Cardinal Health Reports Revenue Increase and Strategic Acquisitions in Latest Quarter

Cardinal Health, Inc. reported a slight increase in revenue for the three months ended March 31, 2025, achieving $54.9 billion compared to $54.9 billion in the same period last year. However, revenue for the nine months ended March 31, 2025, decreased to $162.4 billion from $167.0 billion in the prior year. The company's gross margin improved to $2.1 billion for the quarter, up from $1.9 billion a year earlier, while operating earnings rose significantly to $730 million from $369 million. Net earnings attributable to Cardinal Health increased to $506 million, or $2.10 per diluted share, compared to $261 million, or $1.07 per diluted share, in the prior year.

The company experienced notable changes in its operational structure, primarily driven by significant acquisitions. Cardinal Health completed the acquisition of Integrated Oncology Network (ION) for $1.1 billion in December 2024 and a 73% ownership interest in GI Alliance (GIA) for approximately $2.8 billion in January 2025. These acquisitions are expected to enhance Cardinal Health's capabilities in the oncology sector and expand its service offerings. Additionally, the company announced plans to acquire Urology America, pending regulatory approvals, further indicating its strategic focus on expanding its healthcare services portfolio.

In terms of operational metrics, Cardinal Health's Pharmaceutical and Specialty Solutions segment generated $50.4 billion in revenue for the quarter, a slight decrease from $50.6 billion in the previous year. The Global Medical Products and Distribution segment reported revenue of $3.2 billion, up from $3.1 billion. The company also reported an increase in total assets to $49.9 billion as of March 31, 2025, compared to $45.1 billion at the end of the previous fiscal year, reflecting the impact of recent acquisitions. The total liabilities increased to $51.8 billion, up from $48.3 billion, primarily due to the financing of these acquisitions.

Cardinal Health's share repurchase program remains active, with $375 million allocated for share buybacks in an accelerated share repurchase (ASR) program initiated in February 2025. The company has $2.7 billion remaining under its $3.5 billion share repurchase program approved in June 2023. The company also declared cash dividends of $0.5056 per share during the quarter, reflecting a commitment to returning value to shareholders.

Looking ahead, Cardinal Health anticipates continued growth driven by its recent acquisitions and strategic initiatives. The company aims to leverage its expanded capabilities in oncology and other healthcare services to enhance profitability and market share. However, it remains cautious about potential market fluctuations and regulatory challenges that could impact its operations. The company is committed to maintaining its focus on operational efficiency and cost management as it navigates the evolving healthcare landscape.