Cardinal Health (CAH) Investor Day 2025 summary

Strategic direction and business evolution

• Maintains a clear, consistent strategy focused on a strong core distribution business, with specialty and pharma solutions as the highest growth priority, and increased emphasis on growth businesses like nuclear, at-home, and OptiFreight following resegmentation.

• Specialty remains the largest and fastest-growing segment, driving both organic and inorganic investments, with new platforms like the Specialty Alliance and expanded Specialty Networks targeting multi-specialty growth.

• Significant investments in automation, technology, and new distribution centers are underway to boost capacity, efficiency, and customer service, including a new flagship automated distribution center and the rollout of the Vantis HQ ordering platform.

• The at-home solutions business is expanding its distribution network and integrating Advanced Diabetes Supply, aiming to grow from 6 million to over 10 million patients served annually within five years.

• Nuclear and precision health solutions are positioned for double-digit growth, with $150 million committed to PET cyclotron expansion and theranostics, expecting theranostics and PET to comprise 65% of revenue by 2028.

Financial guidance and capital allocation

• Fiscal 2025 EPS guidance has been raised to $8.15–$8.20, with fiscal 2026 guidance for 13% EPS growth at the midpoint and confirmation of 12–14% long-term EPS CAGR through 2028.

• Adjusted free cash flow guidance for fiscal 2025 is raised to approximately $2 billion, with expectations of $2.75–$3.25 billion in fiscal 2026 and over $10 billion in total adjusted free cash flow over the next three years.

• Capital allocation priorities include at least $600 million annual organic investment, maintaining investment-grade ratings, increasing baseline share repurchases to $750 million per year, and $3.75 billion returned to shareholders over three years.

• $1 billion is earmarked for tuck-in M&A, primarily in specialty, with additional opportunistic deployment possible if strategic opportunities do not materialize.

• GMPD segment has returned to profitability, with ongoing cost optimization and tariff mitigation expected to deliver at least $50 million annual profit growth after FY2026.

Growth drivers and operational highlights

• Specialty segment is projected to deliver 7–9% segment profit growth over the next three years, with double-digit revenue growth in specialty and biopharma solutions expected to more than double supported therapies by 2028.

• Other growth businesses (nuclear, at-home, OptiFreight) are expected to deliver a 15–17% long-term profit CAGR, with organic revenue growth of 10–12% and profit growth of 10% over three years.

• GMPD is targeting 3–5% annual growth in branded products, leveraging new product launches and improved service levels, while actively mitigating tariff impacts through supply chain diversification and automation.

• Investments in data analytics, AI, and automation are enhancing operational efficiency, customer experience, and supply chain resiliency across all segments.

• Leadership stability, a deep bench, and a resilient business model supported by stable industry trends and adaptability to regulatory changes are highlighted as key enablers of consistent execution and strategic continuity.