Cardinal Health Reports First Quarter Fiscal Year 2027 Results and Raises
Cardinal Health Reports First Quarter Fiscal Year 2027 Results and Raises Outlook • First quarter revenue increased 5% to $67.5 billion
operating earnings increased 13% to $753 million; GAAP diluted EPS increased 27% to $2.38
Non-GAAP operating earnings increased 17% to $1.0 billion; non-GAAP diluted EPS increased 28% to $3.26
from its FY26 ex-tariff refund baseline and 14% to 15% growth from reported FY26 results
Cardinal Health completes $500 million share repurchase program in first quarter
- Cardinal Health (NYSE: CAH) today reported first quarter fiscal year 2027 revenues of $67.5 billion, an increase of 5% from the first quarter of fiscal year 2026. First quarter GAAP operating earnings increased 13% to $753 million and GAAP diluted earnings per share (EPS) increased 27% to $2.38.
First quarter non-GAAP operating earnings increased 17% to $1.0 billion. Non- GAAP diluted EPS increased 28% to $3.26, reflecting the increase in non-GAAP operating earnings, a lower share count, and a lower effective tax rate.
“Our results reflect a strong start to fiscal 2027 and demonstrate consistent execution against our strategic priorities,” said Jason Hollar, CEO of Cardinal Health. “We continue to benefit from focused investments, disciplined operations and the strength of our diversified portfolio. Given this quarter's strong performance and our updated expectations for the remainder of the year, we are raising our fiscal 2027 non-GAAP EPS outlook.”
Q1 FY27 Q1 FY26 Y/Y Revenue $67.5 billion $64.0 billion 5% Operating earnings $753 million $668 million 13% Non-GAAP operating earnings $1.0 billion $857 million 17% Net earnings attributable to Cardinal $554 million $450 million 23% Health, Inc. Non-GAAP net earnings attributable to $759 million $611 million 24% Cardinal Health, Inc. Effective Tax Rate 19.2% 24.1% Non-GAAP Effective Tax Rate 18.5% 21.9% Diluted EPS attributable to Cardinal $2.38 $1.88 27% Health, Inc. Non-GAAP diluted EPS attributable to $3.26 $2.55 28% Cardinal Health, Inc.
Q1 FY27 Q1 FY26 Y/Y Revenue $62.6 billion $59.2 billion 6% Segment profit $783 million $667 million 17%
First quarter revenue for the Pharmaceutical and Specialty Solutions segment increased 6% to $62.6 billion, driven by brand and specialty pharmaceutical sales growth from existing customers.
Pharmaceutical and Specialty Solutions segment profit increased 17% to $783 million in the first quarter, primarily driven by contributions from brand and specialty products and positive generics program performance.
Q1 FY27 Q1 FY26 Y/Y Revenue $3.2 billion $3.2 billion —% Segment profit $33 million $46 million (28)%
First quarter revenue for the Global Medical Products and Distribution segment was approximately flat to the prior year at $3.2 billion. This was primarily driven by growth in Cardinal Health Brand, offset by lower distribution revenue.
Global Medical Products and Distribution segment profit decreased to $33 million in the first quarter, due to unfavorable distribution and foreign exchange impacts partially offset by growth in Cardinal Health Brand.
Q1 FY27 Q1 FY26 Y/Y Revenue $1.8 billion $1.6 billion 7% Segment profit $193 million $166 million 16%
First quarter revenue for Other increased 7% to $1.8 billion, driven by growth across the three operating segments: Nuclear and Precision Health Solutions, at- Home Solutions, and OptiFreight Logistics.
Other profit increased 16% to $193 million in the first quarter, driven by growth across the three operating segments: OptiFreight Logistics, Nuclear and Precision Health Solutions, and at-Home Solutions.
Cardinal Health is raising its fiscal year 2027 guidance for non-GAAP diluted EPS to $12.80 to $13.00, from the previous range of $12.40 to $12.60. The updated guidance reflects +17% to +19% growth 3 compared to its FY26 ex-tariff refund baseline and +14% to +15% growth from reported FY26 results.
