Cardinal Health posts strong Q1 results

Cardinal Health's pharmaceutical and specialty solutions segment contributed to the company's strong performance in the first quarter, leading the Dublin, Ohio-based company to raise its fiscal 2025 enterprise guidance.

The company reported that its first quarter fiscal year 2025 revenue was $52.3 billion, a decrease of 4% from the first quarter of fiscal year 2024. First quarter revenue increased 15% excluding the impact of the previously communicated large customer contract expiration. 

Cardinal's first quarter GAAP operating earnings were $568 million and GAAP diluted earnings per share were $1.70. First quarter non-GAAP operating earnings increased 12% to $625 million, driven by significant growth in the pharmaceutical and specialty solutions segment profit, the company said.

The company's non-GAAP diluted EPS increased 9% to $1.88, due to the increase in non-GAAP operating earnings and a lower share count following share repurchase activity. This increase was partially offset by an increase in interest and other expenses and a higher non-GAAP effective tax rate, Cardinal Health said.

"We began fiscal 2025 by delivering strong operational and financial performance, led by the pharmaceutical and specialty solutions segment," said Jason Hollar, CEO of Cardinal Health. "The strength and resiliency of our largest and most significant business continues to shine, giving us confidence to raise our fiscal 2025 enterprise guidance only a quarter into the year. Across the business, we remain focused on executing our plan to best serve our customers and create value for our shareholders."

First quarter revenue for the pharmaceutical and specialty solutions segment decreased 5% to $48 billion. First quarter revenue increased 16% excluding the impact of the customer contract expiration, driven by brand and specialty pharmaceutical sales growth from existing customers.

The company’s pharmaceutical and specialty solutions segment profit increased 16% to $530 million in the first quarter, driven by a higher contribution from brand and specialty products, including the earlier seasonal launch of COVID-19 vaccine distribution, and positive generics program performance. This growth was partially offset by the customer contract expiration, Cardinal said.

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First quarter revenue for the global medical products and distribution segment increased 3% to $3.1 billion, driven by volume growth from existing customers.

Cardinal Health's global medical products and distribution segment profit decreased to $8 million in the first quarter, primarily due to higher manufacturing and health and welfare costs, largely offset by an improvement in net inflationary impacts.

The company’s first quarter revenue for Other increased 13% to $1.2 billion, driven by growth across the three operating segments: at-Home Solutions, Nuclear and Precision Health Solutions and OptiFreight Logistics.

Cardinal Health's Other segment profit increased 8% to $104 million in the first quarter, driven by the performance of OptiFreight Logistics.

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