Cardinal Health, Inc. (CAH): Business Model Canvas [Dec-2025 Updated]

You're digging into the actual mechanics of how a healthcare supply chain titan like Cardinal Health, Inc. (CAH) makes its money right now, and honestly, the story is about strategic evolution, not just volume. After two decades analyzing these behemoths, I can tell you the engine is clearly pivoting: while they still manage a staggering $204.64 billion in pharmaceutical distribution sales (FY2025), the real value is being built in specialty care networks and high-margin medical products. I've broken down their entire nine-block Business Model Canvas, showing you the key partnerships, the massive logistics resources, and the specific revenue streams driving their strategy as of late 2025. Keep reading to see the precise blueprint behind their near-term moves, it's defintely worth the look.

Cardinal Health, Inc. (CAH) - Canvas Business Model: Key Partnerships

You're mapping out the core relationships that power Cardinal Health, Inc.'s massive distribution and specialty care engine as of late 2025. These alliances are critical for market access, especially in high-growth areas like specialty pharma and physician services. Here's a breakdown of the key players supporting the business.

Pharmaceutical manufacturers for drug distribution agreements

Cardinal Health Specialty Pharmaceutical Distribution relies on deep relationships to simplify the delivery of specialty products. This involves working closely with biopharmaceutical manufacturers to navigate complex regulatory landscapes, including the Drug Supply Chain Security Act (DSCSA), which went into effect in 2025, requiring package-level tracing. The scale of these agreements is significant.

The partnership structure includes:

• 197 Manufacturer relationships as of June 2025.
• 12 Exclusive product agreements.
• The Pharmaceutical segment profit in fiscal year 2025 was positively impacted by the performance of the generics program, which includes the Red Oak Sourcing, LLC venture with CVS Health Corporation.

The company's largest segment, Pharmaceutical and Specialty Solutions, posted a 20% revenue increase on an adjusted basis in fiscal Q3 2025, partly due to managing demand for high-need drugs like GLP-1 therapies through these manufacturer channels.

Management Services Organizations (MSOs) like GI Alliance and Solaris Health

Cardinal Health is aggressively building out its multi-specialty MSO platform, The Specialty Alliance, through strategic acquisitions. This strategy is central to its specialty growth priority. You see this play out clearly with two major gastroenterology and urology MSO partnerships.

The Specialty Alliance, which already includes the GI Alliance (where Cardinal Health is the majority stakeholder), is expanding its footprint substantially:

MSO Partner	Providers Added (Approx.)	Acquisition Cost / Stake	Therapeutic Area
Solaris Health	750+	$1.9 billion in cash for The Specialty Alliance to acquire	Urology
GI Alliance	Majority Stakeholder	Majority Stakeholder	Gastroenterology

The Solaris Health deal, announced August 12, 2025, is expected to close by the end of the year, upon which Cardinal Health will own about 75% of The Specialty Alliance. This move, combined with prior acquisitions like Urology America and Potomac Urology, extends the total reach of Cardinal Health's MSO platforms to approximately 3,000 providers across 32 states.

Integrated Oncology Network (ION) for Navista oncology platform

The acquisition of Integrated Oncology Network (ION) directly fuels the growth of Navista, Cardinal Health's oncology practice alliance. This deal closed in late 2024, but its integration and impact are key to the 2025 strategy.

Here are the key figures from that integration:

• Acquisition cost for ION was approximately $1.115 billion in cash.
• ION brought more than 100 providers across over 50 community-based sites in 10 states into the Navista alliance.
• ION practices gain access to Navista's advanced analytics capabilities that leverage artificial intelligence.

The ION team joined the Pharmaceutical and Specialty Solutions segment. Overall, the MSO platforms, including Navista, supported approximately 2,200 providers across 28 states and over 450 sites of care as of June 2025. That's a lot of specialty care under one umbrella.

Group Purchasing Organizations (GPOs) and Integrated Delivery Networks (IDNs)

Cardinal Health maintains long-standing relationships with leading Group Purchasing Organizations (GPOs) as part of its distribution strategy. While specific contract values aren't always public, the impact of customer relationships is evident in segment performance and contract dynamics.

For instance, the fiscal Q4 2025 revenue of $60.2 billion was relatively flat year-over-year, but this figure excluded the impact of a previously communicated large customer contract expiration, which, when adjusted, showed revenue growth of 21% for the quarter. This highlights the material financial impact of major IDN/GPO partnerships, even when a contract rolls off.

