. It also increased its buyback program by $5 billion. Specialty revenue grew over 25% and remains a key profit driver.
These are concrete positive developments that reinforce the company's growth trajectory and shareholder returns.
Pricing pressures and one-time items Cardinal Health faces headwinds: fourth-quarter revenue missed estimates, tariff refunds that boosted results won't repeat, and IRA drug pricing changes could cut pharmaceutical revenue by about 500 basis points in fiscal 2027. An Iran conflict could also pressure profits in its medical segment.
These are real risks that could weigh on future earnings and investor confidence.
High valuation demands flawless execution The stock trades at about 35 times earnings, above industry and fair-value averages. This high valuation means the company must execute perfectly to justify the price, leaving little room for error.
A stretched valuation can amplify negative news and limit upside, making it a key risk for investors.

August 202627 Jul – 6 Oct 2026

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CVS deal extension locks in demand; valuation and IRA remain watch items

CVS distribution deal extended to 2032 Cardinal Health signed a binding letter of intent to keep distributing drugs for CVS Health through June 2032, securing a huge, steady stream of product volume for years. That reduces fears of losing a major customer and supports the stock.
This is the biggest new event, directly locking in long-term demand and reassuring investors about future revenue.
Guidance reaffirmed alongside CVS renewal With the CVS extension, Cardinal Health repeated its fiscal 2027 earnings-per-share growth target of 13% to 15% and its long-term 12% to 14% growth outlook. Reaffirmed guidance gives investors confidence that profits are on track.
It shows the company's profit outlook is unchanged and tied to the new deal, a key support for the stock price.
CEO details specialty M&A growth strategy CEO Jason Hollar said Cardinal Health will keep buying specialty-pharma businesses, the fastest-growing part of the drug market, and that lower drug prices from policies like the IRA could actually raise volume, which helps profit. This supports the growth story.
It explains how management plans to grow and counters worries about drug-pricing policies hurting the business.
Stock looks expensive after home-care deals Cardinal Health trades at about 35 times earnings, above the healthcare industry average of roughly 27 times and its own fair-value estimate near 29 times. The premium means buyers are paying up and need strong execution to justify the price.
It is the main counterweight: even with good news, a rich valuation can limit further gains or make the stock vulnerable.

Latest27 Jul – 6 Oct 2026

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CVS deal extension locks in demand; valuation and IRA remain watch items

CVS distribution deal extended to 2032 Cardinal Health signed a binding letter of intent to keep distributing drugs for CVS Health through June 2032, securing a huge, steady stream of product volume for years. That reduces fears of losing a major customer and supports the stock.
This is the biggest new event, directly locking in long-term demand and reassuring investors about future revenue.
Guidance reaffirmed alongside CVS renewal With the CVS extension, Cardinal Health repeated its fiscal 2027 earnings-per-share growth target of 13% to 15% and its long-term 12% to 14% growth outlook. Reaffirmed guidance gives investors confidence that profits are on track.
It shows the company's profit outlook is unchanged and tied to the new deal, a key support for the stock price.
CEO details specialty M&A growth strategy CEO Jason Hollar said Cardinal Health will keep buying specialty-pharma businesses, the fastest-growing part of the drug market, and that lower drug prices from policies like the IRA could actually raise volume, which helps profit. This supports the growth story.
It explains how management plans to grow and counters worries about drug-pricing policies hurting the business.
Stock looks expensive after home-care deals Cardinal Health trades at about 35 times earnings, above the healthcare industry average of roughly 27 times and its own fair-value estimate near 29 times. The premium means buyers are paying up and need strong execution to justify the price.
It is the main counterweight: even with good news, a rich valuation can limit further gains or make the stock vulnerable.

September 202618 Aug – 21 Sep 2026

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Cardinal Health's strong FY26 and buyback meet IRA and Iran risks

Strong FY26 results and $5B buyback Cardinal Health reported fiscal 2026 adjusted EPS of $11.26, up 37%, with Q4 EPS up 40%, and announced a $5 billion increase to its share repurchase authorization. Buybacks reduce shares outstanding, which can lift earnings per share and support the stock price.
This is the core new event that explains the period's positive move and capital returns.
Pharma momentum and specialty growth Pharmaceutical and Specialty Solutions revenue rose 6% to $58.8 billion with segment profit up 21%. Management expects fiscal 2027 pharma revenue growth of 3-5% and segment profit growth of 8-11%, while specialty revenue grows double digits. This supports future earnings and the stock price.
It shows the main profit engine is still growing, which underpins the positive outlook.
IRA pricing changes create revenue headwind Cardinal Health expects Inflation Reduction Act price changes to cut Pharma revenue by about 500 basis points in fiscal 2027, though management sees no adverse profit impact. A revenue headwind can worry investors about growth, even if profits are protected.
It is the main regulatory risk that could cap the stock's upside.
Iran conflict could pressure GMPD profit Cardinal Health said a prolonged conflict in Iran could push its Global Medical Products and Distribution segment toward the lower end of its $200-220 million profit range. Geopolitical risk adds uncertainty and could weigh on the stock if it persists.
It is a new geopolitical risk that could hurt a specific segment's profit.

