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CARDINAL HEALTH (CAH)

Cardinal Health, Inc. is a global healthcare services and products company that operates primarily through two main segments: Pharmaceutical and Specialty Solutions, and Global Medical Products and Distribution (GMPD). The company distributes branded and generic pharmaceuticals, specialty pharmaceuticals, and over-the-counter healthcare products in the United States, and provides services to pharmaceutical manufacturers and healthcare providers . Cardinal Health also manufactures, sources, and distributes medical, surgical, and laboratory products, and offers inventory management technology . The company has undergone a reorganization to focus on core operations and growth areas, prioritizing long-term growth and investment in its key segments .

  1. Pharmaceutical and Specialty Solutions - Distributes branded and generic pharmaceuticals, specialty pharmaceuticals, and over-the-counter healthcare products in the United States, and provides services to pharmaceutical manufacturers and healthcare providers.
  2. Global Medical Products and Distribution (GMPD) - Manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products, as well as national brand products, to healthcare providers in the United States and Canada. Includes the Wavemark division, which provides inventory management technology.
  3. Nuclear and Precision Health Solutions - Offers specialized healthcare solutions, although not significant enough individually to require separate reportable segment disclosures.
  4. at-Home Solutions - Provides healthcare products and services designed for home use, contributing to the company's growth strategy.
  5. OptiFreight® Logistics - Delivers logistics and transportation services, supporting the company's focus on efficient supply chain management.

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NamePositionExternal RolesShort Bio

Jason M. Hollar

ExecutiveBoard

Chief Executive Officer (CEO)

Board Member at DaVita Inc.

Joined CAH in May 2020 as CFO, became CEO in September 2022. Previously held leadership roles at Tenneco, Sears, Delphi, and Navistar.

Aaron E. Alt

Executive

Chief Financial Officer (CFO)

None

Joined CAH as CFO in February 2023. Previously CFO at Sysco Corporation and Sally Beauty Holdings.

Deborah L. Weitzman

Executive

CEO, Pharmaceutical and Specialty Solutions

Board Member at National Association of Chain Drug Stores; Delegate with National Association of Wholesalers

Joined CAH in 2017. Previously President of Pharmaceutical Distribution. Became CEO of Pharmaceutical and Specialty Solutions in September 2022.

Jessica L. Mayer

Executive

Chief Legal and Compliance Officer

None

Joined CAH in 2017 as EVP, Deputy General Counsel, and Secretary. Promoted to Chief Legal and Compliance Officer in March 2019.

Michelle D. Greene

Executive

EVP, Chief Information Officer, and Customer Support Services

None

Joined CAH in February 2021 as SVP of IT for the Pharmaceutical segment. Promoted to EVP and CIO in August 2022.

Ola M. Snow

Executive

Chief Human Resources Officer (CHRO)

None

Joined CAH in January 2016 as SVP, Human Resources. Promoted to CHRO in October 2018.

Stephen M. Mason

Executive

CEO, Global Medical Products and Distribution

None

Joined CAH in 2016 as President of Cardinal Health at-Home Solutions. Became CEO of GMPD in August 2019.

Akhil Johri

Board

Independent Director

Operating Advisor at Clayton, Dubilier & Rice; Director at The Boeing Company

Director at CAH since 2018. Chair of the Audit Committee. Former EVP and CFO of United Technologies Corporation.

Gregory B. Kenny

Board

Independent Chairman of the Board

Director at Ingredion Incorporated

Director at CAH since 2007. Became Chairman in November 2018. Former President and CEO of General Cable Corporation.

Nancy Killefer

Board

Independent Director

Director at Certara, Inc.; Director at Meta Platforms, Inc.

Director at CAH since 2015. Chair of the Human Resources and Compensation Committee. Former Senior Partner at McKinsey & Company.

Patricia A. Hemingway Hall

Board

Independent Director

Director at ManpowerGroup Inc.

Director at CAH since 2013. Chair of the Governance and Sustainability Committee. Former President and CEO of Health Care Service Corporation.

Robert W. Azelby

Board

Independent Director

Director at ADC Therapeutics SA; Director at Autolus Therapeutics plc

Director at CAH since March 2024. Extensive healthcare experience, including CEO roles at Eliem Therapeutics and Alder BioPharmaceuticals.