The Global Medical Products and Distribution segment saw a 2% to 4% revenue growth projection for fiscal year 2026, driven partly by volume growth from existing customers.

Technology partners for AI and supply chain automation

Technology partnerships and internal development are driving operational gains. Cardinal Health has an AI Center of Excellence, built over five years, to accelerate the use of AI across the supply chain.

Quantifiable benefits from these technology integrations include:

• The company's predictive systems, enhanced by AI tools, help align supply with pharmacy and hospital needs, cutting delays and excess stock.
• The 'Other' segment, which includes OptiFreight Logistics, saw revenue rise 13% in Q2 2025 and segment profit rise 11%, benefiting from upgraded logistics tools like route optimization software that lowered delivery costs.
• WaveMark, a SaaS platform within the Medical segment, supports digitally automated clinical supply chain solutions for enhanced product visibility.

The focus on digital transformation is paying off; the 'Other' segment (which includes OptiFreight) is projected to see revenue growth of 26% to 28% and segment profit growth of 25% to 27% for fiscal year 2026.

Finance: draft the FY2026 capital expenditure forecast by next Tuesday.

Cardinal Health, Inc. (CAH) - Canvas Business Model: Key Activities

High-volume pharmaceutical and specialty drug distribution

Metric	Fiscal Year 2025 (Full Year)	Fourth Quarter FY2025	First Quarter FY2026
Pharmaceutical and Specialty Solutions Revenue	$204.64 billion, $204.6 billion	$55.4 billion	$59 billion
Pharmaceutical and Specialty Solutions Segment Profit	$2.3 billion	$535 million	N/A
Revenue Growth (Excluding Contract Expiration)	18%	21%	23%
Second Quarter FY2025 Revenue	N/A	$50.8 billion	N/A

Growth in the Pharmaceutical and Specialty Solutions segment in Q1 FY2026 was fueled by higher volumes of GLP-1 diabetes and weight-loss medications and continued adoption of biosimilars.

Manufacturing and sourcing Cardinal Health Brand medical products

This activity falls within the Global Medical Products and Distribution (GMPD) segment.

Metric	Fiscal Year 2025 (Full Year)	Fourth Quarter FY2025	First Quarter FY2026
GMPD Revenue	$12.64 B	$3.2 billion	$3.2 billion
GMPD Revenue Growth (Y/Y)	2.06% ($255.00 M increase from $12.38 B in 2024)	3%	2%
GMPD Segment Profit	N/A	$70 million	N/A
Cardinal Health-branded products growth (U.S.)	N/A	N/A	6%

Executing the Global Medical Products and Distribution (GMPD) Improvement Plan

The GMPD segment has achieved positive profit and cash flow generation due to the execution of its multi-year improvement plan.

• GMPD Fiscal Year 2025 segment profit guidance was narrowed to ~$130M, down from the prior range of $140 million to $175 million.
• GMPD Fiscal Year 2026 segment profit guidance is set at at least $140 million.
• The long-term target for GMPD profit growth is $50M+ of profit growth per year after fiscal 2026.
• GMPD Q4 FY2024 revenue was $3.1 billion, a 2.2% increase over the prior fiscal year.

Providing specialty physician practice management services (MSOs)

This activity is primarily within the Pharmaceutical and Specialty Solutions segment, driven by acquisitions.

• The Specialty Alliance MSO platform supports approximately 2,200 providers across 28 states and over 450 sites of care.
• Acquisition of GI Alliance: Majority stake for approximately $2.8 billion in cash. GI Alliance has 900 physicians across 345 practice locations in 20 states.
• Acquisition of Integrated Oncology Network (ION): Approximately $1.1 billion in cash. ION supports more than 50 practice sites in 10 states.
• Pending acquisition of Solaris Health: For approximately $1.9 billion in cash. Solaris has more than 750 providers nationwide.

Developing and deploying supply chain and data analytics technology

The company plans to invest at least $600 million per year in capital expenditures to drive organic growth.

• The Consumer Health Logistics Center (CHLC) in Ohio was set to be fully operational in July 2025.
• The CHLC expansion expands network capacity by 20%.
• Plans include a new 230,000-square-foot forward distribution hub in Indianapolis.
• OptiFreight Logistics, the freight-management arm, grew more than 20% in Q1 FY2026.
• The 'Other' segment, which includes OptiFreight Logistics, saw Q4 FY2025 revenue increase by 37% and FY2025 revenue increase by 19%.

