Cardinal Health, Inc. stock research
FY2026 Q2
Cardinal Health (CAH) Gross Margin & Quarterly History
Explore Cardinal Health, Inc. (CAH) gross margin from 2023 through the latest reported quarter, using SEC-sourced revenue, gross profit, and direct costs.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2026 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved sequentially and year-over-year, reflecting that the increase in gross profit was proportionally larger than the increase in cost of revenue relative to revenue.
- The gross margin improvement was driven by the relationship between revenue and cost of revenue: revenue increased more than cost of revenue in proportional terms, leading to a higher gross profit as a share of revenue.
- Sequentially, revenue, gross profit, and cost of revenue all increased, and gross margin was higher. Year-over-year, all three metrics also increased, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
3.7%
Gross profit
$2.4B
Revenue
$65.6B
Cost of revenue
$63.2B
Quarter-over-quarter change
+0.0 pts
Year-over-year change
+0.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $54.9B | $2.1B | $52.8B | 3.9% |
| Jun 30, 2025 | $60.2B | $2.2B | $58.0B | 3.7% |
| Sep 30, 2025 | $64.0B | $2.3B | $61.7B | 3.6% |
| Dec 31, 2025 | $65.6B | $2.4B | $63.2B | 3.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+0.0 pts
Year-over-year change
Dec 31, 2024
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by the relationship between revenue and cost of revenue: revenue increased more than cost of revenue in proportional terms, leading to a higher gross profit as a share of revenue.
Sequentially, revenue, gross profit, and cost of revenue all increased, and gross margin was higher. Year-over-year, all three metrics also increased, and gross margin was higher.
Monitor the relationship between cost of revenue growth and revenue growth, as the gross margin remains narrow.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Cardinal Health, Inc. (CAH) | 3.7% |