Cardinal Health Reports Fourth Quarter and Fiscal Year 2025 Results and Raises Fiscal Year 2026 Guidance

Fourth quarter revenue was relatively flat at $60.2 billion; revenue increased 21% excluding the impact of a previously communicated contract expiration Fourth quarter GAAP1 operating earnings were $428 million and GAAP diluted EPS was $1.00 Fourth quarter non-GAAP operating earnings increased 19% to $719 million and non-GAAP diluted EPS increased 13% to $2.08 Fiscal Year 2025 adjusted free cash flow was $2.5 billion Fiscal year 2026 non-GAAP EPS guidance2 raised to $9.30 to $9.50, from $9.10 to $9.30 Company announces the acquisition of Solaris Health, the country's leading urology MSO , /PRNewswire/ -- Cardinal Health (NYSE: CAH) today reported fourth quarter fiscal year 2025 revenues of $60.2 billion, relatively flat to the fourth quarter of fiscal year 2024. Fourth quarter revenue increased 21% excluding the impact of a previously communicated customer contract expiration. GAAP operating earnings were $428 million and GAAP diluted earnings per share (EPS) were $1.00. Non-GAAP operating earnings increased 19% to $719 million, driven by segment profit increases across Pharmaceutical and Specialty Solutions, GMPD and Other3. Non-GAAP diluted EPS increased 13% to $2.08 in the quarter, reflecting the increase in non-GAAP operating earnings and a lower share count, partially offset by an increase in interest and other expense due to financing costs related to recent acquisitions and a higher non-GAAP effective tax rate. Fiscal year 2025 revenues were $222.6 billion, a 2% decrease from fiscal year 2024. Fiscal year 2025 revenue increased 18% excluding the impact of a previously communicated customer contract expiration. GAAP operating earnings were $2.3 billion and GAAP diluted EPS was $6.45. Non-GAAP operating earnings increased 15% to $2.8 billion, driven primarily by segment profit increases in Pharmaceutical and Specialty Solutions and Other. Non-GAAP diluted EPS increased 9% to $8.24 for the year, reflecting the increase in non-GAAP operating earnings across the business and a lower share count following in-year share repurchases, partially offset by higher interest and other expense and a higher non-GAAP effective tax rate. "Fiscal 2025 was a transformative year for Cardinal Health, and we closed the year with momentum, delivering strong fourth quarter results," said Jason Hollar, CEO of Cardinal Health. "The broad-based operational strength, with all five of our operating segments growing profit double-digits, reflects the disciplined execution of our strategy and our investments for growth. We enter Fiscal 2026 with confidence, evidenced by our increased financial outlook, as we continue to evolve towards reaching our full potential." Q4 and full year FY25 summary Q4 FY25 Q4 FY24 Y/Y FY25 FY24 Y/Y Revenue $60.2 billion $59.9 billion — % $222.6 billion $226.8 billion (2) % Operating earnings $428 million $401 million 7 % $2.3 billion $1.2 billion 83 % Non-GAAP operating earnings $719 million $605 million 19 % $2.8 billion $2.4 billion 15 % Net earnings attributable to Cardinal Health, Inc. $239 million $235 million 2 % $1.6 billion $852 million 83 % Non-GAAP net earnings attributable to Cardinal Health, Inc. $501 million $450 million 11 % $2.0 billion $1.9 billion 7 % Effective Tax Rate 36.9 % 40.4 % 25.3 % 28.9 % Non-GAAP Effective Tax Rate 26.3 % 24.6 % 23.3 % 21.7 % Diluted EPS attributable to Cardinal Health, Inc. $1.00 $0.96 4 % $6.45 $3.45 87 % Non-GAAP diluted EPS attributable to Cardinal Health, Inc. $2.08 $1.84 13 % $8.24 $7.53 9 % Segment results Pharmaceutical and Specialty Solutions segment Q4 FY25 Q4 FY24 Y/Y FY25 FY24 Y/Y Revenue $55.4 billion $55.6 billion — % $204.6 billion $210.0 billion (3) % Segment profit $535 million $482 million 11 % $2.3 billion $2.0 billion 12 % Fourth-quarter revenue for the Pharmaceutical and Specialty Solutions segment was relatively flat at $55.4 billion. Fourth-quarter revenue increased 22% excluding the impact of the customer contract expiration, driven by brand and specialty pharmaceutical sales growth from existing and new customers. Pharmaceutical and Specialty Solutions segment profit increased 11% to $535 million in the fourth quarter, driven by the acquisition of MSO platforms and contributions from brand and specialty products, partially offset by the customer contract expiration. Global Medical Products and Distribution segment Q4 FY25 Q4 FY24 Y/Y FY25 FY24 Y/Y Revenue $3.2 billion $3.1 billion 3 % $12.6 billion $12.4 billion 2 % Segment profit $70 million $47 million 49 % $135 million $92 million 47 % Fourth-quarter revenue for the Global Medical Products and Distribution segment increased 3% to $3.2 billion, driven by volume growth from existing customers. Global Medical Products and Distribution segment profit increased 49% to $70 million in the fourth quarter, driven by volume growth from existing customers. Other3 Q4 FY25 Q4 FY24 Y/Y FY25 FY24 Y/Y Revenue $1.6 billion $1.2 billion 37 % $5.4 billion $4.5 billion 19 % Segment profit $160 million $111 million 44 % $516 million $423 million 22 % Fourth-quarter revenue for Other increased 37% to $1.6 billion, driven by growth across the three operating segments: at-Home Solutions (including the acquisition of Advanced Diabetes Supply), Nuclear and Precision Health Solutions and OptiFreight Logistics. Other segment profit increased 44% to $160 million in the fourth quarter, driven by growth across the three operating segments: at-Home Solutions (including the acquisition of Advanced Diabetes Supply), Nuclear and Precision Health Solutions and OptiFreight Logistics. Fiscal year 2026 outlook2The company raised its fiscal year 2026 outlook for non-GAAP diluted EPS to $9.30 to $9.50 (+13% to +15% growth), a $0.20 increase from the preliminary outlook of $9.10 to $9.30 previously communicated during the company's 2025 Investor Day. Non-GAAP earnings per share $9.30 to $9.50 Pharmaceutical and Specialty Solutions segment: Revenue 11% to 13% growth Segment profit 11% to 13% growth Global Medical Products and Distribution segment: Revenue 2% to 4% growth Segment profit At least $140 million Other (NPHS, at-Home Solutions, OptiFreight Logistics): Revenue 26% to 28% growth Segment profit 25% to 27% growth Interest and other ~$275 million Non-GAAP effective tax rate 22.0% - 24.0% Diluted weighted average shares outstanding 238 million to 240 million Share repurchases ~$750 million Capital Expenditures ~$600 million Non-GAAP adjusted free cash flow $2.75 billion to $3.25 billion Bold indicates a change to the preliminary FY26 outlook provided in the Investor Day press release on June 12, 2025. The increase to non-GAAP diluted EPS reflects a benefit to net earnings of classifying the shares held by physicians and management of The Specialty Alliance as a liability as opposed to non-controlling interests within equity and increased contributions from the Pharmaceutical and Specialty Solutions segment and the growth businesses reported in Other.3 Recent highlights Cardinal Health hosted an Investor Day on June 12th, 2025 where management detailed the company's momentum, growth strategies and updated long-term value creation plans Cardinal Health announced that the company entered into a definitive agreement to acquire Solaris Health, the country's leading urology MSO with over 750 providers. Solaris Health will join the Specialty Alliance's Urology Alliance and advances Cardinal Health's multi-specialty growth strategy Cardinal Health hosted its 33rd annual Retail Business Conference, bringing together approximately 5,000 attendees from across the country to celebrate the critical role its independent pharmacy customers play in caring for their communities and highlight the company's innovations and commitment to its customers Cardinal Health announced the launch of the Cardinal Health™ One Voice Initiative for pharmacy advocacy, which provides direct financial assistance to state pharmacy associations for the purpose of supporting independent pharmacists' advocacy efforts Cardinal Health announced the U.S. launch of Kendall DL™ Multi System, its multi-parameter, single-patient use monitoring cable and lead wire system that enables the continuous monitoring of cardiac activity, blood oxygen level and temperature with one point of connection Cardinal Health released its inaugural cell and gene therapy industry report providing insights into the current landscape and promising potential of cell and gene therapies The Cardinal Health Foundation expanded its Equity Rx program across Ohio and three new states, increasing access to affordable medications and supporting Ohio's first statewide prescription drug repository WebcastCardinal Health will host a webcast today at 8:30 a.m. ET to discuss fourth quarter and full year results. To access the webcast and corresponding slide presentation, go to the Investor Relations page at ir.cardinalhealth.com. No access code is required. Presentation slides and a webcast replay will be available until August 13, 2026. About Cardinal HealthCardinal Health is a distributor of pharmaceuticals and specialty products; a global manufacturer and distributor of medical and laboratory products; a supplier of home-health and direct-to-patient products and services; an operator of nuclear pharmacies and manufacturing facilities; and a provider of performance and data solutions. Our company's customer-centric focus drives continuous improvement and leads to innovative solutions that improve people's lives every day. Learn more about Cardinal Health at cardinalhealth.com and in our Newsroom. ContactsMedia: Erich Timmerman, [email protected] and 614.757.8231Investors: Matt Sims, [email protected] and 614.553.3661 1GAAP refers to U.S. generally accepted accounting principles. This news release includes GAAP financial measures as well as non-GAAP financial measures, which are financial measures not calculated in accordance with GAAP. See "Use of Non-GAAP Measures" following the attached schedules for definitions of the non-GAAP financial measures presented in this news release and see the attached schedules for reconciliations of the differences between the non-GAAP financial measures and their most directly comparable GAAP financial measures. 