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CardinalHealth ™ Q4 FY26 Earnings Cardinal Health , Inc. August 11 , 2026 © 2026 Cardinal Health . All Rights Reserved .
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2 © 2026 Cardinal Health. All Rights Reserved. • Q4 FY26 Earnings 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 ongoing integration and operation of recently acquired entities and the continued execution of the GMPD Improvement Plan initiatives and; risks and uncertainties related to tariffs, including the risk that we may not be able to offset increased costs; 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 Department of Justice investigations 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, including the recent conflict with Iran, may impact costs for our products or may cause supply delays or shortages or manufacturing delays that impact our cost and ability to fulfill customer demand; 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 August 11, 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
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3 © 2026 Cardinal Health. All Rights Reserved. © 2026 Cardinal Health. All Rights Reserved. Q4 Results
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4 © 2026 Cardinal Health. All Rights Reserved. GAAP Basis ($M) Q4 FY26 Non-GAAP Basis ($M) Q4 FY26 Revenue % change $63,672 6% N/A Gross Margin % change $2,560 16% $2,560 16% SG&A % change $1,625 10% $1,625 10% Operating Earnings % change $729 70% $935 30% Interest and Other1 % change $53 N.M. N/A Net Earnings2 % change $398 67% $682 36% Diluted EPS2 % change $1.70 70% $2.91 40% 1The sum of “other (income)/expense, net” and “interest expense, net” 2Attributable to Cardinal Health, Inc. Please see appendix for GAAP to Non-GAAP reconciliations. • Q4 FY26 Earnings Q4 FY26 financial summary
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5 © 2026 Cardinal Health. All Rights Reserved. Q4 FY26 ($M) Q4 FY25 ($M) YoY change Revenue $58,848 $55,372 6% Segment profit $645 $535 21% Segment profit margin 1.10% 0.97% 13 bps • Q4 FY26 Earnings The sum of the components and certain computations may reflect rounding adjustments. + Brand and specialty pharmaceutical sales growth from existing customers Generics program + Drivers: Revenue Segment profit + Brand and specialty products Pharmaceutical and Specialty Solutions Q4 FY26 results
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6 © 2026 Cardinal Health. All Rights Reserved. - + • Q4 FY26 Earnings Drivers: Revenue Distribution volumes Segment profit Q4 FY26 ($M) Q4 FY25 ($M) YoY change Revenue $3,128 $3,199 (2%) Segment profit $150 $70 N.M. Segment profit margin 4.80% 2.19% 261 bps The sum of the components and certain computations may reflect rounding adjustments. IEEPA tariff refunds Global Medical Products and Distribution Q4 FY26 results - Recognition of IEEPA tariff refund repayments + Cardinal Health Brand
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7 © 2026 Cardinal Health. All Rights Reserved. • Q4 FY26 Earnings Drivers: Growth across the three operating segments Segment profit Q4 FY26 ($M) Q4 FY25 ($M) YoY change Revenue $1,721 $1,609 7% Segment profit $183 $160 14% Segment profit margin 10.63% 9.94% 69 bps The sum of the components and certain computations may reflect rounding adjustments. Revenue + Growth driven by OptiFreight Logistics and at-Home Solutions + Other: NPHS, at-Home Solutions and OptiFreight Q4 FY26 results
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8 © 2026 Cardinal Health. All Rights Reserved. © 2026 Cardinal Health. All Rights Reserved. FY26 Results
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9 © 2026 Cardinal Health. All Rights Reserved. GAAP Basis ($M) FY26 Non-GAAP Basis ($M) FY26 Revenue % change $254,248 14% N/A Gross Margin % change $9,774 20% $9,774 20% SG&A % change $6,132 14% $6,150 14% Operating Earnings % change $2,613 15% $3,624 30% Interest and Other1 % change $317 N.M. N/A Net Earnings2 % change $1,714 10% $2,667 34% Diluted EPS2 % change $7.23 12% $11.26 37% 1The sum of “other (income)/expense, net” and “interest expense, net” 2Attributable to Cardinal Health, Inc. Please see appendix for GAAP to Non-GAAP reconciliations. • Q4 FY26 Earnings FY26 financial summary
