Contradictions Unveiled: Analyzing Cardinal Health's Q4 2025 Earnings Call Insights on Tariffs and Pharma Growth

Revenue and Profit Growth:
- Cardinal Health, Inc. reported operating earnings grew by 19% in Q4 and 15% for the full year, with an increase in EPS by 13% in Q4 and over 9% for the year.
- This growth was driven by strong demand across Pharma, including a 22% increase in revenue from brand and specialty pharmaceutical sales, and strategic investments in growth businesses like at-Home Solutions and Nuclear.

Gross Profit Improvement:
- Gross profit increased by 17% to $2.2 billion, with gross margin improving by approximately 50 basis points.
- This improvement was due to a favorable product, customer, and business mix, with contributions from new customer wins and the inclusion of acquisitions like GIA and ADS.

Strategic Acquisitions and Specialty Expansion:
- The acquisition of Solaris Health, a leading urology managed services organization, is expected to add approximately $1.5 billion in revenue, contributing to Cardinal Health's urology alliance and Specialty Alliances.
- This acquisition further strengthens Cardinal Health's position in urology and supports its Specialty growth strategy, with plans to expand the Specialty Alliances multi-specialty MSO platform.

GMPD Segment Performance:
- GMPD segment reported $70 million in Q4 profit, its highest quarterly profit to date, driven by volume growth and cost containment efforts.
- The progress is attributed to the GMPD improvement plan, including cost optimization and increasing market demand for Cardinal Health branded products.