Cardinal Health Reports Second Quarter Fiscal Year 2025 Results and Raises Fiscal Year 2025 Outlook
Cardinal Health (CAH) reported Q2 FY25 revenues of $55.3 billion, a 4% decrease from Q2 FY24, though revenue increased 16% excluding a large customer contract expiration. GAAP operating earnings rose 9% to $549 million, with GAAP diluted EPS at $1.65. Non-GAAP operating earnings grew 9% to $635 million, driven by Pharmaceutical and Specialty Solutions segment.
The company raised its FY25 non-GAAP EPS guidance to $7.85-$8.00 from $7.75-$7.90. Notable developments include completing acquisitions of 73% ownership in GI Alliance and Integrated Oncology Network. Pharmaceutical segment profit increased 7% to $531 million, while Global Medical Products segment profit rose to $18 million.
Cardinal Health (CAH) ha riportato ricavi per il secondo trimestre dell'anno fiscale 25 di 55,3 miliardi di dollari, con una diminuzione del 4% rispetto al secondo trimestre dell'anno fiscale 24, anche se i ricavi sono aumentati del 16% escludendo la scadenza di un grande contratto con un cliente. I guadagni operativi GAAP sono aumentati del 9%, raggiungendo i 549 milioni di dollari, con un utile per azione diluito GAAP di 1,65 dollari. I guadagni operativi non-GAAP sono cresciuti del 9%, arrivando a 635 milioni di dollari, sostenuti dal segmento Soluzioni Farmaceutiche e Specialistiche.
L'azienda ha alzato le previsioni di utili per azione non-GAAP per l'anno fiscale 25 a 7,85-8,00 dollari da 7,75-7,90 dollari. Tra gli sviluppi significativi si evidenziano il completamento delle acquisizioni del 73% di proprietà in GI Alliance e Integrated Oncology Network. Il profitto del segmento farmaceutico è aumentato del 7%, raggiungendo i 531 milioni di dollari, mentre il profitto del segmento Prodotti Medici Globali è salito a 18 milioni di dollari.
Cardinal Health (CAH) reportó ingresos del segundo trimestre del año fiscal 25 de 55.3 mil millones de dólares, una disminución del 4% en comparación con el segundo trimestre del año fiscal 24, aunque los ingresos aumentaron un 16% excluyendo la expiración de un importante contrato con un cliente. Las ganancias operativas GAAP aumentaron un 9% a 549 millones de dólares, con EPS diluido GAAP de 1.65 dólares. Las ganancias operativas no-GAAP crecieron un 9% a 635 millones de dólares, impulsadas por el segmento de Soluciones Farmacéuticas y Especializadas.
La empresa elevó su guía de EPS no-GAAP para el año fiscal 25 a 7.85-8.00 dólares desde 7.75-7.90 dólares. Los desarrollos notables incluyen la finalización de adquisiciones del 73% de propiedad en GI Alliance y Integrated Oncology Network. Las ganancias del segmento farmacéutico aumentaron un 7% a 531 millones de dólares, mientras que las ganancias del segmento de Productos Médicos Globales subieron a 18 millones de dólares.
카디널 헬스(CAH)는 2025 회계연도 2분기 수익이 553억 달러로 2024 회계연도 2분기 대비 4% 감소했다고 보고했습니다. 그러나 주요 고객 계약 종료를 제외한 경우 수익은 16% 증가했습니다. GAAP 운영 수익은 9% 증가하여 5억 4900만 달러에 달하고, GAAP 희석 주당순이익은 1.65 달러입니다. 비 GAAP 운영 수익은 9% 성장하여 6억 3500만 달러에 이르며, 이는 제약 및 전문 솔루션 부문에서 비롯된 것입니다.
회사는 2025 회계연도 비 GAAP 주당순이익 가이드를 7.85-8.00 달러로 상향 조정했으며, 이는 7.75-7.90 달러에서 상승한 것입니다. 주요 발전 사항으로는 GI Alliance와 Integrated Oncology Network의 73% 지분 인수를 완료한 것이 포함됩니다. 제약 부문 이익은 7% 증가하여 5억 3100만 달러에 이르렀고, 글로벌 의료 제품 부문 이익은 1800만 달러로 증가했습니다.
Cardinal Health (CAH) a annoncé des revenus du deuxième trimestre de l'exercice 25 de 55,3 milliards de dollars, soit une baisse de 4 % par rapport au deuxième trimestre de l'exercice 24, bien que les revenus aient augmenté de 16 % en excluant l'expiration d'un important contrat avec un client. Les bénéfices d'exploitation GAAP ont augmenté de 9 % pour atteindre 549 millions de dollars, avec un BPA dilué GAAP de 1,65 dollar. Les bénéfices d'exploitation non-GAAP ont augmenté de 9 % pour atteindre 635 millions de dollars, soutenus par le segment des solutions pharmaceutiques et spécialisées.
L'entreprise a relevé ses prévisions de BPA non-GAAP pour l'exercice 25 à 7,85-8,00 dollars, contre 7,75-7,90 dollars. Les développements notables comprennent l'achèvement des acquisitions de 73 % des droits dans GI Alliance et Integrated Oncology Network. Le bénéfice du segment pharmaceutique a augmenté de 7 % pour atteindre 531 millions de dollars, tandis que le bénéfice du segment des produits médicaux mondiaux a atteint 18 millions de dollars.
