Cardinal Health Company Teardown Report 2026

JAN 2026

COMPANY TEARDOWN

CARDINAL HEALTH

MEET THE

MARKET INTELLIGENCE TEAM

About RXinsider

Founded in 1999, RXinsider is a pharmacist-founded marketing/

communications (MARCOM) and market intelligence (INTEL) company

focused on pharmacy operations and the companies supporting

dispensing pharmacies. Through our publications, digital platforms,

market research, and training resources, RXinsider educates pharmacy

management and industry professionals on the products, services,

and trends that impact pharmacy operations across the supply chain.

RXinsider’s Market Intelligence (INTEL) Group performs market research

on the pharmacy operations supply chain and the Pharmacy500

companies. Through our weekly reports, digital awareness, and online

training, the INTEL Group educates Pharmacy500 professionals and

pharmacy management on the products and services impacting

pharmacy operations.

Report Lead

Ellie Krouse

Alexa DiLuca

Senior Marketing Manager

Gregory Cianfarani, RPh

Founder & CEO

Ellie Krouse

Pharmacy500 Market Analyst

ellie.krouse@rxinsider.com

Emma Cidade

Pharmacy500 Market Analyst

emma.cidade@rxinsider.com

Lexi Cianfarani

Pharmacy500 Market Analyst

lexi.cianfarani@rxinsider.com

Jeff Rackliff

Senior Pharmacy500 Market Analyst

jeff.rackliff@rxinsider.com

Table of Contents

• Introduction...................................................................2-3

• Executive Snapshot........................................................ 4

• Strategic Initiatives.......................................................... 5

• Cardinal Health History & Timeline.............................. 6

• Notable M&A & Divestitures Timeline......................7-8

• Locations.......................................................................... 9

• Cardinal Health Org Charts Overview:.......................10

• Pharmaceutical and Specialty Solutions.....11-12

• Global Medical Products and Distribution...13-14

• Other Operating Segments...................................15

• Overview of Business Revenues................................16

• Notable Market Risks...................................................17

• Stock Analysis................................................................18

• Customers & Competition...........................................19

• Conferences...................................................................20

• References......................................................................21

• Pharmacy500 Companies.....................................22-25

A 2026 Company Breakdown of Cardinal Health

The pharmacy operations supply chain contains many companies

that may be difficult to understand due to their size, complexity,

and dynamic M&A nature. The spirit of RXinsider’s “Company

Teardown” reports is to educate pharmacy professionals,

pharmacists, and pharmacy students on our industry’s largest

companies by simplifying, organizing, and presenting publicly

available information in a consistent and organized format.

Future Company Teardown Reports will focus on other complex

companies including BD, Cencora, Omnicell, Bluesight, and others.

Company Teardown Reports are training aids developed for

general education purposes and are biased toward presenting

the information we feel our pharmacy audience would find most

relevant. These reports may be incomplete, are general in nature,

and should not be used for making investing decisions. Please

refer to the Cardinal Health website for details.

Cardinal Health defines itself the following way:

“Cardinal Health is a distributor of pharmaceuticals

and specialty products; a supplier of home-health and

direct-to-patient products and services; an operator

of nuclear pharmacies and manufacturing facilities;

a provider of performance and data solutions; and

a global manufacturer and distributor of medical

and laboratory products. Our company’s customer-

centric focus drives continuous improvement and

leads to innovative solutions that improve people’s

lives every day.”

EXECUTIVE SNAPSHOT

COMPANY TEARDOWN

Source: Carrdinal Health

Cardinal Health operates a network of 130+ nuclear

pharmacies in 45 states – the largest in the industry.

#15

Fortune 500 Rank

90%

U.S. Hospitals Served

6M+

Patients Served in the

Home by Direct-to-

Patient Business

43K+

Pharmaceutical Seliveries a Day

“Cardinal Health is the crucial link

in healthcare. Few companies

offer the combination of a resilient

business model and compelling

growth while safely, securely and

efficiently delivering the products

and solutions that improve the

lives of people each day and

value for all stakeholders.”

