Evercore ISI has increased its price target for Cardinal Health (NYSE:CAH) to $260.00 from $250.00 while maintaining an Outperform recommendation on the healthcare services distributor, the firm said on Friday. The revised target sits close to InvestingPro’s Fair Value measure, which indicates the stock is mildly undervalued even as it trades near a 52-week high of $229.76.
The lift in the target followed Cardinal Health’s most recent earnings report and prompted Evercore ISI to revise its forward-looking profit estimates for the company. InvestingPro data referenced by market observers shows that nine analysts have recently raised their earnings expectations for the upcoming period, reinforcing the more optimistic consensus among brokers.
Specifically, Evercore ISI boosted its fiscal year 2026 earnings-per-share forecast to $10.36 from $10.05 and its fiscal year 2027 EPS estimate to $11.65 from $11.28. For context, the current consensus EPS projection for FY2026 stands at $10.09, according to InvestingPro data.
Evercore pointed to Cardinal Health’s quarter as confirmation of its ability to sustain earnings growth, citing three pillars of that confidence: disciplined operations, exposure to specialty products and what it characterized as balanced capital allocation. The firm noted that these factors support continued progress even if the company’s reported growth rate eases in coming periods.
Cardinal Health itself raised its fiscal 2026 earnings guidance, updating its outlook for non-GAAP diluted EPS to at least $10.00. That new minimum supersedes the prior guidance range of $9.65 to $9.85 and reflects what the company described as robust performance across its business segments.
Following the guidance update, several broker-dealers adjusted their price targets for Cardinal Health. Morgan Stanley lifted its target to $245 while keeping an Overweight rating, citing broad-based strength across the company’s businesses. TD Cowen raised its target to $233 and retained a Buy rating, pointing to fiscal second-quarter results that appear de-risked. Mizuho also moved its target higher to $222, saying it expects favorable operating trends to persist into 2026. These changes among sell-side firms illustrate a generally more constructive view of the company’s near-term trajectory.
Summary
Evercore ISI raised its Cardinal Health price target to $260 and increased FY2026 and FY2027 EPS estimates after the company’s quarter. Cardinal Health upgraded its FY2026 EPS guidance to at least $10.00, and multiple analyst firms responded by raising price targets, reflecting greater analyst confidence in the company’s performance.