Cardinal Health Reports Fourth Quarter and Fiscal Year 2024 Results and Raises Fiscal Year 2025 Guidance Fourth quarter revenue increased 12% to $59.9 billion Fourth quarter GAAP 1 operating earning

Cardinal Health Reports Fourth Quarter and Fiscal Year 2024 Results and Raises Fiscal Year 2025 Guidance

Fourth quarter revenue increased 12% to $59.9 billion

Fourth quarter GAAP1 operating earnings were $401 million and GAAP diluted EPS was $0.96

Fourth quarter non-GAAP operating earnings increased 14% to $605 million and non-GAAP diluted EPS increased 29% to $1.84

Fiscal Year 2024 operating cash flow and adjusted free cash flow reached all-time highs of $3.8 billion and $3.9 billion, respectively

Fiscal year 2025 non-GAAP EPS guidance raised to $7.55 to $7.70, from at least $7.50

DUBLIN, Ohio, August 14, 2024 - Cardinal Health (NYSE CAH) today reported fourth quarter fiscal year 2024 revenues of $59.9 billion, an increase of 12% from the prior year. GAAP operating earnings were $401 million and GAAP diluted earnings per share (EPS) were $0.96. Non-GAAP operating earnings increased 14% to $605 million, driven primarily by segment profit increases in Global Medical Products and Distribution (GMPD) and Pharmaceutical and Specialty Solutions. Non-GAAP diluted earnings per share (EPS) increased 29% to $1.84 in the quarter, reflecting the increase in non-GAAP operating earnings across the business, lower interest and other expense, a lower non-GAAP effective tax rate and a lower share count.

Fiscal year 2024 revenues were $226.8 billion, an 11% increase from fiscal year 2023. GAAP operating earnings were $1.2 billion and GAAP diluted EPS was $3.45. Non-GAAP operating earnings increased 16% to $2.4 billion, driven primarily by segment profit increases in GMPD and Pharmaceutical and Specialty Solutions. Non-GAAP diluted EPS increased 29% to $7.53 for the year, reflecting the increase in non-GAAP operating earnings across the business, lower interest and other expense, a lower non-GAAP effective tax rate and a lower share count following in-year share repurchases.

"Fiscal 2024 marked a year of strong operational execution and record financial results, delivered in tandem with key strategic progress in the portfolio," said Jason Hollar, CEO of Cardinal Health. We delivered robust cash flow generation, continued profit growth in the Pharmaceutical and Specialty Solutions segment and significant improvement driven by our GMPD Improvement Plan. We enter the new fiscal year with momentum and confidence, evidenced by our raised fiscal year 2025 guidance.

Q4 and full year FY24 summary2

Reflects revised prior period financials. See footnote 2 below for additional information regarding the immaterial corrections to results of prior periods.

Pharmaceutical and Specialty Solutions segment

Fourth-quarter revenue for the Pharmaceutical and Specialty Solutions segment increased 13% to $55.6 billion, driven by brand and specialty pharmaceutical sales growth from existing customers.

Pharmaceutical and Specialty Solutions segment profit increased 8% to $482 million in the fourth quarter, primarily driven by positive generics program performance.

Global Medical Products and Distribution segment

Fourth-quarter revenue for the Global Medical Products and Distribution segment increased 2% to $3.1 billion, driven by volume growth from existing customers.

Global Medical Products and Distribution segment profit increased by $40 million to $47 million in the fourth quarter, driven by an improvement in net inflationary impacts, including mitigation initiatives.

Fourth-quarter revenue for Other increased 15% to $1.2 billion, driven by growth across the three operating segments at-Home Solutions, Nuclear and Precision Health Solutions and OptiFreight Logistics.

Other segment profit increased 11% to $111 million, primarily driven by the performance of OptiFreight

Fiscal year 2025 outlook1

The company raised its fiscal year 2025 outlook for non-GAAP diluted EPS to $7.55 to $7.70 from the preliminary outlook of at least $7.50 previously communicated during the company's third quarter fiscal year 2024 earnings release. The company updated its Pharmaceutical and Specialty Solutions segment profit growth outlook to 1% to 3% growth, from at least 1% growth. The company also improved its fiscal year 2025 outlooks for Interest and other, diluted weighted average shares outstanding and share repurchases4.

Bold indicates a change to the preliminary FY25 outlook provided in the Q3 FY24 earnings release on May 2, 2024.

The 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.

Business and portfolio review update

Cardinal Health provided an update on its business and portfolio review focused on the Global Medical Products and Distribution segment

The company remains committed to maximizing shareholder value through execution of its GMPD Improvement Plan and reiterated its fiscal year 2026 target of approximately $300 million in segment profit.

Additionally, by fiscal year 2026 the company is targeting at least $500 million in near-term value creation from GMPD through further simplification actions and working capital improvements, with the cash to be deployed according to its disciplined capital allocation framework. Therefore, the company is raising its share repurchase expectations in fiscal year 2025 by $250 million to a total of $750 million.