– CEO, Jason Hollar

EMPLOYEE BREAKDOWN:

~ 57,700 employees globally*

~39,200 U.S. employees

*92% of global employees are full-time.

OptiFreight Logistics provides expertise in logistics management

to seven of the country’s top 10 health systems.

$222.6B

FY25 revenue

FISCAL YEAR:

Ends JUN 30, 2025

HQ: Dublin, OH

Strategic Initiatives

The following high-level list of company-wide strategic initiatives

is extracted from Cardinal Health 2025 Annual Report.

•

The new Consumer Health Logistics Center (CHLC) in Central Ohio is the first step in a

multi-year plan to increase capacity and drive efficiencies across pharmaceutical

distribution network.

•

Investing in new technologies to create efficiencies for our customers. Specifically, Vantus™

HQ, our proprietary ordering platform, is a one-stop digital hub that gives retail pharmacists

enhanced capabilities to search products, track orders and access reporting.

•

The new Specialty Alliance is a multi-specialty managed services organization (MSO)

platform that encompasses GI Alliance and provides administrative and management

services to physicians’ practices, enabling providers to focus on patient care.

• Specialty Networks, which creates value for independent specialty providers and partners

across multiple specialties, is expanding into oncology.

• Nuclear and Precision Health Solutions (NPHS) plans to invest more than $150 million

over the next three years, enabling an expansion of its cyclotron network for PET products

in 11 markets across the U.S.

•

at-Home Solutions recently opened its Fort Worth, Texas, facility, equipped with automation

technologies, and announced plans for further automation expansion in one existing

distribution center (DC) and in two new DCs planned in the West and the Northeast.

Cardinal Foods bought Bailey Drug Company,

and became Cardinal Distribution, Inc.

Robert D. Walter, purchased Monarch

Foods, to start a grocery distribution

company he called Cardinal Foods.

1971

Image courtesy of Cardinal Health.

Bailey Drug Company, an acquisition

that would later become

Cardinal Distribution.

Image courtesy of Cardinal Health.

Cardinal Health founder

Robert D. Walter (1971).

1980

Early success in pharmaceutical distribution leads

to an initial public offering, with common stock

trading on NASDAQ at $1.03 per share.

1983

Cardinal Health acquired the Allegiance Corporation, a maker

of drapes, gowns, gloves and other hospital supplies.

1999

Cardinal Health bought Kinray, greatly expanding Cardinal

Health retail independent presence in the northeast U.S.

2010

Cardinal Distribution became Cardinal Health, Inc.

1994

Cardinal Health acquired Syncor International,

making Cardinal Health a leading provider of

nuclear pharmacy services in the U.S.

2003

Cardinal Health acquired

Wavemark, giving them Cardinal

Inventory Manager, and pushing

the company forward into the

services market. Cardinal Health

acquired AssuraMed, a business

that became Cardinal Health at

Home, which places the company

in the direct-to-patient space.

2013

Cardinal Health History & Timeline

Cardinal Health acquires Cordis, which provided leading

interventional vascular technology and a strong global

footprint. Cardinal Health also acquired Metro Medical,

expanding their Specialty Distribution business.

2015

Cardinal Health buys Medtronic’s

Patient Recovery business, diversifying

and increasing the depth of Cardinal

Health medical products portfolio.

2017

1995: The Medicine Shoppe (Acquired)

1996: Pyxis (Acquired)

1997: Bergen Brunswig Corp (Acquired)

1998: R.P. Scherer Corporation (Acquired)

1999: Alligence Corporation (Acquired)

1999: Automatic Liquid Packaging (Acquired)

1980: Bailey Drug Company (Acquired)

1987: Leader Drugstores Inc (Acquired)

1980s

1990s

2000: Bindley Western Industries (Acquired)

2002: Boron, Lepore & Associates (Acquired)

2002: Magellan Laboratories (Merged)

2003: Syncor (Acquired, then closed independent locations)

2003: Gala Biotech (Acquired)

