**Cardinal Health Raises Fiscal 2025 Profit Outlook Amid Strong Specialty Medicine Demand**
On January 30, Cardinal Health announced an increase in its adjusted profit forecast for fiscal 2025, driven by robust demand for high-cost specialty medications and branded drugs within its pharmaceuticals division. U.S. drug distributors are enhancing their foothold in the specialty medicine sector, which targets complex conditions such as rheumatoid arthritis and cancer, drawn by the significant profit potential these products offer. Earlier this month, Cardinal indicated that it anticipates its annual profit to be at the upper end of its prior forecast range. The company now projects an adjusted profit of $7.85 to $8.00 per share, up from the previous range of $7.75 to $7.90. However, the midpoint of this new range is slightly below analysts’ expectations of $7.86 per share, according to LSEG data.
A significant portion of Cardinal’s revenue is generated from its pharmaceutical and specialty solutions unit, which distributes both branded and generic medications, specialty drugs, and over-the-counter healthcare products. The company has been actively pursuing diversification beyond pharmaceutical distribution and, in 2024, executed several strategic acquisitions to penetrate higher-growth healthcare sectors, including cancer care, gastroenterology, and at-home healthcare solutions. This strategic shift follows the loss of a major contract with UnitedHealth Group’s pharmacy benefit management unit, OptumRX, in 2024.
For the latest quarter, Cardinal Health reported an adjusted profit of $1.93 per share, surpassing analysts’ estimates of $1.76 per share, as per LSEG data. The Ohio-based company’s total sales for the second quarter reached $55.26 billion, exceeding analysts’ expectations of $55.02 billion.