Cardinal Health (CAH) berichtete im zweiten Quartal des Geschäftsjahres 25 von 55,3 Milliarden Dollar Umsatz, was einem Rückgang von 4% im Vergleich zum zweiten Quartal des Geschäftsjahres 24 entspricht. Der Umsatz stieg jedoch um 16%, wenn ein großes Kundenvertragsablauf ausgeschlossen wird. Die GAAP-Betriebsgewinne stiegen um 9% auf 549 Millionen Dollar, mit einem GAAP verwässerten EPS von 1,65 Dollar. Die Non-GAAP-Betriebsgewinne wuchsen um 9% auf 635 Millionen Dollar, angetrieben durch das Segment Pharmazeutische und Speziallösungen.
Das Unternehmen hob seine Prognose für das Non-GAAP-EPS im Geschäftsjahr 25 auf 7,85-8,00 Dollar an, von 7,75-7,90 Dollar. Zu den bemerkenswerten Entwicklungen gehört der Abschluss der Übernahmen von 73% der Anteile an GI Alliance und Integrated Oncology Network. Der Gewinn im Pharmabereich stieg um 7% auf 531 Millionen Dollar, während der Gewinn im Bereich Globale Medizinprodukte auf 18 Millionen Dollar anstieg.
- Revenue grew 16% excluding customer contract expiration impact
- Non-GAAP operating earnings increased 9% to $635 million
- Raised FY25 non-GAAP EPS guidance to $7.85-$8.00
- Pharmaceutical segment profit increased 7% to $531 million
- Strategic acquisitions of GI Alliance and Integrated Oncology Network completed
- Overall revenue decreased 4% to $55.3 billion
- Interest and other expense guidance increased to $200-230 million from $140-170 million
- Global Medical Products segment profit guidance lowered to $130-150 million from $140-175 million
- Write-off of uncollectible receivables in WaveMark business
Insights
Cardinal Health's Q2 FY25 results reveal a compelling transformation story, with strategic moves that significantly strengthen its market position. The headline 4% revenue decline masks the underlying 16% growth when excluding a planned contract expiration, demonstrating robust organic performance.
The raised FY25 guidance to
The acquisition of GI Alliance (73% stake) and ION represents a strategic pivot toward higher-margin specialty care services. With GI Alliance's network of 900+ physicians across 345 locations, Cardinal gains significant leverage in the gastroenterology market. The ION acquisition enhances the Navista oncology platform, creating a more integrated specialty care ecosystem.
However, investors should note the increased interest expense guidance (
The Medical segment's revised guidance (
The strategic acquisitions of GI Alliance and ION mark Cardinal Health's ambitious expansion into high-growth specialty healthcare segments. The GI Alliance deal positions Cardinal as a dominant force in gastroenterology management services, while ION strengthens its oncology care network. These moves reflect a calculated shift toward vertically integrated specialty care services, which typically command higher margins and offer more stable revenue streams.
The company's pioneering position in commercial-scale actinium-225 production through the Center for Theranostics Advancement is particularly significant. As the first company to offer this isotope at commercial scale, Cardinal gains a first-mover advantage in the rapidly growing theranostics market, which is revolutionizing cancer treatment through targeted radiotherapy.
The investment in automation and robotics at the new Fort Worth at-Home Solutions distribution center demonstrates Cardinal's commitment to operational excellence. This facility, scheduled for mid-2025 completion, should drive efficiency improvements and support the growing demand for home healthcare services, a sector experiencing significant post-pandemic growth.
- Revenue decreased
4% to$55.3 billion 16% excluding the impact of the previously communicated large customer contract expiration - GAAP1 operating earnings were
$549 million $1.65 - Non-GAAP operating earnings increased
9% to$635 million 2% to$1.93 - Fiscal year 2025 non-GAAP EPS guidance2 raised to
$7.85 $8.00 $7.75 $7.90 - Company announces the completion of its acquisition of
73% ownership of GI Alliance
"We delivered strong second quarter financial results while taking significant strategic and operational actions to position us for future growth," said Jason Hollar, CEO of Cardinal Health. "Led by robust demand across our Pharmaceutical and Specialty Solutions segment, we are again pleased to raise our fiscal 2025 enterprise guidance."
Hollar added, "We are also pleased to announce the closing of our acquisition of a majority position in GI Alliance. GI Alliance, along with our recently completed Integrated Oncology Network transaction in support of our Navista oncology platform, enables our continued specialty growth and delivers a greater value proposition for providers and patients."