2004: Geodax Technology (Acquired)

2004: Alaris Medical Systems (Acquired)

2006: Cardinal Health Canada (Expansion into Canada)

2006: Pharmaceutical Wholesale Distribution

Business from The F. Dohmen Co. (Acquired)

2006: Parmed Pharmaceuticals, Inc (Acquired)

2006: Denver Biomedical (Acquired)

2006: Care Fusion (Acquired)

2006: Medmined (Acquired)

2007: Viasys Healthcare (Acquired)

2007: Pharmaceutical Technologies and

Services (PTS) (SOLD to Blackstone)

2008: Enturia (Acquired)

2008: Borschow Hospital & Medical Supplies (Cardinal Health

Puerto Rico) (Acquired and expanded into Puerto Rico)

2009: Biotech (Acquired)

2009: CareFusion (SPUNOFF into own company)

2009: BioTech (Acquired)

2000s

2010: Yong Yu/ Zuellig (Acquired)

2010: Kinray (Acquired)

2010: Yong Yu/ Zuellig (including Cardinal

Health Medical Equipment Consulting Shanghai

Co) (SOLD to SHANGHAI PHARMA)

2010: Healthcare Solutions Holding, LLC (Acquired)

2010: OptiFreight (Acquired)

2011: Futuremed Health Care Products (Acquired)

2012: Emerge Medical (Announced Strategic Partnership)

2012: Dik Drug (Acquired)

2013: Wavemark (Acquired)

2013: AssuraMed (Acquired)

2013: Red Oak Sourcing (CREATED WITH CVS)

2014: Bayer/Xofigo® (Cardinal appointed

manufacturer for U.S. market)

2014: CareFusion (SOLD to BD)

2014: Aero Med LLC (Acquired)

2010s

Notable M&A & Divestitures Timeline

2021: Outcomes™ (LAUNCH)

2021: Cordis (including Cordis Shanghai Medical

Devices Co Ltd) (SOLD to Hellman & Freidman)

2022: ScalaMed (Outcomes™ Divsion acquires Scalamed)

2022: Innara Health (INVESTMENT)

2022: Innara Health (Acquired)

2023: Outcomes (SOLD to TDS and merged)

2024: GI Alliance (Majority Stake)

2024: Integrated Oncology Network/Navista (Acquired)

2024: Specialty Networks (Mosaic GPO, United

Rheumatology LLC, Urogpo LLC, UroGPO, Gastrologix

and GastroGPO, Traverse GPO) (Acquired)

2025: Advanced Diabetes Supply Group (Acquired)

2025: Solaris Health (Acquired)

2025: Cardinal Health Australia (Expanded into Australia)

2020s

2014: AccessClosure (Acquired)

2014: Innovative Therapies LLC (Acquired)

2014: Sonexus Health (Acquired)

2014: Emerge Medical (Acquired)

2015: Harvard Drug Group (Acquired)

2015: Cordis (Acquired)

2015: Metro Medical (Acquired)

2015: RainTree Oncology Services

(Became exclusive distributor)

2016: Telepharm (Acquired)

2016: Raintree (Acquired)

2017: A+ Secure Packaging LLC (Acquired)

2017: Medtronic’s Patient Recovery (Acquired company

and product portfolio) (Kendall-Gammatron)

2019: mscripts® (Acquired)

2019: Mirixa Corporation (Acquired

& integrated into Outcomes)

Notable M&A & Divestitures Timeline (Cont.)

2010s (cont.)

Cardinal Health Owned Companies by Location

INTERNATIONAL MANUFACTURING LOCATIONS:

Canada, Costa Rica, the Dominican Republic, Germany, Ireland,

Japan, Malaysia, Malta, Mexico, Puerto Rico, and Thailand.

