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Cardinal Health vs. McKesson: Which Healthcare Stock Is Better?
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Key Takeaways
CAH's fiscal fourth-quarter revenues rose 6%, while operating income jumped 30%.
MCK raised full-year adjusted EPS guidance after first-quarter revenues rose 8% to $105 billion.
CAH has stronger projected EPS growth, while MCK has faster projected sales growth.
Cardinal Health (CAH - Free Report) and McKesson (MCK - Free Report) are direct competitors in U.S. pharmaceutical distribution, with both increasingly leveraging specialty pharmaceuticals, provider platforms and technology to expand beyond traditional distribution.
CAH’s core momentum is anchored by Pharmaceutical and Specialty Solutions, supported by at-Home Solutions, Nuclear and Precision Health and OptiFreight. MCK is leveraging its scaled distribution network, oncology and multispecialty platforms and biopharma services. Both are positioned for durable growth in 2026, but CAH entered the year with stronger earnings momentum and multiple growth levers.
CAH has gained 4.7% over the past six months compared with a 0.1% increase for MCK. Both companies have underperformed the Zacks Medical sector’s rise of 9.1% and the S&P 500’s return of 17.7% over the same period.
6-Month Price Performance
Image Source: Zacks Investment Research
Case for CAH
CAH’s latest results show a shift toward a diversified, specialty-led model. In the fourth quarter of fiscal 2026, revenues rose 6% to $63.7 billion, gross profit increased 16% and operating income jumped 30%. Pharmaceutical and Specialty Solutions remained the anchor, with segment revenues up 6% and profit up 21%, driven by brand and specialty portfolios. The company is expanding MSO capabilities through Specialty Alliance and integrating Solaris to deepen physician relationships across specialty care.
Beyond distribution, CAH’s three Other businesses generated 7% revenue growth and 14% profit growth in the fiscal fourth quarter. Nuclear and Precision Health is benefiting from theranostics expansion, while at-Home Solutions and OptiFreight add exposure to chronic-care delivery and logistics. Cardinal Health is also investing in automation and supply-chain technology. CAH’s key risks include tariff and regulatory uncertainty, acquisition integration and execution of the GMPD improvement plan.
CAH’s Full-Year Sales & EPS Estimated Growth Rate
Image Source: Zacks Investment Research
Case for MCK
McKesson continues to build around scale and specialty healthcare services. In the first quarter of fiscal 2027, revenues increased 8% to $105 billion and adjusted EPS rose 20% to $9.93, prompting management to raise full-year adjusted EPS guidance to $44.20-$45.00. Its oncology and multispecialty platform serves more than 14,000 providers, while the U.S. Oncology Network reached approximately 3,400 providers. PRISM Vision expands retina and ophthalmology exposure, while InspiroGene adds advanced therapy capabilities.
Technology is a visible competitive lever. MCK highlighted enterprise AI training, automation in biopharma services and AI-enabled workflows. Ambient Scribe is currently used by more than 1,900 oncology providers, while MCK continues to embed AI into data and workflow tools. The company is also modernizing distribution through AI- and robotics-enabled facilities and AI-driven inventory planning. However, MCK continues to face challenges, including policy uncertainty, pharmaceutical pricing changes and the planned Medical-Surgical separation.
MCK’s Full-Year Sales & EPS Estimated Growth Rate
Image Source: Zacks Investment Research
Valuation — CAH vs MCK
CAH’s P/E F12M earnings multiple of 17.2 is below the Zacks Medical sector’s 21 multiple but above its five-year median of 14.11. The multiple reflects some re-rating while remaining below sector valuation, providing a moderate valuation backdrop alongside stronger projected EPS growth.
MCK trades at 18.7 P/E F12M earnings multiple, also below the Zacks Medical sector’s multiple but above its five-year median of 16X. The smaller premium to historical valuation reflects established execution, although the stock offers less valuation differentiation than CAH.
5-Year P/E F12M: CAH vs MCK
Image Source: Zacks Investment Research
Sales and EPS Estimates
CAH’s first-quarter fiscal 2027 estimates call for sales of $66.96 billion, up 4.6%, and EPS of $2.92, up 14.5%. EPS estimates have remained stable over the past seven days. MCK’s second-quarter fiscal 2027 estimates point to $110.14 billion of sales, up 6.8%, and EPS of $10.72, up 8.7%. The EPS estimates have declined 3 cents in seven days. Thus, MCK has higher projected sales growth, but CAH has stronger projected EPS growth and a steadier estimate trend.
Conclusion
Both Cardinal Health and McKesson carry a Zacks Rank #3 (Hold) at present, while CAH appears favorable based on Zacks Style Scores. Both CAH and MCK have a Growth score of A, but CAH has higher expected EPS growth. The differentiation is clearer on value and momentum — CAH has a Value Score of A versus B for MCK, while its Momentum Score of A compares with MCK’s F, reflecting a more favorable recent EPS-estimate revision trend.
Combined with CAH’s more than 20% specialty growth, expanding MSO platform, double-digit growth in Other businesses and technology investments, these factors support a stronger earnings-acceleration narrative. MCK remains a high-quality operator with strong specialty, oncology, AI and distribution capabilities, but CAH’s combination of valuation, growth and estimate momentum makes it the more compelling healthcare distributor stock currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
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Cardinal Health vs. McKesson: Which Healthcare Stock Is Better?
