Cardinal Health reported strong third-quarter fiscal 2025 results, with notable improvements in profitability and a raised full-year guidance.

Financial highlights:

- Revenue was $54.9 billion, flat compared to the same quarter last year, but up 19% when excluding the expired OptumRx contract.
- GAAP operating earnings rose to $730 million from $369 million, a 98% increase.
- Non-GAAP operating earnings rose 21% to $807 million.
- GAAP net income reached $506 million, or $2.10 per share, up from $261 million or $1.07 per share.
- Non-GAAP net income was $568 million, or $2.35 per share, compared to $511 million or $2.09 per share a year earlier.

Segment results:

- Pharmaceutical and Specialty Solutions revenue was flat at $50.4 billion, but rose 20% excluding OptumRx. Segment profit increased 14% to $662 million due to brand and specialty product growth and positive generics performance.
- Global Medical Products and Distribution revenue grew 2% to $3.2 billion. Segment profit rose 77% to $39 million, aided by cost optimization efforts.
- Other segment revenue (including at-Home Solutions, Nuclear, and OptiFreight) grew 13% to $1.3 billion. Segment profit increased 22% to $134 million.

Cash and capital highlights:

- Operating cash flow for Q3 was $2.9 billion.
- Adjusted free cash flow was $2.8 billion.
- Cash and equivalents stood at $3.3 billion.
- Long-term debt increased to $7.1 billion.
- Shareholder deficit narrowed to $1.9 billion.

Updated fiscal year 2025 guidance:

- Non-GAAP EPS range increased to $8.05–$8.15 from the previous $7.85–$8.00.
- Pharmaceutical and Specialty Solutions segment profit growth guidance was raised to 11.5–12.5%.
- Other segment profit growth guidance was raised to 16–18%.
- GMPD profit outlook narrowed to $130–$140 million.

Fiscal year 2026 outlook:

- Double-digit EPS growth is expected, with continued strength in Pharmaceutical and Other segments.
- GMPD segment profit expected to be at least consistent with fiscal 2025.
- More details will be provided during the June 12, 2025 Investor Day.

Key developments:

- Completed acquisition of Advanced Diabetes Supply Group.
- Expanded MSO platform through acquisitions in the urology space.
- Completed a $375 million accelerated share repurchase.
- Partnered with GE Healthcare on a new diagnostic agent for coronary artery disease.
- Named one of America’s Most Innovative Companies by Fortune for the third consecutive year.