The company completed the acquisition of a 73% ownership interest in GI Alliance (GIA) for $2.8 billion in cash on January 30, 2025, and Advanced Diabetes Supply Group (ADSG) for $1.1 billion on April 1, 2025. These acquisitions are expected to positively impact segment revenue and profit while increasing amortization and acquisition-related costs.

The expiration of pharmaceutical distribution contracts with OptumRx at the end of June 2024 negatively impacted revenue, although the company is attempting to offset this impact through onboarding new customers, growth from existing customers, and cost savings. Sales to OptumRx generated 17% of consolidated revenue in fiscal 2024.

The company is entering new lines of business through recent acquisitions, including physician practice support and management services. These new ventures involve risks and uncertainties that may differ from or be more significant than those facing legacy businesses, including regulatory and compliance risks.

Increases in both GAAP and non-GAAP operating earnings were driven by enterprise-wide cost savings measures. These initiatives are helping to offset the negative impact of the OptumRx contract expiration and higher manufacturing costs.

Management is focused on integrating acquired businesses, including ION and GIA, to realize expected synergies. The success of these integrations depends on factors such as the ability to develop or acquire and integrate appropriate practice management and support expertise.

The company made payments totaling $797 million related to opioid litigation during the nine months ended March 31, 2025, including the fourth annual payment under the National Opioid Settlement Agreement. The company is managing this significant liability and working toward resolution.

The ability to manage and complete acquisitions and integrate acquired businesses could impact strategic objectives and financial condition. Risks include overpaying, failing to realize synergies, diverting management attention, and failing to retain key personnel.

Entering new lines of business, including physician practice support and management services, carries risks related to fraud, waste and abuse laws, direct or indirect ownership of provider practices, litigation involving physicians, and regulatory or legislative changes.

Changes or uncertainty in U.S. or international trade policies and exposure to economic, political, currency, and other risks could disrupt global operations or negatively impact financial results. Recent U.S. tariffs imposed or threatened to be imposed on China, Mexico, Canada, and other countries and any retaliatory actions taken by such countries could result in incurring substantial additional costs.

The expiration of the pharmaceutical distribution contracts with OptumRx has negatively impacted revenue in the Pharma segment. While the company is working to offset this through new customer acquisition and growth from existing customers, the loss of this major contract poses a competitive challenge.

If competitors do not increase prices, or increase prices to a lesser extent than Cardinal Health does, or are able to offset the impact of tariffs through other actions, the company's competitive and financial position may be adversely affected.

The acquisitions of ION and GIA are intended to strengthen the company's position in the management service organization (MSO) market. The success of these acquisitions depends on the ability to integrate appropriate practice management and support expertise and to support recruitment, integration, and retention of sufficient numbers of local providers and staff.

Enterprise-wide cost savings measures have contributed to the increase in both GAAP and non-GAAP operating earnings. These initiatives are helping to improve profitability and offset negative impacts from other factors.

Restructuring and employee severance costs during the three and nine months ended March 31, 2025, were primarily related to certain initiatives to rationalize manufacturing operations and the implementation of certain enterprise-wide cost-savings measures.

GMPD segment profit for the three months ended March 31, 2025 increased 77 percent, primarily due to the beneficial impact of cost optimization initiatives, partially offset by higher manufacturing costs.

Specialty Networks creates clinical and economic value for providers and partners across multiple specialty group purchasing organizations (GPOs): UroGPO, Gastrologix and GastroGPO, and United Rheumatology.

The acquisitions of GIA and ADSG were financed with a combination of cash on hand and cash proceeds from new debt financing. The company issued additional debt with an aggregate principal amount of $2.9 billion to fund a portion of the consideration payable in connection with these acquisitions.

The company deployed $750 million for repurchases of common shares under accelerated share repurchase (ASR) programs during the nine months ended March 31, 2025. As of March 31, 2025, $2.7 billion remained under the existing share repurchase authorization.

On each of May 7, 2024, August 15, 2024, November 5, 2024 and February 3, 2025, our Board of Directors approved a quarterly dividend of $0.5056 per share, or $2.02 per share on an annualized basis.

The 10-Q filing does not explicitly discuss any specific environmental, social, or governance (ESG) initiatives or targets. While the company may have ongoing ESG programs, they are not prominently featured in this report.

In December 2019, pharmaceutical distributors including us were added as defendants in a civil class action lawsuit filed by indirect purchasers of generic drugs, such as hospitals and retail pharmacies.