CAHNYSEWholesale-Drugs, Proprietaries & Druggists' SundriesUS GAAP · USD

Cardinal Health, Inc

Cardinal Health Inc. is a U.S.-based healthcare services and products company that distributes pharmaceuticals and specialty medical products and also manufactures and distributes select medical devices and surgical products. Its business serves hospitals, pharmacies, health systems, physician practices, and other healthcare providers through a broad distribution and supply chain platform.

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Revenue254.2bn USD
+14.2 %y/y
Operating profit (EBIT)2,613m USD
+14.9 %y/y
EBIT margin1.0%
+0.0 ppy/y
Net income1,714m USD
+9.8 %y/y
Free cash flow4,525m USD
+144.6 %y/y

Fiscal year 2026 · change from previous year

Development 2021–2026

-1000100200300bn USD2021: 162.5 bn USD2021: EBIT 0.47 bn USD20212022: 181.4 bn USD2022: EBIT -0.60 bn USD20222023: 205.0 bn USD2023: EBIT 0.75 bn USD20232024: 226.8 bn USD2024: EBIT 1.2 bn USD20242025: 222.6 bn USD2025: EBIT 2.3 bn USD20252026: 254.2 bn USD2026: EBIT 2.6 bn USD2026254.22.6
RevenueOperating profit (EBIT)

Business

Share of revenue
Pharmaceutical Distribution70 %

Wholesale distribution of prescription and over-the-counter pharmaceuticals to healthcare customers.

Specialty Solutions10 %

Services and distribution for specialty pharmaceuticals, including care coordination and access support.

Medical Products and Distribution10 %

Distribution of medical-surgical supplies and related healthcare consumables.

Manufacturing and Devices10 %

Manufacture and distribution of selected medical devices, surgical products, and related offerings.

Customers

Cardinal Health sells primarily to healthcare providers, pharmacies, and healthcare purchasing organizations that need reliable access to high-volume medical and pharmaceutical supply. Its customer base is concentrated, with CVS Health as the largest customer and large GPO relationships such as Vizient and Premier representing meaningful purchasing channels. The business also serves hospitals and health systems that depend on broad product availability, logistics, and contract pricing.

Large retail pharmacy chains

They buy high-volume pharmaceutical distribution services and supply continuity, with CVS Health as the largest customer.

Group purchasing organizations

Vizient and Premier negotiate contracts for member hospitals and providers, driving large coordinated purchasing volumes.

Hospitals and health systems

They purchase medical-surgical products, devices, and pharmaceuticals through contracted supply arrangements.

Retail and specialty pharmacies

They buy distribution, sourcing, and specialty drug support to maintain inventory and patient access.

Physician practices and outpatient providers

They purchase specialty and clinical supply products used in treatment delivery and procedures.

Strategy

Cardinal Health’s strategy centers on using scale, distribution infrastructure, and contracted customer relationships to serve high-volume healthcare supply needs. The company also emphasizes specialty solutions and selected growth businesses, alongside disciplined capital allocation across debt reduction and share repurchases, to support its long-term platform. Maintaining broad supplier access and service reliability is important because the business competes on price, product breadth, and execution.

Protect and deepen key customer relationshipsShort term

Customer concentration is high, so retention of large accounts and GPO contracts is critical to volume stability.

Grow specialty and higher-value healthcare servicesMedium term

Specialty capabilities broaden the company’s role beyond basic distribution and can strengthen customer stickiness.

Improve capital efficiencyShort term

Debt reduction and repurchases support financial flexibility and shareholder returns in a low-margin distribution model.

Geography

Q1/2026

Cardinal Health is headquartered in the United States and its business is primarily concentrated in the U.S. healthcare market. The company’s distribution footprint and customer relationships are tied to domestic pharmacy, hospital, and provider supply chains, so U.S. healthcare utilization and purchasing patterns are the main geographic drivers. No country-level revenue split was disclosed in the provided excerpts.

United States99 %
Other countries (US filing)0.7 %

Share of the revenue the company reports by geography.

Risks

Cardinal Health faces meaningful customer and supplier concentration risk because a limited number of accounts and suppliers represent a large share of revenue and product flow. The business also operates in highly competitive pharmaceutical and medical product distribution markets where pricing, service, and breadth of offering matter, while goodwill and other intangibles can be exposed to impairment if expectations change. Cybersecurity, contract renewals, and supply continuity are important operational risks for a healthcare distribution platform.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Competitive pricing pressure1Customer concentration2GPO contract dependence3Supplier concentration4Goodwill impairment5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Competitive pricing pressureImpact: HighLikelihood: High

    Distribution and medical products are highly competitive, so service levels and pricing discipline can affect volume and margins.

    Exposure: Pharmaceutical and medical product distribution

  2. Customer concentrationImpact: HighLikelihood: Medium

    The largest customer and top five customers represent a substantial share of revenue, so loss or renegotiation could materially reduce sales.

    Exposure: CVS Health and other large accounts

  3. GPO contract dependenceImpact: HighLikelihood: Medium

    Vizient and Premier channel large volumes through contract structures, making renewals and pricing terms important to revenue retention.

    Exposure: GPO agreements

  4. Supplier concentrationImpact: MediumLikelihood: Medium

    A small number of suppliers account for a meaningful share of revenue from products sold, creating sourcing and continuity risk.

    Exposure: Five largest suppliers

  5. Goodwill impairmentImpact: MediumLikelihood: Medium

    Management must test goodwill and intangible assets using assumptions that can change with business plans, discount rates, or market conditions.

    Exposure: Reporting units and acquired intangibles

Accounting

Judgemental items
Goodwill impairment

The company explicitly highlights sensitivity to discount rates, earnings plans, and industry conditions.

Impact: Could create large non-cash charges and reduce reported earnings.

Intangible asset valuation

Acquired intangibles depend on assumptions about future cash flows and market conditions.

Impact: May affect amortization and impairment expense.

Revenue recognition

Wholesale distribution volumes are high, so contract terms and timing matter for reported revenue.

Impact: Can affect quarterly comparability and gross profit presentation.

Acquisition accounting

Acquisitions can require fair value estimates for assets and liabilities.

Impact: May affect goodwill, amortization, and future impairment risk.

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Last updated: 28/09/2026