Cardinal Health Reports Strong Q1 Results

DUBLIN, Ohio – Cardinal Health (NYSE: CAH) reported better-than-expected first quarter results and raised its full-year earnings guidance, resulting in a 1.36% increase in shares during premarket trading on Friday.

The healthcare services company achieved adjusted earnings per share of $1.88 for the fiscal first quarter, surpassing analyst expectations of $1.62. Revenues totaled $52.3 billion, exceeding the consensus forecast of $50.9 billion.

Cardinal Health now anticipates adjusted earnings per share for the full year 2025 to be between $7.75 to $7.90, an increase from the previous outlook of $7.55 to $7.70 and above Wall Street's estimate of $7.63.

CEO Jason Hollar stated, "We began fiscal 2025 by delivering strong operational and financial performance, led by the Pharmaceutical and Specialty Solutions segment. 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."

The company updated its Pharmaceutical and Specialty Solutions segment profit growth outlook to 4-6%, increased from 1-3% previously. However, its Global Medical Products and Distribution segment profit forecast was lowered to $140-$175 million from around $175 million, attributing the change to higher health and welfare costs.

Cardinal Health also adjusted its expected free cash flow to $1.0-$1.5 billion, up from approximately $1.0 billion.

Although first quarter revenue decreased 4% YoY to $52.3 billion, it increased by 15% when excluding the effects of a previously announced large customer contract expiration. Non-GAAP operating earnings rose 12% to $625 million, driven by substantial growth in the Pharmaceutical and Specialty Solutions segment.

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