Exploring Cardinal Health, Inc. (CAH) Investor Profile: Who’s Buying and Why?

You see Cardinal Health, Inc. (CAH) trading near its 52-week high, and the first question in your mind should be: Who is driving this momentum, and why are they buying now? The answer is simple: The smart money is leaning heavily into a story of financial execution, with institutional investors owning a massive 87.17% of the stock, a clear sign of conviction. This isn't retail speculation; this is BlackRock, Inc. and The Vanguard Group, Inc. holding around 13% each, a significant concentration of power. The catalyst? Fiscal Year 2025 results showed non-GAAP diluted earnings per share (EPS) hitting a strong $8.24, with non-GAAP operating earnings jumping 15% to $2.8 billion, demonstrating real operational leverage. We're talking about a company with a market capitalization around $49.00 billion that has surged over 70% year-to-date, so you need to understand the mechanics behind this institutional stampede-are they chasing the growth in the Pharmaceutical and Specialty Solutions segment, or is the turnaround in the Global Medical Products and Distribution segment finally defintely paying off? Let's look past the headlines to see exactly which funds are making the biggest bets and what their portfolio actions tell us about the near-term outlook.

Who Invests in Cardinal Health, Inc. (CAH) and Why?

You want to know who is betting on Cardinal Health, Inc. (CAH) and what their thesis is, and the short answer is: mostly massive institutions looking for stable cash flow and targeted growth, but active managers are also making big, tactical moves right now. The company's profile-a healthcare distribution giant with a new focus on high-margin specialty areas-attracts a blend of passive index funds and sharp-elbowed hedge funds.

The ownership structure is clear: institutional investors hold the vast majority, around 87.17% of the stock. This means the stock price is defintely sensitive to the collective decisions of these large players. The general public, or retail investors, own the remaining stake, typically viewing CAH as a reliable healthcare staple for diversification and income.

Key Investor Types: The Ownership Breakdown

When you look at the shareholder base, you see a classic distribution for a large-cap, established company in a non-cyclical sector like healthcare. It's dominated by the titans of asset management, who are mostly passive investors tracking major indices like the S&P 500.

The largest shareholders are the index fund behemoths, like BlackRock, Inc. and The Vanguard Group, Inc., each holding roughly 13% of the shares outstanding as of mid-2025. These firms buy and hold CAH because it's a core component of the indices their funds track. Their motivation isn't a deep-dive value play; it's market representation. State Street Global Advisors, Inc. is also a major holder, owning about 5.5% of the company stock.

However, the third quarter of 2025 saw significant activity from more active institutional money, including hedge funds, indicating a strong debate on the stock's near-term trajectory. For example, in Q3 2025 alone, 558 institutional investors added to their positions, while 627 decreased them. This shows a high level of churn and active management positioning.

Investment Motivations: Growth, Dividends, and Strategy

Investors are attracted to Cardinal Health, Inc. for three core reasons: its resilient market position, its renewed growth in specialty areas, and its reliable capital returns.

• Growth Prospects (The Turnaround Story): The biggest draw is the successful pivot toward higher-margin businesses. The Pharmaceutical and Specialty Solutions segment, which includes acquisitions like the GI Alliance MSO (Management Services Organization) platform, grew its segment profit by 12% in fiscal year (FY) 2025. The company is forecasting strong momentum to continue, raising its FY 2026 non-GAAP diluted Earnings Per Share (EPS) guidance to a range of $9.30 to $9.50, which represents a growth of 13% to 15%. That's a powerful growth signal for a company of this size.
• Market Position (The Moat): CAH is one of the three major U.S. drug distributors, giving it a powerful economic moat (a structural competitive advantage). Revenue for FY 2025 was a massive $222.6 billion. This scale and the essential nature of its business-moving pharmaceuticals and medical products-provide a defensive quality to the stock.
• Dividends and Capital Return: For income-focused investors, the company offers a consistent dividend. The current quarterly dividend is $0.5107 per share, yielding an annualized rate of around 1.0%. Plus, the company returned approximately $1.25 billion to shareholders in FY 2025 through dividends and share repurchases.

You can see the strategic focus on high-value areas like specialty pharmaceuticals and logistics, which is driving the enthusiasm. For a deeper dive into the company's long-term vision, check out the Mission Statement, Vision, & Core Values of Cardinal Health, Inc. (CAH).

