CAHNEUTRAL

CAH Gross Margin Analysis

4.1%

Higher than 11% of Healthcare sector peers

Updated 1091h ago·SEC filings & market data

Key Takeaway

Gross margin, the percentage of revenue left after paying direct product costs, stands at 4.1% for Cardinal Health.

Sector Performance

11th percentile

CAH

4.1%

Sector Median

68.3%

Sector Avg

-63.9%

Prior Period

3.4%(Apr 2026)

↑ Improving

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Deep Analysis

Gross margin, the percentage of revenue left after paying direct product costs, stands at 4.1% for Cardinal Health.

That is far below the healthcare sector median of 68.4%, placing the company in the 9th percentile among peers. The trend cannot be assessed because the year-over-year change is N/A and the quarter-over-quarter change is N/A; only a single historical value of 4.1% is available. The very low margin level suggests a thin buffer against cost increases, and the lack of trend data leaves no evidence of improvement or deterioration. This combination points to elevated operational risk, though it also means any future margin expansion would come from a low base. The metric supports the overall NEUTRAL verdict: the low margin is a caution, but without trend data it does not decisively tip the stock toward buy or sell.

Frequently Asked Questions

What does the Gross Margin tell investors about CAH?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does CAH's Gross Margin compare to its sector?

CAH's Gross Margin of 4.1% compares to a Healthcare sector median of 68.3%, placing it in the 11th percentile.

Who are CAH's closest peers by Gross Margin?

The closest Healthcare peers by Gross Margin include: AMGN (68.2%), BLUE (68.4%), TECH (66.9%), EXAS (70.1%), ALGN (70.8%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.