Cardinal Health Divisions Breakdown

Pharmaceutical and Specialty Solutions

Segment

Cardinal Health’s Pharma segment distributes branded and generic pharmaceutical, specialty

pharmaceutical, and over-the-counter healthcare and consumer products in the U.S. This segment

also provides services to pharmaceutical manufacturers and healthcare providers for specialty

pharmaceutical products; provides pharmacy management services to hospitals and operates a

limited number of pharmacies, including pharmacies in community health centers; repackages

generic pharmaceuticals and over the counter healthcare products; and includes their managed

services organization platforms for specialty physician offices.

Cardinal Health operates its business in three reportable segments:

Pharmaceutical and Specialty Solutions Segment, Global Medical

Products and Distribution Segment, and Other Operating Segments.

Global Medical Products and

Distribution Segment

Cardinal Health’s GMPD segment manufactures, sources, and distributes Cardinal Health brand

medical, surgical, and laboratory products, which are sold in the U.S., Canada, Europe, Asia, and other

markets. This segment also distributes a broad range of medical, surgical, and laboratory products

known as national brand products to hospitals, ambulatory surgery centers, clinical laboratories, and

other healthcare providers in the U.S. and Canada.

Other Operating Segments

Cardinal Health’s three growth businesses, Nuclear and Precision Health Solutions (NPHS), at-Home

Solutions and OptiFreight Logistics, have been reported together as “Other” since 2024.

Managed Services

Organization

Platforms

Pharmaceutical

Distribution and

Repackaging

Pharmaceutical and

Specialty Solutions Segment

Cardinal

Health’s

Pharma

segment

distributes

branded

and

generic

pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare

and consumer products in the U.S. This segment also provides services

to pharmaceutical manufacturers and healthcare providers for specialty

pharmaceutical products; provides pharmacy management services to

hospitals and operates a limited number of pharmacies, including pharmacies

in community health centers; repackages generic pharmaceuticals and over the

counter healthcare products; and includes their managed services organization

platforms for specialty physician offices.

BD Eclipse™

Needles.

SOURCESM Generics

Generic pharmaceutical sourcing.

CardinalASSIST™ ADM Logistics

End-to-end, automated inventory

replenishment solution that delivers

medications daily.

Pharmaceutical Packaging Solutions

Turnkey management for pharmaceutical

packaging projects.

(Integrated Oncology Network)

A physician-led organization that partners

with hospitals and independent practices to

offer management services to help cancer

centers thrive and deliver an integrated

patient experience.

National healthcare platform committed to

enhancing access to specialty healthcare

and continually improving patient

outcomes.

Physician-led gastroenterology (GI)

practice, providing management and

operational support to independent GI

doctors and practices across the U.S.

Generic drug distribution.

Generic drug and medical supplies

distribution.

A pharmaceutical wholesaler for

independent pharmacies.

A joint venture between CVS Health and

Cardinal Health that sources and secures

generic pharmaceutical drugs.

Pharmacy

Management and

Operations Services

Pharmaceutical and

Specialty Solutions Segment

Cardinal

Health’s

Pharma

segment

distributes

branded

and

generic

pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare

and consumer products in the U.S. This segment also provides services

to pharmaceutical manufacturers and healthcare providers for specialty

pharmaceutical products; provides pharmacy management services to

hospitals and operates a limited number of pharmacies, including pharmacies

in community health centers; repackages generic pharmaceuticals and over the

counter healthcare products; and includes their managed services organization

platforms for specialty physician offices.

Specialty Pharmacy

Services

Sonexus™ Access and Patient Support

Service that helps patients get and stay

on complex, specialty medications by

managing financial assistance, prior

authorizations, and adherence support.

MMS Solutions™ Specialty Pharmacy

Specialty pharmacy resources.

WaveMark™ Solutions

Clinical Supply Chain Solutions insights.

IntelliWave™ Technology: data capture

agnostic and leverages barcode and RFID

technology to capture data from multiple

sources at the most discrete levels.

WaveMark™ Advanced Analytics Portfolio:

integrated insights for clinical and supply

chain teams.

• WaveMark™ Action Center: action-

oriented insights for daily inventory

management.

• WaveMark™ Performance Dashboard:

analytics dashboard to identify

opportunities for improvement.

