- Can CAH Sustain Growth on Booming Pharmaceutical & Specialty Segment?
May 13, 2026
Cardinal Health’s CAH Pharmaceutical & Specialty Solutions segment continues to be the primary engine of enterprise growth, delivering another standout quarter in the third quarter of fiscal 2026. Segment revenues climbed 19% to approximately $61 billion, while segment profit increased 29%, underscoring the segment’s growing importance to Cardinal Health’s earnings profile. The strength reflects broad-based demand, expanding specialty capabilities and operational leverage across the platform.
The strong performance can be attributed to healthy growth across brand pharmaceuticals, specialty products, and generics, demonstrating the breadth of Cardinal Health’s pharmaceutical distribution model. Management highlights continued strong pharmaceutical demand across categories, with specialty and branded products making particularly strong contributions to profit growth. Generics also remains a positive contributor, supported by stable market dynamics and the company’s Red Oak sourcing partnership.
Specialty remains the most important structural growth driver. Cardinal Health reported more than 20% specialty revenue growth in the third quarter and reiterated expectations for specialty revenues to exceed $50 billion in fiscal 2026, reflecting momentum across both upstream manufacturer partnerships and downstream provider networks. Demand trends remain especially strong in oncology, urology, and other specialty therapies, supported by physician engagement through Specialty Alliance MSOs and expanding biopharma solutions capabilities.
The company is also deepening integration across its specialty ecosystem. The ongoing onboarding of Solaris and GI Alliance distribution volumes, alongside tuck-in acquisitions within Specialty Alliance, is expanding physician reach and reinforcing cross-platform synergies. Management emphasized that oncology alone continued to grow more than 30%, highlighting robust patient demand and increasing market penetration.
Looking ahead, sustainability appears favorable. Positive demographic trends, increasing specialty drug utilization and deeper manufacturer partnerships continue to support demand. While mix shifts and IRA pricing changes may create revenue volatility, Cardinal Health’s strong profit growth suggests the segment’s momentum remains fundamentally intact.
Peer Updates
The rising demand for specialty solutions, along with attractive margins, has also led the other two leading pharmaceutical distributors — McKesson MCK and Cencora COR — to expand into this space.
McKesson continues to deepen its specialty strategy as a key earnings driver, particularly through its oncology and multispecialty platforms. It reported strong revenue and double-digit EPS growth in the fourth quarter of fiscal 2026, supported by strong demand across oncology services, biopharma solutions and pharmaceutical distribution.
Story Continues
MCK highlighted that its oncology network now includes about 3,400 providers, reflecting the expanding scale of its specialty ecosystem. The company is also integrating assets, such as Florida Cancer Specialists and PRISM Vision, strengthening provider services and specialty drug distribution.
With specialty distribution volumes and provider solutions driving operating profit growth, McKesson’s oncology and multispecialty platform is emerging as a key contributor to its long-term earnings expansion.
Cencora is similarly leaning into specialty pharmaceuticals and MSO expansion to accelerate earnings growth. COR reported 6% adjusted operating income growth and 7.5% adjusted EPS growth in the quarter, driven largely by its U.S. Healthcare Solutions segment and specialty drug demand.
The company recently expanded its MSO footprint through the acquisition of OneOncology, complementing Retina Consultants of America and strengthening its specialty ecosystem. Cencora expects these physician-focused platforms to deepen relationships with biopharma companies and specialty providers.
As specialty innovation and complex therapies grow, Cencora believes these MSO partnerships will enhance distribution volumes, support physicians and create new earnings growth opportunities for it.
CAH’s Price Performance, Valuation and Estimates
Shares of CAH have lost 11.2% so far this year compared with the industry’s 12.6% decline.Zacks Investment Research
Image Source: Zacks Investment Research
From a valuation standpoint, Cardinal Health trades at a forward price-to-earnings ratio of 15.5, above the industry average. It is also higher than its five-year median of 13.65. CAH carries a Value Score of A.Zacks Investment Research
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Cardinal Health’s fiscal 2026 earnings implies a 30.1% rise from the year-ago period’s level.Zacks Investment Research
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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- Securities Fraud Investigation Into Cencora, Inc. (COR) Announced – Shareholders Who Lost Money Urged To Contact Glancy Prongay Wolke & Rotter LLP, a Leading Securities Fraud Law Firm
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- Notable healthcare headlines for the week: UnitedHealth, Pfizer, and CVS Health in focus
May 10, 2026
Wall Street’s major market averages ended higher on Friday as investors digested the latest nonfarm payrolls print and sidestepped the ongoing tensions in the Middle East.
