Here are 1-3 brief analogies to describe Cardinal Health (CAH):

• Like Sysco, but instead of distributing food to restaurants, it distributes pharmaceuticals and medical supplies to hospitals and pharmacies.
• The Amazon of healthcare supplies, serving hospitals and pharmacies instead of individual consumers.

• Pharmaceutical Distribution: Distributes branded, generic, and specialty pharmaceuticals, and over-the-counter medicines to pharmacies, hospitals, and other healthcare providers.
• Medical Products and Lab Solutions Distribution: Supplies a broad range of medical, surgical, and laboratory products to hospitals, physician offices, and ambulatory surgery centers.
• Medical Product Manufacturing: Manufactures and sources a portfolio of Cardinal Health-branded medical and surgical products, including patient care, wound care, and laboratory items.
• Specialty Pharmacy Services: Offers comprehensive services for complex specialty medications, encompassing distribution, patient support, and data solutions for manufacturers and providers.

Cardinal Health (CAH) primarily sells its products and services to other companies within the healthcare industry.

Due to the highly competitive nature of pharmaceutical and medical product distribution, Cardinal Health does not publicly disclose the names of its specific major customer companies. Distribution agreements are typically confidential. However, its major customer base consists of various types of healthcare organizations and providers. These categories of customer companies include:

• Hospitals and Health Systems: This includes a wide range of facilities from large integrated delivery networks and major acute care hospitals to smaller community hospitals. These customers rely on Cardinal Health for the distribution of pharmaceuticals, medical devices, and other essential supplies.
• Retail Pharmacies: Cardinal Health serves both independent pharmacies and various regional and national pharmacy chains, providing a broad assortment of prescription and over-the-counter medications.
• Ambulatory Care Sites: This category encompasses a variety of outpatient healthcare providers, such as physician offices, clinics, ambulatory surgery centers, and specialized care facilities, all of whom procure medical products and supplies from Cardinal Health.

Major Suppliers of Cardinal Health (CAH):

• Pfizer Inc. (PFE)
• Johnson & Johnson (JNJ)
• Merck & Co., Inc. (MRK)
• Eli Lilly and Company (LLY)
• AbbVie Inc. (ABBV)
• Medtronic plc (MDT)
• Becton, Dickinson and Company (BDX)
• Abbott Laboratories (ABT)

Jason Hollar, Chief Executive Officer

Jason Hollar was appointed CEO of Cardinal Health in September 2022, after serving as the company's CFO since May 2020. He brings over 25 years of experience in finance, global manufacturing, and distribution. Before joining Cardinal Health, Hollar held CFO positions at Tenneco Inc. and Sears Holding Corporation. His career also includes senior finance roles at Delphi Automotive and Navistar, where he worked in the United States, Europe, and South America. As CEO, he has focused on "ruthless prioritization," which has involved selling non-healthcare businesses and revamping underperforming segments within Cardinal Health. He is a board member for Cardinal Health, Red Oak Sourcing, DaVita Kidney Care, and Junior Achievement of Central Ohio.

Aaron Alt, Chief Financial Officer

Aaron Alt became Chief Financial Officer for Cardinal Health in February 2023. He has over 20 years of global finance and transformation experience. Prior to Cardinal Health, Alt was the Executive Vice President and CFO for Sysco Corporation, and before that, he served as CFO and operations leader for the retail division at Sally Beauty Holdings. He also held various leadership roles at Target Corporation and began his corporate career at Sara Lee Corporation. Alt started his professional career as both a U.S. private equity lawyer and an English corporate solicitor in London, England. His experience includes working with activist investor firms that have been represented on company boards.

Michelle Greene, Executive Vice President, Chief Information Officer, Global Technology and Business Services

Michelle Greene is the Executive Vice President, Chief Information Officer, Global Technology and Business Services at Cardinal Health. She joined Cardinal Health in 2021 as SVP of EIT for the Pharmaceutical Segment and was named CIO in August 2022. With over two decades of global tech expertise, Greene previously served as CIO and VP of IT for Masco Corporation. Her career also includes nearly a decade with Johnson Controls in various executive IT positions, including VP of IT, and roles at Sony Ericsson.

