Cardinal Health 2025 Q3 Earnings Strong Growth as Net Income Surges 93.9%

Cardinal Health (CAH) reported its fiscal 2025 Q3 earnings on May 01st, 2025. The company exceeded analysts' expectations with a significant increase in earnings per share (EPS) and net income. Cardinal Health raised its fiscal 2025 guidance, reflecting strong performance across its segments. This positive outlook suggests continued growth momentum. Analysts had anticipated a modest upside, and the company's results align with these predictions. The revised guidance indicates confidence in future profitability, especially in the Pharmaceutical and Specialty Solutions segment.

Revenue
The total revenue for Cardinal Health in fiscal 2025 Q3 remained steady at $54.88 billion, compared to $54.87 billion in the same quarter of 2024. The Pharmaceutical and Specialty Solutions segment generated $50.43 billion, while the Global Medical Products and Distribution segment contributed $3.16 billion. Revenue from other operations was $1.30 billion, with a corporate adjustment of $-19 million, culminating in the total revenue figure.

Earnings/Net Income
Cardinal Health reported a substantial increase in earnings per share (EPS), rising 97.2% to $2.11 in 2025 Q3 from $1.07 in 2024 Q3. Net income also saw impressive growth, reaching $508 million, a 93.9% increase from the previous year's $262 million. This robust performance underscores the company's strong operational execution and profitability.

Price Action
The stock price of Cardinal Health has climbed 3.94% during the latest trading day, has climbed 7.13% during the most recent full trading week, and has climbed 5.63% month-to-date.

Post-Earnings Price Action Review
Backtesting results on the impact of earnings report metrics reveal that Cardinal Health's stock price tends to show favorable performance in the short term following earnings releases. The 3-Day win rate after an earnings release stands at 57.14%, while the 10-Day win rate is 42.86%, and the 30-Day win rate reaches 61.90%. The maximum return observed within the 30 days following an earnings report was 7.15%, with the peak return occurring on day 69. These results highlight a general positive trend in stock performance post-earnings, suggesting that the optimal period for potential gains is around 30 days following the report.

CEO Commentary
“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,” said Jason Hollar, CEO of Cardinal Health. “I am delighted to see the broad-based performance, with all five of our operating segments contributing to our strong growth. We are pleased to raise our fiscal 2025 guidance demonstrating the strength and resilience of Cardinal Health.” The CEO highlights the company’s operational focus and segment growth as key performance drivers while expressing optimism about the future outlook and guidance adjustments.

Guidance
Cardinal Health raised and narrowed its fiscal 2025 non-GAAP diluted EPS guidance to $8.05 to $8.15, up from $7.85 to $8.00. This updated guidance reflects an increased profit outlook for the Pharmaceutical and Specialty Solutions segment to 11.5% to 12.5% growth, and for the Other segment to 16% to 18% growth. The guidance also includes a narrowed outlook for the Global Medical Products and Distribution segment profit between $130 million to $140 million and updated projections for interest expenses and the non-GAAP effective tax rate.

Additional News
In recent corporate developments, Cardinal Health announced the completion of its acquisition of the Advanced Diabetes Supply Group as of April 1, 2025. This acquisition is expected to bolster growth for Cardinal Health at-Home Solutions. Additionally, on March 10, 2025, the company expanded its Board of Directors, welcoming Robert Musslewhite and Sudhakar Ramakrishna, enhancing its leadership team. Further, Cardinal Health's Board of Directors approved a quarterly dividend of $0.5056 per share on February 3, 2025, reinforcing its commitment to returning value to shareholders.