Group 1 - Cardinal Health reported quarterly earnings of $2.35 per share, exceeding the Zacks Consensus Estimate of $2.15 per share, and showing an increase from $2.08 per share a year ago, representing an earnings surprise of 9.30% [1] - The company posted revenues of $54.88 billion for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.27%, and down from $54.91 billion year-over-year [2] - Cardinal has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates three times during the same period [2] Group 2 - The stock has increased approximately 19.5% since the beginning of the year, contrasting with the S&P 500's decline of -5.3% [3] - The current consensus EPS estimate for the upcoming quarter is $2 on revenues of $60.06 billion, and for the current fiscal year, it is $7.94 on revenues of $222.62 billion [7] - The Zacks Industry Rank places Medical - Dental Supplies in the bottom 40% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Revenue and Earnings - Revenue for Q3 Fiscal 2025 was flat at $54.9 billion and decreased 3% to $162.4 billion for the nine months, primarily due to the expiration of OptumRx contracts[14]. - GAAP operating earnings increased to $730 million for Q3 and $1.8 billion for the nine months, while non-GAAP operating earnings rose 21% to $807 million and 14% to $2.1 billion, driven by branded pharmaceutical sales growth[16]. - GAAP diluted EPS for Q3 increased 96% to $2.10 and 118% to $5.44 for the nine months, primarily due to improved operating earnings and absence of prior goodwill impairment charges[20]. - Non-GAAP operating earnings for Q3 Fiscal 2025 were $807 million, representing a 21% growth rate compared to the prior year[119]. - Net earnings for the nine months ended March 31, 2025, were $1,326 million, compared to $620 million for the same period in 2024, representing a 113% increase[145]. Cash Flow and Liquidity - Cash and equivalents decreased to $3.3 billion at March 31, 2025, from $5.1 billion at June 30, 2024, with net cash provided by operating activities at $870 million[22]. - Cash flows from operating activities for the nine months ended March 31, 2025, were $870 million, down from $1,680 million in 2024, indicating a decrease of 48%[145]. - Total cash and equivalents at the end of the period was $3,326 million, down from $3,746 million at the end of the same period in 2024, marking a decrease of 11%[145]. - The company had $4.9 billion accrued related to opioid litigation settlements as of March 31, 2025, with payments totaling $797 million made during the nine months ended March 31, 2025[87]. Acquisitions and Investments - Cardinal Health deployed $1.1 billion for the Integrated Oncology Network acquisition and $2.8 billion for a 73% ownership interest in GI Alliance during the nine months ended March 31, 2025[23]. - The acquisition of GI Alliance is expected to positively impact segment revenue and profit while increasing amortization and acquisition-related costs[29]. - Cardinal Health completed the acquisition of Advanced Diabetes Supply Group for $1.1 billion, which will be reported in the at-Home Solutions segment[28]. - The acquisition of Integrated Oncology Network (ION) was completed for $1.1 billion in cash, supporting over 50 practice sites across 10 states[165]. - The acquisition of GI Alliance (GIA) was completed for approximately $2.8 billion in cash, with a 73% ownership interest[167]. Segment Performance - Pharma segment revenue for the three months ended March 31, 2025 was $50.4 billion, relatively flat compared to the prior year, while revenue for the nine months decreased 3% to $149.3 billion due to the expiration of OptumRx contracts[46]. - Global Medical Products and Distribution segment revenue increased 2% to $3.2 billion for the three months and $9.4 billion for the nine months ended March 31, 2025, primarily due to higher volumes from existing customers[47]. - Total segment profit for the three months ended March 31, 2025 increased 17% to $835 million, and for the nine months, it increased 13% to $2.1 billion, reflecting strong performance across segments[54]. Costs and Expenses - SG&A expenses for the three months ended March 31, 2025 increased 4% to $1.3 billion, and for the nine months, they increased 5% to $3.9 billion, primarily due to MSO platform acquisitions and higher costs to support sales growth[51]. - Interest expense for the three months ended March 31, 2025 increased to $74 million, and for the nine months, it increased to $141 million, primarily due to new debt financing[68]. - Restructuring and employee severance costs for Q3 Fiscal 2025 amounted to $28 million, while amortization and other acquisition-related costs were $152 million[119]. Tax and Goodwill - The effective tax rate for the three months ended March 31, 2025, was 23.6%, compared to 23.3% for the same period in 2024[69]. - During the nine months ended March 31, 2024, the company recognized pre-tax goodwill impairment charges of $675 million related to the GMPD segment, resulting in a net tax benefit of $56 million for fiscal 2024[70]. - Goodwill increased from $4.725 billion at June 30, 2024, to $8.906 billion at March 31, 2025, primarily due to the acquisitions of ION and GIA[187]. Shareholder Returns - The company approved a quarterly dividend of $0.5056 per share, amounting to an annualized rate of $2.02 per share, paid to shareholders on specified dates[89]. - The company has $2.7 billion authorized for share repurchases remaining under the program approved on June 7, 2023[135]. - The company’s share repurchase program activity resulted in a net cash outflow of $765 million for the nine months ended March 31, 2025, compared to $750 million in 2024, indicating ongoing commitment to returning capital to shareholders[145]. Risks and Uncertainties - Cardinal Health is facing potential additional costs and supply disruptions due to recent U.S. tariffs imposed on various countries[31]. - The company faces risks associated with entering new lines of business, including regulatory changes and competition from other healthcare organizations[128]. - The New York Opioid Stewardship Act created a $100 million annual assessment on manufacturers and distributors, with ongoing litigation regarding its constitutionality[204].