Stephen Mason, Chief Executive Officer, Global Medical Products and Distribution segment

Stephen Mason is the Chief Executive Officer of the Global Medical Products and Distribution segment at Cardinal Health. He has nearly 25 years of leadership experience across Cardinal Health's Medical and Pharmaceutical segments. Before his current role, Mason served as President of Cardinal Health at-Home Solutions and previously led the company's Kinray pharmaceutical distribution business. Earlier in his career, he held sales roles at Gambro Healthcare and Ameripath, focusing on laboratory services.

Deborah Weitzman, Chief Executive Officer, Pharmaceutical Segment

Deborah Weitzman serves as the Chief Executive Officer of the Pharmaceutical Segment at Cardinal Health. She is listed as a key member of the company's leadership team.

Key Risks to Cardinal Health (CAH)

Cardinal Health (CAH) faces several significant risks that could impact its business operations and financial performance. These key risks primarily stem from the highly regulated healthcare environment, intense market competition, and complex global supply chain dynamics.

1. Ongoing Regulatory Scrutiny and Litigation, particularly Opioid-Related Matters: Cardinal Health continues to grapple with substantial financial and operational risks associated with widespread regulatory scrutiny and litigation. A significant portion of this risk is related to opioid distribution, with the company having accrued $4.9 billion for opioid-related matters as of June 30, 2025, with payments expected through 2038. This ongoing legal and regulatory environment can lead to higher operational costs, potential fines, and mandates for operational changes.
2. Pricing Pressures, Customer Contract Expirations, and Competitive Market Dynamics: The healthcare distribution sector is characterized by intense competition and continuous pressure on margins. Cardinal Health's profitability is affected by factors such as slower branded drug inflation, generic deflation, and the increasing consolidation among pharmacies and healthcare providers. The expiration or unfavorable renewal of major customer contracts, such as the OptumRx contract which significantly impacted revenue, poses a direct threat to the company's top-line growth and overall profitability.
3. Supply Chain Disruptions and Tariff Uncertainties: Cardinal Health's extensive global supply chain, which includes significant reliance on materials and ingredients from countries like China, exposes the company to risks from supply chain disruptions and geopolitical factors like tariff uncertainties. While pharmaceuticals may be exempt from some tariffs, the materials and ingredients used in drug production and medical services can be subject to them, leading to increased operating expenses and potential shortages of essential medications and medical supplies.

The clear emerging threat to Cardinal Health (CAH) is the continued expansion of Amazon's healthcare initiatives. Amazon has demonstrated a strategy of disrupting established industries through technological innovation, superior logistics, and new business models.

Specifically, Amazon's acquisition of PillPack (2018) and the subsequent launch of Amazon Pharmacy (2020) represent a direct entry into pharmaceutical distribution, initially targeting the direct-to-consumer market. While Cardinal Health primarily serves institutional customers (hospitals, pharmacies, clinics), Amazon's significant investment in healthcare, vast logistics network, and track record of leveraging technology to optimize supply chains pose a tangible threat. Amazon could potentially expand its B2B offerings (e.g., via Amazon Business) into medical and pharmaceutical supplies, or develop alternative distribution models that disintermediate traditional wholesalers like Cardinal Health through increased efficiency, automation, and direct-to-provider services. This strategy mirrors historical disruptions where new entrants with different models challenged incumbents, as seen with Netflix versus Blockbuster or Uber versus traditional taxis.

Cardinal Health (symbol: CAH) primarily operates in two main segments: Pharmaceutical and Specialty Solutions, and Global Medical Products and Distribution.

Pharmaceutical and Specialty Solutions

This segment focuses on the distribution of branded, generic, and specialty pharmaceutical products.

• Globally, the pharmaceuticals wholesale and distribution market is estimated to reach approximately $1,447 billion in 2025. Other projections indicate the global market is forecast to increase by $976.2 billion between 2024 and 2029, with a compound annual growth rate (CAGR) of 9.5%. Another estimate places the global market at approximately $844.2 billion in 2024, with a projected CAGR of 8.7% from 2024 to 2034.
• In the U.S., the Pharmaceuticals Wholesaling industry revenue is estimated to reach $694.7 billion in 2025. Cardinal Health, along with its two primary competitors, accounts for over 90% of the U.S. pharmaceutical wholesale and distribution market.