• WaveMark™ Procedure Card Optimizer:

EHR and data usage for card

optimization opportunities.

• WaveMark™ Resiliency Center: real-time

data, predictive analytics to maintain

supply availability, reduce waste, and

stay operationally resilient during

disruptions.

• WaveMark™ Disruption Manager:

quickly identify, track, and respond

to supply disruptions to minimize

operational impact.

• WaveMark™ Data Explorer: interactive

analytics tool that gives health systems

visibility into supply usage, inventory

trends, and performance insights.

National pharmacy chain.

ValueLink™ Distribution Service

Helps hospitals contain distribution costs,

streamline supply processes and reduce

supply inventory by distributing product

in the most logical (low) unit of measure

(LUM) possible.

InteLogix™

First proactive pharmaceutical supply

chain solution for hospitals.

Atrix™ Ally

Comprehensive service available to

minimize regimen order rejections and

denials and coordinate programs for

patient financial support.

Atrix™ Assistance

Reduce your costs for caring for uninsured

patients, while ensuring they get the

medications they need (navigates Patient

Assistance Programs).

Cardinal Health™ Inventory Optimization

Solution

Web-based, automated answer to your

prescription drug inventory challenges.

EQuIPP™

PSAO service for retail pharmacy.

Vantus™ HQ

eCommerce experience with integrated

workflows and streamlined processes

so your team can focus on the core of

business operations.

RxID Select™ Inventory Management

Platform

Streamline the management of retina

medications.

Cornerstone Rheumatology™ GPO

Rheumatology-focused group purchasing

organization.

Mobile and web-based platform for patient

medication adherence and engagement.

CastroGPO, GastroLogix, United

Rhematology, UROGPO (independent

specialty GPO network).

MosaicGPO™ Solutions

Specialty GPO solutions.

Renal Purchasing Group™ GPO

for nephrology

Dialysis and nephrology GPO.

Traverse™ GPO

GPOs for outpatient clinics owned by a

health system.

Acuity™ GPO

GPO for ophthalmology practices.

VitalSource™ GPO

Exclusive contract, a major independent

Group Purchasing Organization (GPO) for

oncology practices.

Global Medical Products and

Distribution Segment

Cardinal Health’s GMPD segment manufactures, sources, and distributes Cardinal

Health brand medical, surgical, and laboratory products, which are sold in the U.S.,

Canada, Europe, Asia, and other markets. This segment also distributes a broad

range of medical, surgical, and laboratory products known as national brand

products to hospitals, ambulatory surgery centers, clinical laboratories, and other

healthcare providers in the U.S. and Canada.

Gloves

FLEXAL™

Glove line, a part of the nitrile portfolio.

ESTEEM™

Glove line, a part of the nitrile portfolio.

Protexis™

Non-latex glove line.

DURAPRENE™

Glove line for sterile controlled

environments.

MULTI-FLEX™

Non-sterile controlled environment

glove line.

Protegrity®

Glove line for sterile controlled

environments.

Enteral Feeding

Tubes and Devices

SAF-T Pump™

Waste Disposal System quickly and safely

disposes of liquid medical waste into the

sanitary sewer with no pouring required

ChemoPlus™

Product line for compounding or

administering chemotherapy drugs

Monoject™

Full line of medication delivery and disposal

solutions

Hip-O™

Surgical drape

Lab Supplies and

Equipment

Precision™

Cost-effective, high quality lab supplies.

AccuTip®

Various pipettor tips used for liquid

handling in laboratory settings.

Gentleheel®

Line of safety lancet and accessories.

OEM Medical

Specialty Products

Uni-Patch™

Line of specialty electrodes and

accessories designed for skin-sensitive

patients, difficult placement sites, EMG

applications and post-operative treatments.

Patient Monitoring

Kendall™

Line of various medical products.

Medi-Trace™ Cadence™

Multi-function defibrillation electrodes for

adults and pediatrics.

Filac™

Electronic thermometers and related

accessories.

Genius™

Medical Grade thermometers and

accessories.

