CARDINAL HEALTH INC (CAH)

Cardinal Health, Inc. is a global healthcare services and products company that provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. It supplies medical products and pharmaceuticals, along with solutions intended to make the healthcare system and supply chain more efficient and less costly.

The Pharmaceutical and Specialty Solutions segment distributes branded and generic pharmaceuticals and over-the-counter healthcare and consumer products in the United States. It maintains prime vendor relationships, repackages generics and OTC products, provides pharmacy management services to hospitals, and operates a limited number of pharmacies. For manufacturers, it provides distribution, inventory management, data reporting, new product launch support, and chargeback administration. Its Specialty businesses distribute specialty pharmaceuticals (oncology, rheumatology, gastroenterology, urology, nephrology and others) and human-derived plasma products, and also provide consulting, patient support, group purchasing, and data analytics services. They support physician practices through management services organization (MSO) platforms. The segment earns margin from its generic program, from distribution services agreements with branded manufacturers, and from OTC products. Red Oak Sourcing, a generic sourcing venture with CVS Health, negotiates generic supply contracts for both companies through June 2029. The Global Medical Products and Distribution segment manufactures and sources Cardinal Health brand medical, surgical, and laboratory products. These include exam and surgical gloves, needles, syringes, sharps disposal, compression, incontinence, nutritional delivery, wound care, surgical drapes and gowns, fluid suction and collection, urology, and electrode products. It also distributes national brand products, assembles procedure kits, provides supply chain services in the U.S. and Canada, and offers the Wavemark inventory management platform. Other segments are Nuclear and Precision Health Solutions (nuclear pharmacies and radiopharmaceutical manufacturing, including Xofigo contract manufacturing and Lymphoseek), at-Home Solutions (Edgepark and ADS direct-to-patient supplies, plus a business-to-business at-Home distribution service), and OptiFreight Logistics (shipping and logistics for healthcare providers).

Customers include retail chain and independent drug stores, supermarket and mass merchandiser pharmacies, hospitals, specialty pharmacies, physician practices, dialysis clinics, laboratories, surgery centers, home medical equipment providers, home health and hospice agencies, e-commerce customers, and patients with chronic conditions. Cardinal Health brand products are sold in the United States, Canada, Europe, Asia, and other markets. CVS Health accounted for 28 percent of fiscal 2026 revenue and the five largest customers for 43 percent. Sales to members of the group purchasing organizations Vizient and Premier made up 29 percent of revenue. Recent acquisitions have expanded its specialty and MSO offerings, including Solaris Health, Urology America, GI Alliance, and Integrated Oncology Network, as well as ADS in home diabetes supplies.

The company relies on many suppliers. Its five largest suppliers accounted for 39 percent of fiscal 2026 revenue and the largest for about 13 percent. It operates in highly competitive markets, competing on price, service, product breadth, and quality. Pharma competitors include McKesson and Cencora, regional and specialty distributors, and third-party logistics companies. GMPD competitors include Medline and Owens & Minor and other diversified healthcare companies and distributors.