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| 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.