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10 © 2026 Cardinal Health. All Rights Reserved. FY26 ($M) FY25($M) YoY change Revenue $234,833 $204,644 15% Segment profit $2,783 $2,258 23% Segment profit margin 1.19% 1.10% 9 bps • Q4 FY26 Earnings The sum of the components and certain computations may reflect rounding adjustments. Brand and specialty products+ Brand and specialty pharmaceutical sales growth from existing and new customers + Drivers: Revenue Segment profit + Generics program Pharmaceutical and Specialty Solutions FY26 results + MSO platforms
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11 © 2026 Cardinal Health. All Rights Reserved. + + • Q4 FY26 Earnings Drivers: Revenue Cardinal Health Brand Segment profit FY26 ($M) FY25 ($M) YoY change Revenue $12,719 $12,636 1% Segment profit $258 $135 91% Segment profit margin 2.03% 1.07% 96 bps The sum of the components and certain computations may reflect rounding adjustments. Global Medical Products and Distribution FY26 results Growth from existing customers - Distribution Volumes + Net impact of IEEPA tariff refund - Net impact of non-IEEPA tariffs- Recognition of IEEPA tariff refund repayments
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12 © 2026 Cardinal Health. All Rights Reserved. • Q4 FY26 Earnings Drivers: Growth across the three operating segments Segment profit FY26 ($M) FY25 ($M) YoY change Revenue $6,792 $5,382 26% Segment profit $707 $516 37% Segment profit margin 10.41% 9.59% 82 bps The sum of the components and certain computations may reflect rounding adjustments. Revenue + Growth across the three operating segments+ Other: NPHS, at-Home Solutions and OptiFreight FY26 results
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13 © 2026 Cardinal Health. All Rights Reserved. © 2026 Cardinal Health. All Rights Reserved. FY27 Outlook
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14 © 2026 Cardinal Health. All Rights Reserved. FY27 outlook FY26 actual Non-GAAP EPS $12.40 - $12.60 (13%-15% growth1) $11.26 ($10.95 adjusted for IEEPA tariff refund) Interest and Other $240M - $290M $317M Non-GAAP ETR 19.0% - 20.0% 19.0% Diluted weighted average shares outstanding ~233M 237M Share repurchases ~$1B $1.4B Capital expenditures ~$700M $649M Non-GAAP adjusted free cash flow $3.5B - $4.0B $5.0B The company does not provide forward-looking expectations 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” in the financial appendix at the end of this presentation for additional explanation. 1EPS growth rate for FY27 based upon adjusted FY26 EPS of $10.95 • Q4 FY26 Earnings FY27 financial expectations
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15 © 2026 Cardinal Health. All Rights Reserved. • Q4 FY26 Earnings Revenue and segment profit 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. Pharmaceutical and Specialty Solutions Other: at-Home Solutions NPHS, OptiFreight Logistics Revenue growth of 3% to 5% Segment profit growth of 8% to 11% Revenue growth of 11% to 13% Segment profit growth of 15% to 18% FY27 segment guidance Global Medical Products and Distribution Revenue growth of 2% to 4% Segment profit of $200M to $220M
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16 © 2026 Cardinal Health. All Rights Reserved. • Q4 FY26 Earnings FY27 adjusted EPS and GMPD outlook Reported FY26 non-GAAP EPS ($ 0.31) FY27 Outlook non-GAAP EPS $11.26 $10.95 $12.40 - $12.60 Baseline adjusted FY26 non-GAAP EPS IEEPA Tariff refunds 13% - 15% growth $258M Reported FY26 GMPD Segment profit ($100M) $158M $200M - $220M FY27 Outlook GMPD Segment profitBaseline adjusted FY26 GMPD Segment profit IEEPA Tariff refunds $50M+ growth
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17 © 2026 Cardinal Health. All Rights Reserved. • Q4 FY26 Earnings Strategic priorities Relentless focus on simplification Build upon the growth and resiliency of Pharmaceutical and Specialty Solutions by expanding in Specialty Accelerate other growth businesses Execute GMPD Improvement Plan initiatives
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18 © 2026 Cardinal Health. All Rights Reserved. Supporting community-based physicians with a comprehensive model • Q4 FY26 Earnings Broad Distribution and Scaled Contracting MSO Platforms Advanced Data and Technology Solutions Specialty Community Physicians Oncology Approx 40% of market Multi-Specialty Approx 60% of market PPS Analytics and SoNaR Real World Evidence/Data Pharmaceutical and Specialty Distribution GPO offerings Nuclear and Precision Health Solutions
