Pharmaceuticals and healthcare supplies distributor Cardinal Health reported its 2025 second quarter financial results on Jan. 30, showing a second consecutive quarterly decline in sales driven by the departure of a major customer earlier in 2024.

For its fiscal 2Q25 that covered October-December 2024, Cardinal Health posted total sales of $55.3 billion, a 4% decrease from the same period a year prior, with the company noting that 2Q sales increased 16% excluding the impact of a previously communicated “large customer contract expiration.”

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Optimum — a subsidiary of United Health Group — represented approximately 15% of Cardinal Health’s 2023 total revenue. The contract, first signed in 2015, with Cardinal Health expired at the end of June.

The company’s net profit of $401 million was down $32 million year-over-year and likewise down $15 million from 1Q25.

Operating profit of $549 million decreased by $44 million or 9% year-over-year.

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Cardinal Health was No. 3 on MDM’s Top Distributor List for Pharmaceuticals & Healthcare.

By Segment in 2Q

• The Pharmaceutical and Specialty Solutions segment 2Q revenue of $50.8 billion decreased 4% year-over-year, driven by the impact of Optimum. Excluding the impact of customer contract expiration, 2Q revenue increased 17%. Segment profit of $531 million increased 7% year-over-year, driven by growth from BioPharma Solutions, including contributions from Specialty Networks. However, this growth was partially offset by the contract expiration.
• The Global Medical Products and Distribution (GMPD) segment 2Q revenue of $3.2 billion increase 1% year-over-year, driven by volume growth from existing customers. The segment’s 2Q profit of $18 million increased by $7 million year-over-year, driven by cost optimization initiatives. This was partially offset by the write-off uncollectible receivables in the WaveMark business.
• The 2Q revenue of “Other” increased to $1.3 billion by 13% year-over-year driven by growth throughout the three operating segments — at-Home Solutions, Nuclear and Precision Health Solutions and OptiFreight Logistics. The 2Q segment profit of $118 million increased 11% year-over-year, driven by the performance of OptiFreight Logistics and Nuclear and Precision Health Solutions.

“We delivered strong second quarter financial results while taking significant strategic and operational actions to position us for future growth,” Cardinal Health CEO Jason Hollar said in the company’s financial release. “Led by robust demand across our Pharmaceutical and Specialty Solutions segment, we are again pleased to raise our fiscal 2025 enterprise guidance.”

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2025 Outlook

Cardinal Health updated its 2025 outlook, saying it expects its Pharmaceutical and Specialty Solutions segment to grow between 10% to 12% from its previous 4% to 6%.

The company further lowered its outlook for the GMPD segment to between $130 million to $150 million, previously $140 million to $175 million, due to the impact of 2Q write-off of uncollectible receivable in the WaveMark business.

Extra Insights

Cardinal Health announced the completion of its majority stake acquisition of GI Alliance. The company gains more than 900 physicians throughout 345 practice locations in 20 states. Additionally, Cardinal Health completed its acquisition of Integrated Oncology Network in December 2024. The company adds over 100 providers throughout 10 states through that deal.

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Elsewhere, Construction has begun on Cardinal Health’s new at-Home Solutions distribution center located in Fort Worth, TX.