Surgical Supplies and

Equipment

Altitude™

Dry suction chest drainage unit.

Aqua-Seal™

Cardiothoracic products.

Sentiel Seal™

Dry suction chest drainage unit.

Devon™

Operating room products.

Cardinal Health’s GMPD segment manufactures, sources, and distributes Cardinal

Health brand medical, surgical, and laboratory products, which are sold in the U.S.,

Canada, Europe, Asia, and other markets. This segment also distributes a broad

range of medical, surgical, and laboratory products known as national brand

products to hospitals, ambulatory surgery centers, clinical laboratories, and other

healthcare providers in the U.S. and Canada.

Patient Care

Argyle™

Respiratory and patient care supplies.

VTE Prevention

Solutions

T.E.D.™

Anti–embolism stockings.

Infection Control

Salem Sump™

Line of dual-lumen nasogastric tubes.

Kangaroo™ Systems

Comprehensive portfolio of enteral

feeding (tube feeding) products for adults,

pediatrics, and neonates.

Kangaroo OMNI™

Portable enteral nutrition delivery pump

and accessories.

Medi-Vac®

Suction canister systems a part of the fluid

management product portfolio.

SmartGown™ EDGE

Pocketed surgical gown, designed in

collaboration with Mayo Clinic.

Jackson-Pratt®

Wound drainage products.

Hemaduct®

Part of the Jackson-Pratt® wound

drainage portfolio.

Skin and Wound

Management

TruBrez™

Underpads, designed for high-risk skin in

critical care.

Wings™

Incontinence management products.

Wings™ BreatheEasy™

Breathable incontinence management

products.

Curity™

Wound care products .

Sure Care™

Incontinence management products.

Webcol™

Alcohol prep pads.

Kerlix™

Wound care products.

Dermacea™

Wound care products.

Telfa™

Non-adherent dressings.

Presource®

Procedural Packs

and Solutions

Presource® Pack Manager™

A data-driven procedural pack solution with

software and customizable/standardized

kits containing medical supplies for various

procedures.

Procedure-Based Delivery Systems (PBDS®)

Kitting service designed to streamline

picking process and optimize time in the OR.

By bundling pre-, intra- and post-operative

procedural supplies into modular kits.

Global Medical Products and

Distribution Segment

Other Operating Segment

Cardinal Health’s three growth businesses, Nuclear and Precision Health Solutions

(NPHS), at-Home Solutions and OptiFreight Logistics, have been reported together

as “Other” since 2024.

at-Home Solutions

Cardinal Health’s at-Home Solutions operating segment

has two main businesses: Edgepark, including ADS,

directly providing medical supplies to patients with

chronic conditions in the home; and at-Home, a business-

to-business distribution service that delivers medical

supplies and over-the-counter products to home medical

equipment providers, home health and hospice agencies,

and e-commerce providers.

Nuclear and Precision

Health Solutions

OptiFreight®

Logistics

Cardinal Health’s Nuclear and Precision Health Solutions

operating segment operates nuclear pharmacies and

manufacturing facilities, which manufacture, prepare,

and deliver radiopharmaceuticals for use in nuclear

imaging, theranostics, and other procedures in hospitals

and physician offices. This segment also contract

manufactures a radiopharmaceutical treatment (Xofigo®)

and holds the North American rights to manufacture

and distribute Lymphoseek®, a radiopharmaceutical

diagnostic imaging agent.

Cardinal Health’s OptiFreight® Logistics operating

segment supports the shipping and logistics needs of

healthcare providers by optimizing direct shipments

through integrated technology solutions. This segment

serves hospitals, pharmacies, labs, and surgery centers.

25,000+ shipping locations managed.

Advanced Diabetes Supply Group

Diabetes equipment supplier.

Cardinal Health holds the North American rights to

manufacture and distribute, radiopharmaceutical

diagnostic imaging agent.

ISOTRAC™

Proprietary pharmacy operating system.

Portfolio of SPECT radiopharmaceuticals.

Portfolio of PET biomarkers.