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19 © 2026 Cardinal Health. All Rights Reserved. Investments to expand capabilities and capacity in PET and Theranostics Nuclear & Precision Health Solutions at-Home Solutions Care shifting to more cost-effective and comfortable settings Increasing pressures on providers to reduce costs and leverage technology Recent Updates Key trends Acceleration of biopharma innovation and precision medicine Tuck-in acquisitions of Strive Medical and Diabetes Health business of AdaptHealth Launched outbound pharmacy shipping solution Other includes: Nuclear and Precision Health Solutions | at-Home Solutions | OptiFreight Logistics; Financials represent Other’s FY26 results Positioned for continued double-digit profit growth $6.8B revenue >$700M profit 10.4% operating margin OptiFreight Logistics • Q4 FY26 Earnings Higher-margin growth businesses FY26 Results for growth businesses
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20 © 2026 Cardinal Health. All Rights Reserved. Improvement Plan progress Cardinal Health Brand growth U.S. CHB revenue1 growth at least mid single digits for 6 consecutive quarters Simplification and cost optimizations Reduced countries with commercial operations; simplified global manufacturing footprint Supply chain resiliency and tariff mitigation Implemented operational changes, increased domestic manufacturing, increased prices FY22 FY23 FY24 FY25 FY26 FY27 CAGR: +32% Results of GMPD Improvement PlanStabilization GMPD Segment operating profit ($M) $258 $210 $100 $158 $135 $92 ($147) ($64) Note: 3-year CAGR FY25-FY27 using FY24 baseline IEEPA Tariff refund • Q4 FY26 Earnings GMPD showing strong Improvement Plan progress 1Normalized for IEEPA tariff refunds
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21 © 2026 Cardinal Health. All Rights Reserved. • Q4 FY26 Earnings Disciplined Strategic Execution Nuclear capacity and capabilities MSO Platform Capabilities Automation technology New customer solutions New DCs Pharma & Specialty and at-Home Solutions Supply chain technology $547 $649 ~$700 FY25 FY26 FY27 Outlook Capital expenditures | ($ in millions)
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22 © 2026 Cardinal Health. All Rights Reserved. Compelling investment thesis • Q4 FY26 Earnings Consistent track record Unique breadth of capabilities Resilient model Strong core Pharma Specialty opportunity Higher-margin growth businesses Progress with GMPD turnaround Robust cash flow generation Disciplined capital allocation 12% to 14% non-GAAP EPS growth
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23 © 2026 Cardinal Health. All Rights Reserved. 23 © 2026 Cardinal Health. All Rights Reserved. Appendix
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24 © 2026 Cardinal Health. All Rights Reserved. Net (Earnings)/Loss Gross Operating Earnings Attributable Net Diluted Margin SG&A2 Earnings Before Provision for to Non- Earnings 3 Effective EPS3 Gross Growth Growth Operating Growth Income Income controlling Net Growth Tax Diluted Growth Margin Rate SG&A2 Rate Earnings Rate Taxes Taxes Interests Earnings 3 Rate Rate EPS3 Rate (in millions, except per common share amounts) GAAP $ 2,560 16 % $ 1,625 10 % $ 729 70 % $ 554 $ 154 $ (2)$ 398 67 % 27.9 % $ 1.70 70 % Restructuring and employee severance — — 40 40 9 — 31 0.13 Amortization and other acquisition-related costs — — 121 121 28 — 93 0.40 Acquisition-related cash & share-based compensation costs — — 44 44 3 — 41 0.18 Impairments and (gain)/loss on disposal of assets, net — — 4 4 3 — 1 — Litigation (recoveries)/charges, net — — (3) (3) (3) — — — Impairment of equity interest in Outcomes 4 — — — 122 3 — 119 0.51 Non-GAAP $ 2,560 16 % $ 1,625 10 % $ 935 30 % $ 882 $ 198 $ (2)$ 682 36 % 22.5 % $ 2.91 40 % 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 % GAAP / Non-GAAP Reconciliation 1 Cardinal Health, Inc. and Subsidiaries We generally apply varying tax rates depending on the item's nature and tax jurisdiction where it is incurred. 3 Attributable to Cardinal Health, Inc. 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. Fourth Quarter 2026 Fourth Quarter 2025 The sum of the components and certain computations may reflect rounding adjustments. 4 For fiscal 2026, we recognized a pre-tax impairment charge of $122 million related to our equity method investment in Outcomes due to an observed reduction in the estimated fair value of the business, which is included in impairment of equity interest in Outcomes in the consolidated statements of earnings. The net tax benefit related to this charge was $3 million and is included in the annual effective tax rate.
