Cardinal Health’s Strategic Expansion in At-Home Healthcare: Logistical Innovation and Market Positioning in a High-Growth Sector

The at-home healthcare sector is undergoing a seismic transformation, driven by demographic shifts, technological advancements, and a growing emphasis on cost-effective care delivery. Cardinal Health, a leader in medical supply distribution and healthcare logistics, is capitalizing on this momentum through strategic acquisitions, infrastructure modernization, and operational innovations. As the global at-home healthcare market surges toward a projected $1.66 trillion by 2035 (CAGR of 13.25%) [2], Cardinal Health’s aggressive expansion in this space positions it as a key player to benefit from the sector’s tailwinds.

Strategic Acquisitions and Market Consolidation

Cardinal Health’s recent acquisition of the Advanced Diabetes Supply Group (ADSG) underscores its focus on chronic disease management and home-based care. The $500 million deal, finalized in early 2025, merges ADSG’s diabetes supply expertise with Cardinal Health’s at-Home Solutions division, enabling the company to serve approximately 500,000 patients annually [1]. This acquisition not only expands Cardinal Health’s product portfolio but also strengthens its ability to address the $54.41 billion home healthcare equipment market, which is projected to grow at 9.3% CAGR through 2029 [4].

The integration of ADSG’s distribution network is already yielding synergies, with full operational alignment expected by late 2025 [2]. Complementing this, Cardinal Health acquired Solaris Health, a urology management services provider, in 2025, further diversifying its multi-specialty care offerings [1]. These moves reflect a deliberate strategy to consolidate market share in niche segments of at-home healthcare, where demand is being fueled by an aging population and rising prevalence of chronic conditions.

Logistical Innovations: Automation and Infrastructure Expansion

Logistical efficiency is a cornerstone of Cardinal Health’s competitive advantage. In 2025, the company opened a 340,000-square-foot automated distribution facility in Fort Worth, Texas, capable of shipping 10,000 packages daily [1]. This facility, paired with automation upgrades at its Ontario, California, site, exemplifies Cardinal Health’s commitment to reducing delivery times and operational costs. The company has also announced plans for new distribution centers in Sacramento, California, and the Northeast, with the Sacramento facility slated to open in Summer 2027 [1].

These investments align with broader industry trends. The shift to home-based care requires robust last-mile delivery networks, a domain where Cardinal Health’s Velocare™ logistics platform excels. By automating inventory management and route optimization, the company is addressing a critical pain point in at-home healthcare: ensuring timely access to medical supplies for patients with complex needs.

Financial Performance and Growth Projections

Cardinal Health’s at-Home Solutions segment has demonstrated strong financial momentum. In Q3 2025, the segment reported a 13% revenue increase, driven by ADSG integration and expanded home healthcare services [5]. For fiscal 2026, the company anticipates 26–28% revenue growth in this segment, alongside a 25–27% rise in segment profit [1]. These figures outpace the sector’s projected 8.46% CAGR (2025–2030) [3], highlighting Cardinal Health’s ability to capture market share through operational excellence.

The company’s “Other” segment, which includes at-Home Solutions, Nuclear and Precision Health Solutions, and OptiFreight Logistics, grew 37% year-over-year in Q4 2025, reaching $1.6 billion in revenue [1]. This growth trajectory has prompted Cardinal Health to raise its fiscal 2025 guidance, reflecting confidence in its strategic initiatives.

Challenges and Competitive Landscape

Despite its strengths, Cardinal Health faces headwinds. A shortage of skilled home-care nurses and cybersecurity risks associated with IoT-enabled medical devices pose operational challenges [3]. However, the company’s focus on automation and partnerships with technology providers mitigates these risks. For instance, its automated facilities reduce reliance on manual labor, while its integration of AI-driven predictive maintenance enhances device safety.

North America’s dominance in the at-home healthcare market (43.2% revenue share in 2023) [2] provides Cardinal Health with a favorable geographic footprint. With the U.S. medical supplies wholesaling industry valued at $36.0 billion in 2025 [5], the company’s position as a leading distributor amplifies its ability to scale at-home solutions.

Conclusion: A Compelling Investment Thesis

Cardinal Health’s strategic expansion in at-home healthcare is underpinned by a dual focus on logistical innovation and market consolidation. By leveraging automation, expanding its distribution network, and acquiring niche players like ADSG and Solaris Health, the company is well-positioned to capitalize on the sector’s explosive growth. With a 26–28% revenue growth forecast for 2026 and a CAGR outpacing industry averages, Cardinal Health offers investors a compelling opportunity to participate in the future of healthcare delivery.

Source:
[1] Cardinal Health announces two strategic additions to its portfolio [https://newsroom.cardinalhealth.com/2024-11-11-Cardinal-Health-announces-two-strategic-additions-to-its-portfolio]
[2] Home Healthcare Market Size & Share | Growth Analysis [https://www.vantagemarketresearch.com/industry-report/home-healthcare-market-2388?srsltid=AfmBOoqPohzx5EdAHIXYCyW4Fmhm3YdWT-YsF7d0jXUdmr_JHYZgUxAZ]
[3] Home Healthcare Market Size, Trends, and Forecast 2030 [https://www.mordorintelligence.com/industry-reports/home-healthcare-market]
[4] Home Healthcare Equipment Market Report 2025 [https://www.researchandmarkets.com/reports/5782988/home-healthcare-equipment-market-report?srsltid=AfmBOoo90BMfuvPErvVBTfoXHGxJ9H3tpHxewgTq5VSFCEDhtNd8jtIr]
[5] Cardinal Health Reports Third Quarter Fiscal Year 2025 Results and Raises Fiscal Year 2025 Outlook [https://newsroom.cardinalhealth.com/2025-05-01-Cardinal-Health-Reports-Third-Quarter-Fiscal-Year-2025-Results-and-Raises-Fiscal-Year-2025-Outlook]