Cardinal Health and McKesson Extend CVS Distribution Contracts

Cardinal Health and McKesson Corporation entered into binding agreements to extend their existing drug distribution contracts with CVS Health through June 30, 2032. The move eliminates market uncertainty surrounding previous contract negotiations.

Shares of both distributors rose between 3% and 4% following the announcement. Bank of America characterized the development as a "clearing event" for the involved stocks.

Cardinal Health reaffirmed its fiscal 2027 adjusted EPS growth guidance of 13% to 15% and long-term adjusted EPS growth guidance of 12% to 14%. The company indicated that the economics of its relationship with CVS Health remain stable.