01—Abstract
Summary
Summary of the 10-K filed August 12, 2025. Cited figures are marked; the original filing is the authoritative source.
Cardinal Health, Inc. reported a decline in total revenue for fiscal year 2025 to $222.6 billiona, a 2% decrease attributed primarily to the expiration of significant contracts with OptumRx.
Despite the revenue dip, both GAAP and non-GAAP operating earnings saw substantial increases, with GAAP operating earnings up 83% to $2.3 billionb and non-GAAP operating earnings rising 15% to $2.8 billion. This improvement was driven by strong performance in branded and specialty pharmaceuticals, as well as contributions from recent strategic acquisitions, including those in the managed services organization (MSO) space and in-home solutions. The company actively deployed capital in fiscal 2025, with $5.3 billion allocated to acquisitions, $765 million for share repurchases, and $400 million for debt repayment.
Additionally, Cardinal Health returned $494 millionc to shareholders through dividends. Significant acquisitions like GI Alliance, Integrated Oncology Network, and Advanced Diabetes Supply Group are expected to contribute to future growth, although they also increased amortization and acquisition-related costs. The company maintained a strong liquidity position with $3.9 billion in cash and equivalents at the end of the fiscal year.
02—Key points
Key Highlights
- Total revenue decreased by 2% to $222.6 billion in fiscal year 2025, primarily due to the expiration of OptumRx contracts.
- GAAP operating earnings increased significantly by 83% to $2.3 billion, and non-GAAP operating earnings rose 15% to $2.8 billion, driven by specialty pharmaceutical sales and acquisitions.
- Cardinal Health completed several strategic acquisitions in fiscal 2025, including GI Alliance ($2.8 billion), Integrated Oncology Network ($1.1 billion), and Advanced Diabetes Supply Group ($1.1 billion), enhancing its specialty and at-home solutions offerings.
- Capital deployment in fiscal 2025 included $5.3 billion for acquisitions, $765 million for share repurchases, $400 million for debt repayment, and $494 million for dividends.
- The Pharmaceutical and Specialty Solutions segment profit increased by 12% to $2.3 billion, despite the OptumRx contract expiration, due to growth in branded and specialty pharmaceuticals and MSO platforms.
- The Global Medical Products and Distribution segment profit saw a substantial increase of 47% to $135 million, driven by volume growth from existing customers and cost optimization.
- The company ended fiscal 2025 with $3.9 billion in cash and equivalents, maintaining a strong liquidity position.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Cardinal Health Inc kept $0.01.
- Revenue$222.58B100.0%
- Cost of revenue−$214.41B96.3%
- Gross profit$8.17B3.7%
- Operating costs−$5.89B2.6%
- Operating income$2.27B1.0%
- Interest, other & tax−$714.0M0.3%
- Net income$1.56B0.7%
Where FY2025 revenue went
$222.58B- Cost of revenue: $214.41B, 96% of revenue
- Net income: $1.56B, 0.7% of revenue
- SG&A: $5.38B, 2.4% of revenue
Kept 0.7% as net incomeNet income $1.56B · 0.7%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed August 12, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $222.58B$226.83B | −1.9% |
| Cost of Revenue | $214.41B$219.41B | −2.3% |
| Gross Profit | $8.17B$7.41B | +10.2% |
| SG&A Expenses | $5.38B$5.00B | +7.6% |
| Operating Income | $2.27B$1.24B | +83.0% |
| Interest Expense | $215.00M$51.00M | +321.6% |
| Net Income | $1.56B$852.00M | +83.2% |
| EPS (Basic) | $6.48$3.48 | +86.2% |
| EPS (Diluted) | $6.45$3.45 | +87.0% |
| Shares Outstanding (Basic) | 241.00M245.00M | −1.6% |
| Shares Outstanding (Diluted) | 242.00M247.00M | −2.0% |
05—Questions
Frequently Asked Questions
What was the primary driver of the revenue decrease in fiscal year 2025?
The primary driver of the 2% revenue decrease to $222.6 billion was the expiration of pharmaceutical distribution contracts with OptumRx, which represented 17% of consolidated revenue in the prior year.
How did Cardinal Health's profitability change in fiscal year 2025?
Cardinal Health experienced significant improvements in profitability. GAAP operating earnings increased by 83% to $2.3 billion, and non-GAAP operating earnings grew by 15% to $2.8 billion. This was driven by increased contributions from branded and specialty pharmaceuticals and the positive impact of acquisitions.
What were the major strategic initiatives or investments undertaken in fiscal year 2025?
Cardinal Health made significant strategic investments through acquisitions in fiscal year 2025. Key acquisitions included GI Alliance for approximately $2.8 billion, Integrated Oncology Network for $1.1 billion, and Advanced Diabetes Supply Group for $1.1 billion. These acquisitions are aimed at strengthening the company's position in specialty pharmaceuticals and at-home healthcare solutions.
How is the company managing its debt and returning capital to shareholders?
In fiscal year 2025, Cardinal Health repaid $400 million in debt and issued new long-term debt totaling $2.9 billion to fund acquisitions. The company also returned capital to shareholders by repurchasing $765 million of its common stock and paying $494 million in dividends.
06—Continue