Investment Strategies: The Blend of Passive and Active

The strategies at play are a mix of long-term holding and tactical, short-term positioning, reflecting the two dominant investor groups.

• Long-Term Holding (Passive/Value): Index funds and large pension funds are classic buy-and-hold investors. They see CAH as a value play in the healthcare sector, appreciating its stable cash flow (FY 2025 adjusted free cash flow was $2.5 billion) and its defensive nature. They are betting on the company to continue its slow, steady growth and dividend payments over decades.
• Growth/Momentum Investing: The strong Q3 2025 earnings beat-Adjusted EPS of $2.55, beating consensus by $0.33-and the raised guidance have attracted momentum players. These investors are piling in, betting that the recent operational improvements and high growth in specialty segments will continue to drive the stock price higher in the near term. Wall Street analysts generally agree, with a median price target of $206.50 as of November 2025.
• Value Investing (The Turnaround): Many active managers view CAH as a value stock that is shedding its past risks (like opioid litigation) and is undervalued relative to its future earnings power, especially with the GMPD (Global Medical Products and Distribution) segment achieving $135 million in segment profit and positive cash flow in FY 2025. The trade is simple: buy before the market fully prices in the higher, more predictable earnings from the specialty business.

Here's the quick math on the growth thesis: The jump from FY 2025 non-GAAP EPS of $8.24 to the midpoint of the FY 2026 guidance at $9.40 is a 14% leap. That kind of double-digit growth in a stable industry is what gets active managers buying. Your next step should be to model how the new specialty acquisitions contribute to that 2026 guidance, especially their margin profile.

Institutional Ownership and Major Shareholders of Cardinal Health, Inc. (CAH)

If you're looking at Cardinal Health, Inc. (CAH), the first thing you need to understand is that institutional investors-the massive asset managers, mutual funds, and pension funds-are the dominant force. They hold the vast majority of the company, and their trading decisions defintely move the stock.

Currently, institutional investors collectively own a staggering 87.17% to 89% of Cardinal Health, Inc.'s outstanding shares. This means nearly nine out of every ten shares are held by professional money managers. This high concentration is typical for a large-cap healthcare distributor and signals a level of stability, but it also creates a vulnerability: a coordinated shift in sentiment can cause an outsized price swing.

The top shareholders are the usual titans of the investment world, managing trillions in assets on behalf of their clients. Here is a snapshot of the largest institutional owners and their approximate stakes, based on the most recent filings:

The top 10 institutional investors alone control roughly 43% of the company. That's a powerful voting bloc. If you want to understand the long-term strategic direction of Cardinal Health, Inc., you need to know what these firms are thinking. It's not just about the numbers; it's about the conviction of the biggest players.

Recent Shifts in Institutional Stakes: The Q3 2025 Trading Picture

The third quarter of fiscal year 2025 saw a fascinating mix of conviction and caution among the big institutional players. In short, there was more selling activity than buying in terms of the raw number of funds, but the size of the biggest buys was significant.

We saw 558 institutional investors add new positions or increase their existing stakes in Cardinal Health, Inc., but 627 funds decreased their positions or sold out entirely. This tells me that while the overall institutional ownership remains high, there is a clear divergence of opinion on the stock's near-term trajectory.

The most notable increases were massive, reflecting high conviction in the stock's performance following a strong fiscal year. For instance, WELLINGTON MANAGEMENT GROUP LLP added 3,511,579 shares, a whopping 153.2% increase in their holding, valued at an estimated $551,177,439. Also, UBS AM, A DISTINCT BUSINESS UNIT OF UBS ASSET MANAGEMENT AMERICAS LLC, boosted its stake by 94.9%, adding 2,449,400 shares. That's a strong vote of confidence in the company's ability to execute on its strategy, which you can read more about here: Mission Statement, Vision, & Core Values of Cardinal Health, Inc. (CAH).

On the other side, some large funds took profits or trimmed their exposure. FMR LLC (Fidelity Investments) cut 854,880 shares, a -13.6% reduction in their position. This selling pressure is a natural part of portfolio rebalancing, especially after Cardinal Health, Inc. reported strong Q3 FY2025 non-GAAP diluted EPS of $2.35 and raised its full-year non-GAAP EPS guidance to between $8.05 and $8.15.