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25 © 2026 Cardinal Health. All Rights Reserved. Net (Earnings)/Loss Gross Operating Earnings Provision Attributable Net Diluted Margin SG&A2 Earnings Before for to Non- Earnings 3 Effective EPS 3 Gross Growth Growth Operating Growth Income Income controlling Net Growth Tax Diluted Growth Margin Rate SG&A 2 Rate Earnings Rate Taxes Taxes Interests Earnings 3 Rate Rate EPS 3 Rate (in millions, except per common share amounts) GAAP $ 9,774 20 % $ 6,132 14 % $ 2,613 15% $ 2,174 $ 469 $ 9 $ 1,714 10% 21.6 % $ 7.23 12 % State opioid assessment related to prior fiscal years — 17 (17) (17) (4) — (13) (0.05) Restructuring and employee severance — — 106 106 24 — 82 0.34 Amortization and other acquisition-related costs — — 469 469 120 — 349 1.47 Acquisition-related cash & share-based compensation costs — — 287 287 12 — 275 1.16 Impairments and (gain)/loss on disposal of assets, net 5 — — 177 177 22 (23) 132 0.56 Litigation (recoveries)/charges, net — — (10) (10) (19) — 9 0.04 Impairment of equity interest in Outcomes 4 — — — 122 3 — 119 0.50 Non-GAAP $ 9,774 20 % $ 6,150 14 % $ 3,624 30 % $ 3,308 $ 628 $ (13)$ 2,667 34 % 19.0 % $ 11.26 37 % 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 % 2 Distribution, selling, general and administrative expenses. Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation 1 Fiscal Year 2026 Fiscal Year 2025 1 For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules. 3 Attributable to Cardinal Health, Inc. 4 For fiscal 2026, we recognized a pre-tax impairment charge of $122 million related to our equity method investment in Outcomes due to an observed reduction in the estimated fair value of the business, which is included in impairment of equity interest in Outcomes in the consolidated statements of earnings. The net tax benefit related to this charge was $3 million and is included in the annual effective tax rate. 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. 4 For fiscal 2026, impairments and (gain)/loss on disposals of assets, net includes pre-tax goodwill impairment charges of $184 million related to the Navista & ION reporting unit within the Pharma segment. For fiscal 2026, the net tax benefit related to these charges was $23 million, and were included in the annual effective tax rates. The portion of the goodwill impairment charge within the Navista & ION reporting unit attributable to noncontrolling interests was $23 million for fiscal 2026.
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26 © 2026 Cardinal Health. All Rights Reserved. (in millions) 2026 2025 2026 2025 2026 2025 Revenue Amount $ 58,848 $ 55,372 $ 3,128 $ 3,199 $ 1,721 $ 1,609 Growth rate 6 % — % (2)% 3 % 7 % 37 % Segment profit Amount $ 645 $ 535 $ 150 $ 70 $ 183 $ 160 Growth rate 21 % 11 % N.M. 49 % 14 % 44 % Segment profit margin 1.10% 0.97 % 4.80% 2.19 % 10.63% 9.94 % (in millions) 2026 2025 2026 2025 2026 2025 Revenue Amount $ 234,833 $ 204,644 $ 12,719 $ 12,636 $ 6,792 $ 5,382 Growth rate 15 % (3)% 1 % 2 % 26 % 19 % Segment profit Amount $ 2,783 $ 2,258 $ 258 $ 135 $ 707 $ 516 Growth rate 23 % 12 % 91 % 47 % 37 % 22 % Segment profit margin 1.19% 1.10 % 2.03% 1.07 % 10.41% 9.59 % The sum of the components and certain computations may reflect rounding adjustments. Year-to-Date Pharmaceutical and Specialty Solutions Global Medical Products and Distribution Other Cardinal Health, Inc. and Subsidiaries Segment Information Fourth Quarter Pharmaceutical and Specialty Solutions Global Medical Products and Distribution Other
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27 © 2026 Cardinal Health. All Rights Reserved. (in millions) 2026 2025 GAAP - Cash Flow Categories Net cash provided by operating activities $ 5,174 $ 2,397 Net cash used in investing activities (2,584) (5,593) Net cash provided by/(used in) financing activities (1,602) 1,940 Effect of exchange rates changes on cash and equivalents (6) (3) Net increase/(decrease) in cash and equivalents 982$ (1,259)$ Non-GAAP Adjusted Free Cash Flow Net cash provided by operating activities $ 5,174 $ 2,397 Repurchases of liability-classified Specialty Alliance Units 45 19 Additions to property and equipment (649) (547) Payments related to matters included in litigation (recoveries)/charges, net 401 619 Non-GAAP Adjusted Free Cash Flow 4,971$ 2,488$ For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules. Cardinal Health, Inc. and Subsidiaries GAAP / Non-GAAP Reconciliation - GAAP Cash Flow to Non-GAAP Adjusted Free Cash Flow Fiscal Year