The updated guidance reflects the following increased expectations at the segment level:
• Pharmaceutical and Specialty Solutions profit growth raised to 10% to 12%, from the prior range of 8% to 11%
• Non-GAAP effective tax rate lowered to 18.5% to 19.5%, from the prior range of 19.0% to 20.0%
• Diluted weighted average shares outstanding of 231 million to 232 million, from the prior guidance of approximately 233 million, reflecting the timing of the $500 million accelerated share repurchase in Q1
• Cardinal Health entered into a binding letter of intent to renew its pharmaceutical distribution agreements with CVS Health, reinforcing a long- standing strategic relationship and enabling continued volume growth within the Pharmaceutical and Specialty Solutions segment
• Cardinal Health anticipates completing the acquisition of AdaptHealth’s Diabetes Health business in Q3 of fiscal 2027
• Cardinal Health launches real-world evidence study INSIGHT-IBD in partnership with Eli Lilly to better understand treatment patterns and outcomes for patients with IBD in routine clinical practice
• Cardinal Health announces additional $1.0 billion in uncommitted revolving credit facilities
Cardinal Health will host a webcast today at 8:30 a.m. ET to discuss first quarter 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 on the Investor Relations page for 12 months.
Cardinal 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 .
1 GAAP 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.
2 The 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.
3 Growth rates for fiscal year 2027 guidance based upon adjusted fiscal year 2026 non-GAAP diluted EPS of $10.95, which excludes the fiscal year 2026 benefit from IEEPA tariff refund.
4 Other 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.
This 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 our ability to manage uncertainties associated with the pricing of branded pharmaceuticals including those arising from proposed or final regulatory changes, the risk that we may fail to achieve our strategic objectives, including the successful operation of recently acquired entities and the continued execution of GMPD Improvement Plan initiatives; risks and uncertainties related to tariffs, including the risk that we may not be able to offset increased costs; risks arising from the conflict with Iran, including the risk that we may not be able to offset or forecast cost increases or that we may face supply disruptions or delays; risks associated with litigation matters, including Department of Justice investigations focused on potential violations of the Anti-Kickback Statute and False Claims Act; and the performance of our generics program, including the amount or rate of generic deflation and 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. 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 November 5, 2026. 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
(in millions, except per common share First amounts) Quarter 2027 2026 % Change ────────────────────────────────────────────────────────────────────────────── Revenue $ 67,513 $ 64,009 5 % Cost of produc… 64,917 61,690 5 % sold Gross 2,596 2,319 12 % margin Operat… expens… Distri… sellin… general 1,595 1,461 9 % and admini… expens… Restru… and 23 20 employ… severa… Amorti… and other 182 104 acquis… costs Acquis… cash and 94 64 share-… compen… costs Impair… and (gain)… on -4 2 dispos… of assets, net Litiga… (recov… -47 — net Operat… 753 668 13 % earnin… Other (incom… -6 -10 net Intere… expens… 73 80 -9 % net Impair… of equity -2 — intere… in Outcom… Earnin… before 688 598 15 % income taxes Provis… for 132 144 -8 % income taxes Net 556 454 22 % earnin… Less: Net earnin… attrib… -2 -4 to noncon… intere… Net earnin… attrib… to $ 554 $ 450 23 % Cardin… Health, Inc. Earnin… per common share attrib… to Cardin… Health, Inc.:
September 30, June 30, (in millions) 2026 2026 ────────────────────────────────────────────────────────────────────────────── Assets Current assets: Cash and equivalents $ 5,264 $ 4,856 Trade receivables, net 14,542 13,815 Inventories, net 18,395 17,297 Prepaid expenses and other 2,781 2,764 Assets held for sale 8 21 Total current assets 40,990 38,753 Property and equipment, net 2,999 3,031 Goodwill and other 13,689 13,631 intangibles, net Other assets 1,866 1,884 Total assets $ 59,544 $ 57,299 Liabilities and Shareholders’ Deficit Current liabilities: Accounts payable $ 40,937 $ 38,283 Current portion of long-term obligations 1,886 1,882 and other short-term borrowings Other accrued liabilities 3,503 3,739 Total current liabilities 46,326 43,904 Long-term obligations, less current 6,929 7,004 portion Deferred income taxes and other 9,155 9,115 liabilities Total shareholders’ deficit -2,866 -2,724 Total liabilities and shareholders’ $ 59,544 $ 57,299 deficit
(in millions) Cash flows from operating First Quarter activities: 2027 2026 ────────────────────────────────────────────────────────────────────────────── Net earnings $ 556 $ 454 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 247 233 Impairments and (gain)/loss on sale of 16 5 other investments, net Impairment and (gain)/loss on sale of -2 — equity interest in Outcomes, net Impairments and (gain)/loss on disposal -4 2 of assets, net Share-based compensation 109 93 Provision for bad debts 14 13 Change in operating assets and liabilities, net of effects from acquisitions and divestitures:
Increase in trade receivables -734 -539 Increase in inventories -1,171 -736 Increase in accounts payable 2,653 2,147 Repurchases of liability-classified -4 -16 Specialty Alliance Units Other accrued liabilities and operating -282 -683 items, net Net cash provided by operating 1,398 973 activities Cash flows from investing activities: Acquisition of subsidiaries, net of cash -149 -41 acquired Additions to property and equipment -157 -108 Proceeds from investments 34 9 Proceeds from disposal of property and 15 — equipment Other investing items, net 6 -2 Net cash used in investing -251 -142 activities Cash flows from financing activities: Proceeds from long-term obligations, net — 989 of issuance costs Reduction of long-term obligations -11 -512 Payments to noncontrolling interests, -3 -3 net Net tax withholding from share-based -102 -80 compensation Dividends on common shares -126 -129 Purchase of treasury shares -500 -375 Net cash used in financing -742 -110 activities Effect of exchange rates changes on cash 3 -2 and equivalents Net increase in cash and equivalents 408 719 Cash and equivalents at beginning of 4,856 3,874 period Cash and equivalents at end of $ 5,264 $ 4,593 period
The sum of the components and certain computations may reflect rounding adjustments.
1 For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules.
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.
GAAP / Non-GAAP Reconciliation - GAAP Cash Flow to Non-GAAP Adjusted Free Cash Flow
(in millions) First Quarter GAAP - Cash Flow Categories 2027 2026 ────────────────────────────────────────────────────────────────────────────── Net cash provided by operating $ 1,398 $ 973 activities Net cash used in investing activities -251 -142 Net cash used in financing activities -742 -110 Effect of exchange rates changes on cash 3 -2 and equivalents Net increase in cash and equivalents $ 408 $ 719 Non-GAAP Adjusted Free Cash Flow Net cash provided by operating $ 1,398 $ 973 activities Repurchases of liability-classified 4 16 Specialty Alliance Units Additions to property and equipment -157 -108 Payments related to matters included in 338 404 litigation (recoveries)/charges, net Non-GAAP adjusted free cash flow $ 1,583 $ 1,285
For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules.
This 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.
Management 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.
• 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.
• Impairment of equity interest in Outcomes was incurred in connection with the observed reduction in the estimated fair value of the Outcomes business in fiscal 2026 as a result of the majority shareholder decision to sell the Outcomes business, of which we held a 16 percent equity interest. We exclude this impairment from non-GAAP results as impairments of unconsolidated equity investments of this magnitude do not occur in the normal course of our ongoing business operations. This impairment is similar in nature to a gain or loss on
the divestiture of a majority interest, which we also exclude from non-GAAP results, including the gain recognized on our initial divestiture of the Outcomes business in fiscal 2024. The exclusion of this impairment from non-GAAP financial measures facilitates comparison of our current financial results to our historical financial results. For the three months ended September 30, 2026, we recognized a gain in connection with the completion of the sale of the Outcomes business.
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.
In 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 2027 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 charge related to the goodwill impairment charge for the GMPD segment in fiscal 2022.
: growth rates in this report are determined by dividing the difference between current-period results and prior-period results by prior-period results.
: segment revenue minus (segment cost of products sold and segment distribution, selling, general, and administrative expenses).
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. Non-GAAP operating earnings: operating earnings excluding (1) LIFO charges/(credits), (2) state opioid assessment related to prior fiscal years, (3) restructuring and employee severance, (4) amortization and other acquisition-related costs, (5) acquisition-related cash and share-based compensation costs, (6) impairments and (gain)/loss on disposal of assets, net, and (7) 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) restructuring and employee severance, (4) amortization and other acquisition-related costs, (5) acquisition-related cash and share-based compensation costs, (6) impairments and (gain)/loss on disposal of assets, net, (7) litigation (recoveries)/charges, net, and (8) impairment of equity interest in Outcomes.
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) restructuring and employee severance, (4) amortization and other acquisition-related costs, (5) acquisition-related cash and share-based compensation costs, (6) impairments and (gain)/loss on disposal of assets, net, (7) litigation (recoveries)/charges, net, and (8) impairment of equity interest in Outcomes, each net of tax.
