Cardinal Health Inc. reported its financial results for the three months ended September 30, 2024, revealing a revenue of $52.3 billion, which represents a 4% decrease from $54.7 billion in the same period last year. This decline was primarily attributed to the expiration of contracts with OptumRx.

In terms of profitability, the company experienced a significant turnaround in GAAP operating earnings, which reached $568 million compared to a loss of $32 million in the prior year. The previous year's results were adversely affected by a $585 million goodwill impairment charge. Non-GAAP operating earnings also saw an increase of 12%, rising to $625 million from $557 million year-over-year.

GAAP diluted earnings per share (EPS) improved markedly to $1.70, up from a loss of $0.05 in the same quarter last year. Non-GAAP diluted EPS increased by 9%, reaching $1.88 compared to $1.72 in the prior year.

The company's cash and equivalents balance at the end of the reporting period was $2.9 billion, a decrease from $5.1 billion as of June 30, 2024. This decline was accompanied by net cash used in operating activities amounting to $1.6 billion.

Breaking down revenue by segment, the Pharmaceutical and Specialty Solutions segment reported $48.0 billion, down 5% from $50.6 billion in the previous year. Conversely, the Global Medical Products and Distribution segment saw a 3% increase in revenue, totaling $3.1 billion. The gross margin for the quarter was $1.9 billion, reflecting a 9% increase from $1.7 billion in the prior year. Additionally, profit from the Pharmaceutical and Specialty Solutions segment rose 16% to $530 million, up from $456 million, contributing to a total segment profit of $642 million, which is a 14% increase from $564 million year-over-year.

During this quarter, Cardinal Health made a significant payment of $366 million related to the National Opioid Settlement Agreement. Furthermore, on September 20, 2024, the company announced an agreement to acquire Integrated Oncology Network for $1.1 billion in cash, marking a strategic development in its growth initiatives.

About CARDINAL HEALTH INC

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