CARDINAL HEALTH INCCAH
CARDINAL HEALTH INC Segments Disclosure
14. Segment Information
We operate under two reportable segments: Pharma and GMPD. All remaining operating segments that are not significant enough to require separate reportable segment disclosures are included in Other, which is comprised of Nuclear and Precision Health Solutions, at-Home Solutions, and OptiFreight®. The factors for determining the reportable segments include the manner in which management evaluates performance for purposes of allocating resources and assessing performance combined with the nature of the individual business activities.
Our Pharma segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products in the United States. This segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; provides pharmacy management services to hospitals and operates a limited number of pharmacies, including pharmacies in community health centers; repackages generic pharmaceuticals and over the counter healthcare products; and includes our managed services organization platforms for physician offices.
Our GMPD segment manufactures, sources, and distributes Cardinal Health brand medical, surgical, and laboratory products, which are sold in the United States, Canada, Europe, Asia, and other markets. This segment also distributes a broad range of medical, surgical, and laboratory products known as national brand products to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers in the United States and Canada.
The remaining three non-reportable operating segments included in Other are Nuclear and Precision Health Solutions, at-Home Solutions, and OptiFreight® Logistics. These operating segments respectively operate nuclear pharmacies and radiopharmaceutical manufacturing facilities, distribute medical products to patients' homes in the United States, and provide supply chain services and solutions to our customers.
Revenue
The following table presents revenue for the two reportable segments and disaggregated revenue within the remaining operating segments, included in Other, and Corporate:
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Pharmaceutical and Specialty Solutions | $ | 204,644 | $ | 210,019 | $ | 188,814 | |||||||||||
| Global Medical Products and Distribution | 12,636 | 12,381 | 12,222 | ||||||||||||||
| Nuclear and Precision Health Solutions | 1,578 | 1,369 | 1,197 | ||||||||||||||
| at-Home Solutions | 3,480 | 2,869 | 2,584 | ||||||||||||||
OptiFreight® Logistics | 324 | 274 | 240 | ||||||||||||||
| Other | 5,382 | 4,512 | 4,021 | ||||||||||||||
| Total segment revenue | 222,662 | 226,912 | 205,057 | ||||||||||||||
| Corporate (1) | (84) | (85) | (78) | ||||||||||||||
| Total revenue | $ | 222,578 | $ | 226,827 | $ | 204,979 | |||||||||||
(1)Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments.
The following table presents revenue by geographic area:
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| United States | $ | 220,993 | $ | 225,231 | $ | 203,440 | |||||||||||
| International | 1,669 | 1,681 | 1,617 | ||||||||||||||
| Total segment revenue | 222,662 | 226,912 | 205,057 | ||||||||||||||
| Corporate (1) | (84) | (85) | (78) | ||||||||||||||
| Total revenue | $ | 222,578 | $ | 226,827 | $ | 204,979 | |||||||||||
(1)Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments.
Segment Profit
The Company’s Chief Executive Officer, the chief operating decision maker ("CODM"), evaluates segment performance based on segment profit, among other measures. Segment profit is segment revenue less segment cost of products sold, less segment distribution, selling, general, and administrative ("SG&A") expenses. Segment SG&A expenses include share-based compensation expense as well as allocated corporate technology and shared functions expenses, including corporate management, corporate finance, financial and customer care shared services, human resources, information technology, and legal and compliance, including certain litigation defense costs. Corporate expenses are allocated to the operating segments based on headcount, level of benefit provided and other ratable allocation methodologies. The results attributable to noncontrolling interests are recorded within segment profit.
We do not allocate the following items to our segments:
•last-in first-out, or ("LIFO"), inventory charges/(credits);
•state opioid assessment related to prior fiscal years;
•shareholder cooperation agreement costs;
•restructuring and employee severance;
•amortization and other acquisition-related costs;
•acquisition-related cash and share-based compensation costs;
•impairments and (gain)/loss on disposal of assets, net;
•litigation (recoveries)/charges, net;
•other (income)/expense, net;
•interest expense, net;
•loss on early extinguishment of debt; or
•provision for/(benefit from) income taxes
In addition, certain investment spending, certain portions of enterprise-wide incentive compensation, and other spending are not allocated to the segments. Investment spending generally includes the first-year spend for certain projects that require incremental investments in the form of additional operating expenses. Because approval for these projects is dependent on executive management, we retain these expenses at Corporate. Investment spending within Corporate was $72 million, $59 million, and $35 million for fiscal 2025, 2024, and 2023, respectively.