Non-GAAP net earnings attributable to Cardinal Health, Inc.: ne t earnings attributable to Cardinal Health, Inc. excluding (1) LIFO charges/(credits), (2) state opioid assessment related to prior fiscal years, (3) restructuring and employee severance, (4) amortization and other acquisition-related costs, (5) acquisition-related cash and share-based compensation costs, (6) impairments and (gain)/loss on disposal of assets, net, (7) litigation (recoveries)/charges, net, and (8) impairment of equity interest in Outcomes, 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) restructuring and employee severance, (4) amortization and other acquisition-related costs, (5) acquisition-related cash and share- based compensation costs, (6) impairments and (gain)/loss on disposal of assets, net, (7) litigation (recoveries)/charges, net, and (8) impairment of equity interest in Outcomes, 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 plus repurchases of liability-classified Specialty Alliance Units, 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.
Full text with the tables
Exhibit 99.1
FOR IMMEDIATE RELEASE
Cardinal Health Reports First Quarter Fiscal Year 2027 Results and Raises
Outlook
• First quarter revenue increased 5% to $67.5 billion
•
GAAP
1
operating earnings increased 13% to $753 million; GAAP diluted EPS increased 27%
to $2.38
•
Non-GAAP operating earnings increased 17% to $1.0 billion; non-GAAP diluted EPS
increased 28% to $3.26
• Cardinal Health raises fiscal year 2027 non-GAAP EPS guidance
2
to $12.80 to $13.00, 17% to 19% growth
3
from its FY26 ex-tariff refund baseline and 14% to 15% growth from reported FY26
results
•
Cardinal Health completes $500 million share repurchase program in first quarter
DUBLIN, Ohio, November 5, 2026
- Cardinal Health (NYSE: CAH) today reported first quarter fiscal year 2027
revenues of $67.5 billion, an increase of 5% from the first quarter of fiscal
year 2026. First quarter GAAP operating earnings increased 13% to $753 million
and GAAP diluted earnings per share (EPS) increased 27% to $2.38.
First quarter non-GAAP operating earnings increased 17% to $1.0 billion. Non-
GAAP diluted EPS increased 28% to $3.26, reflecting the increase in non-GAAP
operating earnings, a lower share count, and a lower effective tax rate.
“Our results reflect a strong start to fiscal 2027 and demonstrate consistent
execution against our strategic priorities,” said Jason Hollar, CEO of Cardinal
Health. “We continue to benefit from focused investments, disciplined operations
and the strength of our diversified portfolio. Given this quarter's strong
performance and our updated expectations for the remainder of the year, we are
raising our fiscal 2027 non-GAAP EPS outlook.”
Q1 FY27 summary
Q1 FY27 Q1 FY26 Y/Y
Revenue $67.5 billion $64.0 billion 5%
Operating earnings $753 million $668 million 13%
Non-GAAP operating earnings $1.0 billion $857 million 17%
Net earnings attributable to
Cardinal $554 million $450 million 23%
Health, Inc.
Non-GAAP net earnings attributable
to $759 million $611 million 24%
Cardinal Health, Inc.
Effective Tax Rate 19.2% 24.1%
Non-GAAP Effective Tax Rate 18.5% 21.9%
Diluted EPS attributable to
Cardinal $2.38 $1.88 27%
Health, Inc.
Non-GAAP diluted EPS attributable
to $3.26 $2.55 28%
Cardinal Health, Inc.
Cardinal Health
Page 2
Segment results
Pharmaceutical and Specialty Solutions segment
Q1 FY27 Q1 FY26 Y/Y
Revenue $62.6 billion $59.2 billion 6%
Segment profit $783 million $667 million 17%
First quarter revenue for the Pharmaceutical and Specialty Solutions segment
increased 6% to $62.6 billion, driven by brand and specialty pharmaceutical
sales growth from existing customers.
Pharmaceutical and Specialty Solutions segment profit increased 17% to $783
million in the first quarter, primarily driven by contributions from brand and
specialty products and positive generics program performance.
Global Medical Products and Distribution segment
Q1 FY27 Q1 FY26 Y/Y
Revenue $3.2 billion $3.2 billion —%
Segment profit $33 million $46 million (28)%
First quarter revenue for the Global Medical Products and Distribution segment
was approximately flat to the prior year at $3.2 billion. This was primarily
driven by growth in Cardinal Health Brand, offset by lower distribution revenue.
