Cardinal Health Inc (0HTG.L) Q3 2025 Earnings Report

Cardinal Health delivered a relatively flat top-line in QQ3 2025, with revenue of $54.878 billion and an implied gross margin of 3.87%, reflecting ongoing margin pressure in a low-single-digit distribution environment. Net income rose meaningfully to $506 million and diluted EPS reached $2.10, up approximately 97% YoY and 28% QoQ, supported by strong operating cash flow of $2.917 billion and free cash flow of $2.791 billion. The quarter benefited from disciplined capital allocation and working capital management, yet faced elevated cash outflows from acquisitions ($2.779 billion year-to-date) and a sizable stock repurchase program ($375 million) alongside a modest dividend payout ($124 million). These dynamics contributed to a still-significant negative reported equity position, with total assets of $49.9 billion vs. total liabilities of $51.8 billion and stockholders’ equity of approximately -$2.95 billion. The company’s liquidity metrics remain tight (current ratio ~0.94; quick ratio ~0.50), underscoring balance sheet fragility even as cash generation supports strategic flexibility. Management commentary, where available, emphasized cost management, mix optimization, and capital allocation discipline; however, explicit near-term guidance was not contained in the provided data. Investors should monitor margin recovery potential, deleveraging opportunities, and the cadence of acquisitions versus organic growth catalysts in a competitive healthcare distribution landscape.