The blue-chip Dow added +0.1%, the benchmark S&P 500 closed +0.8%, and the tech-focused Nasdaq Composite finished +1.7%.
However, the S&P 500 Health Care Index Sector (XLV [https://seekingalpha.com/symbol/XLV]) slipped above 1.15% during the week.
The top S&P 500 healthcare gainers and losers for the last week are as follows:
TOP GAINERS:
DaVita (DVA [https://seekingalpha.com/symbol/DVA]) +31%
Moderna (MRNA [https://seekingalpha.com/symbol/MRNA]) +19.75%
Humana (HUM [https://seekingalpha.com/symbol/HUM]) +17.69%
Revvity (RVTY [https://seekingalpha.com/symbol/RVTY]) +16.52%
Waters (WAT [https://seekingalpha.com/symbol/WAT]) +15.63%
TOP LOSERS:
Zoetis (ZTS [https://seekingalpha.com/symbol/ZTS]) -27.44%
Cencora (COR [https://seekingalpha.com/symbol/COR]) -14.12%
Bio-Techne (TECH [https://seekingalpha.com/symbol/TECH]) -12.10%
Insulet (PODD [https://seekingalpha.com/symbol/PODD]) -11.93%
Mettler-Toledo International (MTD [https://seekingalpha.com/symbol/MTD]) -11.26%
Here are some of the important healthcare stories from this week:
UNITEDHEALTHCARE CUTS PRIOR AUTHORIZATION REQUIREMENTS BY 30%
UnitedHealthcare (UNH [https://seekingalpha.com/symbol/UNH]) on Tuesday said [https://seekingalpha.com/news/4585385-unitedhealth-to-ease-access-to-tests-surgeries-and-therapy-with-30-cut-in-prior-authorizations-wsj-reports] that it would eliminate authorization requirements for 30% of healthcare services that previously required insurer approval.
Currently, prior authorization is required for only 2% of UnitedHealthcare medical services. Of the authorizations that are submitted, around 92% are approved in less than 24 hours, on average. Within Medicare Advantage, UnitedHealthcare has fewer prior authorization requirements than any other insurer, the company said [https://seekingalpha.com/pr/20499938-unitedhealthcare-cuts-prior-authorization-requirements-by-30-percent#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews].
By the end of 2026, UnitedHealthcare will eliminate an additional 30% of remaining prior authorizations, including select outpatient surgeries, some diagnostic tests like echocardiograms, and certain outpatient therapies and chiropractic care.
PFIZER TOPS Q1 ESTIMATES, MAINTAINS GUIDANCE
Pfizer (PFE [https://seekingalpha.com/symbol/PFE]) topped [https://seekingalpha.com/news/4585370-pfizer-tops-q1-estimates-maintains-guidance] Wall Street estimates with its first-quarter results and reaffirmed its full-year outlook.
The New York-based pharma giant generated adjusted EPS of $0.75 (-18% Y/Y) on revenue of $14.5B, a 5% rise compared to the prior-year quarter, reflecting an operational increase of $304M, or 2%.
The company also reaffirmed its 2026 sales guidance of $59.5B to $62.5B, in line with the average analyst expectation of $61.37B [https://seekingalpha.com/symbol/PFE/earnings/estimates#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]. Adjusted diluted EPS is projected to be in the range of $2.80 to $3.00 (vs. consensus of $2.96).
