Cardinal Health rises on extended CVS distribution deal
Cardinal Health's shares experienced a 3.7% increase in Thursday trading following the company's announcement of an extension to its drug distribution agreement with CVS Health. The pharmaceutical distributor entered into a binding Letter of Intent, extending their existing agreement with CVS Health through June 30, 2032, while preserving the current scope of services.
In a statement, Cardinal Health CEO Jason Hollar expressed the company's appreciation for their partnership with CVS Health and their commitment to delivering best-in-class capabilities to CVS Health's customers. The contract renewal reaffirmed Cardinal Health's fiscal year 2027 non-GAAP EPS guidance of a 13% to 15% growth, which translates to $12.40 to $12.60 in earnings per share.
The company also maintained its long-term non-GAAP EPS growth rate guidance of 12% to 14%. Cardinal Health operates in various areas, including pharmaceutical and specialty product distribution, medical and laboratory product manufacturing and distribution, home-health and direct-to-patient services, nuclear pharmacies, and manufacturing facilities.
Further updates regarding the company's performance may be provided during their upcoming first quarter earnings call on November 5, 2026.
Written by urgent.news from Investing.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
