CARDINAL HEALTH INC

Cardinal Health

What the company does

• Global healthcare services and products company serving hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients at home.
• Two primary reportable segments:
  • Pharmaceutical and Specialty Solutions (Pharma): distribution of branded and generic pharmaceuticals, specialty pharmaceuticals, and over‑the‑counter products; services to manufacturers and providers; pharmacy management services; MSO platforms for physician practices; and related services.
  • Global Medical Products and Distribution (GMPD): manufacturing, sourcing, and distribution of Cardinal Health brand medical, surgical, and laboratory products; distribution of national-brand products; and related supply‑chain services.
• Other operating segments:
  • Nuclear and Precision Health Solutions (nuclear pharmacies and radiopharmaceuticals)
  • At‑Home Solutions (Edgepark/ADS and Cardinal Health at‑Home distribution)
  • OptiFreight Logistics (healthcare shipping and logistics)

Size and financial highlights (fiscal year ended June 30, 2026)

• Revenue (GAAP): $254.248 billion
• Net earnings (GAAP) attributable to Cardinal Health, Inc.: $1.714 billion
• Consolidated net earnings (GAAP): $1.705 billion
• Diluted earnings per share:
  • GAAP diluted EPS: $7.23
  • Non‑GAAP diluted EPS: $11.26
• Segment profit (operating performance):
  • Pharma: $2.783 billion
  • GMPD: $258 million
  • Other: $707 million
  • Total segment profit: $3.748 billion
  • Corporate/other: negative $1.135 billion
  • Total consolidated operating earnings: $2.613 billion

Segment revenue detail (2026)

• Pharma: $234.833 billion
• GMPD: $12.719 billion
• Other: $6.792 billion
• Total segment revenue: $254.344 billion
• Corporate adjustments: -$0.096 billion
• Reported total revenue: $254.248 billion

Customers and concentration

• Largest customer in fiscal 2026: CVS Health, accounting for 28% of revenue.
• The five largest customers together accounted for 43% of fiscal 2026 revenue.
• Major group purchasing organizations generating revenue include Vizient, Inc. and Premier, Inc., which together accounted for 29% of revenue.
• Revenue from the five largest suppliers represented 39% of total revenue; the largest supplier accounted for about 13% of revenue.
• Loss of a major customer or GPO relationship could adversely affect the business.

Recent acquisitions and strategic moves

• Solaris Health (MSO in urology): completed November 3, 2025 for about $1.9 billion in cash.
• Urology America (MSO): completed May 2025 for about $0.38 billion.
• Advanced Diabetes Supply Group (ADS): completed April 2025 for about $1.0 billion.
• GI Alliance (GIA) (Gastroenterology MSO): completed January 2025 for about $2.8 billion.
• Integrated Oncology Network (ION) (oncology network): completed December 2024 for about $1.1 billion.
• The Solaris Health acquisition added a stake in The Specialty Alliance MSO platform. Navista and ION impairments were recorded in 2026, reflecting changes in the MSO portfolio and long‑term planning.

Employees and workforce

• Approximately 63,900 employees globally as of June 30, 2026.
  • About 18,100 based outside the United States
  • 92% full‑time
  • 37,000 work in distribution centers, manufacturing facilities, pharmacies, or as non‑provider employees of MSO platforms
  • 24,200 in other functions (finance, IT, HR, sales)
  • 2,700 healthcare providers
  • 7% covered by collective bargaining or similar representation
• Cardinal Health emphasizes human capital initiatives through its HRCC and broader culture and talent management programs.

Financial position and liquidity

• Cash and equivalents: about $4.9 billion at June 30, 2026.
• Net cash provided by operating activities: $5.2 billion in fiscal 2026.
• Major uses of cash in 2026: Solaris Health acquisition ($1.9B), share repurchases ($1.4B), capital expenditures ($0.649B), debt repayments ($0.600B), dividends ($0.491B).
• Issued long‑term debt to fund acquisitions and general purposes, net proceeds about $1.0B.
• Total long‑term debt and other borrowings (including current portion): approximately $8.69 billion as of June 30, 2026.
• Debt facilities and liquidity: $4.0B five‑year revolving credit facility established August 2026; additional facilities and programs include commercial paper, revolving facilities, and a committed receivables program.
• Share repurchases: active through 2026, including ASR programs; as of June 30, 2026, about $1.4 billion remained under the prior authorization. A new $5.0 billion share repurchase program was approved in August 2026.

Regulatory and risk context

• Subject to extensive healthcare, anti‑corruption, privacy, and trade regulations in the U.S. and internationally.
• Ongoing opioid litigation and related settlements have material financial implications and compliance obligations.
• Monitors tariff actions and potential trade policy changes with related financial impacts discussed in MD&A.

Summary

Cardinal Health is a large, diversified healthcare company anchored by two main segments that cover broad distribution of pharmaceuticals and medical/surgical products, supported by a growing portfolio of MSOs and at‑home health services through recent acquisitions. In 2026 the company generated about $254 billion in revenue, reported roughly $1.7 billion in GAAP net income, employed about 64,000 people, and maintained liquidity while pursuing strategic investments and an active share repurchase program. The business has concentrated exposure to major customers like CVS Health and to several large GPOs and suppliers.