Cardinal Health Details Momentum and Updated Long-Term Value Creation Plans at Investor Day
Key announcements:
Raising FY25 non-GAAP diluted EPS guidance to $8.15 to $8.201
Establishing preliminary FY26 non-GAAP diluted EPS guidance of $9.10 to $9.30 (13% growth at the mid-points)2
Confirming long-term target of 12% to 14% non-GAAP diluted EPS CAGR for FY26 to FY283
Raising long-term target for Pharmaceutical and Specialty Solutions profit to 5% to 7% normalized growth3,4
Raising long-term target for Other profit to ~10% normalized growth3,4,5
Updating GMPD long-term target to $50M+ of profit growth per year after FY26
Expecting at least $10B in total adjusted free cash flow over next three years
Raising baseline share repurchase plans to at least $750M per year
Company reiterating strategic priorities and providing updates across its businesses
DUBLIN, Ohio, June 12, 2025 /PRNewswire/ -- Cardinal Health (NYSE:CAH) today will host an Investor Day beginning at 9:00 a.m. ET, where management will detail its growth strategies to maximize the company's potential for all stakeholders.
"We are proud of the strong and resilient foundation we have built that enables us to deliver compelling future growth," said Jason Hollar, Chief Executive Officer of Cardinal Health. "We look forward to highlighting the significant opportunities in front of Cardinal Health as we continue to evolve to reach our full potential."
The company will also discuss its updated long-term financial outlook and capital allocation plans, with its disciplined capital allocation framework remaining unchanged.
Aaron Alt, Chief Financial Officer of Cardinal Health commented, "With the benefits of our robust cash flow generation, continued investments in the business and accelerating contributions from higher-margin businesses, we are positioning our business to deliver sustainable long-term growth and value creation."
Strategic Updates
Cardinal Health continues to prioritize building upon the growth and resiliency of Pharmaceutical and Specialty Solutions by expanding in Specialty, accelerating its growth businesses and executing GMPD Improvement Plan initiatives.
Launching The Specialty AllianceThe Specialty Alliance multi-specialty MSO platform will encompass the recently acquired GI Alliance, as well as the newly established Urology Alliance following the company's broadened therapeutic reach into urology with the recent acquisitions of Urology America and Potomac Urology.
The company's MSO platforms, including The Specialty Alliance and the separately managed Navista oncology alliance, now support approximately 2,200 providers across 28 states and over 450 sites of care.
Expanding Biopharma SolutionsCardinal Health announces continued investments in Biopharma Solutions. The Specialty Networks' PPS Analytics and SoNaR data and insights platforms, originally focused upon urology, are launching into oncology and further expanding in gastroenterology and rheumatology, in support of Cardinal Health's manufacturer partners and practitioner customers, including physicians served by the company's MSO platforms. Additionally, the company expects its Sonexus™ Access and Patient Support "hub" platform to more than double its supported therapies by fiscal year 2028.
Investing in Core Pharmaceutical DistributionThe Consumer Health Logistics Center (CHLC) in Ohio has begun to take delivery of inventory and will be fully operational in July 2025. The CHLC is the first step in a multi-year path towards increasing capacity and driving efficiencies across the company's pharmaceutical distribution network.
Cardinal Health also announces plans to build a new state-of-the-art forward distribution center with the latest in automation technology and is currently conducting a multi-state evaluation of potential locations.
Additionally, Cardinal Health's new customer ordering platform, Vantus HQ, has reached critical mass, enabling retail customers with enhanced capabilities for searching products, tracking orders and accessing reporting.
Accelerating growth across Nuclear and Precision Health Solutions, at-Home Solutions and OptiFreight LogisticsNuclear and Precision Health Solutions plans to invest over $150 million over the next three years in support of the substantial theranostics and PET product pipeline across the industry in areas such as oncology, urology and neurology. The business announces the expansion of its cyclotron network for PET products in 11 markets across the United States and the further expansion of its Center for Theranostics Advancement, including its pharmacy dispensing and commercial capabilities.
Following the completion of the acquisition of Advanced Diabetes Supply (ADS) on April 1, at-Home Solutions has begun realizing anticipated acquisition synergies, including the distribution network integration of the ADS business, with completion expected within six months. at-Home Solutions also announces the opening of its automated Fort Worth facility and plans for further automation distribution center expansion at three additional sites, including two new distribution centers planned in the West and the Northeast.
