Cardinal Health Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.74%.
Did CAH Beat Earnings? Q3 2025 Results
Cardinal Health delivered a strong fiscal third quarter, posting non-GAAP diluted EPS of $2.35, beating the $2.15 consensus estimate by 9.36%, as profit growth across all five operating segments drove the outperformance. Revenue came in at $54.88 billion, essentially flat year-over-year and slightly below the $55.31 billion consensus, though that headline figure obscures underlying momentum; excluding the previously communicated OptumRx customer contract expiration, revenue grew 19%. The primary engine was the Pharmaceutical and Specialty Solutions segment, where profit climbed 14% to $662.00 million, fueled by brand and specialty pharmaceutical volume, MSO platform contributions, and generics program performance. Operating cash flow swung sharply to $2.92 billion from negative $27.00 million a year ago, a dramatic improvement driven by working capital movements. Management raised its full-year fiscal 2025 non-GAAP EPS guidance to $8.05 to $8.15, and signaled double-digit non-GAAP EPS growth in fiscal 2026, even as the company acknowledged up to $300 million in potential tariff-related costs and has begun implementing mitigation measures including workforce reductions.
- Brand and specialty pharmaceutical sales growth from existing and new customers
- MSO platform contributions including GI Alliance
- BioPharma Solutions and Specialty Networks contributions
- Positive generics program performance
- Cost optimization initiatives in GMPD segment
- Growth across at-Home Solutions, Nuclear and Precision Health Solutions, and OptiFreight Logistics
- Lower share count from share repurchases
“Our strong momentum continued into our third quarter as our team's ongoing focus on operational execution and value creation led to excellent financial results.”
Cardinal Health CEO, on the earnings call
Forward Guidance & Outlook
Cardinal Health raised and narrowed its fiscal 2025 non-GAAP diluted EPS guidance to $8.05–$8.15, up from $7.85–$8.00 previously. Pharmaceutical and Specialty Solutions segment profit growth outlook increased to 11.5%–12.5% (from 10%–12%). Other segment profit growth outlook increased to 16%–18% (from ~10%), driven by stronger organic performance and the completed ADSG acquisition. GMPD segment profit outlook narrowed to $130M–$140M (from $130M–$150M). Interest and other expense narrowed to $200M–$215M. Non-GAAP effective tax rate narrowed to 23%–23.5%. Diluted weighted average shares updated to ~242 million. For fiscal 2026, the company anticipates double-digit non-GAAP EPS growth despite evolving macro conditions, with strong segment profit growth expected in Pharmaceutical and Specialty Solutions and Other segments. GMPD fiscal 2026 segment profit is now expected to be at least consistent with fiscal 2025. Further details will be discussed at Investor Day on June 12, 2025.
CAH YoY Financials
CAH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.