Cardinal Health : Third Quarter 2024 Press Release

Exhibit 99.1

FOR IMMEDIATE RELEASE

Cardinal Health Reports Third Quarter Fiscal Year 2024 Results

and Raises Fiscal Year 2024 Non-GAAP EPS Guidance

• Revenue increased 9% to $54.9 billion
• GAAP1 operating earnings were $367 million; GAAP diluted EPS was $1.05
• Non-GAAPoperating earnings increased 10% to $666 million; non-GAAP diluted EPS increased 20% to $2.08
• Fiscal year 2024 non-GAAP EPS guidance2 raised and narrowed to $7.30 to $7.40, from $7.20 to $7.35
• Company provides preliminary fiscal year 2025 non-GAAP EPS guidance of at least $7.50

DUBLIN, Ohio, May 2, 2024 - Cardinal Health (NYSE: CAH) today reported third quarter fiscal year 2024 revenues of $54.9 billion, an increase of 9% from the third quarter of fiscal year 2023. Third quarter GAAP operating earnings were $367 million and GAAP diluted earnings per share (EPS) were $1.05, which included a non-cash,pre-tax goodwill impairment of $90 million related to the Global Medical Products and Distribution (GMPD) segment as a result of the reallocation of goodwill related to the reporting structure update. Third quarter non-GAAP operating earnings increased 10% to $666 million driven by growth in Global Medical Products and Distribution segment profit and Pharmaceutical and Specialty Solutions segment profit. Non- GAAP diluted EPS increased 20% to $2.08, primarily due to the growth in non-GAAP operating earnings and a lower share count.

"In Q3, we delivered broad-based growth, including solid profit growth in Pharmaceutical and Specialty Solutions, on top of an exceptionally strong quarter from a year ago," said Jason Hollar, CEO of Cardinal Health. "We were also pleased to see the ongoing acceleration in GMPD. With confidence in our outlook for the year, we are raising and narrowing our FY24 EPS guidance and providing preliminary guidance for FY25 that reflects the strength and resiliency of our company."

Q3 FY24 summary

	Q3 FY24	Q3 FY23	Y/Y
Revenue	$54.9 billion	$50.5 billion	9%
Operating earnings	$367 million	$572 million	(36)%
Non-GAAP operating earnings	$666 million	$606 million	10%
Net earnings attributable to Cardinal Health, Inc.	$258 million	$345 million	(25)%
Non-GAAP net earnings attributable to Cardinal Health, Inc.	$509 million	$447 million	14%
Effective Tax Rate	24.2%	36.3%
Non-GAAP Effective Tax Rate	20.4%	22.4%
Diluted EPS attributable to Cardinal Health, Inc.	$1.05	$1.34	(22)%
Non-GAAP diluted EPS attributable to Cardinal Health, Inc.	$2.08	$1.74	20%

Cardinal Health

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Segment results3

Pharmaceutical and Specialty Solutions segment

		Q3 FY24			Q3 FY23		Y/Y
Revenue	$	50.7	billion	$	46.5	billion	9%
Segment profit	$	580	million	$	560	million	4%

Third quarter revenue for the Pharmaceutical and Specialty Solutions segment increased 9% to $50.7 billion, driven by brand and specialty pharmaceutical sales growth from existing customers.

Pharmaceutical and Specialty Solutions segment profit increased 4% to $580 million in the third quarter, driven by positive generics program performance.

Global Medical Products and Distribution segment

		Q3 FY24			Q3 FY23	Y/Y
Revenue	$	3.1	billion	$	3.0 billion	4%
Segment profit	$	20	million	$	(46) million	N.M.

Third quarter revenue for the Global Medical Products and Distribution segment increased 4% to $3.1 billion, driven by volume growth from existing customers.

Global Medical Products and Distribution segment profit increased $66 million to $20 million in the third quarter, driven by an improvement in net inflationary impacts, including mitigation initiatives.

Other4

		Q3 FY24			Q3 FY23		Y/Y
Revenue	$	1.2	billion	$	1.0	billion	14%
Segment profit	$	111	million	$	106	million	5%

Third quarter revenue for Other increased 14% to $1.2 billion, driven by growth across the three operating segments: at-Home Solutions, Nuclear and Precision Health Solutions and OptiFreight® Logistics.

Other segment profit increased 5% to $111 million in the third quarter, due to the performance of OptiFreight® Logistics.

