Cardinal Health (CAH) falls 9.4% as valuation and cash-flow concerns offset earnings growth

Cardinal Health (NYSE: CAH) shares fell 9.4% over the six months through May 13, 2026, to $186.14, underperforming the S&P 500’s 7.7% gain and raising questions about the stock’s near-term appeal. The health care distributor generated $250.7 billion in revenue over the past 12 months, reflecting significant scale in a low-margin, volume-driven business. Earnings per share rose at a 12.4% compound annual rate over the past five years, ahead of 9.9% annualized revenue growth, indicating improved per-share profitability. The main concern is cash generation. Cardinal Health’s free cash flow margin averaged 1.3% over the past five years, below typical expectations for a health care company and limiting flexibility for shareholder returns. After the decline, the stock trades at 16.6 times forward earnings.