Financial Data and Key Metrics Changes - The company reported operating earnings growth of 21% and EPS growth of 13%, with EPS for the quarter at $2.35 [12][14] - Total company revenue was flat at nearly $55 billion, but adjusted for contract expiration, revenue increased by 19% year-over-year [13] - Total company gross profit dollars increased by 10%, while SG&A increased by only 4%, indicating strong cost control [13][14] Business Line Data and Key Metrics Changes - Pharmaceutical and Specialty Solutions revenue was relatively flat at $50.4 billion, but excluding customer contract expiration, revenue increased by 20% [15] - GNPD segment revenue increased by 2% to $3.2 billion, driven by volume growth from existing customers [17] - Other businesses reported a 13% revenue increase to $1.3 billion, with profit growth across all three operating segments [18] Market Data and Key Metrics Changes - The company generated over 99% of its enterprise revenue in the U.S., with 95% of segment profit from four of its five businesses largely unaffected by tariffs [9] - The company expects fiscal year 2025 revenue growth of 17% to 19% and segment profit growth of 16% to 18% in its Other segment [25] Company Strategy and Development Direction - The company has invested approximately $7 billion in the U.S. over the last two years, focusing on acquisitions, domestic manufacturing, and technology [9] - The company is committed to increasing patient access, affordability, and innovation in healthcare while navigating regulatory complexities [9][10] - The addition of Advanced Diabetes Supply Group is expected to be accretive to EPS and enhance the company's capabilities in diabetes care [11][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate sustainable long-term growth, raising fiscal year 2025 EPS guidance to a range of $8.5 to $8.15 [11][21] - The company anticipates continued strong demand and organic growth fueled by favorable market trends and competitive positioning [27] - Management is focused on mitigating tariff impacts through operational improvements and pricing strategies [36][66] Other Important Information - The company has completed customer onboardings that contribute approximately $10 billion of new customer revenue in fiscal year 2025 [23] - The effective tax rate for Q3 was 22.4%, a 2.5% increase from the prior year [14] Q&A Session Summary Question: Can you discuss the strong brand and specialty sales growth? - Management noted broad-based strength across various categories, with specialty distribution growth in the mid-teens and contributions from new customers [44][45] Question: Are there any headwinds from consumer weakness related to tariffs? - Management indicated no significant changes in demand, emphasizing the resilience of pharmaceutical demand even during macroeconomic challenges [53][54] Question: What is the AOI percentage for Cardinal Health brand revenue? - Approximately $4 billion of GNPD revenue comes from Cardinal Health brand, which has seen good volume growth [61] Question: How will the company offset tariff exposure? - Management stated that the majority of the anticipated $200 to $300 million in tariff costs will be addressed through pricing adjustments and operational actions [66][67] Question: What is the outlook for fiscal year 2026? - Management expects double-digit EPS growth, primarily driven by the Pharma segment, despite potential macro challenges [110]

