Cardinal Health (CAH) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 delivered record financial results, with non-GAAP EPS up 29% for both Q4 and the full year, exceeding guidance and original outlooks.

• Nearly $4 billion in adjusted free cash flow was generated, ending the year with $5.1 billion in cash after significant capital returns and growth investments.

• Strategic progress included a reorganization to enhance focus and efficiency, acquisition of Specialty Networks, and a successful GMPD turnaround.

• The company managed a major customer transition, raised FY25 guidance, and reaffirmed long-term financial targets.

• Appointed a new independent Board member and completed reviews of growth businesses and GMPD.

Financial highlights

• FY24 revenue grew 11% to $227 billion; Q4 revenue up 12% to $59.9 billion.

• FY24 non-GAAP EPS reached $7.53, up 29%; Q4 non-GAAP EPS $1.84, up 29%.

• FY24 non-GAAP adjusted free cash flow nearly $4 billion; Q4 non-GAAP net earnings $450 million, up 23%.

• GMPD segment profit improved $240 million year-over-year; Pharma and Specialty Solutions segment profit exceeded long-term target.

• Prior period financials revised for accounting error in at-Home Solutions revenue recognition.

Outlook and guidance

• FY25 non-GAAP EPS guidance raised to $7.55–$7.70; non-GAAP adjusted free cash flow projected at ~$1 billion.

• Pharma segment revenue expected to decline 4–6% due to a $39–$40 billion headwind from a major contract expiration, but normalized growth would be 15–18%.

• Pharma segment profit projected to grow 1–3%, with growth weighted to the back half of the year.

• GMPD segment profit expected at ~$175 million for FY25, on track for ~$300 million by FY26.

• Other businesses (Nuclear, at-Home Solutions, OptiFreight) forecasted for 10–12% revenue and ~10% profit growth.

• FY25 share repurchase plan increased to $750 million.