Why is Cardinal Health stock surging today?

Cardinal Health's stock surged 3.3% in early trading as the company's fiscal fourth-quarter 2026 results surpassed Wall Street's expectations. The pharmaceutical and medical products distributor reported non-GAAP diluted earnings per share (EPS) of $2.91, a 40% increase compared to the previous year. GAAP operating earnings for the quarter rose 70% to $729 million, while quarterly revenue reached $63.7 billion, up 6% year-over-year.

Year-over-year, non-GAAP EPS for the full fiscal year 2026 increased by 37% to $11.26. The company also announced a new $5.0 billion share repurchase authorization, bringing its total buyback capacity to $6.4 billion, and declared a quarterly dividend of $0.5158 per share, payable on October 15, 2026. Analysts had been largely optimistic about Cardinal Health, with a Strong Buy consensus and price targets higher than the pre-earnings share price.

The stock had been close to its 52-week high of $244.87, and the pre-earnings move pushed it into fresh all-time high territory. The combination of a substantial EPS beat, strong full-year results, optimistic forward guidance, and a major capital return program fueled the sharp pre-market rally, signaling renewed investor confidence in Cardinal Health's ongoing margin expansion and growth trajectory.