Fiscal year 2024 outlook2

The company raised and narrowed its fiscal year 2024 guidance range for non-GAAP diluted earnings per share attributable to Cardinal Health, Inc. to $7.30 to $7.40, from $7.20 to $7.35.

This guidance includes an update to the company's Pharmaceutical and Specialty Solutions segment profit outlook to 8.5% to 9.5% growth, from 7% to 9% growth.

Additionally, the company updated expectations for its non-GAAP effective tax rate to a range of 22% to 23%, from 23% to 24%.

Cardinal Health

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Preliminary Fiscal Year 2025 outlook2

The company is also providing preliminary guidance for fiscal year 2025:

	FY25 outlook
Non-GAAP Diluted EPS	At least $7.50
Pharmaceutical and Specialty	At least 1%
Solutions	Segment profit growth
Global Medical Products and	~$175M
Distribution	Segment profit
Other4	~10%
	Segment profit growth
Interest and Other	$160M to $190M
Non-GAAP Effective Tax Rate	23% to 24%
Diluted weighted average shares	244M to 245M
outstanding
Baseline share repurchases	$500M

Recent highlights

• Cardinal Health completed its acquisition of Specialty Networks. Specialty Networks is an integrated multi-specialty platform that creates clinical and economic value for independent specialty providers and partners across urology, gastroenterology and rheumatology.
• Cardinal Health announced that its Board of Directors has elected Robert "Bob" Azelby as an independent director, effective March 1, 2024. Mr. Azelby joins the board with over 30 years of experience, including as a Chief Executive Officer and board member in the biopharmaceutical, oncology and other specialty industries.
• Cardinal Health's U.S. Medical Products and Distribution business was recognized for high achievements in supply chain resiliency by HIRC's Resiliency Badge program, a healthcare industry benchmark.
• Cardinal Health released its Fiscal 2023 Environmental, Social and Governance (ESG) Report, highlighting the company's work toward building a healthier, more equitable future. Additionally, the company received approval by the Science Based Targets initiative (SBTi) for its near-term science- based greenhouse gas (GHG) emissions reduction targets.
• Debbie Weitzman, CEO of the Pharmaceutical and Specialty Solutions segment, and Michelle Greene, EVP, Chief Information Officer, were named to Reuters' Trailblazing Women lists for significant contributions to their fields. Additionally, Ola Snow, Chief Human Resources Officer, was selected as one of The HR Digest's top CHROs shaping the future of work.
• Fortune has recognized Cardinal Health as one of America's Most Innovative Companies for the second year in a row.

Cardinal Health

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Upcoming webcasted investor events

• Bank of America Securities Health Care Conference at 11:00 a.m. EST, May 14, 2024
• Leerink Partners Healthcare Crossroads Conference at 9:00 a.m. EST, May 29, 2024

Webcast

Cardinal Health will host a webcast today at 8:30 a.m. Eastern Standard Time to discuss third-quarter results. To access the webcast and corresponding slide presentation, go to the Investor Relations page at ir.cardinalhealth.com. No access code is required.

Presentation slides and a webcast replay will be available on the Investor Relations page for 12 months.

About Cardinal Health

Cardinal Health is a distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for health care facilities. With more than 50 years in business, operations in more than 30 countries and approximately 48,000 employees globally, Cardinal Health is essential to care. Information about Cardinal Health is available at cardinalhealth.com.

Contacts

Media: Erich Timmerman, [e-mail] and 614.757.8231

Investors: Matt Sims, [e-mail] and 614.553.3661

1GAAP refers to U.S. generally accepted accounting principles. This news release includes GAAP financial measures as well as non-GAAP financial measures, which are financial measures not calculated in accordance with GAAP. See "Use of Non-GAAP Measures" following the attached schedules for definitions of the non-GAAP financial measures presented in this news release and see the attached schedules for reconciliations of the differences between the non-GAAP financial measures and their most directly comparable GAAP financial measures.

2The company does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. See "Use of Non-GAAP Measures" following the attached schedules for additional explanation.

3Previously reported segment results have been recast to conform to the company's updated segment reporting structure.

4Other includes the following three operating segments: Nuclear and Precision Health Solutions (NPHS), at- Home Solutions and OptiFreight® Logistics, which are not significant enough individually to require reportable segment disclosure.

Cardinal Health uses its website as a channel of distribution for material company information. Important information, including news releases, financial information, earnings and analyst presentations, and information about upcoming presentations and events is routinely posted and accessible on the Investor Relations page at ir.cardinalhealth.com. In addition, the website allows investors and other interested persons to sign up automatically to receive email alerts when the company posts news releases, SEC filings and certain other information on its website.