Key Takeaways
Cardinal Health (CAH - Free Report) and McKesson (MCK - Free Report) are direct competitors in U.S. pharmaceutical distribution, with both increasingly leveraging specialty pharmaceuticals, provider platforms and technology to expand beyond traditional distribution.
CAH’s core momentum is anchored by Pharmaceutical and Specialty Solutions, supported by at-Home Solutions, Nuclear and Precision Health and OptiFreight. MCK is leveraging its scaled distribution network, oncology and multispecialty platforms and biopharma services. Both are positioned for durable growth in 2026, but CAH entered the year with stronger earnings momentum and multiple growth levers.
CAH has gained 4.7% over the past six months compared with a 0.1% increase for MCK. Both companies have underperformed the Zacks Medical sector’s rise of 9.1% and the S&P 500’s return of 17.7% over the same period.
6-Month Price Performance
Image Source: Zacks Investment Research
Case for CAH
CAH’s latest results show a shift toward a diversified, specialty-led model. In the fourth quarter of fiscal 2026, revenues rose 6% to $63.7 billion, gross profit increased 16% and operating income jumped 30%. Pharmaceutical and Specialty Solutions remained the anchor, with segment revenues up 6% and profit up 21%, driven by brand and specialty portfolios. The company is expanding MSO capabilities through Specialty Alliance and integrating Solaris to deepen physician relationships across specialty care.
Beyond distribution, CAH’s three Other businesses generated 7% revenue growth and 14% profit growth in the fiscal fourth quarter. Nuclear and Precision Health is benefiting from theranostics expansion, while at-Home Solutions and OptiFreight add exposure to chronic-care delivery and logistics. Cardinal Health is also investing in automation and supply-chain technology. CAH’s key risks include tariff and regulatory uncertainty, acquisition integration and execution of the GMPD improvement plan.
CAH’s Full-Year Sales & EPS Estimated Growth Rate
Image Source: Zacks Investment Research
Case for MCK
McKesson continues to build around scale and specialty healthcare services. In the first quarter of fiscal 2027, revenues increased 8% to $105 billion and adjusted EPS rose 20% to $9.93, prompting management to raise full-year adjusted EPS guidance to $44.20-$45.00. Its oncology and multispecialty platform serves more than 14,000 providers, while the U.S. Oncology Network reached approximately 3,400 providers. PRISM Vision expands retina and ophthalmology exposure, while InspiroGene adds advanced therapy capabilities.
Technology is a visible competitive lever. MCK highlighted enterprise AI training, automation in biopharma services and AI-enabled workflows. Ambient Scribe is currently used by more than 1,900 oncology providers, while MCK continues to embed AI into data and workflow tools. The company is also modernizing distribution through AI- and robotics-enabled facilities and AI-driven inventory planning. However, MCK continues to face challenges, including policy uncertainty, pharmaceutical pricing changes and the planned Medical-Surgical separation.
MCK’s Full-Year Sales & EPS Estimated Growth Rate
Image Source: Zacks Investment Research
Valuation — CAH vs MCK
CAH’s P/E F12M earnings multiple of 17.2 is below the Zacks Medical sector’s 21 multiple but above its five-year median of 14.11. The multiple reflects some re-rating while remaining below sector valuation, providing a moderate valuation backdrop alongside stronger projected EPS growth.
MCK trades at 18.7 P/E F12M earnings multiple, also below the Zacks Medical sector’s multiple but above its five-year median of 16X. The smaller premium to historical valuation reflects established execution, although the stock offers less valuation differentiation than CAH.
5-Year P/E F12M: CAH vs MCK
Image Source: Zacks Investment Research
Sales and EPS Estimates
CAH’s first-quarter fiscal 2027 estimates call for sales of $66.96 billion, up 4.6%, and EPS of $2.92, up 14.5%. EPS estimates have remained stable over the past seven days. MCK’s second-quarter fiscal 2027 estimates point to $110.14 billion of sales, up 6.8%, and EPS of $10.72, up 8.7%. The EPS estimates have declined 3 cents in seven days. Thus, MCK has higher projected sales growth, but CAH has stronger projected EPS growth and a steadier estimate trend.
Conclusion
Both Cardinal Health and McKesson carry a Zacks Rank #3 (Hold) at present, while CAH appears favorable based on Zacks Style Scores. Both CAH and MCK have a Growth score of A, but CAH has higher expected EPS growth. The differentiation is clearer on value and momentum — CAH has a Value Score of A versus B for MCK, while its Momentum Score of A compares with MCK’s F, reflecting a more favorable recent EPS-estimate revision trend.
Combined with CAH’s more than 20% specialty growth, expanding MSO platform, double-digit growth in Other businesses and technology investments, these factors support a stronger earnings-acceleration narrative. MCK remains a high-quality operator with strong specialty, oncology, AI and distribution capabilities, but CAH’s combination of valuation, growth and estimate momentum makes it the more compelling healthcare distributor stock currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.