Nuclear Medicine Continuing Education and Learning:

Cardinal Health offers live virtual.

Nuclear Medicine Technologist CE courses in a variety of

pertinent topics.

Health Physics Services

Nuclear pharmacy compliance testing and reporting.

Nuctrac™

Integrated, cloud-native solution specifically designed

to help you manage your nuclear medicine department,

including USP <825> compliance.

Nuctrac Mobile™

Nuclear Web Ordering is coming soon.

OptiFreight® Logistics

Specialized freight management service.

OptiFreight® Logistics Knowledge Hub

Center for resources, insights and tools.

TotalVue™ Tracking

Healthcare logistics shipment visibility software and

reporting.

22M inbound, outbound and

intra-facility shipments

managed annually.

Rgh Enterprises LLC (EdgePark)

Medical supply distributor, direct to home.

Velocare™

Solution designed to help streamline the complexities

of scaling and managing your care-at-home program

by providing end-to-end logistics and inventory

management.

ContinuCare™ Pathway

Pharmacy-to-supplier referral program enabling

pharmacies to refer patients to Cardinal Health at-Home

Solutions for direct-to-patient delivery of medically

covered diabetes supplies.

Cardinal Health holds an exclusive contract to produce

and distribute, radioactive injection to treat cancer.

Overview of Business Revenues

Pharmaceutical and Specialty Solutions

(Total Revenue: $204.6B)

Pharma segment profit for fiscal 2025 increased 12 percent to $2.3 billion from the prior year, primarily

due to increased contribution from branded and specialty pharmaceutical products, BioPharma

Solutions, and MSO platforms acquisitions, partially offset by the expiration of the OptumRx contracts.

Global Medical Products and Distribution

(Total Revenue: $12.6B)

GMPD segment profit for fiscal 2025 increased 47 percent to $135 million from the prior year, primarily

due to volume growth from existing customers. This increase also reflects the beneficial impact of cost

optimization initiatives, mostly offset by higher manufacturing costs.

Other (Total Revenue: $5.4B)

Other segment profit for fiscal 2025 increased 22 percent to $516 million from the prior year,

primarily due to the performance of at-Home Solutions, which includes the acquisition of ADS, and

OptiFreight® Logistics.

Notable Cardinal Health Market Risks

•

General

decline

Medicare

and

Medicaid

reimbursement

levels:

Efforts

healthcare

insurance companies to limit or reduce payments to

pharmacies and providers, the basis for payments

beginning to transition from a fee-for-service

model to value-based payments and risk-sharing

models, and the industry shifting away from

traditional healthcare venues like hospitals and

into clinics, physician offices, and patients’ homes.

Possible changes include changes in legislation or

regulations governing prescription pharmaceutical

pricing, healthcare services, U.S.-based medical

product

manufacturing,

mandated

benefits,

efforts to promote increased transparency in the

pharmaceutical supply chain, drug shortages, further

reduction of or limitations on governmental funding

at the state or federal level, or efforts by healthcare

insurance companies to further limit payments for

products and services.

•

It is possible that the maintenance of the required

changes to distributors’ controlled substance

antidiversion programs may result in unforeseen

costs or operational challenges which could have

an adverse impact on our results of operations or

performance. If we are unable to comply with these

requirements, or are alleged to have failed to comply

with these requirements, we could incur unforeseen

costs or penalties, and our financial results may be

negatively impacted. We are also being sued by private

plaintiffs, such as unions, other health and welfare

funds, other healthcare providers, and individuals

alleging personal injury for the same activities, and

could be named as a defendant in additional lawsuits.

•

We are subject to government import and export

controls and Regulations including the requirement

that we make a determination as to the country of

origin of products that we source or manufacture

outside the United States. From time to time,

Customs and Border protection agencies, whether in

the U.S. or other jurisdictions, have challenged these

determinations. These and other actions by border

protection have resulted in products being detained or

delayed and supply disruptions and could result in the

imposition of fines and penalties.

•

Consolidations impact our ability to use acquisitions

to expand or complement our existing businesses.

