Cardinal Health rises on extended CVS distribution deal

Investing.com -- Cardinal Health Inc (NYSE: CAH) shares rose 3.7% in Thursday trading after the company announced an extension of its drug distribution agreement with CVS Health through June 2032.

The pharmaceutical distributor entered into a binding Letter of Intent to extend its existing distribution agreement with CVS Health through June 30, 2032, maintaining its current scope of distribution services.

"We value our long-standing partnership with CVS Health and look forward to continuing to bring our best-in-class capabilities together to serve their customers," said Jason Hollar, CEO of Cardinal Health.

In connection with the contract renewal, Cardinal Health reaffirmed its fiscal year 2027 non-GAAP EPS guidance of 13% to 15% growth, or $12.40 to $12.60. The company also maintained its long-term non-GAAP EPS growth rate guidance of 12% to 14%.

The company stated that further updates may be provided during its upcoming first quarter earnings call on November 5, 2026.

Cardinal Health distributes pharmaceuticals and specialty products, manufactures and distributes medical and laboratory products, and provides home-health and direct-to-patient products and services. The company also operates nuclear pharmacies and manufacturing facilities.

Original Article

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