Cardinal Health, Inc. Revenue & Financials

For fiscal year 2025 (ended June 30, 2025), Cardinal Health, Inc. reported total revenues of $222.578 billion, a 2% decrease from $226.827 billion in fiscal 2024. The decline was entirely attributable to the OptumRx contract expiration, which removed $38.1 billion in annual revenue. Excluding the OptumRx impact, revenue increased 18%, demonstrating strong underlying growth in the remaining business. The company reported GAAP operating earnings of $2.275 billion, an 83% increase from $1.243 billion in fiscal 2024. This surge was driven by improved profitability in the Pharmaceutical and Specialty Solutions segment, the absence of the $585 million goodwill impairment recorded in fiscal 2023, and litigation recoveries of $185 million (compared to charges of $78 million in fiscal 2024). Net earnings attributable to Cardinal Health, Inc. were $1.569 billion, up 83% from $852 million in fiscal 2024. On a per-share basis, diluted EPS was $6.45, compared to $3.45 in fiscal 2024. Non-GAAP operating earnings, which exclude restructuring, amortization, acquisition-related costs, impairments, and litigation items, increased 15% to $2.786 billion from $2.414 billion in fiscal 2024. Non-GAAP diluted EPS was $8.24, up 9% from $7.53. The effective tax rate on a GAAP basis was 25.3%, down from 28.9% in fiscal 2024. The non-GAAP effective tax rate was 23.3%, up from 21.7%. The revenue breakdown by segment reveals the company's structural composition. Pharmaceutical and Specialty Solutions generated $204.644 billion in fiscal 2025 revenue, down 3% from $210.019 billion in fiscal 2024. The decline reflects the OptumRx contract expiration, partially offset by branded and specialty pharmaceutical growth from existing and new customers. Segment profit was $2.258 billion, up 12% from $2.015 billion, with the segment profit margin improving to 1.10% from 0.96%. Global Medical Products and Distribution generated $12.636 billion in revenue, up 2% from $12.381 billion. Segment profit was $135 million, up 47% from $92 million, with the margin improving to 1.07% from 0.74%. The margin improvement reflects cost optimization initiatives and growth from existing customers. Other businesses generated $5.382 billion in revenue, up 19% from $4.512 billion. Segment profit was $516 million, up 22% from $423 million, with the margin at 9.59% compared to 9.38%. The cost structure shows the scale-intensive nature of the business. Cost of products sold was $214.410 billion (96.3% of revenue), yielding a gross margin of $8.168 billion (3.67%). Distribution, selling, general, and administrative expenses were $5.382 billion. Amortization and other acquisition-related costs were $464 million. Acquisition-related cash and share-based compensation costs were $126 million. Restructuring and employee severance were $88 million. Impairments and loss on disposal of assets were $18 million. Litigation recoveries were $185 million (net). Interest and other expense was $51 million in fiscal 2024 (fiscal 2025 figure not separately disclosed but noted as higher due to acquisition financing). The balance sheet as of June 30, 2025, showed total cash of $3.87 billion. Total debt levels increased due to acquisition financing. The company generated $2.397 billion in net cash provided by operating activities in fiscal 2025, down from $3.762 billion in fiscal 2024, primarily due to the unwinding of negative net working capital related to the OptumRx contract expiration and inventory increases. Adjusted free cash flow was $2.5 billion. Capital allocation priorities include share repurchases ($500 million guided for fiscal 2025), debt reduction, and acquisitions. The company has guided fiscal 2026 non-GAAP EPS to $9.30-$9.50, raised from prior guidance of $9.10-$9.30, reflecting confidence in earnings growth despite the revenue headwind. The fiscal 2026 guidance implies approximately 13-15% growth in non-GAAP EPS from the fiscal 2025 base of $8.24. The financial narrative is one of a company successfully navigating a massive revenue disruption while improving profitability. The OptumRx loss, while significant in revenue terms, removed low-margin business and forced the company to focus on higher-value activities. The result is a leaner, more profitable business with a clear strategic direction toward specialty services and higher-margin healthcare operations.