Sheri H. Edison

Board

Independent Director

Director at Union Pacific Corporation

Director at CAH since 2020. Chair of the Risk Oversight Committee. Former General Counsel at Amcor plc.

  1. Regarding the GMPD segment, despite the expected annualization of inflation mitigation benefits, can you provide more detail on how you plan to achieve the significant jump to $300 million in segment profit by fiscal year '26, especially considering recent input cost increases and challenges in passing these costs on to customers?

  2. In the Pharma segment, you anticipate a 4% to 6% revenue decline due to the nearly $40 billion headwind from the large customer contract expiration. Can you elaborate on the specific strategies and customer wins that will offset this loss, and how confident are you in the timing and ramp-up of these new volumes?

  3. You've highlighted the Averon joint venture with CVS to source biosimilars. Given that the joint venture extends beyond the distribution contract ending in 2027 and the Red Oak agreement ending in 2029, what are the financial implications and risks associated with this venture, especially if the underlying agreements with CVS are not renewed?

  4. In light of the restatement of GMPD financials due to revenue recognition issues in your at-Home business, can you explain the controls you have put in place to prevent such issues in the future, and reassure investors about the reliability of your current financial reporting?

  5. Could you provide more clarity on the expected growth and investment returns from your 'Other' segment businesses, particularly Nuclear and Precision Health Solutions, OptiFreight, and at-Home Solutions, and how these investments will contribute to overall profitability, considering the heavy investment periods and the timing of returns?

Program DetailsProgram 1Program 2
Approval DateJune 7, 2023 August 21, 2024
End Date/DurationDecember 31, 2027 October 30, 2024
Total additional amount$3.5 billion $375 million
Remaining authorization$2.825 billion $275 million
DetailsGeneral buyback program Accelerated Share Repurchase (ASR)
YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
2026$500 4.7% Notes 4.7 6.6% = (500 / 7600) * 100
2029$750 5.0% Notes 5.0 9.9% = (750 / 7600) * 100
2034$1,000 5.35% Notes 5.35 13.2% = (1000 / 7600) * 100
2054$650 5.75% Notes 5.75 8.6% = (650 / 7600) * 100

Competitors mentioned in the company's latest 10K filing.

CompanyDescription

In the Pharmaceutical and Specialty Solutions segment, the company competes with wholesale distributors with national reach, including this competitor, regional wholesale distributors, self-warehousing chains, specialty distributors, third-party logistics companies and companies that provide specialty pharmaceutical services among others.

In the Pharmaceutical and Specialty Solutions segment, the company competes with wholesale distributors with national reach, including this competitor, regional wholesale distributors, self-warehousing chains, specialty distributors, third-party logistics companies and companies that provide specialty pharmaceutical services among others.

Medline Industries, Inc.

In the GMPD segment, the company competes with many diversified healthcare companies and national medical product distributors, such as this competitor, as well as regional medical product distributors and companies that are focused on specific product categories.

In the GMPD segment, the company competes with many diversified healthcare companies and national medical product distributors, such as this competitor, as well as regional medical product distributors and companies that are focused on specific product categories.

In the GMPD segment, the company competes with many diversified healthcare companies and national medical product distributors, such as this competitor, as well as regional medical product distributors and companies that are focused on specific product categories.

CustomerRelationshipSegmentDetails

CVS Health Corporation

Largest distribution partner

Pharma

30% of FY2025 revenue ($66.77B) ; 26% of gross trade receivables as of June 30, 2025 ($3.44B)

Vizient, Inc. and Premier, Inc.

GPO relationships

All

Combined 27% of FY2025 revenue ($60.10B)

OptumRx

Distribution partner (contract expired June 2024)

Pharma

17% of FY2024 revenue

NameStart DateEnd DateReason for Change
Ernst & Young LLP2002 PresentCurrent auditor

Notable M&A activity and strategic investments in the past 3 years.

CompanyYearDetails

GI Alliance (GIA)

2025

Cardinal Health acquired a 73% stake in GIA for approximately $2.8 billion in cash, with a future call option to purchase the remaining equity, to accelerate its multi-specialty growth and expand its gastroenterology offerings; the deal was financed with cash and new debt, and GIA will operate as a stand-alone platform within the Pharma segment.

