Cardinal Health (CAH) Surged Following Improved Specialty Mix in Pharma
Brown Advisory, an investment management company, released its “Brown Advisory Mid-Cap Growth Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Strategy lagged the Russell Midcap® Growth Index in the fourth quarter due to stock selection. The performance was in line with expectations for the full year. The firm believes that the Strategy underperformed in 2025 because it did not own Palantir Technologies Inc (PLTR). The Strategy focuses on achieving solid risk-adjusted returns by investing in high-quality compounders with fair valuations and market capitalizations between $2 billion and $50 billion at the time of purchase. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Brown Advisory Mid-Cap Growth Strategy highlighted Cardinal Health, Inc. (NYSE:CAH) as one of its leading contributors. Cardinal Health, Inc. (NYSE:CAH) is a healthcare services and products company that operates through Pharmaceutical and Specialty Solutions, and Global Medical Products and Distribution segments. On March 23, 2026, Cardinal Health, Inc. (NYSE:CAH) stock closed at $206.40 per share. One-month return of Cardinal Health, Inc. (NYSE:CAH) was -8.66%, and its shares gained 55.48% over the past 52 weeks. Cardinal Health, Inc. (NYSE:CAH) has a market capitalization of $48.569 billion.
Brown Advisory Mid-Cap Growth Strategy stated the following regarding Cardinal Health, Inc. (NYSE:CAH) in its fourth quarter 2025 investor letter:
“Cardinal Health, Inc. (NYSE:CAH): Distributes pharmaceuticals and engages in manufacturing & sale of medical, surgical and laboratory supplies. Cardinal (CAH) delivered a strong fiscal first quarter, driven by improved specialty mix in Pharma, solid demand in nuclear and home health, and continued margin recovery in Medical. Results were strong enough to prompt an early guidance increase, with further upside potential following the margin- and net-accretive Solaris acquisition.”
Cardinal Health, Inc. (NYSE:CAH) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 60 hedge fund portfolios held Cardinal Health, Inc. (NYSE:CAH) at the end of the fourth quarter, up from 55 in the previous quarter. Cardinal Health, Inc.’s (NYSE:CAH) second quarter of fiscal 2026 revenue increased 19% year-over-year to $66 billion. While we acknowledge the potential of Cardinal Health, Inc. (NYSE:CAH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