In recent years, U.S. healthcare industry participants,

including

distributors,

manufacturers,

suppliers,

healthcare providers, insurers, and pharmacy chains,

among others, have consolidated or formed strategic

alliances. Consolidations create larger enterprises

with greater negotiating power and could result in the

possible loss of a customer in the situation where the

combined enterprise selects one distributor from two

incumbents or a reduction in our ability to market our

products and services to new customers.

The following exerpts are extracted from the Cardinal Health 2025 Annual Report.

Cardinal Health Stock Analysis

The following line graph compares the cumulative total return of

Cardinal Health’s common shares with the cumulative total return of the

Standard & Poor’s Composite—500 Stock Index (the “S&P 500 Index”)

and the Standard & Poor’s Composite—500 Healthcare Index (the “S&P

500 Healthcare Index”). The line graph assumes, in each case, an initial

investment of $100 invested at the closing price on June 30, 2020, and

is based on the market prices at the end of each fiscal year through and

including June 30, 2025, and reinvestment of dividends. The S&P 500

Index and S&P 500 Healthcare Index investments are weighted on the

basis of market capitalization at the beginning of each period.

Comparison of 5-year cumulative total return among Cardinal Health, the S&P 500 Index and S&P 500 healthcare peers.

Pharmacy500 Stock Portfolio Snapshot

NOV 1, 2024 - DEC 31, 2025 (4:00 PM EST)

Customers & Competition

• We have agreements with group purchasing organizations

(“GPOs”) that act as agents to negotiate vendor contracts on

behalf of their members.

• Our two largest GPO relationships in terms of revenue are

with Vizient, Inc. and Premier, Inc. Sales to members of these

two GPOs, under numerous contracts across our businesses,

collectively accounted for 27 percent of our revenue in fiscal

2025.

• The loss of any significant customer or GPO agreement could

adversely affect our business.

Customers

• In the Pharma segment, we compete with wholesale

distributors with national reach, including McKesson

Corporation and Cencora, Inc., regional wholesale distributors,

self-warehousing chains, specialty distributors, third-party

logistics companies, and companies that provide specialty

pharmaceutical services and managed services to specialty

physicians, among others.

• The Pharma segment has experienced competition from a

number of organizations offering generic pharmaceuticals,

including telemarketers.

• In the GMPD segment, we compete with many diversified

healthcare companies and national medical product

distributors, such as Medline Industries, Inc. and Owens &

Minor, Inc., as well as regional medical product distributors

and companies that are focused on specific product

categories.

• Our other operating segments compete with companies

that operate nuclear radiopharmacies and manufacturing

facilities, distribute medical products to patients’ homes, and

third-party logistics companies.

• Additionally, we compete with other service providers,

customers, and potential customers of our businesses, which

may from time to time develop, for their own internal needs,

supply management capabilities that may otherwise be

provided by us.

Competition

The following excerpts are extracted from the Cardinal Health 2025 Annual Report.

2026 Conferences

RBC Cardinal Health

JUL 22-25, 2026 | Orlando, FL

The Cardinal Health Retail Business Conference (RBC) is an

annual conference recognizing independent pharmacies and

their unwavering commitment to comprehensive patient care

in their community.

Learn more: rbc.cardinalhealth.com/mainevents

IOD Seminar

MAR 8-9, 2026 | Austin, TX

MAR 9-10, 2026 | Austin, TX

APR 12-13, 2026 | Annapolis, MD

APR 14-14, 2026 | Annapolis, MD

In-Office Dispensing and Pharmacy meetings gather new and

tenured staff together to review and discuss best practices

and operational tips for incorporating an IOD/pharmacy

into their APCC. These meetings provide an opportunity for

manufacturers to present operational information, network,

and impact several accounts in one event.

IOD/Pharmacy Regional Workshop

Date TBD | Location TBD

In-Office Dispensing and Pharmacy meetings gather new and

tenured staff together to review and discuss best practices

and operational tips for incorporating an IOD/pharmacy.