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28 © 2026 Cardinal Health. All Rights Reserved. (in millions) 2026 2025 % Change 2026 2025 % Change Segment profit $ 150 $ 70 N.M. $ 258 $ 135 91 % Less: IEEPA tariff refunds 100 — 100% 100 — 100% Segment profit, excluding IEEPA tariff refunds 50$ 70$ (29)% 158$ 135$ 17 % (in millions) 2026 2025 % Change 2026 2025 % Change Net earnings 1 $ 398 $ 239 67 % $ 1,714 $ 1,561 10 % Less: IEEPA tariff refunds, net of tax 74 — 100% 74 — 100% Net earnings, excluding IEEPA tariff refunds 324$ 239$ 36 % 1,640$ 1,561$ 5 % Diluted EPS $ 1.70 $ 1.00 70 % $ 7.23 $ 6.45 12 % Less: Diluted EPS, IEEPA tariff refunds, net of tax 0.31 — 100% 0.31 — 100% Diluted EPS, excluding IEEPA tariff refunds 1.39$ 1.00$ 39 % 6.92$ 6.45$ 7 % (in millions) 2026 2025 % Change 2026 2025 % Change Non-GAAP Net earnings 1 $ 682 $ 501 36 % $ 2,667 $ 1,995 34 % Less: IEEPA tariff refunds, net of tax 74 — 100% 74 — 100% Non-GAAP Net earnings, excluding IEEPA tariff refunds 608$ 501$ 21 % 2,593$ 1,995$ 30 % Non-GAAP Diluted EPS $ 2.91 $ 2.08 40 % $ 11.26 $ 8.24 37 % Less: Non-GAAP Diluted EPS, IEEPA tariff refunds, net of tax 0.31 — 100% 0.31 — 100% Non-GAAP Diluted EPS, excluding IEEPA tariff refunds 2.60$ 2.08$ 25 % 10.95$ 8.24$ 33 % 1 Attributable to Cardinal Health, Inc. Cardinal Health, Inc. and Subsidiaries Global Medical Product Distribution ("GMPD") and Consolidated International Emergency Economic Powers Act ("IEEPA") Tariff Refunds Reconciliation Global Medical Product Distribution Fourth Quarter Consolidated Fourth Quarter Fiscal Year Fiscal Year Consolidated Fourth Quarter Fiscal Year
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29 © 2026 Cardinal Health. All Rights Reserved. (in millions) 2026 2025 % Change 2026 2025 % Change SG&A expenses $ 1,625 $ 1,484 10 % $ 6,132 $ 5,382 14 % Less: Recent acquisitions 1 198 157 26 % 767 254 N.M. SG&A expenses, excluding recent acquisitions 1,427$ 1,327$ 8 % 5,365$ 5,128$ 5 % Fiscal Year Cardinal Health, Inc. and Subsidiaries Distribution, Selling, General and Administrative ("SG&A") Expenses, excluding Acquisitions Fourth Quarter Consolidated 1 Recent acquisitions include Integrated Oncology Network (December 2024), GI Alliance (January 2025), Advanced Diabetes Supply Group (April 2025), Urology America (May 2025), and Solaris Health (November 2025).
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30 © 2026 Cardinal Health. All Rights Reserved. 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) 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) 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) impairment of equity interest in Outcomes, each net of tax. 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. Segment Profit: segment revenue minus (segment cost of products sold and segment distribution, selling, general and administrative expenses). Cardinal Health, Inc. and Subsidiaries 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. 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) impairment of equity interest in Outcomes, each net of tax. 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 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) impairment of equity interest in Outcomes, divided by (earnings before income taxes adjusted for the items above). 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 2026 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. Cardinal Health, Inc. and Subsidiaries
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31 © 2026 Cardinal Health. All Rights Reserved. 2 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. Cardinal Health, Inc. and Subsidiaries Definitions 8 Impairment of equity interest in Outcomes was incurred in connection with the observed reduction in the estimated fair value of the Outcomes business, of which we hold 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. 6 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. 7 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. 1 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. 3 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. 4 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. 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. 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. 5 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.