Cardinal Health(US:CAH)2025-08-12 10:59Financial Performance - Fourth quarter fiscal year 2025 revenues were $60.2 billion, flat compared to Q4 FY24, but increased 21% excluding the impact of a customer contract expiration[1] - GAAP operating earnings for Q4 FY25 were $428 million, with GAAP diluted EPS at $1.00, while non-GAAP operating earnings increased 19% to $719 million and non-GAAP diluted EPS rose 13% to $2.08[4] - Fiscal year 2025 revenues totaled $222.6 billion, a 2% decrease from FY24, but increased 18% when excluding the contract expiration impact[3] - Fourth quarter revenue for 2025 was $60,159 million, a slight increase from $59,867 million in 2024, while fiscal year revenue decreased by 2% to $222,578 million from $226,827 million[20] - Gross margin improved by 17% in Q4 2025 to $2,202 million compared to $1,882 million in Q4 2024, and for the fiscal year, it increased by 10% to $8,168 million from $7,414 million[20] - Operating earnings for Q4 2025 rose by 7% to $428 million, while fiscal year operating earnings surged by 83% to $2,275 million from $1,243 million in 2024[20] - Net earnings attributable to Cardinal Health, Inc. increased by 2% in Q4 2025 to $239 million, and for the fiscal year, it rose by 83% to $1,561 million from $852 million[20] - Basic earnings per share for Q4 2025 was $1.01, up 5% from $0.96 in Q4 2024, and for the fiscal year, it increased by 86% to $6.48 from $3.48[20] Segment Performance - The Pharmaceutical and Specialty Solutions segment reported Q4 FY25 revenue of $55.4 billion, relatively flat, but increased 22% excluding the contract expiration[5] - The Global Medical Products and Distribution segment saw Q4 FY25 revenue increase by 3% to $3.2 billion, driven by volume growth from existing customers[7] - The Other segment's Q4 FY25 revenue increased 37% to $1.6 billion, supported by growth across multiple operating segments[9] - Revenue from Pharmaceutical and Specialty Solutions segment for Q4 2025 was $55,372 million, a slight decrease from $55,608 million in Q4 2024, while segment profit increased by 11% to $535 million[27] - The Global Medical Products and Distribution segment reported a revenue growth of 3% in Q4 2025 to $3,199 million, with segment profit rising by 49% to $70 million[27] Cash Flow and Assets - Fiscal year 2025 adjusted free cash flow was $2.5 billion[4] - Cash and equivalents at the end of Q4 2025 were $3,874 million, down from $5,133 million at the end of Q4 2024[25] - Total assets as of June 30, 2025, were $53,122 million, an increase from $45,121 million in June 30, 2024[23] - Current liabilities increased to $38,897 million in June 30, 2025, from $35,640 million in June 30, 2024[23] - Net cash provided by operating activities for fiscal year 2025 was $2,397 million, compared to $3,762 million in fiscal year 2024[37] - Net cash used in investing activities for fiscal year 2025 was $(5,593) million, significantly higher than $(1,849) million in fiscal year 2024[37] Guidance and Strategic Initiatives - The company raised its fiscal year 2026 non-GAAP EPS guidance to $9.30 to $9.50, reflecting a 13% to 15% growth[11] - Cardinal Health announced the acquisition of Solaris Health, enhancing its multi-specialty growth strategy[4] - The company hosted its 33rd annual Retail Business Conference, emphasizing its commitment to independent pharmacy customers[13] - The company plans to continue focusing on market expansion and new product development strategies in the upcoming fiscal year[30] Non-GAAP Measures and Adjustments - The company excluded certain costs from non-GAAP measures, including restructuring and employee severance costs, to provide a clearer view of ongoing operations[45] - The occurrence and timing of excluded items could significantly impact the company's fiscal 2025 GAAP results, with past exclusions affecting EPS from $1.79 to $8.44[50] - The company does not provide a GAAP outlook due to the unpredictability of excluded items, which are not part of routine operations[49] - The company recorded restructuring and employee severance costs of $88 million in fiscal year 2025, impacting operating earnings[33] - Amortization and other acquisition-related costs for fiscal year 2025 amounted to $464 million, affecting net earnings[33] - The effective tax rate for fiscal year 2025 was 25.3%[33] - The company reported a goodwill impairment charge of $675 million for fiscal year 2024, with a related net tax benefit of $58 million[33] Revenue Growth - Total revenue for fiscal year 2025 was $60,159 million, a growth of 21% compared to $49,580 million in fiscal year 2024[39] - Pharmaceutical and Specialty Solutions revenue for fiscal year 2025 was $55,372 million, showing a growth rate of 22% from $45,321 million in fiscal year 2024[39] - Year-to-date total revenue for fiscal year 2025 was $222,578 million, an 18% increase from $188,715 million in fiscal year 2024[41] - Non-GAAP adjusted free cash flow for fiscal year 2025 was $2,469 million, down from $3,942 million in fiscal year 2024[37] - GAAP revenue for Q4 2025 was $2,202 million, with a gross margin of 17% and net earnings of $239 million, reflecting a 2% growth[30] - Non-GAAP revenue for Q4 2025 was $2,203 million, with a gross margin of 17% and net earnings of $501 million, representing an 11% growth[30] - For fiscal year 2025, GAAP revenue reached $8,168 million, with a gross margin of 10% and net earnings of $1,561 million, showing an 83% increase[33] - Non-GAAP revenue for fiscal year 2025 was also $8,168 million, with a gross margin of 10% and net earnings of $1,995 million, indicating a 7% growth[33]