As planned, the company's Business Review Committee sunset on July 15, with ongoing value creation efforts being overseen by the Board of Directors.

Cardinal Health and CVS Health announced a joint venture, Averon, focused on increasing access for patients to lower cost specialty pharmaceuticals through the sourcing of biosimilars.

Cardinal Health announced that it entered into a 5-year distribution agreement with leading southeast grocery chain, Publix.

Cardinal Health announced the opening of its new Advanced Therapy Solutions Innovation Center, a specialized storage facility supporting the complex handling requirements of cell and gene therapies.

Cardinal Health hosted its 32nd annual Retail Business Conference, bringing together 5,000 attendees from across the country to celebrate the critical role its independent pharmacy customers play in caring for their communities and highlight the company's innovations and commitment to its customers.

Cardinal Health announced the opening of its new South Carolina distribution center for its at-Home Solutions business, featuring the fastest order fulfillment system in the market. The company also announced the openings of new GMPD distribution facilities in Massachusetts and Canada.

Upcoming webcasted investor events

Morgan Stanley 22nd Annual Global Healthcare Conference at 8 30 a.m. EST, September 5, 2024

Baird 2024 Global Healthcare Conference at 9 05 a.m. EST, September 10, 2024

Cardinal Health will host a webcast today at 8 30 a.m. Eastern to discuss fourth quarter and full year 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 until August 14, 2025.

About Cardinal Health

Cardinal Health is a distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for health care facilities. With more than 50 years in business, operations in more than 30 countries and approximately 48,000 employees globally, Cardinal Health is essential to care. Information about Cardinal Health is available at cardinalhealth.com.

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 U.S. generally accepted accounting principles. This news release includes GAAP financial measures as well as non-GAAP financial measures, which are financial measures not calculated in accordance with GAAP. See Use of Non-GAAP Measures following the attached schedules for definitions of the non-GAAP financial measures presented in this news release and see the attached schedules for reconciliations of the differences between the non-GAAP financial measures and their most directly comparable GAAP financial measures.

2Cardinal Health revised its prior period financials to correct an accounting error related to revenue recognition from third party payors within the at-Home Solutions operating segment. We evaluated the materiality of the error and determined that the impacts were not material, individually or in the aggregate, for any of the prior quarters or annual periods in which they occurred. In connection with these revisions, the company also corrected the timing of other unrelated immaterial errors, including an adjustment to an uncertain tax position, which were previously recorded in the periods the company identified them. The GAAP diluted EPS net impact of these prior period revisions is a $0.01 increase to the 9 months ending March 31, 2024, a $0.26 increase for fiscal year 2023 and a $0.02 decrease for fiscal year 2022. The non-GAAP diluted EPS net impact of these prior period revisions is a $0.07 increase for the 9 months ending March 31, 2024, a $0.06 increase for fiscal year 2023 and a $0.01 increase for fiscal year 2022.

See accompanying schedules below and Notes 1 and 16 of the Notes to Consolidated Financial Statements included in the company's fiscal year 2024 Form 10-K for revised financials reflecting the immaterial corrections to results of prior periods.

3Fluctuations in the GAAP effective tax rates are primarily due to the impact of goodwill impairments related to GMPD in each of the fiscal years.

4Updates to preliminary fiscal year 2025 outlook previously communicated during company's third quarter earnings release non-GAAP diluted EPS previously of "At least $7.50", Pharmaceutical and Specialty Solutions segment profit growth of "At least 1%", Interest and other of $160M - $190M, diluted weighted average shares outstanding of 244M - 245M and share repurchases of $500M.

5Reflects $39 billion revenue headwind due to OptumRx contract expiration, as previously communicated.

6Reflects one-time unwinding of negative net working capital related to the OptumRx contract expiration and quarter-end day of week timing, as previously communicated.

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 ongoing inflationary pressures or our expectations for Cardinal Health Brand sales 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 or the risk that we may fail to offset the impact of a recent significant customer loss 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 ongoing risks associated with the distribution of opioids, including the financial impact associated with the settlements with governmental authorities, risks arising from the ongoing Department of Justice Investigations related to our anti-diversion program, and the risk that challenges to tax deductions for opioid-related losses could adversely impact our financial results risks arising from our ongoing audits with the IRS, including the risk that the IRS may disagree with certain positions we have taken, which may result in an increase to our effective tax rate or other costs risks associated with litigation matters, including an Department of Justice investigation focused on potential violations of the Anti-Kickback Statute and False Claims Act our ability to manage uncertainties associated with the pricing of branded pharmaceuticals the possibility that our At-Home unit goodwill could become impaired due to changes to our long-term financial plan, increases in global interest rates or unfavorable changes in the U.S. statutory tax rate. Cardinal Health is subject to additional risks and uncertainties described in Cardinal Health's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports. This release reflects management's views as of August 14, 2024. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement. Forward-looking statements are aspirational and not guarantees or promises that goals, targets or projections will be met, and no assurance can be given that any commitment, expectation, initiative or plan in this report can or will be achieved or completed. Cardinal Health provides definitions and reconciliations of non-GAAP financial measures and their most directly comparable GAAP financial measures at ir.cardinalhealth.com.

