Cardinal Health said revenue for the 3 months ended December 31, 2024 decreased 4% from the prior-year period to $55.3 billion, citing the expiration of the OptumRx contracts as a primary factor. GAAP operating earnings for the same period increased 9% to $549 million, while non-GAAP operating earnings increased 9% to $635 million.

1. 01

   Cardinal Health said revenue for the 3 months ended December 31, 2024 decreased 4% from the prior-year period to $55.3 billion, citing the expiration of the OptumRx contracts as a primary factor. GAAP operating earnings for the same period increased 9% to $549 million, while non-GAAP operating earnings increased 9% to $635 million.

2. 02

   The company said cash and equivalents as of December 31, 2024 were $3.8 billion, compared to $5.1 billion as of June 30, 2024. Net cash used in operating activities for the 6 months was $2.0 billion, which the company cited as primarily impacted by the unwinding of negative net working capital associated with the OptumRx contracts and the normal timing of payments to vendors, and included payments of $692 million related to opioid litigation.

3. 03

   Cardinal Health said it completed the acquisition of ION on December 2, 2024 for a purchase price of $1.1 billion in cash, subject to certain adjustments. During the 6 months, the company issued additional long-term debt and received net proceeds of $2.9 billion to fund a portion of the consideration payable in connection with the GIA and ADSG acquisitions and for general purposes, and deployed cash of $400 million for debt repayment, $390 million for share repurchases, $250 million for cash dividends, and $189 million for capital expenditures.

4. 04

   The company said it had $4.9 billion accrued as of December 31, 2024 related to national opioid litigation settlements and expects the majority of the remaining payment amounts to occur through 2038. During the 6 months, it made payments of $692 million, and said the amounts of future annual payments may differ from the payments already made.

Key figures

Quarter ended December 31, 2024

Revenue

$55.3B

Operating income

$549M

Net income

$400M

Gross profit

$1.9B

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

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