Cardinal Health Reports Fourth Quarter and Fiscal Year 2025 Results and Raises Fiscal Year 2026 Guidance Fourth quarter revenue was relatively flat at $60.2 billion revenue increased 21% excluding t

Cardinal Health Reports Fourth Quarter and Fiscal Year 2025 Results and Raises Fiscal Year 2026 Guidance

Fourth quarter revenue was relatively flat at $60.2 billion revenue increased 21% excluding the impact of a previously communicated contract expiration

Fourth quarter GAAP1 operating earnings were $428 million and GAAP diluted EPS was $1.00

Fourth quarter non-GAAP operating earnings increased 19% to $719 million and non-GAAP diluted EPS increased 13% to $2.08

Fiscal Year 2025 adjusted free cash flow was $2.5 billion

Fiscal year 2026 non-GAAP EPS guidance2 raised to $9.30 to $9.50, from $9.10 to $9.30

Company announces the acquisition of Solaris Health, the country's leading urology MSO

DUBLIN, Ohio, August 12, 2025 - Cardinal Health (NYSE CAH) today reported fourth quarter fiscal year 2025 revenues of $60.2 billion, relatively flat to the fourth quarter of fiscal year 2024. Fourth quarter revenue increased 21% excluding the impact of a previously communicated customer contract expiration. GAAP operating earnings were $428 million and GAAP diluted earnings per share (EPS) were $1.00. Non-GAAP operating earnings increased 19% to $719 million, driven by segment profit increases across Pharmaceutical and Specialty Solutions, GMPD and Other3. Non-GAAP diluted EPS increased 13% to $2.08 in the quarter, reflecting the increase in non-GAAP operating earnings and a lower share count, partially offset by an increase in interest and other expense due to financing costs related to recent acquisitions and a higher non-GAAP effective tax rate.

Fiscal year 2025 revenues were $222.6 billion, a 2% decrease from fiscal year 2024. Fiscal year 2025 revenue increased 18% excluding the impact of a previously communicated customer contract expiration. GAAP operating earnings were $2.3 billion and GAAP diluted EPS was $6.45. Non-GAAP operating earnings increased 15% to $2.8 billion, driven primarily by segment profit increases in Pharmaceutical and Specialty Solutions and Other. Non-GAAP diluted EPS increased 9% to $8.24 for the year, reflecting the increase in non-GAAP operating earnings across the business and a lower share count following in-year share repurchases, partially offset by higher interest and other expense and a higher non-GAAP effective tax rate.

"Fiscal 2025 was a transformative year for Cardinal Health, and we closed the year with momentum, delivering strong fourth quarter results," said Jason Hollar, CEO of Cardinal Health. "The broad-based operational strength, with all five of our operating segments growing profit double-digits, reflects the disciplined execution of our strategy and our investments for growth. We enter Fiscal 2026 with confidence, evidenced by our increased financial outlook, as we continue to evolve towards reaching our full potential."

Q4 and full year FY25 summary

Pharmaceutical and Specialty Solutions segment

Fourth-quarter revenue for the Pharmaceutical and Specialty Solutions segment was relatively flat at $55.4 billion. Fourth-quarter revenue increased 22% excluding the impact of the customer contract expiration, driven by brand and specialty pharmaceutical sales growth from existing and new customers.

Pharmaceutical and Specialty Solutions segment profit increased 11% to $535 million in the fourth quarter, driven by the acquisition of MSO platforms and contributions from brand and specialty products, partially offset by the customer contract expiration.

Global Medical Products and Distribution segment

Fourth-quarter revenue for the Global Medical Products and Distribution segment increased 3% to $3.2 billion, driven by volume growth from existing customers.

Global Medical Products and Distribution segment profit increased 49% to $70 million in the fourth quarter, driven by volume growth from existing customers.

Fourth-quarter revenue for Other increased 37% to $1.6 billion, driven by growth across the three operating segments at-Home Solutions (including the acquisition of Advanced Diabetes Supply), Nuclear and Precision Health Solutions and OptiFreight Logistics.