Cardinal Health, Inc. and Subsidiaries

Consolidated Statements of Earnings (Loss) (Unaudited)

In connection with the preparation of our Consolidated Financial Statements for fiscal 2024, we identified an accounting error related to revenue recognition from third party payors within the at-Home Solutions operating segment. We evaluated the materiality of the error and determined that the impacts were not material, individually or in the aggregate, to our previously issued Consolidated Financial Statements for any of the prior quarters or annual periods in which they occurred. We have revised our prior period financial statements to correct this error, as well as other unrelated immaterial errors, including an adjustment to an uncertain tax position. These revisions impacted each quarter of fiscal 2022, 2023 and 2024. These other immaterial errors were previously corrected in the periods they were identified however, they are now reflected in the periods they originated. See Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024 to be filed with the SEC.

1 Impairments and (gain) loss on disposals of assets, net includes pre-tax goodwill impairment charges of $675 million related to the GMPD segment recorded in fiscal year ended June 30, 2024. During the three months and fiscal year ended June 30, 2023, impairments and (gain) loss on disposals of assets, net included pre-tax goodwill impairment charges of $364 million and $1.2 billion related to the GMPD segment, respectively.

2 Provision for income taxes includes the tax effects relating to the cumulative goodwill impairment charges. For fiscal 2024 and 2023, the net tax benefits related to the goodwill impairment charges were $58 million and $92 million, respectively. The net tax expense during the three months ended June 30, 2023 related to goodwill impairment charges was $29 million.

Cardinal Health, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

Amounts have been revised to reflect the correction of certain unrelated immaterial misstatements. See Notes to the Consolidated Financial Statements included in

our Annual Report on Form 10-K for the fiscal year ended June 30, 2024 to be filed with the SEC.

Cardinal Health, Inc. and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

Amounts have been revised to reflect the correction of certain unrelated immaterial misstatements. See Notes to the Consolidated Financial Statements included in

our Annual Report on Form 10-K for the fiscal year ended June 30, 2024 to be filed with the SEC.

Cardinal Health, Inc. and Subsidiaries

Segment Information (Unaudited)

The sum of the components and certain computations may reflect rounding adjustments.

Amounts have been revised to reflect the correction of certain unrelated immaterial misstatements. See Notes to the Consolidated Financial Statements included in

our Annual Report on Form 10-K for the fiscal year ended June 30, 2024 to be filed with the SEC.

Cardinal Health, Inc. and Subsidiaries

GAAP Non-GAAP Reconciliation1 (Unaudited)

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 three months ended June 30, 2023, GAAP diluted loss per share attributable to Cardinal Health, Inc. ( GAAP diluted EPS ) and the EPS impact from the GAAP to non-GAAP per share reconciling items are calculated using a weighted average of 254 million common shares, which excludes potentially dilutive securities from the denominator due to their anti-dilutive effects resulting from our GAAP net loss for the period. For the three months ended June 30, 2023, non-GAAP diluted EPS is calculated using a weighted average of 256 million common shares, which includes potentially dilutive shares.

5 During fiscal 2024, we recorded cumulative pre-tax goodwill impairment charges of $675 million related to GMPD in impairments and (gain) loss on disposal of assets, net. The estimated net tax benefit related to the impairments is $58 million and is included in the annual effective tax rate. During the three months ended June 30, 2024, the amount of tax expense recognized related to goodwill impairment charges was $34 million, which reflects the reversal of the incremental tax benefit recognized during the nine months ended March 31, 2024.

Impairments and (gain) loss on disposals of assets, net included a pre-tax goodwill impairment charge of $364 million related to GMPD recorded during the three months ended June 30, 2023. The net tax expense recognized during the three months ended June 30, 2023 related to goodwill impairment charges was $29 million, which included a reversal of the incremental tax benefit recognized during the nine months ended March 31, 2023.

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.

Amounts have been revised to reflect the correction of certain unrelated immaterial misstatements. See Notes to the Consolidated Financial Statements included in

our Annual Report on Form 10-K for the fiscal year ended June 30, 2024 to be filed with the SEC.

Cardinal Health, Inc. and Subsidiaries

GAAP Non-GAAP Reconciliation1 (Unaudited)

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 fiscal 2022, GAAP diluted loss per share attributable to Cardinal Health, Inc. and the EPS impact from the GAAP to non-GAAP per share reconciling items are calculated using a weighted average of 279 million common shares, which excludes potentially dilutive securities from the denominator due to their anti dilutive effects resulting from our GAAP net loss for the period. Fiscal 2022 non-GAAP diluted EPS is calculated using a weighted average of 280 million common shares, which includes potentially dilutive shares.