18 Aug – 21 Sep 2026

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Cardinal Health's strong FY26 and buyback meet IRA and Iran risks

Strong FY26 results and $5B buyback Cardinal Health reported fiscal 2026 adjusted EPS of $11.26, up 37%, with Q4 EPS up 40%, and announced a $5 billion increase to its share repurchase authorization. Buybacks reduce shares outstanding, which can lift earnings per share and support the stock price.
This is the core new event that explains the period's positive move and capital returns.
Pharma momentum and specialty growth Pharmaceutical and Specialty Solutions revenue rose 6% to $58.8 billion with segment profit up 21%. Management expects fiscal 2027 pharma revenue growth of 3-5% and segment profit growth of 8-11%, while specialty revenue grows double digits. This supports future earnings and the stock price.
It shows the main profit engine is still growing, which underpins the positive outlook.
IRA pricing changes create revenue headwind Cardinal Health expects Inflation Reduction Act price changes to cut Pharma revenue by about 500 basis points in fiscal 2027, though management sees no adverse profit impact. A revenue headwind can worry investors about growth, even if profits are protected.
It is the main regulatory risk that could cap the stock's upside.
Iran conflict could pressure GMPD profit Cardinal Health said a prolonged conflict in Iran could push its Global Medical Products and Distribution segment toward the lower end of its $200-220 million profit range. Geopolitical risk adds uncertainty and could weigh on the stock if it persists.
It is a new geopolitical risk that could hurt a specific segment's profit.

July 202620 Jul – 12 Aug 2026

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Cardinal Health buys home-care assets and guides to faster profit growth

Cardinal Health expands at-home care with $360M of acquisitions Cardinal Health agreed to buy AdaptHealth's diabetes unit and Strive Medical for about $360 million in cash. These businesses sell medical supplies directly to patients at home, adding over 245,000 customers and building on its recent Advanced Diabetes Supply purchase. The company expects the deals to add to earnings per share in the first year, which supports the stock.
This is the main new growth move this period and directly explains why investors see more future earnings.
Fiscal 2027 profit guidance beats its own long-term target Cardinal Health guided fiscal 2027 earnings per share to $12.40–$12.60, implying 13%–15% growth, above its 12%–14% long-term rate. It also plans at least $1 billion of share buybacks and $700 million of capital spending. Buybacks shrink the number of shares, which can lift earnings per share further. The stock rose on this outlook.
This is the key new financial outlook that tells investors how much profit growth to expect next year.
Quarterly profit beat but revenue missed, and tariffs cut both ways Cardinal Health's adjusted earnings of $2.60 per share beat the $2.42 estimate, but revenue of $63.67 billion missed the $65.15 billion consensus. Fiscal 2026 included a $100 million one-time benefit from tariff refunds that won't repeat. Management sees a modest tariff tailwind offset by higher fuel and commodity costs, with Iran conflict a risk. The profit beat and guidance outweighed the revenue miss.
This explains the mixed quarter behind the stock move and the real counterweights investors should know.
Specialty drug business keeps growing fast Cardinal Health's Specialty revenue grew over 25% in fiscal 2026 and is projected to grow at double-digit rates in fiscal 2027. Specialty drugs are complex medicines for conditions like cancer that require special handling. This fast-growing, higher-margin business is a major reason the company can raise its profit outlook.
Specialty is the engine behind the raised guidance and the stock's strength.

20 Jul – 12 Aug 2026

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Cardinal Health buys home-care assets and guides to faster profit growth

Cardinal Health expands at-home care with $360M of acquisitions Cardinal Health agreed to buy AdaptHealth's diabetes unit and Strive Medical for about $360 million in cash. These businesses sell medical supplies directly to patients at home, adding over 245,000 customers and building on its recent Advanced Diabetes Supply purchase. The company expects the deals to add to earnings per share in the first year, which supports the stock.
This is the main new growth move this period and directly explains why investors see more future earnings.
Fiscal 2027 profit guidance beats its own long-term target Cardinal Health guided fiscal 2027 earnings per share to $12.40–$12.60, implying 13%–15% growth, above its 12%–14% long-term rate. It also plans at least $1 billion of share buybacks and $700 million of capital spending. Buybacks shrink the number of shares, which can lift earnings per share further. The stock rose on this outlook.
This is the key new financial outlook that tells investors how much profit growth to expect next year.
Quarterly profit beat but revenue missed, and tariffs cut both ways Cardinal Health's adjusted earnings of $2.60 per share beat the $2.42 estimate, but revenue of $63.67 billion missed the $65.15 billion consensus. Fiscal 2026 included a $100 million one-time benefit from tariff refunds that won't repeat. Management sees a modest tariff tailwind offset by higher fuel and commodity costs, with Iran conflict a risk. The profit beat and guidance outweighed the revenue miss.
This explains the mixed quarter behind the stock move and the real counterweights investors should know.
Specialty drug business keeps growing fast Cardinal Health's Specialty revenue grew over 25% in fiscal 2026 and is projected to grow at double-digit rates in fiscal 2027. Specialty drugs are complex medicines for conditions like cancer that require special handling. This fast-growing, higher-margin business is a major reason the company can raise its profit outlook.
Specialty is the engine behind the raised guidance and the stock's strength.