AMAZON TO OFFER NOVO’S OZEMPIC PILL VIA SAME-DAY DELIVERY, KIOSKS
Amazon (AMZN [https://seekingalpha.com/symbol/AMZN]) announced [https://seekingalpha.com/news/4588376-amazon-to-offer-novo-ozempic-pill] on Thursday that Novo Nordisk’s (NVO [https://seekingalpha.com/symbol/NVO]) newly launched oral diabetes therapy, the Ozempic pill, will be available for same-day delivery through its pharmacy division and dispensed at its One Medical locations via in-office kiosks.
The Danish drugmaker launched the Ozempic pill earlier this week, having rebranded its previous oral GLP-1 therapy, Rybelsus. [https://seekingalpha.com/news/4583902-novo-nordisk-readies-u-s-launch-of-ozempic-pill#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]
Amazon (AMZN [https://seekingalpha.com/symbol/AMZN]) stated that, regardless of Prime membership, patients will be able to access the once-daily therapy through same-day delivery, which is available in nearly 3,000 U.S. cities and towns.
The company plans to expand the same-day service to nearly 4,500 cities and towns by the end of 2026.
In other news of note, Novo Nordisk (NVO [https://seekingalpha.com/symbol/NVO]) raised [https://seekingalpha.com/news/4586640-novo-nordisk-says-oral-wegovy-success-to-soften-sales-decline] its outlook for the year after strong early demand for its oral Wegovy pill helped revive momentum in its obesity business.
Excluding the 340B provision reversal, the Danish drugmaker now expects adjusted sales and operating profit to contract between 4% and 12%, compared with an earlier forecast of a 5%–13% Y/Y decline.
Novo said first-quarter sales jumped 32% on a constant currency basis to reach DKK 96.8B, positively impacted by a provision reversal related to the 340B Drug Pricing Program in the US. On an adjusted basis, sales fell 4% at CER, driven by lower realized prices, partly offset by GLP-1 volume growth across geographies.
Operating profit surged 65% to DKK 59.6B at CER.
CVS HEALTH SPIKES AS INSURANCE BUSINESS DRIVES Q1 BEAT
Shares of CVS Health (CVS [https://seekingalpha.com/symbol/CVS]) jumped [https://seekingalpha.com/news/4586729-cvs-health-stock-rises-q1-2026-beat] over 7% on Wednesday after the managed care firm raised its full-year outlook following better-than-expected Q1 2026 earnings, largely driven by its Health Care Benefits segment, which houses its health insurer Aetna. [https://seekingalpha.com/news/4586724-cvs-non-gaap-eps-of-2_57-beats-by-0_36-revenue-of-100_4b-beats-by-5_38b#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]
The Woonsocket, Rhode Island-based healthcare giant increased its outlook for adjusted earnings per share to $7.30-$7.50 from $7.00-$7.20, exceeding the $7.16 projected by analysts, citing outperformance in its Health Care Benefits and Pharmacy & Consumer Wellness segments.
For the quarter, CVS recorded $100.4B in revenue with ~6% YoY growth as its Health Care Benefits segment added $36.0B to the topline with ~3% YoY growth thanks mainly to its government business.
ANGELINI PHARMA TO BUY CATALYST PHARMACEUTICALS FOR $4.1B
Angelini Pharma agreed [https://seekingalpha.com/news/4588004-angelini-pharma-to-buy-catalyst-pharmaceuticals-for-41b] to acquire all outstanding shares of Catalyst Pharmaceuticals (CPRX [https://seekingalpha.com/symbol/CPRX]) for $31.50 per share in cash, for a total equity value of approximately $4.1B.
The deal has been unanimously approved by the boards of directors of both companies and is expected to close in the third quarter of 2026. The consideration represents a premium of 28% to Catalyst’s 30-day volume-weighted average trading price as of April 22, 2026.
Following completion of the acquisition, Angelini Pharma plans to integrate Catalyst’s portfolio and commercial infrastructure with its expertise and products in Brain Health to develop a next-generation therapeutic platform in Rare Diseases.
The transaction [https://seekingalpha.com/pr/20504768-angelini-pharma-to-acquire-catalyst-pharmaceuticals-for-4_1-billion-usd-3_5-billion-euros#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]will be carried out with the participation of Blackstone (BX [https://seekingalpha.com/symbol/BX]) funds and select international partners and will be financed with the support of BNP Paribas.
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