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 .
- 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.
- 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.
- Nuclear and Precision Health Solutions - Offers specialized healthcare solutions, although not significant enough individually to require separate reportable segment disclosures.
- at-Home Solutions - Provides healthcare products and services designed for home use, contributing to the company's growth strategy.
- OptiFreight® Logistics - Delivers logistics and transportation services, supporting the company's focus on efficient supply chain management.
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| Name | Position | External Roles | Short 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. |
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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?
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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?
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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?
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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?
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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?
Research analysts who have asked questions during CARDINAL HEALTH earnings calls.
Allen Lutz
Bank of America
4 questions for CAH
Charles Rhyee
TD Cowen
4 questions for CAH
Daniel Grosslight
Citigroup
4 questions for CAH
Elizabeth Anderson
Evercore ISI
4 questions for CAH
Eric Percher
Nephron Research
4 questions for CAH
Kevin Caliendo
UBS
4 questions for CAH
Michael Cherny
Leerink Partners
4 questions for CAH
Brian Tanquilut
Jefferies
3 questions for CAH
Erin Wilson Wright
Morgan Stanley
3 questions for CAH
George Hill
Deutsche Bank
3 questions for CAH
Lisa Gill
JPMorgan Chase & Co.
3 questions for CAH
Stephen Baxter
Wells Fargo & Company
3 questions for CAH
Steven Valiquette
Mizuho
3 questions for CAH
Eric Coldwell
Robert W. Baird & Co.
2 questions for CAH
Erin Wright
Morgan Stanley
1 question for CAH
John Stansel
JPMorgan Chase & Co.
1 question for CAH
Stephanie Davis
Barclays
1 question for CAH
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
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. |
| Customer | Relationship | Segment | Details |
|---|---|---|---|
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 |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
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.
- Revenue rose 22% to $64 billion; operating earnings grew 37% and EPS was $2.55, up 36% year-over-year.
- Full-year EPS guidance increased by $0.35 to $9.65–$9.85, and adjusted free cash flow guidance was raised to $3.0–$3.5 billion.
- Pharma & Specialty Solutions segment revenue climbed 23% to $59 billion with segment profit up 26% to $667 million; GMPD revenue +2% to $3.2 billion (profit +$38 million to $46 million); Other segments revenue +38% to $1.6 billion (profit +60% to $166 million).
- Generated $1.3 billion of adjusted free cash flow in Q1, invested $110 million, retired a $500 million bond, returned $500 million to shareholders, and ended with $4.6 billion of cash.
- Near-term Solaris Health acquisition to bolster specialty MSO footprint and integration of ADS in At Home Solutions is yielding early synergies.
- Q1 FY26 revenue of $64.0 billion (+22% Y/Y), GAAP operating earnings up 18% to $668 million with GAAP diluted EPS of $1.88, and non-GAAP operating earnings up 37% to $857 million with non-GAAP diluted EPS of $2.55.
- Raised FY26 non-GAAP EPS guidance to $9.65 – $9.85 (+17% – 20%) and adjusted free cash flow outlook to $3.0 – $3.5 billion.
- Anticipates completing the acquisition of Solaris Health in early November 2025.
- Initiated a $375 million accelerated share repurchase program in Q1 FY26.
- Revenue for Q1 FY2026 increased 22% to $64.0 billion; GAAP operating earnings rose 18% to $668 million, with GAAP diluted EPS of $1.88.
- Non-GAAP operating earnings climbed 37% to $857 million, driving non-GAAP diluted EPS of $2.55, up 36% year-over-year.
- Raised fiscal year 2026 non-GAAP EPS guidance to $9.65–$9.85 (+17% to +20%) and adjusted free cash flow outlook to $3.0–$3.5 billion.
- Anticipates completing the acquisition of Solaris Health in early November to bolster specialty health offerings.
- GAAP revenue of $64.0 B, up 22% YoY; GAAP net earnings of $450 M, up 8%, and non-GAAP net earnings of $611 M, up 33%, translating to $2.55 EPS, up 36%.
- Segment performance: Pharmaceutical & Specialty Solutions revenue $59.2 B (+23%) with $667 M profit (+26%); Global Medical Products revenue $3.2 B (+2%) with $46 M profit; Other segments revenue $1.64 B (+38%) with $166 M profit (+60%).
- FY26 outlook raised: non-GAAP EPS $9.65–$9.85 (vs. $8.24 FY25), free cash flow $3.0–$3.5 B, capex $600–$650 M, interest & other ~$325 M.
- Capital allocation: returned ~$500 M to shareholders ($375 M buybacks, ~$125 M dividends), issued $1 B notes and retired $500 M debt, and expects to close Solaris Health acquisition in early November.
- Cycle Pharmaceuticals launched PHYRAGO™ (dasatinib), its first US oncology product indicated for Ph+ CML and Ph+ ALL, in partnership with Handa Therapeutics
- Bioequivalent to Sprycel, PHYRAGO allows concurrent proton pump inhibitors and H2 receptor antagonists to manage gastric acid disorders
- Exclusive distribution through Onco360® specialty pharmacy and a network including McKesson, Cencora, and Cardinal Health ensures national reach
- The Cycle Vita™ support program offers financial savings and clinical assistance to eligible patients taking PHYRAGO
- On October 7, 2025, Cardinal Health, Inc. entered into a new 364-Day Credit Agreement with Bank of America, N.A. as Administrative Agent and other lenders, replacing its prior facility from October 2024.
- The agreement provides access to $1.0 billion in revolving credit through October 6, 2026, with an option to convert outstanding loans into non-revolving term loans repayable one year later.
- A financial covenant requires the Company to maintain a Consolidated Net Leverage Ratio of no more than 3.75 to 1.00 at the end of each fiscal quarter.
- The facility may be used for general corporate purposes and supports the Company’s commercial paper program, and contains customary representations, covenants and events of default.
- 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.
- 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.
- 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.
- 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 .