Q2 FY25 summary
Q2 FY25 | Q2 FY24 | Y/Y | |||
Revenue | (4) % | ||||
Operating earnings | 9 % | ||||
Non-GAAP operating earnings | 9 % | ||||
Net earnings attributable to Cardinal Health, Inc. | 9 % | ||||
Non-GAAP net earnings attributable to Cardinal Health, Inc. | 1 % | ||||
Effective Tax Rate | 21.4 % | 27.9 % | |||
Non-GAAP Effective Tax Rate | 21.4 % | 21.4 % | |||
Diluted EPS attributable to Cardinal Health, Inc. | 10 % | ||||
Non-GAAP diluted EPS attributable to Cardinal Health, Inc. | 2 % |
Segment results
Pharmaceutical and Specialty Solutions segment
Q2 FY25 | Q2 FY24 | Y/Y | |||
Revenue | $ 50.8 billion | $ 53.2 billion | (4) % | ||
Segment profit | $ 531 million | $ 495 million | 7 % |
Second quarter revenue for the Pharmaceutical and Specialty Solutions segment decreased
Pharmaceutical and Specialty Solutions segment profit increased
Global Medical Products and Distribution segment
Q2 FY25 | Q2 FY24 | Y/Y | |||
Revenue | $ 3.2 billion | $ 3.1 billion | 1 % | ||
Segment profit | $ 18 million | $ 11 million | N.M. |
Second quarter revenue for the Global Medical Products and Distribution segment increased
Global Medical Products and Distribution segment profit increased to
Other4
Q2 FY25 | Q2 FY24 | Y/Y | |||
Revenue | $ 1.3 billion | $ 1.1 billion | 13 % | ||
Segment profit | $ 118 million | $ 106 million | 11 % |
Second quarter revenue for Other increased
Other segment profit increased
Fiscal year 2025 outlook2
The company raised its fiscal 2025 guidance range for non-GAAP diluted earnings per share attributable to Cardinal Health, Inc. to
The company updated fiscal year 2025 guidance for Pharmaceutical and Specialty Solutions segment profit to
The company updated expectations for interest and other expense to a range of
Recent highlights
- Cardinal Health today announced the completion of its acquisition of a majority stake in GI Alliance. With over 900 physicians across 345 practice locations in 20 states, GI Alliance is the country's leading gastroenterology management services organization (MSO). The acquisition accelerates Cardinal Health's multi-specialty growth strategy.
- Cardinal Health completed its acquisition of Integrated Oncology Network in December. ION is a physician-led independent community oncology network that accelerates the development of Navista oncology alliance, providing additional capabilities supporting independent community practices and adding more than 100 providers delivering broad-reaching oncology and urology care across 10 states.
- Cardinal Health announced the start of routine production of actinium-225 (Ac-225) through its Center for Theranostics Advancement in collaboration with TerraPower Isotopes. Cardinal Health is the first company to offer the isotope at commercial scale, increasing access to theranostics and potential new cancer therapies.
- Cardinal Health announced that construction is underway for its new at-Home Solutions distribution center in
Fort Worth, Texas . The facility is equipped with leading robotics and automation technologies and is anticipated to be fully operational in the summer of 2025. - Cardinal Health's GMPD business announced the
U.S. launch of its Kendall SCD SmartFlow™ Compression System, the next generation of the Kendall™ Compression Series offering an enhanced clinician and patient experience. - Cardinal Health was named to Forbes' 2025 Most Trusted Companies in America list.
Webcast
Cardinal Health will host a webcast today at 8:30 a.m. EST to discuss second quarter results. To access the webcast and corresponding slide presentation, go to the Investor Relations page at ir.cardinalhealth.com. No access code is required.
Presentation slides and a webcast replay will be available on the Investor Relations page for 12 months.
About Cardinal Health
Cardinal Health is a distributor of pharmaceuticals and specialty products; a global manufacturer and distributor of medical and laboratory products; a supplier of home-health and direct-to-patient products and services; an operator of nuclear pharmacies and manufacturing facilities; and a provider of performance and data solutions. Our company's customer-centric focus drives continuous improvement and leads to innovative solutions that improve people's lives every day. Learn more about Cardinal Health at cardinalhealth.com and in our Newsroom.
Contacts
Media: Erich Timmerman, Erich.Timmerman@cardinalhealth.com and 614.757.8231
Investors: Matt Sims, Matt.Sims@cardinalhealth.com and 614.553.3661
1GAAP refers to
2The company does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. See "Use of Non-GAAP Measures" following the attached schedules for additional explanation.
3WaveMark is a business within the Global Medical Products and Distribution segment that offers a fully integrated SaaS platform to support digitally automated clinical supply chain solutions to improve patient outcomes through enhanced product visibility and predictive analytics.
4Other includes the following three operating segments: Nuclear and Precision Health Solutions (NPHS), at-Home Solutions and OptiFreight Logistics, which are not significant enough individually to require reportable segment disclosure.
Cardinal Health uses its website as a channel of distribution for material company information. Important information, including news releases, financial information, earnings and analyst presentations, and information about upcoming presentations and events is routinely posted and accessible on the Investor Relations page at ir.cardinalhealth.com. In addition, the website allows investors and other interested persons to sign up automatically to receive email alerts when the company posts news releases, SEC filings and certain other information on its website.