Cardinal Health

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Cautions Concerning Forward-Looking Statements

This news release contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "project," "continue," "likely," and similar expressions, and include statements reflecting future results or guidance, statements of outlook and various accruals and estimates. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties include risks arising from ongoing inflationary pressures, including the risk that our plans to mitigate such effects may not be as successful as we anticipate or that costs could remain elevated; risks associated with our ongoing review of our operations, portfolio and businesses, including the risk that our management team could become distracted or that the outcome of such review may have unintended consequences; competitive pressures in Cardinal Health's various lines of business, including the risk that customers may reduce purchases made under their contracts with us or terminate or not renew their contracts; the risk that we may not be as successful as anticipated in mitigating the negative impacts from the recent loss of a significant Pharmaceutical and Specialty Solutions segment customer contract; the performance of our generics program, including the amount or rate of generic deflation and our ability to offset generic deflation and maintain other financial and strategic benefits through our generic sourcing venture or other components of our generics programs; ongoing risks associated with the distribution of opioids, including the financial impact associated with the settlements with governmental authorities and other parties and the risk that challenges to tax deductions for opioid-related losses could adversely impact our financial results; risks arising from the Department of Justice investigation which concerns our anti-diversion program and risks associated with the injunctive relief requirements under the national settlement; risks associated with the manufacture and sourcing of certain products, including risks related to our ability and the ability of third-party manufacturers to import or export certain products or component parts and to comply with applicable regulations, including the recent scrutiny on products manufactured in or sourced from China; our ability to manage uncertainties associated with the pricing of branded pharmaceuticals; risks associated with business process initiatives, such as the Global Medical Products and Distribution Improvement Plan, including the possibility that they could fail to achieve the intended results; the risk that we may not realize the anticipated benefits related to our updated operating and segment reporting structure; and risks associated with the acquisition of Specialty Networks, including the risk that we may fail to realize the anticipated strategic and financial benefits. Cardinal Health is subject to additional risks and uncertainties described in Cardinal Health's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports. This news release reflects management's views as of May 2, 2024. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement. Forward-looking statements are aspirational and not guarantees or promises that goals, targets or projections will be met, and no assurance can be given that any commitment, expectation, initiative or plan in this news release can or will be achieved or completed.

										Schedule 1
	Cardinal Health, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings (Unaudited)
			Third Quarter				Year-to-Date
(in millions, except per common share amounts)		2024		2023	% Change		2024		2023	% Change
Revenue	$	54,911	$	50,487	9 %	$	167,119	$	151,559	10 %
Cost of products sold		52,964		48,702	9 %		161,558		146,497	10 %
Gross margin		1,947		1,785	9 %		5,561		5,062	10 %
Operating expenses:
Distribution, selling, general and administrative expenses		1,282		1,179	9 %		3,762		3,567	5 %
Restructuring and employee severance		53		16			106		62
Amortization and other acquisition-related costs		80		74			207		216
Impairments and (gain)/loss on disposal of assets, net 1		84		20			622		883
Litigation (recoveries)/charges, net		81		(76)			29		(256)
Operating earnings		367		572	(36)%		835		590	42 %
Other (income)/expense, net		(7)		-			(25)		(5)
Interest expense, net		33		28	18 %		55		78	(29)%
Earnings before income taxes		341		544	(37)%		805		517	56 %
Provision for income taxes 2		82		197	(58)%		186		189	(2)%
Net earnings		259		347	(25)%		619		328	89 %
Less: Net earnings attributable to noncontrolling interests		(1)		(2)			(3)		(3)
Net earnings attributable to Cardinal Health, Inc.	$	258	$	345	(25)%	$	616	$	325	90 %
Earnings per common share attributable to Cardinal Health, Inc.:
Basic	$	1.06	$	1.35	(21)%	$	2.51	$	1.24	N.M.
Diluted		1.05		1.34	(22)%		2.49		1.23	N.M.
Weighted-average number of common shares outstanding:
Basic		243		256			245		263
Diluted		245		258			247		264

• For the three and nine months ended March 31, 2024, impairments and (gain)/loss on disposal of assets, net includes pre-tax goodwill impairment charges of $90 million and $671 million, respectively, related to the Global Medical Products and Distribution ("GMPD") segment. During the nine months ended March 31, 2023, impairments and (gain)/loss on disposal of assets, net included pre-tax impairment charges of $863 million related to the GMPD segment.

