Cardinal Health Inc. (NYSE:CAH) on Thursday reported third-quarter 2025 adjusted EPS of $2.35, up 13% year over year, beating the consensus of $2.17.

Sales remained flat at $54.9 billion, missing the consensus of $55.35 billion. Adjusted operating earnings increased 21% to $807 million.

Third-quarter sales for the Pharmaceutical and Specialty Solutions segment remained unchanged at $50.6 billion.

• Third-quarter revenue increased by 20%, excluding the impact of the customer contract expiration, driven by brand and specialty pharmaceutical sales growth from existing and new customers.
• Segment profit increased 14% to $662 million in the third quarter, driven by contributions from brand and specialty products, MSO platforms (including GI Alliance), BioPharma Solutions (including Specialty Networks), and positive generics program performance, partially offset by the customer contract expiration.

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Revenue for the Global Medical Products and Distribution segment increased 2% to $3.2 billion, driven by volume growth from existing customers.

• Segment profit increased 77% to $39 million in the third quarter, driven by the beneficial net impact of cost optimization initiatives.
• GMPD segment manufactures, sources, and distributes Cardinal Health brand medical, surgical, and laboratory products, as well as distributes medical, surgical and laboratory products known as national brand products

Outlook: Cardinal Health raises fiscal year 2025 adjusted EPS from $7.85-$8.00 to $8.05-$8.15 compared to consensus of $7.96.

• Increased outlook for Pharmaceutical and Specialty Solutions segment profit to 11.5% to 12.5% growth, from 10% to 12% growth previously.
• Narrowed outlook for GMPD segment profit to $130 million to $140 million, from $130 million to $150 million previously.

Despite the evolving macro environment conditions, Cardinal Health anticipates double-digit non-GAAP EPS growth in fiscal 2026.

• The company expects strong segment profit growth in Pharmaceutical and Specialty Solutions.
• In the face of the macro uncertainty, the company is updating its expectations for fiscal 2026 GMPD segment profit, which it now expects to be at least consistent with fiscal 2025 segment profit.
• The company will continue to assess opportunities and risks and plan to discuss its fiscal 2026 and beyond expectations at its upcoming Investor Day on June 12.

Price Action: CAH stock is trading 2.30% higher at $144.53 at the last check Thursday.

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