Cautions Concerning Forward-Looking Statements
This release contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "project," "continue," "likely," and similar expressions, and include statements reflecting future results or guidance, statements of outlook and various accruals and estimates. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties include the risk that we may fail to achieve our strategic objectives, including the continued execution of the GMPD Improvement Plan, whether as a result of Cardinal Health Brand sales, ongoing inflationary pressures or the impact of possible tariffs on products we source or manufacture; competitive pressures in Cardinal Health's various lines of business, including the risk that customers may reduce purchases made under their contracts with us or terminate or not renew their contracts; our ability to manage uncertainties associated with the pricing of branded pharmaceuticals, including as a result of possible legislative action; risks associated with litigation matters, including an Department of Justice investigation focused on potential violations of the Anti-Kickback Statute and False Claims Act; the risk that events outside of our control, such as weather or geopolitical events, may impact demand for our products or may cause supply shortages that impact our cost and ability to fulfill customer demand; the performance of our generics program, including the amount or rate of generic deflation and our ability to offset generic deflation and maintain other financial and strategic benefits through our generic sourcing venture or other components of our generics programs; risks associated with recently completed and still-pending acquisitions, including risks arising as a result from our entry into new lines of businesses; the possibility that our at-Home reporting unit goodwill could become impaired due to changes to our long-term financial plan, increases in global interest rates or unfavorable changes in the
Schedule 1 | |||||||||||
Cardinal Health, Inc. and Subsidiaries Condensed Consolidated Statements of Earnings (Unaudited) | |||||||||||
Second Quarter | Year-to-Date | ||||||||||
(in millions, except per common share amounts) | 2025 | 2024 | % Change | 2025 | 2024 | % Change | |||||
Revenue | $ 55,264 | $ 57,442 | (4) % | $ 107,541 | $ 112,092 | (4) % | |||||
Cost of products sold | 53,323 | 55,588 | (4) % | 103,698 | 108,495 | (4) % | |||||
Gross margin | 1,941 | 1,854 | 5 % | 3,843 | 3,597 | 7 % | |||||
Operating expenses: | |||||||||||
Distribution, selling, general and administrative expenses | 1,306 | 1,268 | 3 % | 2,583 | 2,454 | 5 % | |||||
Restructuring and employee severance | 9 | 28 | 33 | 53 | |||||||
Amortization and other acquisition-related costs | 105 | 63 | 179 | 127 | |||||||
Impairments and (gain)/loss on disposal of assets, net 1 | 3 | 1 | 2 | 542 | |||||||
Litigation (recoveries)/charges, net | (31) | (11) | (71) | (52) | |||||||
Operating earnings | 549 | 505 | 9 % | 1,117 | 473 | N.M. | |||||
Other (income)/expense, net | 3 | (10) | (2) | (9) | |||||||
Interest expense, net | 35 | 3 | N.M. | 67 | 14 | N.M. | |||||
Earnings before income taxes | 511 | 512 | — % | 1,052 | 468 | N.M. | |||||
Provision for income taxes 2 | 110 | 143 | (23) % | 234 | 110 | N.M. | |||||
Net earnings | 401 | 369 | 9 % | 818 | 358 | N.M. | |||||
Less: Net earnings attributable to noncontrolling interests | (1) | (1) | (2) | (2) | |||||||
Net earnings attributable to Cardinal Health, Inc. | $ 400 | $ 368 | 9 % | $ 816 | $ 356 | N.M. | |||||
Earnings per common share attributable to Cardinal Health, Inc.: | |||||||||||
Basic | $ 1.65 | $ 1.50 | 10 % | $ 3.37 | $ 1.44 | N.M. | |||||
Diluted | 1.65 | 1.50 | 10 % | 3.35 | 1.43 | N.M. | |||||
Weighted-average number of common shares outstanding: | |||||||||||
Basic | 242 | 245 | 242 | 247 | |||||||
Diluted | 243 | 246 | 243 | 248 | |||||||
1 For the six months ended December 31, 2023, impairments and (gain)/loss on disposal of assets, net included a pre-tax goodwill impairment charge of |
2 For fiscal 2024, the estimated net tax benefit related to this impairment was |
Schedule 2 | |||
Cardinal Health, Inc. and Subsidiaries Condensed Consolidated Balance Sheets
| |||
(in millions) | December 31, | June 30, | |
Assets | (Unaudited) | ||
Current assets: | |||
Cash and equivalents | $ 3,810 | $ 5,133 | |
Trade receivables, net | 12,369 | 12,084 | |
Inventories, net | 16,904 | 14,957 | |
Prepaid expenses and other | 2,623 | 2,663 | |
Assets held for sale | 50 | 47 | |
Total current assets | 35,756 | 34,884 | |
Property and equipment, net | 2,558 | 2,529 | |
Goodwill and other intangibles, net | 7,436 | 6,450 | |
Other assets | 1,252 | 1,258 | |
Total assets | $ 47,002 | $ 45,121 | |
Liabilities and Shareholders' Deficit | |||
Current liabilities: | |||
Accounts payable | $ 31,298 | $ 31,759 | |
Current portion of long-term obligations and other short-term borrowings | 544 | 434 | |
Other accrued liabilities | 3,381 | 3,447 | |
Total current liabilities | 35,223 | 35,640 | |
Long-term obligations, less current portion | 7,062 | 4,658 | |