Global Medical Products and Distribution

This segment involves the manufacturing, sourcing, and distribution of Cardinal Health-branded medical, surgical, and laboratory products.

• Globally, the medical supplies market was valued at $184.95 billion in 2024 and is expected to reach $589.81 billion by 2032, growing at a CAGR of 15.6%. Other estimates for the global medical supplies market indicate a size of approximately $151.86 billion in 2025, forecasted to reach around $215.37 billion by 2034, with a CAGR of 3.96%.
• In the U.S., the Medical Supplies Wholesaling industry has an estimated revenue of $326.4 billion in 2025.

Cardinal Health (CAH) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market dynamics:

1. Expansion in Pharmaceutical and Specialty Solutions Segment: Cardinal Health is strategically focused on expanding its Pharmaceutical and Specialty Solutions segment. This growth is anticipated to be driven by increased sales of brand and specialty pharmaceuticals, particularly in high-growth therapeutic areas such as oncology, autoimmune, and urology. Strategic acquisitions, including Solaris Health and a majority stake in GI Alliance, are expected to significantly accelerate this growth by enhancing the company's Management Services Organization (MSO) platforms and BioPharma Solutions offerings.
2. Growth in Generics and Biosimilars: The company's generics program has demonstrated positive performance with strong volume growth. Management anticipates additional benefits from the upcoming wave of branded drug patent expirations and increased biosimilar adoption, which are expected to drive affordability and access.
3. Growth in Higher-Margin Businesses within the Other Segment: This segment, comprising at-Home Solutions, Nuclear and Precision Health Solutions, and OptiFreight Logistics, is expected to continue delivering strong revenue gains. These businesses are supported by secular trends in home healthcare, theranostics (diagnostic and therapeutic products), and technology-driven logistics services, and Cardinal Health is making strategic investments to supercharge their growth.
4. New Customer Wins and Expansion with Existing Customers: Cardinal Health has highlighted the importance of securing new customer contracts and expanding relationships with its existing customer base as a direct driver of revenue growth. An example of this is the recent Publix win.

Share Repurchases

• Cardinal Health completed $765 million in share repurchases in fiscal year 2025.
• For fiscal year 2025, the company had an outlook of $750 million in share repurchases, an increase of $250 million from previous expectations.
• The company expects at least $750 million in baseline share repurchases annually for each of the next three years (fiscal years 2026-2028), an increase from its prior annual baseline expectation of $500 million.

Share Issuance

• Cardinal Health has focused on reducing its share count through repurchases, with a lower share count contributing to diluted EPS increases in fiscal years 2025 and 2024.
• Diluted weighted-average shares outstanding are projected to be between 238 million and 240 million for fiscal year 2026, and approximately 243 million for fiscal year 2025, indicating a decreasing trend.

Outbound Investments

• In fiscal year 2025, Cardinal Health deployed $5.3 billion for acquisitions, including a majority stake in GI Alliance for approximately $2.8 billion and Advanced Diabetes Supply Group (ADS) for approximately $1.1 billion.
• The company acquired Integrated Oncology Network (ION) for approximately $1.1 billion in cash during fiscal year 2025.
• Cardinal Health entered a definitive agreement to acquire Solaris Health for approximately $1.9 billion, which was completed in November 2025, to join the Specialty Alliance's Urology Alliance.

Capital Expenditures

• Capital expenditures were $547 million in fiscal year 2025 and $511 million in fiscal year 2024.
• Expected capital expenditures for fiscal year 2026 are approximately $600 million, following a fiscal year 2025 outlook of $500 million to $550 million.
• The primary focus of capital expenditures includes investments to drive organic growth across businesses, such as expanding the cyclotron network for PET products and the Center for Theranostics Advancement capabilities, and building new state-of-the-art distribution centers with automation technology.