Global Medical Products and Distribution segment profit decreased to $33 million
in the first quarter, due to unfavorable distribution and foreign exchange
impacts partially offset by growth in Cardinal Health Brand.
Other
4
Q1 FY27 Q1 FY26 Y/Y
Revenue $1.8 billion $1.6 billion 7%
Segment profit $193 million $166 million 16%
First quarter revenue for Other increased 7% to $1.8 billion, driven by growth
across the three operating segments: Nuclear and Precision Health Solutions, at-
Home Solutions, and OptiFreight Logistics.
Other profit increased 16% to $193 million in the first quarter, driven by
growth across the three operating segments: OptiFreight Logistics, Nuclear and
Precision Health Solutions, and at-Home Solutions.
Cardinal Health
Page 3
Fiscal year 2027 outlook
2
Cardinal Health is raising its fiscal year 2027 guidance for non-GAAP diluted
EPS to $12.80 to $13.00, from the previous range of $12.40 to $12.60. The
updated guidance reflects +17% to +19% growth 3 compared to its FY26 ex-tariff
refund baseline and +14% to +15% growth from reported FY26 results.
The updated guidance reflects the following increased expectations at the
segment level:
• Pharmaceutical and Specialty Solutions profit growth raised to 10% to 12%,
from the prior range of 8% to 11%
• Other profit growth raised to 17% to 20%, from the prior range of 15% to 18%
• Other revenue growth raised to 12% to 14%, from the prior range of 11% to 13%
The company is also updating the following assumptions for the year:
• Non-GAAP effective tax rate lowered to 18.5% to 19.5%, from the prior range of
19.0% to 20.0%
• Diluted weighted average shares outstanding of 231 million to 232 million,
from the prior guidance of approximately 233 million, reflecting the timing of
the $500 million accelerated share repurchase in Q1
Recent highlights
• Cardinal Health entered into a binding letter of intent to renew its
pharmaceutical distribution agreements with CVS Health, reinforcing a long-
standing strategic relationship and enabling continued volume growth within the
Pharmaceutical and Specialty Solutions segment
• Cardinal Health anticipates completing the acquisition of AdaptHealth’s
Diabetes Health business in Q3 of fiscal 2027
• Cardinal Health launches real-world evidence study INSIGHT-IBD in partnership
with Eli Lilly to better understand treatment patterns and outcomes for patients
with IBD in routine clinical practice
• Cardinal Health announces additional $1.0 billion in uncommitted revolving
credit facilities
Webcast
Cardinal Health will host a webcast today at 8:30 a.m. ET to discuss first
quarter 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 on the Investor
Relations page for 12 months.
About Cardinal Health
Cardinal 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.
Cardinal Health
Page 4
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 .
Contacts
Media: Erich Timmerman, Erich.Timmerman@cardinalhealth.com and 614.757.8231
Investors: David Frost, David.Frost@cardinalhealth.com and 614.757.7852
1 GAAP 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.
2 The 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.
3 Growth rates for fiscal year 2027 guidance based upon adjusted fiscal year
2026 non-GAAP diluted EPS of $10.95, which excludes the fiscal year 2026 benefit
from IEEPA tariff refund.
4 Other 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 Statements
This 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 our ability to
manage uncertainties associated with the pricing of branded pharmaceuticals
including those arising from proposed or final regulatory changes, the risk that
we may fail to achieve our strategic objectives, including the successful
operation of recently acquired entities and the continued execution of GMPD
Improvement Plan initiatives; risks and uncertainties related to tariffs,
including the risk that we may not be able to offset increased costs; risks
arising from the conflict with Iran, including the risk that we may not be able
to offset or forecast cost increases or that we may face supply disruptions or
delays; risks associated with litigation matters, including Department of
Justice investigations focused on potential violations of the Anti-Kickback
Statute and False Claims Act; and the performance of our generics program,
including the amount or rate of generic deflation and 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.
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 November 5, 2026.
