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DUBLIN, Ohio – Cardinal Health has reported second quarter fiscal year 2025 revenues of $55.3 billion, a decrease of 4% from the second quarter of fiscal year 2024. Second quarter revenue increased 16% excluding the impact of the previously communicated large customer contract expiration.
Second quarter GAAP operating earnings increased 9% to $549 million and GAAP diluted earnings per share (EPS) were $1.65. Second quarter non-GAAP operating earnings increased 9% to $635 million, driven by the Pharmaceutical and Specialty Solutions segment. Non-GAAP diluted EPS increased 2% to $1.93, due to an increase in non-GAAP operating earnings and a lower share count, offset in part by an increase in interest and other expense due to financing impacts related to the recent acquisitions.
"We delivered strong second quarter financial results while taking significant strategic and operational actions to position us for future growth," said Jason Hollar, CEO of Cardinal Health. "Led by robust demand across our Pharmaceutical and Specialty Solutions segment, we are again pleased to raise our fiscal 2025 enterprise guidance."
Hollar added, "We are also pleased to announce the closing of our acquisition of a majority position in GI Alliance. GI Alliance, along with our recently completed Integrated Oncology Network transaction in support of our Navista oncology platform, enables our continued specialty growth and delivers a greater value proposition for providers and patients."
Q2 FY25 summary
Q2 FY25 | Q2 FY24 | Y/Y | |||
Revenue | $55.3 billion | $57.4 billion | (4) % | ||
Operating earnings | $549 million | $505 million | 9 % | ||
Non-GAAP operating earnings | $635 million | $585 million | 9 % | ||
Net earnings attributable to Cardinal Health, Inc. | $400 million | $368 million | 9 % | ||
Non-GAAP net earnings attributable to Cardinal Health, Inc. | $468 million | $464 million | 1 % | ||
Effective Tax Rate | 21.4 % | 27.9 % | |||
Non-GAAP Effective Tax Rate | 21.4 % | 21.4 % | |||
Diluted EPS attributable to Cardinal Health, Inc. | $1.65 | $1.50 | 10 % | ||
Non-GAAP diluted EPS attributable to Cardinal Health, Inc. | $1.93 | $1.89 | 2 % |
Segment results
Pharmaceutical and Specialty Solutions segment
Q2 FY25 | Q2 FY24 | Y/Y | |||
Revenue | $ 50.8 billion | $ 53.2 billion | (4) % | ||
Segment profit | $ 531 million | $ 495 million | 7 % |
Second quarter revenue for the Pharmaceutical and Specialty Solutions segment decreased 4% to $50.8 billion. Second quarter revenue increased 17% 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 7% to $531 million in the second quarter, driven by growth from BioPharma Solutions, including contributions from Specialty Networks, and a higher contribution from brand and specialty products. This growth was partially offset by the customer contract expiration.
