Pharmaceuticals and healthcare supplies distributor Cardinal Health reported its 2025 fourth quarter and full-year financial results, showing a relatively flat increase in April-June sales and an improved outlook for 2026.

4Q Results

For the period ended June 30, Cardinal Health posted 4Q total sales of $60.2 billion, a slight increase from 4Q24’s $59.9 billion.

The company noted that 4Q sales increased 21% excluding the impact of a previously communicated “large customer contract expiration.” Optimum — a subsidiary of United Health Group — represented approximately 15% of Cardinal Health’s 2023 total revenue. The contract with Cardinal Health, first signed in 2015, expired at the end of June.

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Cardinal Health’s net profit of $239 million was up 2.0% year-over-year.

Operating profit of $719 million increased 19.0% year-over-year, driven by increases across Pharmaceutical and Specialty Solutions, Global Medical Products and other.

By segment in 4Q:

• The Pharmaceutical and Specialty segment 4Q revenue of $55.4 billion remained unchanged year-over-year, driven by brand and specialty pharmaceutical sales growth from existing and new customers. Segment profit increased by 11.0% to $535 million, driven by the acquisition of MSO platforms and contributions from brand and specialty products, partially offset by the customer contract expiration.
• The Global Medical Products and Distribution (GMPD) segment 4Q revenue of $3.2 billion increased 3.0% year-over-year, driven by volume growth from existing customers. The segment’s 4Q profit increased by 49% to $70 million, driven by volume growth from existing customers.
• The 4Q revenue for ‘Other’ increased to $1.6 billion by 37% year-over-year, driven by growth across the three operating segments: at-Home Solutions, Nuclear and Precision Health Solutions and OptiFreight Logistics. The 4Q segment profit of $160 million by 44%, driven by growth across the three operating segments.

2025 Financial Results

Cardinal Health’s total fiscal 2025 sales of $222.6 billion decreased 2.0% year-over-year from the $226.8 billion in fiscal year 2024. Sales increased 18% excluding the impact of the customer contract expiration.

The company’s net profit of $1.5 billion increased by 83% from $853 million in 2024.

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Operating profit of $2.8 billion increased 15% from $1.2 billion in 2024, driven by segment profit increases in Pharmaceutical and Specialty Solutions and Other.

“Fiscal 2025 was a transformative year for Cardinal Health, and we closed the year with momentum, delivering strong fourth quarter results,” Cardinal Health CEO Jason Hollar said in the company’s Aug. 12 financial release. “The broad-based operational strength, with all five of our operating segments growing profit double-digits, reflects the disciplined execution of our strategy and our investments for growth. We enter Fiscal 2026 with confidence, evidenced by our increased financial outlook, as we continue to evolve towards reaching our full potential.”

2026 Outlook

In releasing its 2026 guidance, Cardinal Health said it expects its Pharmaceutical and Specialty segment to increase by 11% to 13% in sales and profit. The company expects its GMPD segment will growth 2% to 4% and segment profit will be at least $140 million. Meanwhile, ‘Other’ is expected to increase in sales between 26% to 28%, with profit up 25% to 27%.

Solaris Health Acquisition

Also on Aug. 12, Cardinal Health announced that its specialty management services platform The Specialty Alliance agreed to acquire Solaris Health for $1.9 billion in cash from Lee Equity Partners and Solaris Health physician owners.

Solaris Health is a U.S. healthcare management company operating in the urological field. The company offers services in 14 states, supporting over 750 providers at more than 250 locations, and provides a range of ancillary services through a national MSO infrastructure. Solaris Health physicians and select management will become equity holders and operators in The Specialty Alliance, joining existing partners from GI Alliance.

Cardinal Health said the deal expands its specialty care footprint, particularly in urology, following recent acquisitions of Urology America, Potomac Urology and Academic Urology & Urogynecology.

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Cardinal Health will fund the acquisition and will own approximately 75% of The Specialty Alliance after the transaction closes, which is expected to occur by the end of the calendar year 2025.

“As we previously highlighted, urology is an attractive specialty for us, and we are well-positioned to meet the comprehensive needs of community urologists through the robust combined capabilities of The Specialty Alliance, Specialty Networks and Cardinal Health,” Hollar said in an Aug. 12 news release.

“Joining The Specialty Alliance’s Urology Alliance strengthens our ability to deliver exceptional, patient-centered care through a physician-led, national platform,” Solaris Health CEO Gary Kirsh, MD added. “This partnership expands our collaborative network of urology providers, allowing physicians to optimize care delivery and enhance patient access to specialized services in their local communities.”

Cardinal Health was No. 3 on MDM’s 2025 Top Distributor List for Pharmaceuticals & Healthcare.