Cardinal Health’s first quarter results were received negatively by the market, with revenue growth of 11% year over year failing to meet Wall Street expectations. Management attributed the top-line miss to shifts in product mix within the Pharmaceutical and Specialty Solutions segment, including moderation in GLP-1 drug revenue growth and the impact of Inflation Reduction Act (IRA) pricing adjustments. CEO Jason Hollar emphasized that these headwinds were partially offset by continued strength in specialty and branded pharmaceutical demand, as well as operational resilience in the face of supply chain challenges and winter storm disruptions. The company also absorbed higher expenses from ongoing investments in technology and integration of recent acquisitions.

Is now the time to buy CAH? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Cardinal Health’s Q1 Earnings Call

• Michael Cherny (Leerink Partners): Asked about the scale of SG&A investments and specialty portfolio gaps. CFO Aaron Alt clarified that SG&A growth, net of M&A, was 7%, and that bolt-on M&A in autoimmune and urology remains a focus, with discipline in asset selection.

• Elizabeth Anderson (Evercore ISI): Asked about sustainable growth in the "other" segment. Alt pointed to robust secular demand, successful ADS integration, and strong performance in nuclear and logistics businesses as supporting ongoing momentum.

• Glen Santangelo (Barclays): Pressed on downstream profit risk from IRA drug price reductions. CEO Jason Hollar stated that distributor fees and service models remain protected by contract renegotiations and diversified payer mix, minimizing margin exposure.

• Allen Lutz (Bank of America): Sought detail on the drivers behind the increased free cash flow guidance. Alt attributed it to broad-based operational discipline, inventory and receivables management, and not to any single segment or mix shift.

• Daniel Grosslight (Citi): Asked about the ramp of Solaris distribution volumes and their impact on profit guidance. Hollar confirmed Solaris onboarding is progressing, with meaningful benefit expected next year as volumes annualize.

Catalysts in Upcoming Quarters

Looking ahead, our analysts will monitor (1) the pace and profitability of specialty segment expansion and Solaris integration, (2) the timing and magnitude of potential tariff refunds and related customer sharing, and (3) the company’s ability to offset margin pressures from IRA pricing reforms and commodity cost volatility. Progress on supply chain automation and new distribution centers will also be key signposts for future execution.

Cardinal Health currently trades at $192.33, down from $202.82 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

Our Favorite Stocks Right Now

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week - FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.