Why This Matters to Distributors: Cardinal Health is expanding its specialized products and home care services while working to retain its largest customer. Its results also show uneven demand across health care distribution, with drug sales growing while medical supply sales remained flat.
Cardinal Health increased sales and profit in its fiscal first quarter as existing customers purchased more branded and specialty drugs. The distributor is also expanding its home care business through acquisitions and pursuing a longer distribution agreement with CVS Health.
The Dublin, Ohio-based company reported sales of $67.5 billion for the quarter ending Sept. 30, up 5% from $64 billion a year earlier. Net income attributable to Cardinal Health rose 23% to $554 million from $450 million. Those figures also represent their fiscal year-to-date results.
Sales in its Pharmaceutical and Specialty Solutions business increased 6% to $62.6 billion. Profit rose 17% to $783 million, supported by branded and specialty drugs and its generic drug program.
“We continue to benefit from focused investments, disciplined operations and the strength of our diversified portfolio,” CEO Jason Hollar said.
Results were weaker in Global Medical Products and Distribution. Sales remained flat at $3.2 billion, while profit fell 28% to $33 million. Lower distribution sales offset growth in Cardinal-branded products, and exchange rate changes also reduced profit
Cardinal is working to extend its relationship with CVS, its largest customer. On Oct. 1, it announced a binding letter of intent to continue its pharmaceutical distribution agreement through June 30, 2032.
The proposed extension would maintain the services Cardinal currently provides. CVS accounted for 28% of the distributor’s fiscal 2026 sales, making the relationship a substantial source of business.
Cardinal is also adding products and services for patients receiving care at home. In July, it announced agreements to buy AdaptHealth’s Diabetes Health business and Strive Medical, a medical supply provider focused on urology, for approximately $360 million combined.
The purchases would broaden the diabetes and urology products available through Cardinal’s at-Home Solutions business. Hollar said in July that the deals build on the company’s earlier investments in home care.
AdaptHealth disclosed a $235 million cash price for its diabetes business, subject to adjustments before closing. The operation supplies continuous glucose monitors, insulin pumps and related services, adding products and patient relationships to Cardinal’s home care business.
AdaptHealth said the sale would allow it to focus on sleep therapy, respiratory care and home medical equipment. The purchase remains subject to regulatory review and other closing requirements.
Cardinal said Nov. 5 that it expects to complete the diabetes acquisition during its fiscal third quarter.
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