Cardinal Health Reports Strong Second Quarter Results and Raises Fiscal Year 2025 Outlook

Cardinal Health (NYSE: CAH), a leading healthcare services and products company, reported strong financial results for the second quarter of fiscal year 2025, driven by robust demand across its Pharmaceutical and Specialty Solutions segment. The company's revenue decreased 4% to $55.3 billion, primarily due to the impact of a previously communicated large customer contract expiration. However, excluding this impact, revenue increased 16%, reflecting strong brand and specialty pharmaceutical sales growth from existing and new customers. GAAP operating earnings increased 9% to $549 million, while non-GAAP operating earnings increased 9% to $635 million, driven by the Pharmaceutical and Specialty Solutions segment. Non-GAAP diluted EPS increased 2% to $1.93, due to an increase in non-GAAP operating earnings and a lower share count, offset in part by an increase in interest and other expense due to financing impacts related to recent acquisitions.



The company's fiscal year 2025 non-GAAP EPS guidance was raised to $7.85 to $8.00, from $7.75 to $7.90, reflecting the strong performance of the Pharmaceutical and Specialty Solutions segment and the impacts of recent acquisitions, including the completion of the acquisition of a majority stake in GI Alliance. This acquisition, along with the Integrated Oncology Network transaction, enables Cardinal Health to expand its specialty services and deliver a greater value proposition for providers and patients.

Cardinal Health's CEO, Jason Hollar, commented on the results, "We delivered strong second quarter financial results while taking significant strategic and operational actions to position us for future growth. Led by robust demand across our Pharmaceutical and Specialty Solutions segment, we are again pleased to raise our fiscal 2025 enterprise guidance."

The company's strategic focus on the Pharmaceutical and Specialty Solutions segment has contributed significantly to its recent financial performance and growth prospects. The key drivers behind the increased revenue and profit growth in this segment are brand and specialty pharmaceutical sales growth from existing and new customers, growth from BioPharma Solutions and Specialty Networks, and a higher contribution from brand and specialty products. These trends appear sustainable, given the favorable market dynamics and Cardinal Health's strategic initiatives.

In conclusion, Cardinal Health's strong second quarter results and raised fiscal year 2025 outlook reflect the company's successful execution of its strategic initiatives and the robust demand for its Pharmaceutical and Specialty Solutions segment. The company's acquisition of GI Alliance and Integrated Oncology Network has further enhanced its value proposition for providers and patients, positioning it for continued growth and success in the future.