Deferred income taxes and other liabilities | 7,638 | 8,035 | |
Total shareholders' deficit | (2,921) | (3,212) | |
Total liabilities and shareholders' deficit | $ 47,002 | $ 45,121 | |
Schedule 3 | |||||||
Cardinal Health, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) | |||||||
Second Quarter | Year-to-Date | ||||||
(in millions) | 2025 | 2024 | 2025 | 2024 | |||
Cash flows from operating activities: | |||||||
Net earnings | $ 401 | $ 369 | $ 818 | $ 358 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization | 192 | 175 | 374 | 347 | |||
Impairments and loss on sale of other investments | 1 | — | 2 | — | |||
Impairments and (gain)/loss on disposal of assets, net | 3 | 1 | 2 | 542 | |||
Share-based compensation | 30 | 28 | 60 | 57 | |||
Provision for bad debts | 12 | 12 | 28 | 21 | |||
Change in operating assets and liabilities, net of effects from acquisitions and divestitures: | |||||||
Increase in trade receivables | (541) | (538) | (253) | (480) | |||
Increase in inventories | (1,289) | (1,376) | (1,967) | (2,449) | |||
Increase/(decrease) in accounts payable | 924 | 2,591 | (470) | 4,353 | |||
Other accrued liabilities and operating items, net | (133) | (83) | (641) | (1,042) | |||
Net cash provided by/(used in) operating activities | (400) | 1,179 | (2,047) | 1,707 | |||
Cash flows from investing activities: | |||||||
Acquisition of subsidiaries, net of cash acquired | (1,076) | — | (1,076) | — | |||
Proceeds from divestitures, net of cash sold | — | 9 | 2 | 9 | |||
Additions to property and equipment | (99) | (114) | (189) | (206) | |||
Proceeds from the disposal of property and equipment | — | 1 | — | 2 | |||
Purchases of investments | (3) | (1) | (3) | (2) | |||
Proceeds from investments | 2 | — | 2 | 1 | |||
Proceeds from net investment hedge terminations | — | — | — | 28 | |||
Proceeds from short-term investment in time deposit | 200 | — | 200 | — | |||
Net cash used in investing activities | (976) | (105) | (1,064) | (168) | |||
Cash flows from financing activities: | |||||||
Proceeds from long-term obligations, net of issuance costs | 2,869 | — | 2,869 | — | |||
Reduction of long-term obligations | (414) | (8) | (423) | (15) | |||
Net tax proceeds/(withholding) from share-based compensation | 13 | 29 | (15) | 1 | |||
Dividends on common shares | (122) | (124) | (250) | (255) | |||
Purchase of treasury shares, net | (15) | (250) | (390) | (750) | |||
Net cash provided by/(used in) financing activities | 2,331 | (353) | 1,791 | (1,019) | |||
Effect of exchange rate changes on cash and equivalents | (12) | 6 | (3) | 1 | |||
Net increase/(decrease) in cash and equivalents | 943 | 727 | (1,323) | 521 | |||
Cash and equivalents at beginning of period | 2,867 | 3,870 | 5,133 | 4,076 | |||
Cash and equivalents at end of period | $ 3,810 | $ 4,597 | $ 3,810 | $ 4,597 | |||
Schedule 4 | |||||||||||
Cardinal Health, Inc. and Subsidiaries Segment Information | |||||||||||
Second Quarter | |||||||||||
Pharmaceutical and Specialty Solutions | Global Medical Products and Distribution | Other | |||||||||
(in millions) | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||
Revenue | |||||||||||
Amount | $ 50,849 | $ 53,202 | $ 3,154 | $ 3,127 | $ 1,283 | $ 1,135 | |||||
Growth rate | (4) % | 12 % | 1 % | 2 % | 13 % | 11 % | |||||
Segment profit | |||||||||||
Amount | $ 531 | $ 495 | $ 18 | $ 11 | $ 118 | $ 106 | |||||
Growth rate | 7 % | 10 % | N.M. | N.M. | 11 % | 10 % | |||||
Segment profit margin | 1.04 % | 0.93 % | 0.57 % | 0.35 % | 9.20 % | 9.34 % | |||||
Year-to-Date | |||||||||||
Pharmaceutical and Specialty Solutions | Global Medical Products and Distribution | Other | |||||||||
(in millions) | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||
Revenue | |||||||||||
Amount | $ 98,839 | $ 103,790 | $ 6,277 | $ 6,159 | $ 2,469 | $ 2,186 | |||||
Growth rate | (5) % | 12 % | 2 % | — % | 13 % | 10 % | |||||
Segment profit | |||||||||||
Amount | $ 1,061 | $ 951 | $ 26 | $ 23 | $ 222 | $ 202 | |||||
Growth rate | 12 % | 12 % | 13 % | N.M. | 10 % | 4 % | |||||
Segment profit margin | 1.07 % | 0.92 % | 0.41 % | 0.37 % | 8.99 % | 9.24 % | |||||
The sum of the components and certain computations may reflect rounding adjustments. |
Schedule 5 | |||||||||||||
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation1 | |||||||||||||
Gross | Operating | Earnings | Net | Diluted | |||||||||
Margin | SG&A2 | Earnings | Before | Provision for | Earnings3 | Effective | EPS 3 | ||||||
(in millions, except per | Gross | Growth | Growth | Operating | Growth | Income | Income | Net | Growth | Tax | Diluted | Growth | |
Margin | Rate | SG&A 2 | Rate | Earnings | Rate | Taxes | Taxes | Earnings 3 | Rate | Rate | EPS 3 | Rate | |
Second Quarter 2025 | |||||||||||||
GAAP | $ 1,941 | 5 % | $ 1,306 | 3 % | $ 549 | 9 % | $ 511 | $ 110 | $ 400 | 9 % | 21.4 % | $ 1.65 | 10 % |
Restructuring and employee severance | — | — | 9 | 9 | 2 | 7 | 0.03 | ||||||
Amortization and other acquisition-related costs | — | — | 105 | 105 | 27 | 78 | 0.32 | ||||||