Other segment profit increased 44% to $160 million in the fourth quarter, driven by growth across the three operating segments at-Home Solutions (including the acquisition of Advanced Diabetes Supply), Nuclear and Precision Health Solutions and OptiFreight Logistics.

Fiscal year 2026 outlook2

The company raised its fiscal year 2026 outlook for non-GAAP diluted EPS to $9.30 to $9.50 (+13% to +15% growth), a $0.20 increase from the preliminary outlook of $9.10 to $9.30 previously communicated during the company's 2025 Investor Day.

Bold indicates a change to the preliminary FY26 outlook provided in the Investor Day press release on June 12, 2025.

The increase to non-GAAP diluted EPS reflects a benefit to net earnings of classifying the shares held by physicians and management of The Specialty Alliance as a liability as opposed to non-controlling interests within equity and increased contributions from the Pharmaceutical and Specialty Solutions segment and the growth businesses reported in Other.3

Cardinal Health hosted an Investor Day on June 12th, 2025 where management detailed the company's momentum, growth strategies and updated long-term value creation plans

Cardinal Health announced that the company entered into a definitive agreement to acquire Solaris Health, the country's leading urology MSO with over 750 providers. Solaris Health will join the Specialty Alliance's Urology Alliance and advances Cardinal Health's multi-specialty growth strategy

Cardinal Health hosted its 33rd annual Retail Business Conference, bringing together approximately 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 launch of the Cardinal Health One Voice Initiative for pharmacy advocacy, which provides direct financial assistance to state pharmacy associations for the purpose of supporting independent pharmacists' advocacy efforts

Cardinal Health announced the U.S. launch of Kendall DL Multi System, its multi-parameter, single-patient use monitoring cable and lead wire system that enables the continuous monitoring of cardiac activity, blood oxygen level and temperature with one point of connection

Cardinal Health released its inaugural cell and gene therapy industry report providing insights into the current landscape and promising potential of cell and gene therapies

The Cardinal Health Foundation expanded its Equity Rx program across Ohio and three new states, increasing access to affordable medications and supporting Ohio's first statewide prescription drug repository

Cardinal Health will host a webcast today at 8 30 a.m. ET 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 13, 2026.

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.

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.

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.

3Other 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 initiatives, whether as a result of tariffs on products we source or manufacture, an uncertain global economic and trade environment, Cardinal Health Brand sales or ongoing inflationary pressures our ability to manage uncertainty with respect to certain government initiatives, including the Executive Order regarding "Most Favored Nation" pricing for branded prescription pharmaceuticals and the One Big Beautiful Bill Act 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, whether due to price increases or otherwise risks associated with litigation matters, including a 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 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 pending acquisitions, including risks arising as a result from our entry into new lines of businesses. 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 12, 2025. 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 (Unaudited)

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.

2 Provision for income taxes includes the tax effects relating to the cumulative goodwill impairment charges. For fiscal 2024, the net tax benefits related to the goodwill impairment charges was $58 million.

Cardinal Health, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

Cardinal Health, Inc. and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

Cardinal Health, Inc. and Subsidiaries

Segment Information (Unaudited)

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

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 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.

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.

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 2024 and 2023, impairments and (gain) loss on disposals of assets, net includes pre-tax goodwill impairment charges of $675 million and $1.2 billion related to the GMPD segment, respectively. For fiscal 2024 and 2023 the net tax benefit related to these charges was $58 million and $92 million, respectively, and were included in the annual effective tax rates.

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.

Cardinal Health, Inc. and Subsidiaries

GAAP Non-GAAP Reconciliation - GAAP Cash Flow to Non-GAAP Adjusted Free Cash Flow (Unaudited)

For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules.

Cardinal Health, Inc. and Subsidiaries

Revenue Growth Rates Excluding OptumRx (Unaudited)

Cardinal Health, Inc. and Subsidiaries

Use of Non-GAAP Measures

This earnings release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP ).

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 and amortization as a result of basis differences in equity method investments 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.