• Buying signals confidence in the $8.05 to $8.15 FY2025 EPS guidance.
• Selling suggests profit-taking after the stock's strong run.

The Institutional Investor's Impact on Strategy and Stock Price

The sheer weight of institutional ownership-nearly 89%-gives these investors a huge voice in Cardinal Health, Inc.'s boardroom and a direct impact on the stock price. This is not passive money; it's active capital.

Because they own so much, the company's Board of Directors (the governing body responsible for oversight) must pay close attention to the preferences of these large shareholders. This translates into a focus on predictable earnings, disciplined capital allocation (how the company spends its money), and shareholder return programs, like the quarterly dividend of $0.5107 per share (annualized at $2.04).

Here's the quick math on the stock's volatility: when a fund like Wellington Management Group LLP buys over 3.5 million shares, it drives demand and helps push the market capitalization toward its current level of approximately $49.00 billion. Conversely, if multiple large funds decide to liquidate their positions simultaneously, the stock price can drop fast, regardless of the underlying business fundamentals.

For you, the takeaway is simple: institutional conviction is high, but watch the major quarterly filings (Form 13F) for sudden, large-scale selling by a few key players. That's your early warning sign. You want to see the big money stay invested, confirming their belief in the company's ability to generate revenue, which hit $64.01 billion in the most recent quarter (Q4 2025). That kind of revenue is hard to ignore.

Key Investors and Their Impact on Cardinal Health, Inc. (CAH)

You're looking at Cardinal Health, Inc. (CAH) and wondering who's really driving the bus-a smart question, because institutional money holds the keys here. The direct takeaway is that passive giants like Vanguard and BlackRock dominate the shareholder base, but the recent, aggressive buying from active funds suggests a strong near-term conviction in the company's turnaround story.

Institutional investors, including pension funds and asset managers, own a staggering amount of the company, sitting between 87% and 89% of the stock. This means a handful of firms collectively wield immense influence over the stock price and, often, the company's strategic direction. When the top 20 shareholders control about 51% of the company, their trading decisions can move the needle defintely.

The Dominant Institutional Giants

The largest shareholders are the titans of passive and quasi-passive investing. They hold Cardinal Health, Inc. (CAH) largely because it's a major component of key market indices (like the S&P 500) and sector-specific exchange-traded funds (ETFs). Their goal isn't to micromanage the CEO, but to ensure good governance and long-term stability.

• BlackRock, Inc. and The Vanguard Group, Inc. are the two largest, each owning roughly 13% of the shares outstanding.
• State Street Corp holds the third largest stake, at approximately 5.5% of the company stock.
• Geode Capital Management LLC also holds a significant position, valued at about $1.07 billion.

This high concentration means that if a few of these behemoths decide to rebalance their portfolios or change their view on the healthcare distribution sector, the stock price can be vulnerable to a rapid drop. It's a double-edged sword: stability from their size, but volatility if they panic-sell.

Recent Notable Investor Moves (Q3 2025)

The recent quarterly filings (Q3 2025) show a clear trend of active managers piling into Cardinal Health, Inc. (CAH), which is a huge vote of confidence following the company's strong performance, including revenue of $64.01 billion in the most recent quarter.

Here's the quick math on some of the most aggressive buyers in Q3 2025:

These massive purchases, particularly the 153.2% jump by WELLINGTON MANAGEMENT GROUP LLP, signal that sophisticated investors see material upside, likely driven by the company's raised fiscal 2025 non-GAAP diluted earnings per share (EPS) guidance of $8.15 to $8.20. They are betting on the turnaround in the Global Medical Products and Distribution (GMPD) segment and the growth in Pharmaceutical and Specialty Solutions.

Activism and Direct Influence

While the passive funds are the largest holders, the most direct pressure often comes from activist investors (shareholders who buy a large stake to force a change). Elliott Management, a well-known activist fund, has a history of involvement with Cardinal Health, Inc. (CAH). Their initial position, valued at over $310 million, was based on the belief that the stock was significantly undervalued, driving a focus on operational improvements and capital allocation.