Impairments and (gain)/loss on disposal of assets, net | — | — | 3 | 3 | 1 | 2 | 0.01 | ||||||
Litigation (recoveries)/charges, net | — | — | (31) | (31) | (12) | (19) | (0.08) | ||||||
Non-GAAP | $ 1,941 | 5 % | $ 1,306 | 3 % | $ 635 | 9 % | $ 597 | $ 127 | $ 468 | 1 % | 21.4 % | $ 1.93 | 2 % |
Second Quarter 2024 | |||||||||||||
GAAP | $ 1,854 | 10 % | $ 1,268 | 8 % | $ 505 | N.M. | $ 512 | $ 143 | $ 368 | N.M. | 27.9 % | $ 1.50 | N.M. |
Restructuring and employee severance | — | — | 28 | 28 | 7 | 21 | 0.09 | ||||||
Amortization and other acquisition-related costs | — | — | 63 | 63 | 17 | 46 | 0.19 | ||||||
Impairments and (gain)/loss on disposal of assets, net | — | — | 1 | 1 | (35) | 36 | 0.15 | ||||||
Litigation (recoveries)/charges, net | — | — | (11) | (11) | (5) | (6) | (0.03) | ||||||
Non-GAAP | $ 1,854 | 10 % | $ 1,269 | 7 % | $ 585 | 17 % | $ 592 | $ 127 | $ 464 | 22 % | 21.4 % | $ 1.89 | 31 % |
1 For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules. |
2 Distribution, selling, general and administrative expenses. |
3 Attributable to Cardinal Health, Inc. |
The sum of the components and certain computations may reflect rounding adjustments. |
We generally apply varying tax rates depending on the item's nature and tax jurisdiction where it is incurred. |
Schedule 5 | |||||||||||||
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation1 | |||||||||||||
Gross | Operating | Earnings | Net | Diluted | |||||||||
Margin | SG&A2 | Earnings | Before | Provision for | Earnings3 | Effective | EPS 3 | ||||||
Gross | Growth | Growth | Operating | Growth | Income | Income | Net | Growth | Tax | Diluted | Growth | ||
(in millions, except per | Margin | Rate | SG&A 2 | Rate | Earnings | Rate | Taxes | Taxes | Earnings 3 | Rate | Rate | EPS 3 | Rate |
Year-to-Date 2025 | |||||||||||||
GAAP | $ 3,843 | 7 % | $ 2,583 | 5 % | $ 1,117 | N.M. | $ 1,052 | $ 234 | $ 816 | N.M. | 22.2 % | $ 3.35 | N.M. |
Restructuring and employee severance | — | — | 33 | 33 | 8 | 25 | 0.10 | ||||||
Amortization and other acquisition-related costs | — | — | 179 | 179 | 47 | 132 | 0.54 | ||||||
Impairments and (gain)/loss on disposal of assets, net | — | — | 2 | 2 | — | 2 | 0.01 | ||||||
Litigation (recoveries)/charges, net | — | — | (71) | (71) | (24) | (47) | (0.19) | ||||||
Non-GAAP | $ 3,843 | 7 % | $ 2,583 | 5 % | $ 1,260 | 10 % | $ 1,195 | $ 266 | $ 927 | 4 % | 22.2 % | $ 3.81 | 6 % |
Year-to-Date 2024 | |||||||||||||
GAAP | $ 3,597 | 10 % | $ 2,454 | 3 % | $ 473 | N.M. | $ 468 | $ 110 | $ 356 | N.M. | 23.4 % | $ 1.43 | N.M. |
Restructuring and employee severance | — | — | 53 | 53 | 14 | 39 | 0.16 | ||||||
Amortization and other acquisition-related costs | — | — | 127 | 127 | 34 | 93 | 0.37 | ||||||
Impairments and (gain)/loss on disposal of assets, net 4 | — | — | 542 | 542 | 100 | 442 | 1.78 | ||||||
Litigation (recoveries)/charges, net | — | — | (52) | (52) | (17) | (35) | (0.14) | ||||||
Non-GAAP | $ 3,597 | 10 % | $ 2,455 | 3 % | $ 1,142 | 26 % | $ 1,137 | $ 241 | $ 894 | 29 % | 21.2 % | $ 3.60 | 39 % |
1 For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules. |
2 Distribution, selling, general and administrative expenses. |
3 Attributable to Cardinal Health, Inc. |
4 For the six months ended December 31, 2023, impairments and (gain)/loss on disposal of assets, net included a pre-tax goodwill impairment charge of |
The sum of the components and certain computations may reflect rounding adjustments. |
We generally apply varying tax rates depending on the item's nature and tax jurisdiction where it is incurred. |
Schedule 6 | |||||||
Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation - GAAP Cash Flow to Non-GAAP Adjusted Free Cash Flow | |||||||
Second Quarter | Year-to-Date | ||||||
(in millions) | 2025 | 2024 | 2025 | 2024 | |||
GAAP - Cash Flow Categories | |||||||
Net cash provided by/(used in) operating activities | $ (400) | $ 1,179 | $ (2,047) | $ 1,707 | |||
Net cash used in investing activities | (976) | (105) | (1,064) | (168) | |||
Net cash provided by/(used in) financing activities | 2,331 | (353) | 1,791 | (1,019) | |||
Effect of exchange rates changes on cash and equivalents | (12) | 6 | (3) | 1 | |||
Net increase/(decrease) in cash and equivalents | $ 943 | $ 727 | $ (1,323) | $ 521 | |||
Non-GAAP Adjusted Free Cash Flow | |||||||
Net cash provided by/(used in) operating activities | $ (400) | $ 1,179 | $ (2,047) | $ 1,707 | |||
Additions to property and equipment | (99) | (114) | (189) | (206) | |||
Payments related to matters included in litigation (recoveries)/charges, net | 245 | (27) | 621 | 515 | |||
Non-GAAP Adjusted Free Cash Flow | $ (254) | $ 1,038 | $ (1,615) | $ 2,016 | |||
For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules. |
Schedule 7 | ||||||||||||
Cardinal Health, Inc. and Subsidiaries Revenue Growth Rates Excluding OptumRx
| ||||||||||||
Second Quarter | ||||||||||||
Consolidated | Pharmaceutical and Specialty Solutions | |||||||||||
(in millions) | 2025 | 2024 | Growth Rate | (in millions) | 2025 | 2024 | Growth Rate | |||||
Total Revenue | $ 55.3 | $ 57.4 | (4) % | Total Pharmaceutical and Specialty | $ 50.8 | $ 53.2 | (4) % | |||||
