Cardinal Health's $1.9 Billion Urology Bet Sends Shares Sliding -- But Could Spark Long-Term Growth

Cardinal Health CAH is making another big move in specialty healthcare, agreeing to acquire Solaris Health for $1.9 billion. The deal builds on the company's growing footprint in urology, a space CEO Jason Hollar describes as an attractive specialty for the business. This acquisition follows other recent plays in the sector, including the purchase of Academic Urology & Urogynecology. Solaris Health brings a network of more than 750 providers across 14 states, positioning Cardinal to further strengthen its multispecialty strategy.

Management paired the announcement with an upgrade to its fiscal 2026 adjusted earnings per share forecast, now expected at $9.30 to $9.50 above analyst expectations. The Dublin, Ohio-based healthcare giant, known for its pharmaceutical distribution, medical product manufacturing, and home-health services, also delivered fiscal fourth-quarter results that topped EPS estimates, with revenue roughly in line with consensus.

The market's reaction was less enthusiastic in the short term, with shares down nearly 10% on the news and since then has bounced back a bit. Currently, stock remains up over 25%. For investors, the short-term pullback could reflect caution over integration risks and near-term costs, while the long-term view hinges on whether Cardinal can unlock the growth potential it sees in urology and multispecialty care.