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
Cardinal Health
Page 5
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
Condensed Consolidated Statements of Earnings (Unaudited)
(in
millions,
except
per
common
share First
amounts) Quarter 2027 2026 % Change
──────────────────────────────────────────────────────────────────────────────
Revenue $ 67,513 $ 64,009 5 %
Cost of
produc… 64,917 61,690 5 %
sold
Gross 2,596 2,319 12 %
margin
Operat…
expens…
Distri…
sellin…
general 1,595 1,461 9 %
and
admini…
expens…
Restru…
and 23 20
employ…
severa…
Amorti…
and
other 182 104
acquis…
costs
Acquis…
cash
and 94 64
share-…
compen…
costs
Impair…
and
(gain)…
on -4 2
dispos…
of
assets,
net
Litiga…
(recov… -47 —
net
Operat… 753 668 13 %
earnin…
Other
(incom… -6 -10
net
Intere…
expens… 73 80 -9 %
net
Impair…
of
equity -2 —
intere…
in
Outcom…
Earnin…
before 688 598 15 %
income
taxes
Provis…
for 132 144 -8 %
income
taxes
Net 556 454 22 %
earnin…
Less:
Net
earnin…
attrib… -2 -4
to
noncon…
intere…
Net
earnin…
attrib…
to $ 554 $ 450 23 %
Cardin…
Health,
Inc.
Earnin…
per
common
share
attrib…
to
Cardin…
Health,
Inc.:
Basic $ 2.39 $ 1.89 26 %
Diluted $ 2.38 $ 1.88 27 %
Weight…
number
of
common
shares
outsta…
Basic 232 238
Diluted 233 239
Schedule 2
Cardinal Health, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
September 30, June 30,
(in millions) 2026 2026
──────────────────────────────────────────────────────────────────────────────
Assets
Current assets:
Cash and equivalents $ 5,264 $ 4,856
Trade receivables, net 14,542 13,815
Inventories, net 18,395 17,297
Prepaid expenses and other 2,781 2,764
Assets held for sale 8 21
Total current assets 40,990 38,753
Property and equipment, net 2,999 3,031
Goodwill and other 13,689 13,631
intangibles, net
Other assets 1,866 1,884
Total assets $ 59,544 $ 57,299
Liabilities and
Shareholders’ Deficit
Current liabilities:
Accounts payable $ 40,937 $ 38,283
Current portion of long-term
obligations 1,886 1,882
and other short-term
borrowings
Other accrued liabilities 3,503 3,739
Total current liabilities 46,326 43,904
Long-term obligations, less
current 6,929 7,004
portion
Deferred income taxes and
other 9,155 9,115
liabilities
Total shareholders’ deficit -2,866 -2,724
Total liabilities and
shareholders’ $ 59,544 $ 57,299
deficit
Schedule 3
Cardinal Health, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited
)
(in millions)
Cash flows from operating First Quarter
activities: 2027 2026
──────────────────────────────────────────────────────────────────────────────
Net earnings $ 556 $ 454
Adjustments to reconcile net
earnings to
net cash provided by operating
activities:
Depreciation and amortization 247 233
Impairments and (gain)/loss on sale
of 16 5
other investments, net
Impairment and (gain)/loss on sale
of -2 —
equity interest in Outcomes, net
Impairments and (gain)/loss on
disposal -4 2
of assets, net
Share-based compensation 109 93
Provision for bad debts 14 13
Change in operating assets and
liabilities, net of effects from
acquisitions and divestitures:
Increase in trade receivables -734 -539
Increase in inventories -1,171 -736
Increase in accounts payable 2,653 2,147
Repurchases of liability-classified -4 -16
Specialty Alliance Units
Other accrued liabilities and
operating -282 -683
items, net
Net cash provided by operating 1,398 973
activities
Cash flows from investing
activities:
Acquisition of subsidiaries, net of
cash -149 -41
acquired
Additions to property and equipment -157 -108
Proceeds from investments 34 9
Proceeds from disposal of property
and 15 —
equipment
Other investing items, net 6 -2
Net cash used in investing -251 -142
activities
Cash flows from financing
activities:
Proceeds from long-term obligations,
net — 989
of issuance costs
Reduction of long-term obligations -11 -512
Payments to noncontrolling
interests, -3 -3
net
Net tax withholding from share-based -102 -80
compensation
Dividends on common shares -126 -129
Purchase of treasury shares -500 -375
Net cash used in financing -742 -110
activities
Effect of exchange rates changes on
cash 3 -2
and equivalents
Net increase in cash and equivalents 408 719
Cash and equivalents at beginning of 4,856 3,874
period
Cash and equivalents at end of $ 5,264 $ 4,593
period
Schedule 4
Cardinal Health, Inc. and Subsidiaries
Segment Information
F…
Q… G…
P… M…
a… P…
… S… a…
… S… D… O…
… 2… 2… 2… … 2… 2…
──────────────────────────────────────────────────────────────────────────────
… $ 6… $ 5… $ 3… $ 3… $ … $ …
… 6 % 23 % — % 2 % 7 % … %
…
…
…
… $ 7… $ 6… $ 33 $ 46 $ … $ …
… 17 % 26 % -… % … … % … %
…
…
… 1… % 1… % 1… % 1… % … % … %
…
The sum of the components and certain computations may reflect rounding
adjustments.
