10-KPeriod: FY2025

CARDINAL HEALTH INC Annual Report, Year Ended Jun 30, 2025

Filed August 12, 2025For Securities:CAH

Summary

Cardinal Health, Inc. reported a decline in total revenue for fiscal year 2025 to $222.6 billion, 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 billion 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 million 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.

Financial Highlights

50 data points
Beta

Revenue

$222.58B

3.7% Gross Margin

Net Income

$1.56B

0.7% Net Margin

EPS (Diluted)

$6.45

Total Assets

$53.12B

Cash & Equivalents

$3.87B

Free Cash Flow

$1.85B

Financial Statements
Beta
Revenue$222.58B
Cost of Revenue$214.41B
Gross Profit$8.17B
SG&A Expenses$5.38B
Operating Income$2.27B
Interest Expense$215.00M
Net Income$1.56B
EPS (Basic)$6.48
EPS (Diluted)$6.45
Shares Outstanding (Basic)241.00M
Shares Outstanding (Diluted)242.00M

Key Highlights

  • 1Total revenue decreased by 2% to $222.6 billion in fiscal year 2025, primarily due to the expiration of OptumRx contracts.
  • 2GAAP 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.
  • 3Cardinal 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.
  • 4Capital 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.
  • 5The 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.
  • 6The 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.
  • 7The company ended fiscal 2025 with $3.9 billion in cash and equivalents, maintaining a strong liquidity position.

Frequently Asked Questions

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.

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.

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.

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.