Advanced Diabetes Supply Group (ADSG)

2024

The acquisition of ADSG for $1.1 billion in cash will merge it with Cardinal Health's at-Home Solutions business to enhance its diabetes supply capabilities and is expected to contribute at least $300 million in additional EBITDA, financed partly by a $2.9 billion bridge loan commitment.

Integrated Oncology Network (ION)

2024

ION was acquired for $1.1 billion in cash to bolster Cardinal Health’s Navista oncology practice alliance by adding over 100 providers, with the deal funded through available cash and borrowing arrangements and expected to be accretive to non-GAAP EPS within 12 months, subject to customary closing conditions and regulatory approvals.

Specialty Networks

2024

Cardinal Health completed the acquisition for $1.2 billion in cash to expand its specialty services and analytics capabilities, leveraging the PPS Analytics technology platform to enhance data-driven decision making, with the deal resulting in significant goodwill and identifiable intangible assets and funded through available cash.

Bendcare Group Purchasing Organization (GPO)

2023

The acquisition of Bendcare’s GPO, alongside a minority investment in its MSO, strategically strengthens Cardinal Health’s specialty pharmaceutical offerings in the growing rheumatology market, which is valued at approximately $20 billion, supporting nearly 200 rheumatologists.

ScalaMed

2022

Cardinal Health acquired ScalaMed’s smart prescription platform, transferring its technology and assets to Outcomes, a Cardinal Health company, to enhance direct patient prescription delivery capabilities.

Recent press releases and 8-K filings for CAH.