less: OptumRx Revenue | — | 9.8 | less: OptumRx Revenue | — | 9.8 | |||||||
Revenue, excluding OptumRx | $ 55.3 | $ 47.6 | 16 % | Pharmaceutical and Specialty Solutions | $ 50.8 | $ 43.4 | 17 % | |||||
Year-to-Date | ||||||||||||
Consolidated | Pharmaceutical and Specialty Solutions | |||||||||||
(in millions) | 2025 | 2024 | Growth Rate | (in millions) | 2025 | 2024 | Growth Rate | |||||
Total Revenue | $ 107.5 | $ 112.1 | (4) % | Total Pharmaceutical and Specialty | $ 98.8 | $ 103.8 | (5) % | |||||
less: OptumRx Revenue | — | 19.1 | less: OptumRx Revenue | — | 19.1 | |||||||
Revenue, excluding OptumRx | $ 107.5 | $ 93.0 | 16 % | Pharmaceutical and Specialty | $ 98.8 | $ 84.7 | 17 % | |||||
Cardinal Health, Inc. and Subsidiaries
Use of Non-GAAP Measures
This earnings release contains financial measures that are not calculated in accordance with
In addition to analyzing our business based on financial information prepared in accordance with GAAP, we use these non-GAAP financial measures internally to evaluate our performance, engage in financial and operational planning, and determine incentive compensation because we believe that these measures provide additional perspective on and, in some circumstances are more closely correlated to, the performance of our underlying, ongoing business. We provide these non-GAAP financial measures to investors as supplemental metrics to assist readers in assessing the effects of items and events on our financial and operating results on a year-over-year basis and in comparing our performance to that of our competitors. However, the non-GAAP financial measures that we use may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The non-GAAP financial measures disclosed by us should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements set forth below should be carefully evaluated.
Exclusions from Non-GAAP Financial Measures
Management believes it is useful to exclude the following items from the non-GAAP measures presented in this report for its own and for investors' assessment of the business for the reasons identified below:
- LIFO charges and credits are excluded because the factors that drive last-in first-out ("LIFO") inventory charges or credits, such as pharmaceutical manufacturer price appreciation or deflation and year-end inventory levels (which can be meaningfully influenced by customer buying behavior immediately preceding our fiscal year-end), are largely out of our control and cannot be accurately predicted. The exclusion of LIFO charges and credits from non-GAAP metrics facilitates comparison of our current financial results to our historical financial results and to our peer group companies' financial results. We did not recognize any LIFO charges or credits during the periods presented.
- State opioid assessments related to prior fiscal years is the portion of state assessments for prescription opioid medications that were sold or distributed in periods prior to the period in which the expense is incurred. This portion is excluded from non-GAAP financial measures because it is retrospectively applied to sales in prior fiscal years and inclusion would obscure analysis of the current fiscal year results of our underlying, ongoing business. Additionally, while states' laws may require us to make payments on an ongoing basis, the portion of the assessment related to sales in prior periods are contemplated to be one-time, nonrecurring items. Income from state opioid assessments related to prior fiscal years represents reversals of accruals due to changes in estimates or when the underlying assessments were invalidated by a Court or reimbursed by manufacturers.
- Shareholder cooperation agreement costs includes costs such as legal, consulting and other expenses incurred in relation to the agreement (the "Cooperation Agreement") entered into among Elliott Associates, L.P., Elliott International, L.P. (together, "Elliott") and Cardinal Health. These include costs incurred to negotiate and finalize the Cooperation Agreement and costs incurred by the Business Review Committee of the Board of Directors, formed under this Cooperation Agreement, tasked with undertaking a comprehensive review of our strategy, portfolio, capital allocation framework, and operations. We have excluded these costs from our non-GAAP metrics because they do not occur in or reflect the ordinary course of our ongoing business operations and may obscure analysis of trends and financial performance. The Cooperation Agreement expired in the second quarter of fiscal 2025.
- Restructuring and employee severance costs are excluded because they are not part of the ongoing operations of our underlying business and include, but are not limited to, costs related to divestitures, closing and consolidating facilities, changing the way we manufacture or distribute our products, moving manufacturing of a product to another location, changes in production or business process outsourcing or insourcing, employee severance and realigning operations.