2The company does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. See "Use of Non-GAAP Measures" following the attached schedules for additional explanation. 3Other includes the following three operating segments: Nuclear and Precision Health Solutions (NPHS), at-Home Solutions and OptiFreight Logistics, which are not significant enough individually to require reportable segment disclosure. Cardinal Health uses its website as a channel of distribution for material company information. Important information, including news releases, financial information, earnings and analyst presentations, and information about upcoming presentations and events is routinely posted and accessible on the Investor Relations page at ir.cardinalhealth.com. In addition, the website allows investors and other interested persons to sign up automatically to receive email alerts when the company posts news releases, SEC filings and certain other information on its website. Cautions concerning forward-looking statementsThis release contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "project," "continue," "likely," and similar expressions, and include statements reflecting future results or guidance, statements of outlook and various accruals and estimates. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties include the risk that we may fail to achieve our strategic objectives, including the continued execution of the GMPD Improvement Plan initiatives, whether as a result of tariffs on products we source or manufacture, an uncertain global economic and trade environment, Cardinal Health Brand sales or ongoing inflationary pressures; our ability to manage uncertainty with respect to certain government initiatives, including the Executive Order regarding "Most Favored Nation" pricing for branded prescription pharmaceuticals and the One Big Beautiful Bill Act; competitive pressures in Cardinal Health's various lines of business, including the risk that customers may reduce purchases made under their contracts with us or terminate or not renew their contracts, whether due to price increases or otherwise; risks associated with litigation matters, including a Department of Justice investigation focused on potential violations of the Anti-Kickback Statute and False Claims Act; the risk that events outside of our control, such as weather or geopolitical events, may impact demand for our products or may cause supply shortages that impact our cost and ability to fulfill customer demand; the performance of our generics program, including our ability to offset generic deflation and maintain other financial and strategic benefits through our generic sourcing venture or other components of our generics programs; risks associated with recently completed and pending acquisitions, including risks arising as a result from our entry into new lines of businesses. Cardinal Health is subject to additional risks and uncertainties described in Cardinal Health's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports. This release reflects management's views as of August 12, 2025. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement. Forward-looking statements are aspirational and not guarantees or promises that goals, targets or projections will be met, and no assurance can be given that any commitment, expectation, initiative or plan in this report can or will be achieved or completed. Cardinal Health provides definitions and reconciliations of non-GAAP financial measures and their most directly comparable GAAP financial measures at ir.cardinalhealth.com Schedule 1 Cardinal Health, Inc. and Subsidiaries Consolidated Statements of Earnings (Unaudited) Fourth Quarter Fiscal Year (in millions, except per common share amounts) 2025 2024 % Change 2025 2024 % Change Revenue $ 60,159 $ 59,867 — % $ 222,578 $ 226,827 (2) % Cost of products sold 57,957 57,985 — % 214,410 219,413 (2) % Gross margin 2,202 1,882 17 % 8,168 7,414 10 % Operating expenses: Distribution, selling, general and administrative expenses 1,484 1,277 16 % 5,382 5,000 8 % Restructuring and employee severance 27 69 88 175 Amortization and other acquisition-related costs 133 77 464 284 Acquisition-related cash and share-based compensation costs 106 — 126 — Impairments and (gain)/loss on disposal of assets, net 1 33 8 18 634 Litigation (recoveries)/charges, net (9) 50 (185) 78 Operating earnings 428 401 7 % 2,275 1,243 83 % Other (income)/expense, net (30) 1 (41) (9) Interest expense, net 74 9 N.M. 215 51 N.M. Earnings before income taxes 384 391 (2) % 2,101 1,201 75 % Provision for income taxes 2 141 158 (11) % 532 348 53 % Net earnings 243 233 4 % 1,569 853 84 % Less: Net (earnings)/loss attributable to noncontrolling interests (4) 2 (8) (1) Net earnings attributable to Cardinal Health, Inc. $ 239 $ 235 2 % $ 1,561 $ 852 83 % Earnings per common share attributable to Cardinal Health, Inc.: Basic $ 1.01 $ 0.96 5 % $ 6.48 $ 3.48 86 % Diluted 1.00 0.96 4 % 6.45 3.45 87 % Weighted-average number of common shares outstanding: Basic 239 244 241 245 Diluted 240 245 242 247 1 Impairments and (gain)/loss on disposals of assets, net includes pre-tax goodwill impairment charges of $675 million related to the GMPD segment recorded in fiscal year ended June 30, 2024. 