Financial Data and Key Metrics Changes - The company reported operating earnings growth of 21% and EPS growth of 13%, with EPS for the quarter at $2.35 [11][12] - Total company revenue was flat at nearly $55 billion, but adjusted for contract expiration, revenue increased by 19% year-over-year [12][21] - Total company gross profit dollars increased by 10%, while SG&A increased by only 4%, indicating strong cost control [12][13] Business Line Data and Key Metrics Changes - Pharmaceutical and Specialty Solutions revenue was relatively flat at $50.4 billion, but excluding customer contract expiration, revenue increased by 20% [14][15] - GNPD segment revenue increased by 2% to $3.2 billion, driven by volume growth from existing customers [16] - Other businesses reported a 13% revenue increase to $1.3 billion, with At Home Solutions growing by 12%, Optifreight Logistics by 17%, and Nuclear by 14% [18] Market Data and Key Metrics Changes - The company generated over 99% of its enterprise revenue in the U.S., with 95% of segment profit from four of its five businesses largely unaffected by tariffs [6][7] - The company expects fiscal year 2025 revenue growth of 17% to 19% and segment profit growth of 16% to 18% in its Other segment [24] Company Strategy and Development Direction - The company has invested approximately $7 billion in the U.S. over the last two years, focusing on acquisitions, domestic manufacturing, and technology [7] - The company aims to enhance patient access, affordability, and innovation in healthcare while navigating regulatory complexities [6][7] - The addition of Advanced Diabetes Supply Group is expected to be accretive to EPS and enhance the company's capabilities in diabetes care [10][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate sustainable long-term growth and raised fiscal year 2025 EPS guidance to a range of $8.5 to $8.15 [10][21] - The company anticipates continued strong demand and organic growth driven by favorable market trends and competitive positioning [27][29] - Management acknowledged potential challenges from tariffs but emphasized proactive measures to mitigate impacts on customers and operations [35][36] Other Important Information - The company completed the acquisition of GI Alliance and Integrated Oncology Network, which are performing as expected [9][10] - The company has delivered adjusted free cash flow of $1.2 billion year-to-date and repurchased $750 million in shares [19][20] Q&A Session Summary Question: Strong brand and specialty sales growth - Management noted broad-based strength in brand and specialty sales, driven by multiple categories and new customer onboarding [44][46] Question: Consumer weakness related to tariffs - Management indicated no significant changes in consumer behavior or prescription demand despite macroeconomic concerns [53][54] Question: Cardinal Health brand revenue and USMCA coverage - Approximately $4 billion of GNPD revenue comes from Cardinal Health brand, which is higher margin relative to national brands [59][60] Question: Tariff impact on Cardinal Health brand - The majority of the anticipated $200 to $300 million in tariff costs will be addressed through pricing adjustments, particularly for Cardinal Health brand products [64][66] Question: Margin expansion in pharma - Management attributed margin expansion to growth in specialty and brand drug sales, acquisitions, and effective cost control measures [84][86] Question: Customer onboarding and new customer wins - The onboarding of new customers is progressing well, with a reaffirmation of $10 billion in incremental new customer revenue for the year [95][96]

Q3 FY25 Earnings Cardinal Health, Inc. May 1, 2025 © 2025 Cardinal Health. All Rights Reserved. 1 © 2025 Cardinal Health. All Rights Reserved. • Q3 FY25 Earnings Cautions Concerning Forward-Looking Statements Q3 Results © 2025 Cardinal Health. All Rights Reserved. 3 © 2025 Cardinal Health. All Rights Reserved. • Q3 FY25 Earnings This presentation contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These st ...

Cardinal Health Reports Third Quarter Fiscal Year 2025 Results and Raises Fiscal Year 2025 Outlook Exhibit 99.1 FOR IMMEDIATE RELEASE DUBLIN, Ohio, May 1, 2025 – Cardinal Health (NYSE: CAH) today reported third quarter fiscal year 2025 revenues of $54.9 billion, flat to the third quarter of fiscal year 2024. Third quarter revenue increased 19% excluding the impact of the previously communicated customer contract expiration. Third quarter GAAP operating earnings increased to $730 million and GAAP diluted ear ...

Cardinal Health, Inc. (CAH) is scheduled to report third-quarter fiscal 2025 results on May 1, before market open.In the last reported quarter, the company’s adjusted earnings per share (EPS) of $1.93 surpassed the Zacks Consensus Estimate by 10.3%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, delivering an earnings surprise of 9.6%, on average. (See the Zacks Earnings Calendar to stay ahead of market-making news.)Let’s check out the factors that ...

The upcoming report from Cardinal Health (CAH) is expected to reveal quarterly earnings of $2.15 per share, indicating an increase of 3.4% compared to the year-ago period. Analysts forecast revenues of $55.03 billion, representing an increase of 0.2% year over year. Analysts forecast 'Segment profit- Pharmaceutical and Specialty Solutions' to reach $635.77 million. Compared to the present estimate, the company reported $580 million in the same quarter last year. Analysts predict that the 'Segment profit- Gl ...

The Zacks Medical - Dental Supplies industry in the Medical sector has a robust demand for dental services, driven by patient preferences for timely and convenient care, as well as policy initiatives aimed at enhancing access to dental health services. Dental practices witnessed heightened patient engagement over the past six months. This growth is driven by increased demand for various dental services, including cosmetic and preventive care.The pricing environment looks promising on the back of continued r ...

MELBOURNE, Australia and INDIANAPOLIS, April 08, 2025 (GLOBE NEWSWIRE) -- Telix Pharmaceuticals Limited (ASX: TLX, NASDAQ:TLX, Telix, the Company) today announces that it has selected Cardinal Health, Inc. (NYSE:CAH, Cardinal Health)) as one of its commercial radiopharmaceutical distributors to supply finished unit doses of Gozellix® (kit for the preparation of gallium-68 (68Ga) gozetotide injection), Telix's next-generation PSMA-PET imaging1 agent for prostate cancer in the United States (U.S.). Following ...