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Mar 31, 2025
Cardinal Health Q3 2025 Earnings Report
Cardinal Health reported flat revenue with strong profit growth across all segments.
Key Takeaways
Cardinal Health delivered solid Q3 results with flat revenue at $54.9 billion, but strong year-over-year growth in operating income and net income. Non-GAAP EPS rose 13%, driven by broad-based segment profitability and operational execution.
Revenue remained flat at $54.9 billion due to the loss of a large customer contract, but grew 19% excluding that impact.
GAAP operating income nearly doubled to $730 million.
Non-GAAP EPS increased to $2.35 from $2.09 last year.
FY25 non-GAAP EPS guidance was raised to $8.05–$8.15.
Revenue by Segment
Forward Guidance
Cardinal Health raised and narrowed its FY25 non-GAAP EPS outlook to $8.05–$8.15, reflecting improved expectations across core segments and acquisitions.
Positive Outlook
- Increased FY25 EPS guidance to $8.05–$8.15.
- Improved outlook for Pharma & Specialty segment profit to 11.5%–12.5% growth.
- Raised 'Other' segment profit growth forecast to 16%–18%, up from ~10%.
- Completed acquisition of Advanced Diabetes Supply Group, enhancing at-Home capabilities.
- Updated share repurchase lowered expected average share count to ~242 million.
Challenges Ahead
- Revenue growth masked by previously communicated contract expiration.
- Higher non-GAAP effective tax rate at 22.4%, up from 19.9% YoY.
- Interest and other expense rose due to financing costs from acquisitions.
- Narrowed GMPD segment profit guidance to $130–$140 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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