Cardinal Health, Inc.

Strong Q3 Performance: Cardinal Health reported a 21% increase in operating earnings and a 13% increase in EPS, reaching $2.35 for the quarter. This growth was primarily driven by strong utilization trends and execution in their Pharmaceutical and Specialty Solutions segment, alongside growth in their three other expansion businesses. Total company revenue remained flat at nearly $55 billion; however, adjusting for a contract expiration, revenue increased by 19% year-over-year.

Raised Fiscal 2025 EPS Guidance: The company has raised its fiscal year 2025 EPS guidance to a range of $8.05 to $8.15, an 18-cent increase from previous guidance, driven by solid Q3 results and better-than-expected cash flows. Adjusted free cash flow estimates for the year are now expected at the high end of the previous range, around $1.5 billion.

Segmentation Analysis and Growth Drivers: Notable growth in the Pharmaceuticals segment, where revenue was up 20% when excluding a customer contract expiration, was largely attributed to strong performance in brand, specialty pharmaceuticals, and new customer onboarding, including Publix. Specialty growth remains central to the company's long-term strategy, with ongoing strengthening in both upstream and downstream services.