Cardinal Health, a leading global healthcare services and products company, reported strong results for the third quarter of fiscal year 2025. The company, known for its role in providing pharmaceutical and medical products, saw impressive growth despite challenges in the broader market. Total revenue remained steady at $54.9 billion.
For Q3 2025, Cardinal Health saw its net income double compared to the same period last year, reflecting its ability to navigate the complexities of the healthcare market. The growth was driven by solid performance across its key business units and effective cost optimization strategies.
Cardinal Health is one of the largest global healthcare services and products companies. It operates primarily in two segments: Pharmaceutical and Specialty Solutions, and Global Medical Products and Distribution. The company provides a broad portfolio, including branded and generic drugs, medical and surgical products, and healthcare management solutions. Cardinal Health works with healthcare providers—such as hospitals, pharmacies, and clinics—helping them improve patient care and manage costs in an increasingly complex healthcare system.
The Pharmaceutical and Specialty Solutions segment, which is the largest contributor to Cardinal Health’s revenue, generated $50.4 billion in the third quarter. While this figure was flat compared to last year, when adjusted for the expiration of a key customer contract, the segment posted an impressive 20% year-over-year growth in revenue. This growth was driven by strong sales in branded and specialty drugs, as well as the early contributions from recent acquisitions, including GI Alliance and Integrated Oncology Network. These acquisitions have bolstered Cardinal Health’s capabilities in healthcare services, broadening its product range.
The segment’s profit increased by 14%, reaching $662 million. This was driven by strong demand in the branded and specialty drug categories, which have been a key focus as healthcare providers seek more innovative treatment options. Additionally, the integration of recent acquisitions further enhanced Cardinal Health’s ability to offer comprehensive healthcare solutions and strengthen its market position.
Cardinal Health’s Global Medical Products and Distribution segment, focused on the distribution of medical and surgical products, saw a modest revenue increase of 2%, totaling $3.2 billion. However, the segment’s profit surged by 77%, rising to $39 million. This significant increase in profitability was driven by cost optimization initiatives that improved operational efficiency and reduced expenses. Despite tighter margins in the medical products sector, the company’s effective management helped boost profitability.
CEO Jason Hollar commented on the company’s robust performance, emphasizing Cardinal Health’s critical role in the healthcare ecosystem. “In this complex macro environment, our role as healthcare’s crucial link is more important than ever,” Hollar said. “We bridge the clinical and operational aspects of healthcare, delivering end-to-end solutions that touch every part of the care continuum.” He highlighted that the company’s integrated approach to healthcare sets it apart from competitors and positions it for continued growth despite the market’s challenges.
Hollar also reaffirmed Cardinal Health’s commitment to innovation and adapting to the evolving healthcare landscape. Recent acquisitions, coupled with a continued focus on cost optimization and operational efficiency, are expected to drive long-term growth.
Following the release of Q3 results, analysts responded positively, noting that Cardinal Health’s steady utilization in its core pharmaceutical business and the impressive performance of recent acquisitions would drive future growth. Barclays analysts pointed out the company’s strong execution in integrating acquisitions, which positions Cardinal Health well to benefit from the increasing demand for specialized drug therapies and comprehensive healthcare solutions.
Morgan Stanley also raised its price target for Cardinal Health, reflecting confidence in the company’s ability to continue expanding its pharmaceutical business and capitalizing on recent acquisitions. Analysts remain optimistic about Cardinal Health’s long-term potential, particularly in the Pharmaceutical and Specialty Solutions segment.
For Q3 2025, Cardinal Health reported total revenue of $54.9 billion, which, when adjusted for the customer contract expiration, represents a 19% year-over-year increase. Net income nearly doubled, rising significantly compared to the same quarter last year, demonstrating the company’s strong operational performance and strategic positioning. This increase in profitability underscores Cardinal Health’s ability to grow even in a challenging healthcare market.
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