Cardinal Health (CAH) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 delivered record financial results, with non-GAAP EPS up 29% year-over-year and strong operational execution across all segments.

• Adjusted free cash flow reached nearly $4 billion, with $5.1 billion in cash at year-end after significant capital returns and growth investments.

• Strategic progress included portfolio optimization, segment reorganization, targeted investments in specialty, nuclear, at-Home Solutions, logistics, and the acquisition of Specialty Networks.

• Major customer transition managed, FY25 guidance raised, and long-term financial targets reaffirmed.

• Company reorganization, simplification actions, and appointment of a new independent Board member were completed.

Financial highlights

• FY24 revenue grew 11% to $227 billion; Q4 revenue up 12% to $59.9 billion, with growth across all segments.

• 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 at-Home Solutions revenue recognition error.

Outlook and guidance

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

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

• Pharma segment profit projected to grow 1–3%, with profit growth weighted to the back half of FY25.

• GMPD segment revenue expected to grow 3–5%, with segment profit targeted at $175 million for FY25 and $300 million by FY26.

• FY25 share repurchase plan increased to $750 million.