Cardinal Health Q3 2025 Results: Revenue Holds Steady at $54.9B

DUBLIN, Ohio—Cardinal Health reported third quarter fiscal year 2025 revenues of $54.9 billion, flat to the third quarter of fiscal year 2024. 

Third quarter revenue increased 19% excluding the impact of the previously communicated customer contract expiration. Third quarter generally accepted accounting principles (GAAP) operating earnings increased to $730 million and GAAP diluted earnings per share (EPS) were $2.10. Third quarter non-GAAP operating earnings increased 21% to $807 million, driven by segment profit growth across all of the company’s operating segments. Non-GAAP diluted EPS increased 13% to $2.35, reflecting the increase in non-GAAP operating earnings and a lower share count, partially offset by an increase in interest and other expense primarily due to previously anticipated financing costs related to recent acquisitions and a higher non-GAAP effective tax rate.

“Our strong momentum continued into our third quarter as our team’s ongoing focus on operational execution and value creation led to excellent financial results,” said Jason Hollar, CEO of Cardinal Health. “I am delighted to see the broad-based performance, with all five of our operating segments contributing to our strong growth. We are pleased to raise our fiscal 2025 guidance demonstrating the strength and resilience of Cardinal Health.”

Third quarter revenue for the pharmaceutical and specialty solutions segment was relatively flat at $50.4 billion. Third quarter revenue increased 20% 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 14% to $662 million in the third quarter, driven by contributions from brand and specialty products, MSO platforms (including GI Alliance), BioPharma Solutions (including specialty networks) and positive generics program performance. This growth was partially offset by the customer contract expiration.

Third quarter revenue for the global medical products and distribution segment increased 2% to $3.2 billion, driven by volume growth from existing customers.

Global medical products and distribution segment profit increased 77% to $39 million in the third quarter, driven by the beneficial net impact of cost optimization initiatives.

Third quarter revenue for Other increased 13% to $1.3 billion, driven by growth across the three operating segments: at-Home Solutions, Nuclear and Precision Health Solutions and OptiFreight Logistics.

Other segment profit increased 22% to $134 million in the third quarter, driven by growth across the three operating segments: at-Home Solutions, OptiFreight Logistics and Nuclear and Precision Health Solutions.

Fiscal Year 2025 Outlook

The company raised and narrowed its fiscal 2025 guidance range for non-GAAP diluted earnings per share attributable to Cardinal Health, Inc. to $8.05 to $8.15, from $7.85 to $8. The updated fiscal 2025 guidance reflects:

• Increased outlook for pharmaceutical and specialty solutions segment profit to 11.5% to 12.5% growth, from 10% to 12% growth previously
• Increased outlook for other segment profit to 16% to 18% growth, from ~10% growth previously, driven by stronger organic performance and the completed acquisition of Advanced Diabetes Supply Group
• Narrowed outlook for GMPD segment profit to $130 million to $140 million, from $130 million to $150 million previously
• Narrowed outlook for interest and other expense to a range of $200 million to $215 million, from $200 million to $230 million previously
• Narrowed outlook for non-GAAP effective tax rate of 23% to 23.5%, from 23% to 24% previously
• Updated outlook for diluted weighted average shares outstanding to ~242 million, from ~243 million previously, reflecting recent share repurchases

Fiscal Year 2026 Update

Cardinal Health anticipates double-digit non-GAAP EPS growth in fiscal 2026, despite the evolving macro environment conditions. The company continues to expect strong segment profit growth in pharmaceutical and specialty solutions and across its three operating segments reported in other. In the face of the macro uncertainty, the company is updating its expectations for fiscal 2026 GMPD segment profit, which it now expects to be at least consistent with fiscal 2025 segment profit. The company will continue to assess opportunities and risks and plans to further discuss its expectations for fiscal 2026 and beyond at its upcoming Investor Day on June 12, 2025.

Recent Highlights

• GI Alliance bolstered its leading multi-specialty MSO platform by entering into the urology therapeutic area with agreements to acquire Urology America and Potomac Urology, furthering its strategy to support physician-led practices and deliver superior patient outcomes
• Cardinal Health completed its acquisition of Advanced Diabetes Supply Group on April 1. ADSG is a national direct-to-patient diabetes medical supplies provider that enhances at-Home Solutions’ capabilities to service patients in their homes
• Cardinal Health elected two new independent directors with extensive leadership experience to its board of directors: Robert Musslewhite, former CEO of Definitive Healthcare Corp. and Sudhakar Ramakrishna, president and CEO of SolarWinds Corporation
• Cardinal Health completed a $375 million accelerated share repurchase program during the third quarter
• Cardinal Health announced that it has entered into an agreement with GE Healthcare to manufacture and distribute Flyrcado, a first-of-its-kind PET agent for enhanced diagnosis of coronary artery disease
• Cardinal Health published its annual report on biosimilars, “10 years of biosimilars,” highlighting the positive impact these medications have had on patients’ lives and the health care ecosystem, as well as potential future benefits
• Cardinal Health was named one of America’s Most Innovative Companies by Fortune for the third consecutive year