Should Cardinal Health's (CAH) Global Tech Expansion and Automation Plans Spark Investor Action?

• In early October 2025, Cardinal Health announced the international launch of the Kendall SCD SmartFlow™ Compression System, bringing advanced pneumatic compression technology to new markets, while also revealing plans for a state-of-the-art, automated pharmaceutical distribution center in Indianapolis, Indiana.
• This dual focus on global healthcare innovation and automation marks a significant step in Cardinal Health's efforts to boost operational efficiency and expand its global presence in medical and pharmaceutical distribution.
• We'll explore how the international rollout of advanced compression technology may influence Cardinal Health's long-term outlook and investment narrative.

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Cardinal Health Investment Narrative Recap

For shareholders, the core belief in Cardinal Health often centers on the company’s ability to capture growing global demand for healthcare products while improving operational efficiency through automation. The recent launch of the Kendall SCD SmartFlow™ Compression System and expansion of advanced distribution centers support this direction, but do not materially alter the near-term catalyst of operational cost savings or the key risk of regulatory and pricing pressure on distribution margins.

The newly announced automated pharmaceutical distribution center in Indianapolis is most relevant here, reflecting Cardinal’s ongoing investment in technology and supply chain modernization, which aligns closely with efforts to offset margin risks posed by regulatory scrutiny and competitive forces.

Yet, in contrast to these positive investments, rising regulatory pressure on drug pricing and reimbursement remains a risk that investors should be aware of, especially as…

Read the full narrative on Cardinal Health (it's free!)

Cardinal Health's narrative projects $288.0 billion in revenue and $2.2 billion in earnings by 2028. This requires 9.0% yearly revenue growth and a $0.6 billion earnings increase from current earnings of $1.6 billion.

Uncover how Cardinal Health's forecasts yield a $180.46 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members submitted four fair value estimates for Cardinal Health ranging from US$135 to US$584, with varied analysis underlying each. While you consider the broad confidence in automation for cost savings, keep in mind that market participants can see future prospects from very different angles, reviewing several perspectives is key to shaping your own view.

Explore 4 other fair value estimates on Cardinal Health - why the stock might be worth over 3x more than the current price!

Build Your Own Cardinal Health Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Cardinal Health research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Cardinal Health research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cardinal Health's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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