Cardinal Health reported second-quarter fiscal year 2025 revenue of $55.3 billion, a 4% decline from the prior year, primarily due to the expiration of a large customer contract. Excluding this impact, revenue grew 16%. GAAP operating earnings rose 9% to $549 million, and GAAP diluted EPS increased 10% to $1.65. Non-GAAP operating earnings also grew 9% to $635 million, driven by strong performance in the Pharmaceutical and Specialty Solutions segment. Non-GAAP diluted EPS increased 2% to $1.93.

The company raised its full-year fiscal 2025 non-GAAP EPS guidance to a range of $7.85 to $8.00, up from the previous range of $7.75 to $7.90. The revised guidance reflects stronger growth in the Pharmaceutical and Specialty Solutions segment and the completion of acquisitions, including a 73% ownership stake in GI Alliance.

Segment performance varied, with Pharmaceutical and Specialty Solutions revenue down 4% to $50.8 billion due to the contract expiration but increasing 17% excluding this impact. Segment profit rose 7% to $531 million, driven by growth in BioPharma Solutions and specialty pharmaceutical sales. The Global Medical Products and Distribution segment saw revenue increase 1% to $3.2 billion, while segment profit rose to $18 million due to cost optimization initiatives. The "Other" segment, which includes at-Home Solutions and Nuclear and Precision Health Solutions, reported 13% revenue growth to $1.3 billion, with segment profit increasing 11% to $118 million.

During the quarter, Cardinal Health completed acquisitions of GI Alliance and Integrated Oncology Network, strengthening its specialty healthcare offerings. The company also started routine production of actinium-225 for cancer treatment, launched a new at-Home Solutions distribution center, and introduced the Kendall SCD SmartFlow™ Compression System in the U.S.

Despite a $400 million net cash outflow from operations in Q2, the company secured $2.9 billion in new debt financing to support acquisitions. The effective tax rate declined to 21.4% from 27.9% in the prior year.

Looking ahead, Cardinal Health expects Pharmaceutical and Specialty Solutions segment profit to grow between 10% and 12%, higher than the previous 4% to 6% estimate. However, guidance for Global Medical Products and Distribution segment profit was lowered to $130 million to $150 million due to a write-off in its WaveMark business.

The company remains focused on specialty healthcare expansion, operational efficiencies, and strategic acquisitions to drive future growth.