2 Provision for income taxes includes the tax effects relating to the cumulative goodwill impairment charges. For fiscal 2024, the net tax benefits related to the goodwill impairment charges was $58 million. Schedule 2 Cardinal Health, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (in millions) June 30, 2025 June 30, 2024 Assets Current assets: Cash and equivalents $ 3,874 $ 5,133 Trade receivables, net 13,242 12,084 Inventories, net 16,831 14,957 Prepaid expenses and other 2,414 2,663 Assets held for sale 12 47 Total current assets 36,373 34,884 Property and equipment, net 2,858 2,529 Goodwill and other intangibles, net 12,177 6,450 Other assets 1,714 1,258 Total assets $ 53,122 $ 45,121 Liabilities and Shareholders' Deficit Current liabilities: Accounts payable $ 34,713 $ 31,759 Current portion of long-term obligations and other short-term borrowings 550 434 Other accrued liabilities 3,634 3,447 Total current liabilities 38,897 35,640 Long-term obligations, less current portion 7,977 4,658 Deferred income taxes and other liabilities 8,882 8,035 Total shareholders' deficit (2,634) (3,212) Total liabilities and shareholders' deficit $ 53,122 $ 45,121 Schedule 3 Cardinal Health, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) Fourth Quarter Fiscal Year (in millions) 2025 2024 2025 2024 Cash flows from operating activities: Net earnings $ 243 $ 233 $ 1,569 853 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 209 186 790 710 Impairments and loss on sale of other investments 1 2 3 2 Impairments and (gain)/loss on disposal of assets, net 33 8 18 634 Share-based compensation 153 33 244 121 Provision for/(benefit from) deferred income taxes 243 (104) 243 (104) Provision for bad debts 12 8 53 36 Change in operating assets and liabilities, net of effects from acquisitions and divestitures: Increase in trade receivables (466) (773) (833) (996) (Increase)/decrease in inventories (607) 2,373 (1,816) 1,115 Increase/(decrease) in accounts payable 1,778 (294) 2,732 1,824 Other accrued liabilities and operating items, net (72) 410 (606) (433) Net cash provided by operating activities 1,527 2,082 2,397 3,762 Cash flows from investing activities: Acquisition of subsidiaries, net of cash acquired (1,395) 2 (5,250) (1,190) Additions to property and equipment (232) (193) (547) (511) Proceeds from net investment hedge terminations — 6 2 34 Purchase of short-term time deposits — — — (550) Proceeds from short-term investment in time deposit — 350 200 350 Other investing items, net (4) 1 2 18 Net cash provided by/(used in) investing activities (1,631) 166 (5,593) (1,849) Cash flows from financing activities: Proceeds from long-term obligations, net of issuance costs 800 — 3,669 1,139 Purchases and payments of noncontrolling interests, net (12) — (12) — Reduction of long-term obligations (11) (760) (445) (783) Net tax proceeds from share-based compensation (1) 23 (13) 46 Dividends on common shares (120) (122) (494) (499) Purchase of treasury shares — — (765) (750) Net cash provided by/(used in) financing activities 656 (859) 1,940 (847) Effect of exchange rates changes on cash and equivalents (4) (2) (3) (9) Net increase/(decrease) in cash and equivalents 548 1,387 (1,259) 1,057 Cash and equivalents at beginning of period 3,326 3,746 5,133 4,076 Cash and equivalents at end of period $ 3,874 $ 5,133 $ 3,874 $ 5,133 Schedule 4 Cardinal Health, Inc. and Subsidiaries Segment Information (Unaudited) Fourth Quarter Pharmaceutical and Specialty Solutions Global Medical Products and Distribution Other (in millions) 2025 2024 2025 2024 2025 2024 Revenue Amount $ 55,372 $ 55,608 $ 3,199 $ 3,109 $ 1,609 $ 1,172 Growth rate — % 13 % 3 % 2 % 37 % 15 % Segment profit Amount $ 535 $ 482 $ 70 $ 47 $ 160 $ 111 Growth rate 11 % 8 % 49 % N.M. 44 % 11 % Segment profit margin 0.97 % 0.87 % 2.19 % 1.51 % 9.94 % 9.47 % Fiscal Year Pharmaceutical and Specialty Solutions Global Medical Products and Distribution Other (in millions) 2025 2024 2025 2024 2025 2024 Revenue Amount $ 204,644 $ 210,019 $ 12,636 $ 12,381 $ 5,382 $ 4,512 Growth rate (3) % 11 % 2 % 1 % 19 % 12 % Segment profit Amount $ 2,258 $ 2,015 $ 135 $ 92 $ 516 $ 423 Growth rate 12 % 7 % 47 % N.M. 22 % 7 % Segment profit margin 1.10 % 0.96 % 1.07 % 0.74 % 9.59 % 9.38 % The sum of the components and certain computations may reflect rounding adjustments. Schedule 5 Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation1 (Unaudited) Net (Earnings)/ Loss Gross Operating Earnings Provision Attributable Net Diluted Margin SG&A2 Earnings Before for to Non- Earnings3 Effective EPS 3 (in millions, except per common share amounts) Gross Growth Growth Operating Growth Income Income Controlling Net Growth Tax Diluted Growth Margin Rate SG&A 2 Rate Earnings Rate Taxes Taxes Interests Earnings3 Rate Rate EPS 3 Rate Fourth Quarter 2025 GAAP $ 2,202 17 % $ 1,484 16 % $ 428 7 % $ 384 $ 141 $ (4) $ 239 2 % 36.9 % $ 1.00 4 % Restructuring and employee severance — — 27 27 6 — 21 0.09 Amortization and other acquisition-related costs — — 133 133 23 2 112 0.46 Acquisition-related cash & share-based compensation costs — — 106 106 1 4 109 0.45 Impairments and (gain)/loss on disposal of assets, net — — 33 33 9 — 24 0.10 Litigation (recoveries)/charges, net — — (9) (9) (2) — (7) (0.03) Non-GAAP $ 2,203 17 % $ 1,484 16 % $ 719 19 % $ 676 $ 178 $ 3 $ 501 11 % 26.3 % $ 2.08 13 % Fourth Quarter 2024 GAAP $ 1,882 5 % $ 1,277 2 % $ 401 N.M. $ 391 $ 158 $ 2 $ 235 N.M. 40.4 % $ 0.96 N.M. Restructuring and employee severance — — 69 69 13 — 56 0.23 Amortization and other acquisition-related costs — — 77 77 19 — 58 0.24 Impairments and (gain)/loss on disposal of assets, net 4 — — 8 8 (32) — 40 0.16 Litigation (recoveries)/charges, net — — 50 50 (12) — 62 0.25 Non-GAAP $ 1,882 5 % $ 1,277 2 % $ 605 14 % $ 595 $ 147 $ 2 $ 450 23 % 24.6 % $ 1.84 29 % 1 For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules. 2 Distribution, selling, general and administrative expenses. 3 Attributable to Cardinal Health, Inc. 4 During fiscal 2024, we recorded cumulative pre-tax goodwill impairment charges of $675 million related to GMPD in impairments and (gain)/loss on disposal of assets, net. The estimated net tax benefit related to the impairments is $58 million and is included in the annual effective tax rate. During the three months ended June 30, 2024, the amount of tax expense recognized related to goodwill impairment charges was $34 million, which reflects the reversal of the incremental tax benefit recognized during the nine months ended March 31, 2024. The sum of the components and certain computations may reflect rounding adjustments. We generally apply varying tax rates depending on the item's nature and tax jurisdiction where it is incurred. Schedule 5 Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation1 (Unaudited) Net Earnings Gross Operating Earnings Provision Attributable Net Diluted Margin SG&A2 Earnings Before for to Non- Earnings3 Effective EPS 3 Gross Growth Growth Operating Growth Income Income Controlling Net Growth Tax Diluted Growth (in millions, except per common share amounts) Margin Rate SG&A 2 Rate Earnings Rate Taxes Taxes Interests Earnings3 Rate Rate EPS 3 Rate Fiscal Year 2025 GAAP $ 8,168 10 % $ 5,382 8 % $ 2,275 83 % $ 2,101 $ 532 $ (8) $ 1,561 83 % 25.3 % $ 6.45 87 % Restructuring and employee severance — — 88 88 21 — 67 0.28 Amortization and other acquisition-related costs — — 464 464 104 — 360 1.49 Acquisition-related cash & share-based compensation costs — — 126 126 1 — 125 0.51 Impairments and (gain)/loss on disposal of assets, net — — 18 18 5 — 13 0.05 Litigation (recoveries)/charges, net — — (185) (185) (54) — (131) (0.54) Non-GAAP $ 8,168 10 % $ 5,382 8 % $ 2,786 15 % $ 2,612 $ 609 $ (8) $ 1,995 7 % 23.3 % $ 8.24 9 % Fiscal Year 2024 GAAP $ 7,414 8 % $ 5,000 4 % $ 1,243 65 % $ 1,201 $ 348 $ (1) $ 852 N.M. 28.9 % $ 3.45 N.M. Shareholder cooperation agreement costs (1) 1 1 — — 1 — Restructuring and employee severance — — 175 175 41 — 134 0.54 Amortization and other acquisition-related costs — — 284 284 74 — 210 0.85 Impairments and (gain)/loss on disposal of assets, net 4 — — 634 634 47 — 587 2.38 Litigation (recoveries)/charges, net — — 78 78 5 — 73 0.30 Non-GAAP $ 7,414 8 % $ 5,000 4 % $ 2,414 16 % $ 2,372 $ 515 $ (1) $ 1,856 21 % 21.7 % $ 7.53 29 % Fiscal Year 2023 GAAP $ 6,874 6 % $ 4,800 6 % $ 752 N.M. $ 663 $ 332 $ (1) $ 330 N.M. 50.0 % $ 1.26 N.M. State opioid assessment related to prior fiscal years — 6 (6) (6) (2) — (4) (0.02) Shareholder cooperation agreement costs — (8) 8 8 2 — 6 0.02 Restructuring and employee severance — — 95 95 21 — 74 0.28 Amortization and other acquisition-related costs — — 285 285 74 — 211 0.80 Impairments and (gain)/loss on disposal of assets, net 4 — — 1,246 1,246 108 — 1,138 4.35 Litigation (recoveries)/charges, net — — (304) (304) (83) — (221) (0.84) Non-GAAP $ 6,874 6 % $ 4,798 6 % $ 2,076 5 % $ 1,987 $ 452 $ (1) $ 1,534 8 % 22.8 % $ 5.85 15 % 1 For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules. 2 Distribution, selling, general and administrative expenses. 