The following tables present revenue, expenses, and segment profit for the two reportable segments and the remaining operating segments, included in Other, and Corporate:
| 2025 | |||||||||||||||||||||||
| (in millions) | Pharma | GMPD | Other | Total | |||||||||||||||||||
Segment revenue | $ | 204,644 | $ | 12,636 | $ | 5,382 | $ | 222,662 | |||||||||||||||
Cost of products sold | 199,999 | 10,470 | 4,023 | 214,492 | |||||||||||||||||||
| SG&A | 2,387 | 2,031 | 843 | 5,261 | |||||||||||||||||||
Total segment expenses | 202,386 | 12,501 | 4,866 | 219,753 | |||||||||||||||||||
| Segment profit | $ | 2,258 | $ | 135 | $ | 516 | $ | 2,909 | |||||||||||||||
| Corporate (1) | (634) | ||||||||||||||||||||||
Consolidated operating earnings | $ | 2,275 | |||||||||||||||||||||
| 2024 | |||||||||||||||||||||||
| (in millions) | Pharma | GMPD | Other | Total | |||||||||||||||||||
Segment revenue | $ | 210,019 | $ | 12,381 | $ | 4,512 | $ | 226,912 | |||||||||||||||
Cost of products sold | 205,864 | 10,264 | 3,367 | 219,495 | |||||||||||||||||||
| SG&A | 2,140 | 2,025 | 722 | 4,887 | |||||||||||||||||||
Total segment expenses | 208,004 | 12,289 | 4,089 | 224,382 | |||||||||||||||||||
| Segment profit | $ | 2,015 | $ | 92 | $ | 423 | $ | 2,530 | |||||||||||||||
| Corporate (1) | (1,287) | ||||||||||||||||||||||
Consolidated operating earnings | $ | 1,243 | |||||||||||||||||||||
| 2023 | |||||||||||||||||||||||
| (in millions) | Pharma | GMPD | Other | Total | |||||||||||||||||||
| Segment revenue | $ | 188,814 | $ | 12,222 | $ | 4,021 | $ | 205,057 | |||||||||||||||
| Cost of products sold | 184,814 | 10,377 | 2,990 | 198,181 | |||||||||||||||||||
| SG&A | 2,119 | 1,992 | 635 | 4,746 | |||||||||||||||||||
| Total segment expenses | 186,933 | 12,369 | 3,625 | 202,927 | |||||||||||||||||||
| Segment profit | $ | 1,881 | $ | (147) | $ | 396 | $ | 2,130 | |||||||||||||||
| Corporate (1) | (1,378) | ||||||||||||||||||||||
| Consolidated operating earnings | $ | 752 | |||||||||||||||||||||
(1)Corporate revenue and expenses consists of the elimination of inter-segment revenue and other revenue and expenses not allocated to the segments.
The following tables present depreciation and amortization and additions to property and equipment for the two reportable segments and the remaining operating segments, included in Other, and Corporate:
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Pharmaceutical and Specialty Solutions | $ | 185 | $ | 184 | $ | 194 | |||||||||||
| Global Medical Products and Distribution | 212 | 205 | 173 | ||||||||||||||
| Other | 88 | 79 | 71 | ||||||||||||||
| Corporate | 305 | 242 | 254 | ||||||||||||||
| Total depreciation and amortization | $ | 790 | $ | 710 | $ | 692 | |||||||||||
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Pharmaceutical and Specialty Solutions | $ | 118 | $ | 76 | $ | 56 | |||||||||||
| Global Medical Products and Distribution | 133 | 136 | 191 | ||||||||||||||
| Other | 88 | 81 | 52 | ||||||||||||||
| Corporate | 208 | 218 | 182 | ||||||||||||||
| Total additions to property and equipment | $ | 547 | $ | 511 | $ | 481 | |||||||||||
The following table presents total assets for the two reportable segments and the remaining operating segments, included in Other, and Corporate at June 30:
| (in millions) | 2025 | 2024 | |||||||||
| Pharmaceutical and Specialty Solutions | $ | 37,313 | $ | 29,149 | |||||||
Global Medical Products and Distribution | 6,889 | 7,047 | |||||||||
| Other | 4,045 | 2,606 | |||||||||
| Corporate | 4,875 | 6,319 | |||||||||
| Total assets | $ | 53,122 | $ | 45,121 | |||||||
The following table presents property and equipment, net by geographic area:
| (in millions) | 2025 | 2024 | |||||||||
| United States | $ | 2,422 | $ | 2,106 | |||||||
| International | 436 | 423 | |||||||||
| Property and equipment, net | $ | 2,858 | $ | 2,529 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 12, 2025 | Showing above |
| 2024 | Aug 14, 2024 | |
| 2023 | Aug 15, 2023 | |
| 2022 | Aug 11, 2022 | |
| 2021 | Aug 16, 2021 | |
| 2020 | Aug 13, 2020 | |
| 2019 | Aug 20, 2019 | |
| 2018 | Aug 22, 2018 | |
| 2017 | Aug 10, 2017 | |
| 2016 | Aug 12, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.