Cardinal Health

Non-GAAP diluted EPS increased 9% to $8.24 for the year, reflecting the increase in non-GAAP operating earnings across the business and a lower share count following in-year share repurchases, partially offset by higher interest and other expense and a higher non-GAAP effective tax rate.

SEC original ↗Cardinal Health — Earnings release (8-K exhibit)EX-99Aug 12, 2025

Loss on early extinguishment of debt is excluded because it does not typically occur in the normal course of business and may obscure analysis of trends and financial performance.

SEC original ↗Cardinal Health — Earnings release (8-K exhibit)EX-99Aug 12, 2025

Additionally, the amount and frequency of this type of charge is not consistent and is significantly impacted by the timing and size of debt extinguishment transactions.

SEC original ↗Cardinal Health — Earnings release (8-K exhibit)EX-99Aug 12, 2025

We believe adjusted free cash flow is important to management and useful to investors as a supplemental measure as it indicates the cash flow available for working capital needs, debt repayments, dividend payments, share repurchases, strategic acquisitions, or other strategic uses of cash.

SEC original ↗Cardinal Health — Earnings release (8-K exhibit)EX-99Aug 12, 2025

Non-GAAP earnings before income taxes earnings before income taxes excluding (1) LIFO charges (credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) acquisition-related cash and share-based compensation costs, (7) impairments and (gain) loss on disposal of assets, net, (8) litigation (recoveries) charges, net, and (9) loss on early extinguishment of debt.

SEC original ↗Cardinal Health — Earnings release (8-K exhibit)EX-99Aug 12, 2025

Non-GAAP net earnings attributable to non-controlling interests net earnings attributable to non-controlling interests excluding (1) LIFO charges (credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) acquisition-related cash and share-based compensation costs, (7) impairments and (gain) loss on disposal of assets, net, (8) litigation (recoveries) charges, net, and (9) loss on early extinguishment of debt, each net of tax.

SEC original ↗Cardinal Health — Earnings release (8-K exhibit)EX-99Aug 12, 2025

The broad-based operational strength, with all five of our operating segments growing profit double-digits, reflects the disciplined execution of our strategy and our investments for growth.

SEC original ↗Cardinal Health — Earnings release (8-K exhibit)EX-99Aug 12, 2025

3 Recent highlights Cardinal Health hosted an Investor Day on June 12th, 2025 where management detailed the company's momentum, growth strategies and updated long-term value creation plans Cardinal Health announced that the company entered into a definitive agreement to acquire Solaris Health, the country s leading urology MSO with over 750 providers.

SEC original ↗Cardinal Health — Earnings release (8-K exhibit)EX-99Aug 12, 2025

Forward-looking statements are aspirational and not guarantees or promises that goals, targets or projections will be met, and no assurance can be given that any commitment, expectation, initiative or plan in this report can or will be achieved or completed.

SEC original ↗Cardinal Health — Earnings release (8-K exhibit)EX-99Aug 12, 2025

These include costs incurred to negotiate and finalize the Cooperation Agreement and costs incurred by the Business Review Committee of the Board of Directors, formed under this Cooperation Agreement, tasked with undertaking a comprehensive review of our strategy, portfolio, capital allocation framework, and operations.

SEC original ↗Cardinal Health — Earnings release (8-K exhibit)EX-99Aug 12, 2025

We believe adjusted free cash flow is important to management and useful to investors as a supplemental measure as it indicates the cash flow available for working capital needs, debt repayments, dividend payments, share repurchases, strategic acquisitions, or other strategic uses of cash.

SEC original ↗Cardinal Health — Earnings release (8-K exhibit)EX-99Aug 12, 2025

These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied.

SEC original ↗Cardinal Health — Earnings release (8-K exhibit)EX-99Aug 12, 2025

Cardinal Health is subject to additional risks and uncertainties described in Cardinal Health's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports.

SEC original ↗Cardinal Health — Earnings release (8-K exhibit)EX-99Aug 12, 2025

Restructuring and employee severance 69 69 13 56 0.23 Amortization and other acquisition-related costs 77 77 19 58 0.24 Impairments and (gain) loss on disposal of assets, net 4 8 8 (32) 40 0.16 Litigation (recoveries) charges, net 50 50 (12) 62 0.25 Non-GAAP $ 1,882 5 % $ 1,277 2 % $ 605 14 % $ 595 $ 147 $ 2 $ 450 23 % 24.6 % $ 1.84 29 % 1 For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules.

SEC original ↗Cardinal Health — Earnings release (8-K exhibit)EX-99Aug 12, 2025

State opioid assessment related to prior fiscal years 6 (6) (6) (2) (4) (0.02) Shareholder cooperation agreement costs (8) 8 8 2 6 0.02 Restructuring and employee severance 95 95 21 74 0.28 Amortization and other acquisition-related costs 285 285 74 211 0.80 Impairments and (gain) loss on disposal of assets, net 4 1,246 1,246 108 1,138 4.35 Litigation (recoveries) charges, net (304) (304) (83) (221) (0.84) Non-GAAP $ 6,874 6 % $ 4,798 6 % $ 2,076 5 % $ 1,987 $ 452 $ (1) $ 1,534 8 % 22.8 % $ 5.85 15 % 1 For more information on these measures, refer to the Use of Non-GAAP Measures and Definitions schedules.

SEC original ↗Cardinal Health — Earnings release (8-K exhibit)EX-99Aug 12, 2025

Litigation recoveries or charges, net are excluded because they often relate to events that may have occurred in prior or multiple periods, do not occur in or reflect the ordinary course of our business, and are inherently unpredictable in timing and amount.

SEC original ↗Cardinal Health — Earnings release (8-K exhibit)EX-99Aug 12, 2025

Non-GAAP operating earnings operating earnings excluding (1) LIFO charges (credits), (2) state opioid assessment related to prior fiscal years, (3) shareholder cooperation agreement costs, (4) restructuring and employee severance, (5) amortization and other acquisition-related costs, (6) acquisition-related cash and share-based compensation costs, (7) impairments and (gain) loss on disposal of assets, net, and (8) litigation (recoveries) charges, net.

SEC original ↗Cardinal Health — Earnings release (8-K exhibit)EX-99Aug 12, 2025