Cardinal Health (CAH) Evercore ISI 8th Annual HealthCONx Conference summary

Opening remarks and business performance

• Delivered a strong first quarter with double-digit growth across all five operating segments, driven by robust demand and execution.

• Specialty pharma business and the 'other' segment (at-Home, Nuclear, OptiFreight) showed strong revenue and profit growth.

• Continued progress on the GMPD improvement plan, with notable first quarter performance.

• Raised full-year guidance to $9.65-$9.85 following positive Q1 results.

• Ongoing investments in new customers, acquisitions, and innovation cycles, particularly in Nuclear & Precision Health.

Strategic drivers and customer relationships

• Anticipates a strong pipeline of new generic products from 2025-2029, supporting future growth.

• Maintains a stable buy-sell spread and benefits from the Red Oak partnership with CVS for access and cost control.

• Onboarded significant new customers, including Publix and CVS, contributing to outsized demand.

• CVS’s acquisition of Rite Aid assets has positively impacted volume.

Seasonality, acquisitions, and segment performance

• First half benefits from $7 billion in new customer volume; will lap $10 billion from the previous year in H2.

• Recent acquisitions (ION, GI Alliance) will be lapped after Q2, affecting year-over-year comparisons.

• Core business strength, specialty portfolio growth, and 60% margin growth last quarter drive bullish outlook.