Schedule 5
Cardinal Health, Inc. and Subsidiaries
GAAP / Non-GAAP Reconciliation
1
──────────────────────────────────────────────────────────────────────────────
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.
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
(in millions) First Quarter
GAAP - Cash Flow Categories 2027 2026
──────────────────────────────────────────────────────────────────────────────
Net cash provided by operating $ 1,398 $ 973
activities
Net cash used in investing activities -251 -142
Net cash used in financing activities -742 -110
Effect of exchange rates changes on
cash 3 -2
and equivalents
Net increase in cash and equivalents $ 408 $ 719
Non-GAAP Adjusted Free Cash Flow
Net cash provided by operating $ 1,398 $ 973
activities
Repurchases of liability-classified 4 16
Specialty Alliance Units
Additions to property and equipment -157 -108
Payments related to matters included
in 338 404
litigation (recoveries)/charges, net
Non-GAAP adjusted free cash flow $ 1,583 $ 1,285
For more information on these measures, refer to the Use of Non-GAAP Measures
and Definitions schedules.
Cardinal Health, Inc. and Subsidiaries
Use of Non-GAAP Measures
This 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 Measures
Management 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.
• 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.
• Impairment of equity interest in Outcomes was incurred in connection with the
observed reduction in the estimated fair value of the Outcomes business in
fiscal 2026 as a result of the majority shareholder decision to sell the
Outcomes business, of which we held a 16 percent equity interest. We exclude
this impairment from non-GAAP results as impairments of unconsolidated equity
investments of this magnitude do not occur in the normal course of our ongoing
business operations. This impairment is similar in nature to a gain or loss on
the divestiture of a majority interest, which we also exclude from non-GAAP
results, including the gain recognized on our initial divestiture of the
Outcomes business in fiscal 2024. The exclusion of this impairment from non-GAAP
financial measures facilitates comparison of our current financial results to
our historical financial results. For the three months ended September 30, 2026,
we recognized a gain in connection with the completion of the sale of the
Outcomes business.
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 Measures
In 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 2027 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 charge related to the
goodwill impairment charge for the GMPD segment in fiscal 2022.
Definitions
Growth 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.
Non-GAAP operating earnings: operating earnings excluding (1) LIFO
charges/(credits), (2) state opioid assessment related to prior fiscal years,
(3) restructuring and employee severance, (4) amortization and other
acquisition-related costs, (5) acquisition-related cash and share-based
compensation costs, (6) impairments and (gain)/loss on disposal of assets, net,
and (7) 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) restructuring and employee severance, (4) amortization and other
acquisition-related costs, (5) acquisition-related cash and share-based
compensation costs, (6) impairments and (gain)/loss on disposal of assets, net,
(7) litigation (recoveries)/charges, net, and (8) impairment of equity interest
in Outcomes.
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) restructuring and
employee severance, (4) amortization and other acquisition-related costs, (5)
acquisition-related cash and share-based compensation costs, (6) impairments and
(gain)/loss on disposal of assets, net, (7) litigation (recoveries)/charges,
net, and (8) impairment of equity interest in Outcomes, each net of tax.
Non-GAAP net earnings attributable to Cardinal Health, Inc.: ne t earnings
attributable to Cardinal Health, Inc. excluding (1) LIFO charges/(credits), (2)
state opioid assessment related to prior fiscal years, (3) restructuring and
employee severance, (4) amortization and other acquisition-related costs, (5)
acquisition-related cash and share-based compensation costs, (6) impairments and
(gain)/loss on disposal of assets, net, (7) litigation (recoveries)/charges,
net, and (8) impairment of equity interest in Outcomes, 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) restructuring and employee severance, (4) amortization
and other acquisition-related costs, (5) acquisition-related cash and share-
based compensation costs, (6) impairments and (gain)/loss on disposal of assets,
net, (7) litigation (recoveries)/charges, net, and (8) impairment of equity
interest in Outcomes, 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 plus
repurchases of liability-classified Specialty Alliance Units, 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.