3 Attributable to Cardinal Health, Inc. 4 For fiscal 2024 and 2023, impairments and (gain)/loss on disposals of assets, net includes pre-tax goodwill impairment charges of $675 million and $1.2 billion related to the GMPD segment, respectively. For fiscal 2024 and 2023 the net tax benefit related to these charges was $58 million and $92 million, respectively, and were included in the annual effective tax rates. The sum of the components and certain computations may reflect rounding adjustments. We generally apply varying tax rates depending on the item's nature and tax jurisdiction where it is incurred. Schedule 6 Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation - GAAP Cash Flow to Non-GAAP Adjusted Free Cash Flow (Unaudited) Fiscal Year (in millions) 2025 2024 GAAP - Cash Flow Categories Net cash provided by operating activities $ 2,397 $ 3,762 Net cash used in investing activities (5,593) (1,849) Net cash provided by/(used in) financing activities 1,940 (847) Effect of exchange rates changes on cash and equivalents (3) (9) Net increase/(decrease) in cash and equivalents $ (1,259) $ 1,057 Non-GAAP Adjusted Free Cash Flow Net cash provided by operating activities $ 2,397 $ 3,762 Additions to property and equipment (547) (511) Payments related to matters included in litigation (recoveries)/charges, net 619 691 Non-GAAP Adjusted Free Cash Flow $ 2,469 $ 3,942 For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules. Schedule 7 Cardinal Health, Inc. and Subsidiaries Revenue Growth Rates Excluding OptumRx (Unaudited) Fourth Quarter Consolidated Pharmaceutical and Specialty Solutions (in millions) 2025 2024 Growth Rate (in millions) 2025 2024 Growth Rate Total Revenue $ 60,159 $ 59,867 — % Total Pharmaceutical and SpecialtySolutions Revenue $ 55,372 $ 55,608 — % less: OptumRx Revenue — 10,287 less: OptumRx Revenue — 10,287 Revenue, excluding OptumRx $ 60,159 $ 49,580 21 % Pharmaceutical and Specialty SolutionsRevenue, excluding OptumRx $ 55,372 $ 45,321 22 % Year-to-Date Consolidated Pharmaceutical and Specialty Solutions (in millions) 2025 2024 Growth Rate (in millions) 2025 2024 Growth Rate Total Revenue $ 222,578 $ 226,827 (2) % Total Pharmaceutical and SpecialtySolutions Revenue $ 204,644 $ 210,019 (3) % less: OptumRx Revenue — 38,112 less: OptumRx Revenue — 38,112 Revenue, excluding OptumRx $ 222,578 $ 188,715 18 % Pharmaceutical and Specialty SolutionsRevenue, excluding OptumRx $ 204,644 $ 171,907 19 % Cardinal Health, Inc. and Subsidiaries Use of Non-GAAP MeasuresThis earnings release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). In addition to analyzing our business based on financial information prepared in accordance with GAAP, we use these non-GAAP financial measures internally to evaluate our performance, engage in financial and operational planning, and determine incentive compensation because we believe that these measures provide additional perspective on and, in some circumstances are more closely correlated to, the performance of our underlying, ongoing business. We provide these non-GAAP financial measures to investors as supplemental metrics to assist readers in assessing the effects of items and events on our financial and operating results on a year-over-year basis and in comparing our performance to that of our competitors. However, the non-GAAP financial measures that we use may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The non-GAAP financial measures disclosed by us should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements set forth below should be carefully evaluated. Exclusions from Non-GAAP Financial MeasuresManagement believes it is useful to exclude the following items from the non-GAAP measures presented in this report for its own and for investors' assessment of the business for the reasons identified below: LIFO charges and credits are excluded because the factors that drive last-in first-out ("LIFO") inventory charges or credits, such as pharmaceutical manufacturer price appreciation or deflation and year-end inventory levels (which can be meaningfully influenced by customer buying behavior immediately preceding our fiscal year-end), are largely out of our control and cannot be accurately predicted. The exclusion of LIFO charges and credits from non-GAAP metrics facilitates comparison of our current financial results to our historical financial results and to our peer group companies' financial results. We did not recognize any LIFO charges or credits during the periods presented. State opioid assessments related to prior fiscal years is the portion of state assessments for prescription opioid medications that were sold or distributed in periods prior to the period in which the expense is incurred. This portion is excluded from non-GAAP financial measures because it is retrospectively applied to sales in prior fiscal years and inclusion would obscure analysis of the current fiscal year results of our underlying, ongoing business. Additionally, while states' laws may require us to make payments on an ongoing basis, the portion of the assessment related to sales in prior periods are contemplated to be one-time, nonrecurring items. Income from state opioid assessments related to prior fiscal years represents reversals of accruals due to changes in estimates or when the underlying assessments