The impact of this activism is often seen in the company's strategic actions, such as the major focus on the GMPD Improvement Plan and the commitment to investing in high-growth areas like Biopharma Solutions. These moves, which aim to boost profitability and growth, are a direct response to the kind of pressure activist investors apply. It shows a commitment to Mission Statement, Vision, & Core Values of Cardinal Health, Inc. (CAH). by aligning operations with shareholder value.

The company's plan to return $750 million to shareholders and its continued focus on a long-term target of 12% to 14% non-GAAP diluted EPS compound annual growth rate (CAGR) for fiscal 2026 to fiscal 2028 are all actions designed to satisfy an investor base that demands both growth and capital efficiency. That's the investor influence at work: they demand a plan, and management delivers.

Market Impact and Investor Sentiment

You're looking at Cardinal Health, Inc. (CAH) because the stock has been on a tear, and you want to know if the big money is still buying. The short answer is yes: investor sentiment is defintely positive, driven by strong 2025 fiscal year results and an optimistic outlook for 2026.

The market has responded with massive momentum. The stock price has soared 66.4% in 2025 year-to-date, significantly outperforming the S&P 500 Index's 15.6% gains over the same period. This isn't just a slow climb; the stock shot up more than 15% in a single trading session following the robust Q1 2026 earnings release on October 30, 2025, hitting a new 52-week high of $200.14 in early November. This kind of sharp, sustained reaction signals that institutional investors (the smart money) are pricing in a fundamental change in the company's earnings power, not just a temporary spike.

Major Shareholders' Stance: Who's Buying and Why

The institutional investor base holds a commanding 87.17% of Cardinal Health, Inc.'s stock, which shows it's a core holding for major funds. Their sentiment is clearly bullish, evidenced by significant buying activity in the third quarter of 2025. For example, Wellington Management Group LLP boosted its position by a staggering 1,666.7% in Q1 2025, and UBS Asset Management, a distinct business unit of UBS Asset Management Americas LLC, added 2,449,400 shares in Q3 2025, valued at an estimated $384,457,824.

Here's the quick math on why they are piling in: Cardinal Health, Inc. delivered $2.5 billion in adjusted free cash flow for fiscal year 2025. This strong cash generation, coupled with a non-GAAP diluted earnings per share (EPS) of $8.24 (representing over 9% growth for the year), gives management the capital and confidence to invest in growth and return value to shareholders. That's what big investors look for-a business that generates cash and knows how to use it.

To be fair, there is some insider selling, which is common after a major stock run-up. Insiders sold about 271,676 shares worth roughly $40.5 million in the last quarter, but this is a tiny fraction of the overall institutional activity and ownership, which sits at just 0.12% for insiders.

• Wellington Management Group LLP: Added 3,511,579 shares in Q3 2025, a 153.2% increase.
• UBS AM: Added 2,449,400 shares in Q3 2025, a 94.9% increase.
• Geode Capital Management LLC: Holds over 6.3 million shares, valued at over $1 billion.

Analyst Perspectives and Price Targets

Wall Street analysts are not just following the trend; they are leading it with aggressive price target hikes. The consensus rating is a 'Moderate Buy' or a 'Strong Buy' across the board, with only two 'Hold' ratings among 14 analysts. The average price target is around $206.46, but the street-high target is as high as $232, suggesting an upside of nearly 18% from recent trading levels.

This bullishness stems directly from the company's recent earnings beat and future guidance. In Q1 2026, Cardinal Health, Inc. reported revenue of $64.01 billion, a 22.4% year-over-year increase, and an EPS of $2.55, topping the consensus estimate of $2.22. This is a powerful signal that the company has successfully navigated the headwinds of a major customer contract expiration and is now seeing the benefits of its strategic investments, particularly in its Pharmaceutical and Specialty Solutions segment.

Here's a snapshot of the recent analyst moves, showing the rapid repricing of the stock:

The key takeaway from the analyst community is that the company's forward-looking guidance is the real driver. Management has set its FY 2026 non-GAAP diluted EPS guidance at $9.30 to $9.50, which implies a growth of 13% to 15%. That's a strong growth profile for a company of this scale, and it justifies the higher price-to-earnings (P/E) ratio it currently commands. If you want a deeper dive into the numbers that underpin this confidence, you should read Breaking Down Cardinal Health, Inc. (CAH) Financial Health: Key Insights for Investors.