Cardinal Health Reports Fourth Quarter and Fiscal Year 2025 Results and Raises Fiscal Year 2026 Guidance
Cardinal Health reported fourth quarter fiscal year 2025 revenues of $60.2 billion, relatively flat compared to the same period in fiscal year 2024. However, revenue increased by 21% excluding the impact of a previously communicated customer contract expiration. GAAP operating earnings for the fourth quarter were $428 million, a 7% increase from the previous year, while GAAP diluted earnings per share (EPS) was $1.00. Non-GAAP operating earnings increased by 19% to $719 million, and non-GAAP diluted EPS increased by 13% to $2.08.
For the full fiscal year 2025, revenues were $222.6 billion, a 2% decrease from fiscal year 2024. However, similar to the fourth quarter, revenue increased by 18% when excluding the impact of a previously communicated customer contract expiration. GAAP operating earnings for the full year were $2.3 billion, marking an 83% increase from the previous year, while GAAP diluted EPS was $6.45. Non-GAAP operating earnings increased by 15% to $2.8 billion, and non-GAAP diluted EPS increased by 9% to $8.24.
The company also announced the acquisition of Solaris Health, the country's leading urology MSO.
Segment Results: Pharmaceutical and Specialty Solutions Segment: Revenue for the fourth quarter was relatively flat at $55.4 billion, but increased by 22% excluding the impact of the customer contract expiration. Segment profit increased by 11% to $535 million. Global Medical Products and Distribution Segment: Fourth-quarter revenue increased by 3% to $3.2 billion, and segment profit increased by 49% to $70 million. * Other Segment: Fourth-quarter revenue for the other segment increased by 37% to $1.6 billion, and segment profit increased by 44% to $160 million.
Fiscal Year 2026 Outlook: The company raised its fiscal year 2026 outlook for non-GAAP diluted EPS to $9.30 to $9.50, representing 13% to 15% growth. The outlook for various segments includes: Pharmaceutical and Specialty Solutions Segment: Revenue and segment profit are expected to grow by 11% to 13%. Global Medical Products and Distribution Segment: Revenue is expected to grow by 2% to 4%, with segment profit at least $140 million. * Other Segment: Revenue is anticipated to grow by 26% to 28%, and segment profit by 25% to 27%.
Recent Highlights: Cardinal Health hosted an investor day on June 12th, 2025, detailing the company's momentum, growth strategies, and updated long-term value creation plans. The company entered into an agreement to acquire Solaris Health, the leading urology MSO. Cardinal Health released its inaugural cell and gene therapy industry report. The Cardinal Health Foundation expanded its equity RX program across Ohio and three new states.
These results reflect a transformative year for Cardinal Health, with strong fourth-quarter performance and a raised outlook for fiscal year 2026, signaling confidence in the company's continued growth and evolution. Today the company's shares have moved 0.16% to a price of $157.66. Check out the company's full 8-K submission here.