were invalidated by a Court or reimbursed by manufacturers. Shareholder cooperation agreement costs includes costs such as legal, consulting, and other expenses incurred in relation to the agreement (the "Cooperation Agreement") entered into among Elliott Associates, L.P., Elliott International, L.P. (together, "Elliott"), and Cardinal Health. These include costs incurred to negotiate and finalize the Cooperation Agreement and costs incurred by the Business Review Committee of the Board of Directors, formed under this Cooperation Agreement, tasked with undertaking a comprehensive review of our strategy, portfolio, capital allocation framework, and operations. We have excluded these costs from our non-GAAP metrics because they do not occur in or reflect the ordinary course of our ongoing business operations and may obscure analysis of trends and financial performance. The Cooperation Agreement expired in the second quarter of fiscal 2025. Restructuring and employee severance costs are excluded because they are not part of the ongoing operations of our underlying business and include, but are not limited to, costs related to divestitures, closing and consolidating facilities, changing the way we manufacture or distribute our products, moving manufacturing of a product to another location, changes in production or business process outsourcing or insourcing, employee severance, and realigning operations. Amortization and other acquisition-related costs, which include transaction costs, integration costs, and changes in the fair value of contingent consideration obligations, are excluded because they are not part of the ongoing operations of our underlying business and to facilitate comparison of our current financial results to our historical financial results and to our peer group companies' financial results. Additionally, costs for amortization of acquisition-related intangible assets and amortization as a result of basis differences in equity method investments are non-cash amounts, which are variable in amount and frequency and are significantly impacted by the timing and size of acquisitions, so their exclusion facilitates comparison of historical, current, and forecasted financial results. We also exclude other acquisition-related costs, which are directly related to an acquisition but do not meet the criteria to be recognized on the acquired entity's initial balance sheet as part of the purchase price allocation. These costs are also significantly impacted by the timing, complexity, and size of acquisitions. Acquisition-related cash and share-based compensation costs are incurred in connection with contingent cash payments or the issuance of share-based payment awards, which include service requirements, as a part of certain physician practice acquisitions. These costs include fair value adjustments for liability-classified awards. These costs are excluded because they are unrelated to the underlying operating results of our business and to facilitate comparison of our current financial results to our historical financial results and to our peer group companies' financial results. In addition, the magnitude of these expenses is significantly impacted by the timing and size of the acquisitions of physician practices. Impairments and gain or loss on disposal of assets, net are excluded because they do not occur in or reflect the ordinary course of our ongoing business operations and are inherently unpredictable in timing and amount, and in the case of impairments, are non-cash amounts, so their exclusion facilitates comparison of historical, current, and forecasted financial results. Litigation recoveries or charges, net are excluded because they often relate to events that may have occurred in prior or multiple periods, do not occur in or reflect the ordinary course of our business, and are inherently unpredictable in timing and amount. Loss on early extinguishment of debt is excluded because it does not typically occur in the normal course of business and may obscure analysis of trends and financial performance. Additionally, the amount and frequency of this type of charge is not consistent and is significantly impacted by the timing and size of debt extinguishment transactions. The tax effect for each of the items listed above is determined using the tax rate and other tax attributes applicable to the item and the jurisdiction(s) in which the item is recorded. The gross, tax, and net impact of each item are presented with our GAAP to non-GAAP reconciliations. Non-GAAP adjusted free cash flow: We provide this non-GAAP financial measure as a supplemental metric to assist readers in assessing the effects of items and events on our cash flow on a year-over-year basis and in comparing our performance to that of our peer group companies. In calculating this non-GAAP metric, certain items are excluded from net cash provided by operating activities because they relate to significant and unusual or non-recurring events and