• For fiscal 2024, the net tax benefit related to the impairment charge is $56 million and is included in the annual effective tax rate. As a result, the tax benefit recognized during the nine months ended March 31, 2024 increased approximately by an incremental $36 million which will reverse in the fourth quarter of the fiscal year. For fiscal 2023, the net tax benefit related to these impairment charges was $68 million and was included in the annual effective tax rate. As a result, the tax benefit recognized during the nine months ended March 31, 2023 increased approximately by an incremental $66 million which reversed in the fourth quarter of fiscal 2023.

				Schedule 2
Cardinal Health, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in millions)		March 31, 2024		June 30, 2023
Assets		(Unaudited)
Current assets:
Cash and equivalents	$	3,718	$	4,043
Trade receivables, net		11,566		11,344
Inventories, net		17,277		15,940
Prepaid expenses and other		3,161		2,362
Assets held for sale		12		144
Total current assets		35,734		33,833
Property and equipment, net		2,470		2,462
Goodwill and other intangibles, net		6,507		6,081
Other assets		1,169		1,041
Total assets	$	45,880	$	43,417
Liabilities and Shareholders' Deficit
Current liabilities:
Accounts payable	$	32,089	$	29,813
Current portion of long-term obligations and other short-term borrowings		1,187		792
Other accrued liabilities		3,030		3,059
Liabilities related to assets held for sale		-		42
Total current liabilities		36,306		33,706
Long-term obligations, less current portion		4,667		3,909
Deferred income taxes and other liabilities		8,169		8,653
Total shareholders' deficit		(3,262)		(2,851)
Total liabilities and shareholders' deficit	$	45,880	$	43,417

Schedule 3

Cardinal Health, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in millions)

Cash flows from operating activities:

Net earnings

Adjustments to reconcile net earnings to net cash provided by/(used in) operating activities: Depreciation and amortization

Impairments and (gain)/loss on disposal of assets, net Share-based compensation

Provision for bad debts

Change in operating assets and liabilities, net of effects from acquisitions and divestitures: (Increase)/decrease in trade receivables

(Increase)/decrease in inventories Increase/(decrease) in accounts payable Other accrued liabilities and operating items, net

Net cash provided by/(used in) operating activities

Cash flows from investing activities:

Acquisition of subsidiaries, net of cash acquired

Proceeds from divestitures, net of cash sold

Additions to property and equipment

Proceeds from disposal of property and equipment

Purchases of investments

Proceeds from investments

Proceeds from net investment hedge terminations

Purchases of short-term time deposits

Net cash used in investing activities

Cash flows from financing activities:

Proceeds from long-term obligations, net of issuance costs

Reduction of long-term obligations

Net tax proceeds from share-based compensation

Dividends on common shares

Purchase of treasury shares

Net cash provided by/(used in) financing activities

Effect of exchange rate changes on cash and equivalents

Net increase/(decrease) in cash and equivalents

Cash and equivalents at beginning of period

Cash and equivalents at end of period

	Third Quarter			Year-to-Date
	2024		2023		2024		2023
$	259	$	347	$	619	$	328
	177		175		524		516
	84		20		622		883
	31		21		88		69
	16		20		59		79
	225		409		(262)		(510)
	1,165		631		(1,371)		(1,012)
	(2,170)		(481)		2,276		2,473
	164		219		(870)		(845)
	(49)		1,361		1,685		1,981
	(1,192)		(10)		(1,192)		(10)
	-		-		9		-
	(112)		(109)		(318)		(264)
	8		-		10		2
	(1)		(1)		(3)		(6)
	-		-		1		1
	-		29		28		29
	(550)		-		(550)		-
	(1,847)		(91)		(2,015)		(248)
	1,139		-		1,139		-
	(8)		(558)		(23)		(571)
	22		2		23		11
	(122)		(128)		(377)		(399)
	-		(250)		(750)		(1,500)
	1,031		(934)		12		(2,459)
	(8)		-		(7)		(1)
	(873)		336		(325)		(727)
	4,591		3,654		4,043		4,717
$	3,718	$	3,990	$	3,718	$	3,990