- Amortization and other acquisition-related costs, which include transaction costs, integration costs, and changes in the fair value of contingent consideration obligations, are excluded because they are not part of the ongoing operations of our underlying business and to facilitate comparison of our current financial results to our historical financial results and to our peer group companies' financial results. Additionally, costs for amortization of acquisition-related intangible assets are non-cash amounts, which are variable in amount and frequency and are significantly impacted by the timing and size of acquisitions, so their exclusion facilitates comparison of historical, current and forecasted financial results. We also exclude other acquisition-related costs, which are directly related to an acquisition but do not meet the criteria to be recognized on the acquired entity's initial balance sheet as part of the purchase price allocation. These costs are also significantly impacted by the timing, complexity and size of acquisitions.
- Impairments and gain or loss on disposal of assets, net are excluded because they do not occur in or reflect the ordinary course of our ongoing business operations and are inherently unpredictable in timing and amount, and in the case of impairments, are non-cash amounts, so their exclusion facilitates comparison of historical, current and forecasted financial results.
- Litigation recoveries or charges, net are excluded because they often relate to events that may have occurred in prior or multiple periods, do not occur in or reflect the ordinary course of our business and are inherently unpredictable in timing and amount.
- Loss on early extinguishment of debt is excluded because it does not typically occur in the normal course of business and may obscure analysis of trends and financial performance. Additionally, the amount and frequency of this type of charge is not consistent and is significantly impacted by the timing and size of debt extinguishment transactions.
The tax effect for each of the items listed above is determined using the tax rate and other tax attributes applicable to the item and the jurisdiction(s) in which the item is recorded. The gross, tax and net impact of each item are presented with our GAAP to non-GAAP reconciliations.
Non-GAAP adjusted free cash flow: We provide this non-GAAP financial measure as a supplemental metric to assist readers in assessing the effects of items and events on our cash flow on a year-over-year basis and in comparing our performance to that of our peer group companies. In calculating this non-GAAP metric, certain items are excluded from net cash provided by operating activities because they relate to significant and unusual or non-recurring events and are inherently unpredictable in timing and amount. We believe adjusted free cash flow is important to management and useful to investors as a supplemental measure as it indicates the cash flow available for working capital needs, debt repayments, dividend payments, share repurchases, strategic acquisitions, or other strategic uses of cash. A reconciliation of our GAAP financial results to Non-GAAP adjusted free cash flow is provided in Schedule 6 of the financial statement tables included with this release.
Forward Looking Non-GAAP Measures
In this document, the Company presents certain forward-looking non-GAAP metrics. The Company does not provide outlook on a GAAP basis because the items that the Company excludes from GAAP to calculate the comparable non-GAAP measure can be dependent on future events that are less capable of being controlled or reliably predicted by management and are not part of the Company's routine operating activities. Additionally, management does not forecast many of the excluded items for internal use and therefore cannot create or rely on outlook done on a GAAP basis.
The occurrence, timing and amount of any of the items excluded from GAAP to calculate non-GAAP could significantly impact the Company's fiscal 2025 GAAP results. Over the past five fiscal years, the excluded items have impacted the Company's EPS from
Definitions
Growth rate calculation: growth rates in this report are determined by dividing the difference between current-period results and prior-period results by prior-period results.
Interest and Other, net: other (income)/expense, net plus interest expense, net.
Segment Profit: segment revenue minus (segment cost of products sold and segment distribution, selling, general and administrative expenses).
Segment Profit margin: segment profit divided by segment revenue.
Non-GAAP gross margin: gross margin, excluding LIFO charges/(credits).
Non-GAAP distribution, selling, general and administrative expenses or Non-GAAP SG&A: distribution, selling, general and administrative expenses, excluding state opioid assessment related to prior fiscal years and shareholder cooperation agreement costs.
Non-GAAP operating earnings: operating earnings excluding (1) LIFO charges/(credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) impairments and (gain)/loss on disposal of assets, net and (7) litigation (recoveries)/charges, net.
Non-GAAP earnings before income taxes: earnings before income taxes excluding (1) LIFO charges/(credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) impairments and (gain)/loss on disposal of assets, net, (7) litigation (recoveries)/charges, net and (8) loss on early extinguishment of debt.
Non-GAAP net earnings attributable to Cardinal Health, Inc.: net earnings attributable to Cardinal Health, Inc. excluding (1) LIFO charges/(credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) impairments and (gain)/loss on disposal of assets, net, (7) litigation (recoveries)/charges, net and (8) loss on early extinguishment of debt, each net of tax.
Non-GAAP effective tax rate: provision for income taxes adjusted for the tax impacts of (1) LIFO charges/(credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) impairments and (gain)/loss on disposal of assets, net, (7) litigation (recoveries)/charges, net and (8) loss on early extinguishment of debt divided by (earnings before income taxes adjusted for the eight items above).
Non-GAAP diluted earnings per share attributable to Cardinal Health, Inc.: non-GAAP net earnings attributable to Cardinal Health, Inc. divided by diluted weighted-average shares outstanding.
Non-GAAP adjusted free cash flow: net cash provided by/(used in) operating activities less payments related to additions to property and equipment, excluding settlement payments and receipts related to matters included in litigation (recoveries)/charges, net, as defined above, or other significant and unusual or non-recurring cash payments or receipts.
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SOURCE Cardinal Health, Inc.
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