Cardinal Health outlines strategy at 2025 Bank of America Healthcare Conference
·$CAH
M&A
Guidance Update
  • Cardinal Health operates across five segments: core Pharmaceutical & Specialty Solutions (~$200 B of $220 B revenue), high-growth Nuclear & Precision Health, At-Home Solutions, OptiFreight® Logistics, and the turnaround GMPD business.
  • At its Investor Day, the company exceeded its 12–14% EPS growth target, delivering 18% EPS growth, and refined segment priorities—pharma & specialty remains top focus with elevated investment in Other Growth businesses.
  • Management reported strong demand in the pharma segment, with Q3 as the peak profit quarter due to manufacturer inflation timing, and seasonality tailwinds from onboarding $10 B of new customer revenue plus annualizing GI Alliance and ADS acquisitions.
  • The MSO platform, now serving $4.5 B of provider revenue, targets oncology, urology, and autoimmune practices with scaled services (IT, revenue cycle, payer negotiations), leveraging Cardinal’s distribution and radiopharma capabilities.
  • Operational investments include refreshing three distribution centers (with three more planned), a $150 M cyclotron capacity expansion for radiopharmaceuticals, and disciplined SG&A management to drive efficiency.
Sep 24, 2025, 3:10 PM
Cardinal Health issues $1B in notes to finance Solaris Health acquisition
·$CAH
Debt Issuance
M&A
  • On August 27, 2025, Cardinal Health completed a public offering of $600 million 4.500% notes due 2030 and $400 million 5.150% notes due 2035, raising $1 billion of gross proceeds.
  • The notes are governed by the Base Indenture dated June 2, 2008, as supplemented by the Third Supplemental Indenture dated August 27, 2025, with The Bank of New York Mellon Trust Company, N.A., serving as trustee.
  • Net proceeds are earmarked to fund the proposed acquisition of Solaris Health, with temporary use for general corporate purposes until closing.
  • If the acquisition is not consummated by the later of August 12, 2026 (or five business days after any extension) or the Company elects not to pursue it, the notes will be subject to a Special Mandatory Redemption at 101% of principal plus accrued interest.
Aug 27, 2025, 12:00 AM
Cardinal Health to issue $1B senior notes
·$CAH
Debt Issuance
  • On August 13, 2025, Cardinal Health, Inc. agreed to underwrite $600 million of 4.500% Notes due 2030 and $400 million of 5.150% Notes due 2035 with Goldman Sachs, BofA Securities and Wells Fargo Securities.
  • The offering is made under the company’s effective Form S-3ASR (Registration Statement No. 333-289513).
  • The term sheet prices the 2030 Notes at 99.908% for a 4.520% yield, with net proceeds of $595.848 million, a make-whole call and a par call after August 15, 2030.
  • Settlement is expected on T+10 (August 27, 2025), and proceeds will fund a pending acquisition and general corporate purposes.
Aug 14, 2025, 12:00 AM
Cardinal Health Investor Day 2025: FY25 Guidance, Capital Deployment & Strategic Investments
·$CAH
Guidance Update
New Projects/Investments
M&A
Share Buyback
  • Raised FY25 non‐GAAP diluted EPS guidance to $8.15–$8.20 (9% growth at midpoint) with preliminary FY26 guidance at $9.10–$9.30 and reaffirmed long‐term FY26–28 targets of 12–14% EPS CAGR .
  • Outlined a $11 billion three‐year capital deployment framework allocating $3.75 billion for dividends/buybacks, $1 billion for opioid litigation, $1 billion for debt reduction, and ~$5 billion for strategic tuck-in M&A .
  • Forecasted adjusted free cash flow of ~$2 billion for FY25 and at least $10 billion overall, while raising the annual share repurchase baseline to $750 million over the next three years .
  • Emphasized a strong core distribution foundation with Pharma & Specialty Solutions as its largest, highest‐growth priority, and planned targeted investments in its nuclear, at‐home, and OptiFreight segments .
  • Announced new infrastructure projects including a state‐of‐the‐art automated forward distribution center and the Vantas HQ ordering platform .
  • Launched the Specialty Alliance—expanding GI, and initiating Urology and oncology networks—and introduced The Specialty Alliance MSO platform to support ~2,200 providers .
  • Committed to further investments with a $150 million+ investment in Nuclear & Precision Health Solutions, enhanced automation in at‐home and OptiFreight Logistics, and bringing the Ohio Consumer Health Logistics Center online in July 2025 .
Jun 12, 2025, 6:27 PM
Cardinal Health Increases Quarterly Dividend
·$CAH
Dividends
  • Cardinal Health’s Board of Directors approved a quarterly dividend increase to $0.5107 per share from its capital surplus.
  • The declared dividend will be payable on July 15, 2025 to shareholders of record as of July 1, 2025.
May 5, 2025, 9:30 PM
Cardinal Health Q3 2025 Earnings & FY Outlook Update
·$CAH
Earnings
Guidance Update
M&A
Revenue Acceleration/Inflection
  • Cardinal Health delivered strong Q3 2025 results with non‐GAAP EPS of $2.35 and a 21% rise in operating earnings to $807M, demonstrating resilient performance across segments.
  • Raised full‐year FY25 EPS guidance to $8.05–$8.15 with free cash flow now expected near $1.5 billion, reflecting robust operational execution and strategic investments.
  • Q3 GAAP results included revenue of $54.9 billion, operating earnings of $730 million, and net earnings of $506 million, underscoring solid financial momentum.
  • Pharmaceutical & Specialty Solutions drove revenue of $50.4 billion with $662 million in profit, highlighting strong market performance.
  • Additional segment highlights: Global Medical Products & Distribution reported $3.16 billion in revenue with $39 million profit, and Other segments delivered $1.3 billion in revenue with $134 million profit.
  • Continued domestic investments of approximately $7 billion over the past two years, coupled with successful integrations (ADSG, GI Alliance, ION) and cost reduction initiatives to mitigate tariff impacts, bolster growth.
May 1, 2025, 12:31 PM
Cardinal Health Provides Conference Update on Strategic Execution
·$CAH
Share Buyback
M&A
New Projects/Investments
  • CFO Aaron Alt emphasized the company's strong operational excellence and resiliency amid a challenging environment, noting robust demand across pharma, specialty, and consumer health segments.
  • Management confirmed the execution of an ASR in Q3 to complete its $750 million share repurchase program as part of its commitment to return capital.
  • The discussion highlighted strategic investments in specialty areas such as Specialty Networks and GI Alliance, aiming to enhance higher margin biopharma services and diversify the product mix.
  • The team detailed proactive measures to mitigate tariff risks, including increasing domestic production and operational flexibility, while resegregating businesses like Nuclear & Precision Health, OptiFreight, and at Home segments.
Mar 12, 2025, 12:41 PM