are inherently unpredictable in timing and amount. We believe adjusted free cash flow is important to management and useful to investors as a supplemental measure as it indicates the cash flow available for working capital needs, debt repayments, dividend payments, share repurchases, strategic acquisitions, or other strategic uses of cash. A reconciliation of our GAAP financial results to Non-GAAP adjusted free cash flow is provided in Schedule 6 of the financial statement tables included with this release. Forward Looking Non-GAAP MeasuresIn this document, the Company presents certain forward-looking non-GAAP metrics. The Company does not provide outlook on a GAAP basis because the items that the Company excludes from GAAP to calculate the comparable non-GAAP measure can be dependent on future events that are less capable of being controlled or reliably predicted by management and are not part of the Company's routine operating activities. Additionally, management does not forecast many of the excluded items for internal use and therefore cannot create or rely on outlook done on a GAAP basis. The occurrence, timing and amount of any of the items excluded from GAAP to calculate non-GAAP could significantly impact the Company's fiscal 2025 GAAP results. Over the past five fiscal years, the excluded items have impacted the Company's EPS from $1.79 to $8.44, which includes a $6.97 change related to the goodwill impairment we recognized in fiscal 2022. DefinitionsGrowth rate calculation: growth rates in this report are determined by dividing the difference between current period results and prior period results by prior period results. Interest and Other, net: other (income)/expense, net plus interest expense, net. Segment Profit: segment revenue minus (segment cost of products sold and segment distribution, selling, general and administrative expenses). Segment Profit margin: segment profit divided by segment revenue. Non-GAAP gross margin: gross margin, excluding LIFO charges/(credits). Non-GAAP distribution, selling, general and administrative expenses or Non-GAAP SG&A: distribution, selling, general and administrative expenses, excluding state opioid assessment related to prior fiscal years and shareholder cooperation agreement costs. Non-GAAP operating earnings: operating earnings excluding (1) LIFO charges/(credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) acquisition-related cash and share-based compensation costs, (7) impairments and (gain)/loss on disposal of assets, net, and (8) litigation (recoveries)/charges, net. Non-GAAP earnings before income taxes: earnings before income taxes excluding (1) LIFO charges/(credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) acquisition-related cash and share-based compensation costs, (7) impairments and (gain)/loss on disposal of assets, net, (8) litigation (recoveries)/charges, net, and (9) loss on early extinguishment of debt. Non-GAAP net earnings attributable to non-controlling interests: net earnings attributable to non-controlling interests excluding (1) LIFO charges/(credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) acquisition-related cash and share-based compensation costs, (7) impairments and (gain)/loss on disposal of assets, net, (8) litigation (recoveries)/charges, net, and (9) loss on early extinguishment of debt, each net of tax. Non-GAAP net earnings attributable to Cardinal Health, Inc.: net earnings attributable to Cardinal Health, Inc. excluding (1) LIFO charges/(credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) acquisition-related cash and share-based compensation costs, (7) impairments and (gain)/loss on disposal of assets, net, (8) litigation (recoveries)/charges, net, and (9) loss on early extinguishment of debt, each net of tax. Non-GAAP effective tax rate: provision for income taxes adjusted for the tax impacts of (1) LIFO charges/(credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) acquisition-related cash and share-based compensation costs, (7) impairments and (gain)/loss on disposal of assets, net, (8) litigation (recoveries)/charges, net, and (9) loss on early extinguishment of debt divided by (earnings before income taxes adjusted for the items above). Non-GAAP diluted earnings per share attributable to Cardinal Health, Inc.: non-GAAP net earnings attributable to Cardinal Health, Inc. divided by diluted weighted-average shares outstanding. Non-GAAP adjusted free cash flow: net cash provided by operating activities less payments related to additions to property and equipment, excluding settlement payments and receipts related to matters included in litigation (recoveries)/charges, net, as defined above, or other significant and unusual or non-recurring cash payments or receipts. SOURCE Cardinal Health, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Cardinal Health Reports Fourth Quarter and Fiscal Year 2025 Results and Raises Fiscal Year 2026 Guidance

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