												Schedule 4
				Cardinal Health, Inc. and Subsidiaries
				Segment Information
						Third Quarter
	Pharmaceutical and Specialty Solutions	Global Medical Products and Distribution		Other
(in millions)		2024		2023		2024		2023		2024		2023
Revenue
Amount	$	50,651	$	46,496	$	3,113	$	2,989	$	1,167	$	1,025
Growth rate		9 %		14 %		4 %		(8)%		14 %		16 %
Segment profit
Amount	$	580	$	560	$	20	$	(46)	$	111	$	106
Growth rate		4 %		23 %		N.M.		N.M.		5 %		13 %
Segment profit margin		1.15 %		1.20 %		0.64 %		(1.54)%		9.51 %		10.34 %
						Year-to-Date
	Pharmaceutical and Specialty Solutions	Global Medical Products and Distribution		Other
(in millions)		2024		2023		2024		2023		2024		2023
Revenue
Amount	$	154,524	$	139,441	$	9,264	$	9,140	$	3,392	$	3,038
Growth rate		11 %		15 %		1 %		(10)%		12 %		16 %
Segment profit
Amount	$	1,541	$	1,394	$	18	$	(175)	$	319	$	305
Growth rate		11 %		13 %		N.M.		N.M.		5 %		6 %
Segment profit margin		1.00 %		1.00 %		0.19 %		(1.91)%		9.40 %		10.04 %

The sum of the components and certain computations may reflect rounding adjustments.

Our previously reported fiscal 2023 segment results have been recast to conform to our new reporting structure and reflect changes in the elimination of inter- segment revenue and allocated corporate expenses for shared functions, which are driven by the reporting structure change.

(in millions, except per common share amounts)

GAAP

Shareholder cooperation agreement costs

Restructuring and employee severance

Amortization and other acquisition-related costs

Impairments and (gain)/loss on disposal of assets, net 4

Litigation (recoveries)/charges, net

Non-GAAP

GAAP

Restructuring and employee severance

Amortization and other acquisition-related costs

Impairments and (gain)/loss on disposal of assets, net 4

Litigation (recoveries)/charges, net

Non-GAAP

Schedule 5

Cardinal Health, Inc. and Subsidiaries

GAAP / Non-GAAP Reconciliation1

		Gross					Operating Earnings					Net				Diluted
		Margin		SG&A 2			Earnings	Before	Provision for			Earnings 3	Effective			EPS 3
Gross	Growth		Growth	Operating	Growth	Income	Income			Net	Growth	Tax	Diluted	Growth
Margin	Rate SG&A 2	Rate	Earnings	Rate	Taxes	Taxes		Earnings 3	Rate	Rate		EPS 3	Rate
							Third Quarter 2024
$	1,947	9 % $	1,282	9 % $	367	(36)% $	341	$	82	$	258	(25)%	24.2 % $	1.05	(22)%
	-		(1)			1		1		-		1				-
	-		-			53		53		14		39				0.16
	-		-			80		80		21		59				0.24
	-		-			84		84		(21)		105				0.44
	-		-			81		81		34		47				0.19
$	1,947	9 % $	1,281	9 % $	666	10 % $	640	$	130	$	509	14 %	20.4 % $	2.08	20 %
							Third Quarter 2023
$	1,785	6 % $	1,179	4 % $	572	N.M. $	544	$	197	$	345	N.M.	36.3 % $	1.34	N.M.
	-		-			16		16		4		12				0.05
	-		-			74		74		19		55				0.21
	-		-			20		20		(69)		89				0.35
	-		-			(76)		(76)		(22)		(54)				(0.21)
$	1,785	6 % $	1,179	4 % $	606	11 % $	578	$	129	$	447	11 %	22.4 % $	1.74	20 %

• For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules.

• Distribution, selling, general and administrative expenses.

• Attributable to Cardinal Health, Inc.

• For the three months ended March 31, 2024, impairments and (gain)/loss on disposal of assets, net includes a pre-tax goodwill impairment charge of $90 million related to the GMPD segment. For fiscal 2024, the estimated net tax benefit related to the impairments is $56 million and is included in the annual effective tax rate. As a result, the amount of tax expense recognized increased approximately by an incremental $30 million during the three months ended March 31, 2024.

For the nine months ended March 31, 2023, impairments and (gain)/loss on disposal of assets, net included pre-tax impairment charges of $863 million related to the Global Medical Products and Distribution segment. For fiscal 2023, the net tax benefit related to the impairment was $68 million and was included in the annual effective tax rate. As a result, the amount of tax expense recognized increased approximately by an incremental $74 million during the three months ended March 31, 2023.

The sum of the components and certain computations may reflect rounding adjustments.

We generally apply varying tax rates depending on the item's nature and tax jurisdiction where it is incurred.