Cardinal Health, Inc. (CAH) - Canvas Business Model: Key Resources

You're looking at the core assets that power Cardinal Health, Inc. (CAH) as of late 2025. These aren't just line items; they're the physical and intellectual engines driving their market position.

Extensive U.S. and International Distribution Network and Logistics Infrastructure

Cardinal Health, Inc. operates a massive physical footprint, essential for moving pharmaceuticals and medical products across the globe. They are delivering daily to approximately 10,000 locations, spanning pharmacies, hospitals, physician offices, and homes. The company maintains operations in over 30 countries.

The logistics infrastructure is actively being modernized with significant capital deployment. For instance, the new Consumer Health Logistics Center in Groveport, Ohio, which became operational in July 2025, is a 350,000-square-foot facility designed to expand network capacity by 20%. Over the past five years, Cardinal Health, Inc. has invested more than $115 million in Ohio alone for new distribution centers and technology upgrades. Furthermore, a new flagship forward distribution center announced in September 2025 for Indianapolis, Indiana, is planned to support the distribution of more than 70,000 pharmaceutical and specialty deliveries daily across the United States.

This modernization effort includes integrating advanced automation. The new Walton Hills, Ohio, medical products distribution center, operational by Spring 2025, is nearly 249,000 square feet, over 30% larger than the site it replaced. The Indianapolis facility is slated to feature an industry-first robotic storage and retrieval system.

Here's a quick look at the scale of recent infrastructure investments:

Facility Type	Location	Size (Square Feet)	Operational Status (as of late 2025)
Consumer Health Logistics Center	Groveport, Ohio	350,000	Operational (since July 2025)
Medical Products Distribution Center	Walton Hills, Ohio	~249,000	Operational (by Spring 2025)
Pharmaceutical Forward Distribution Center	Indianapolis, Indiana	230,000	Planned (expected operational by Fall 2027)

Proprietary Data Platforms like PPS Analytics and Sonexus™ for Specialty Care

Cardinal Health, Inc.'s Specialty business relies on technology platforms to connect with manufacturers and providers. The acquisition of Specialty Networks in January 2024 for $1.2 billion in cash brought in key data assets. The PPS Analytics platform, part of this, leverages real-world data to enhance patient care and clinical research, initially focused in urology. These technology solutions are now expanding into oncology and further into gastroenterology and rheumatology.

These platforms are used to:

• Identify patients for clinical trials.
• Manage patients' adherence to clinical pathways.
• Assess treatment effectiveness.

The company also pilots proprietary ordering platforms like Vantus™ HQ, a digital hub for retail pharmacists, which was rolling out to various customer classes early in fiscal 2025.

$2.5 Billion in Adjusted Free Cash Flow (FY2025) for Strategic Investment

Financial strength provides the capital for these strategic moves. For Fiscal Year 2025, Cardinal Health, Inc. reported $2.5 billion in adjusted free cash flow. This cash generation underpins their ability to invest and return capital. Looking forward, the company has confirmed a long-term target of generating $10 billion in adjusted free cash flow over three years, starting in fiscal 2026. This financial capacity supports acquisitions, like the pending Solaris Health deal, and ongoing infrastructure modernization. It's a defintely solid base for growth.

Cardinal Health Brand Medical and Surgical Product Portfolio

The Global Medical Products and Distribution (GMPD) segment manufactures, sources, and distributes the company's own branded products. The focus here is on cost-efficient, clinician-preference items. This portfolio is a key driver of segment profit improvement. For example, in the first quarter of fiscal 2026, sales for Cardinal Health-branded products rose 6% in the U.S.

The GMPD segment's total sales for the first quarter of fiscal 2026 reached $3.2 billion, a 2% rise year-over-year.

The Cardinal Health brand portfolio includes a wide array of items:

• Surgical supplies and equipment.
• Personal Protective Equipment (PPE).
• Infection Control products.
• Anesthesia Supplies & Products.
• Wound care supplies.

Advanced Automation and AI Tools for Inventory Management

Beyond the physical distribution centers, technology is a core resource for efficiency. The Pharmaceutical and Specialty Solutions division saw revenue climb 23% to $59 billion in Q1 FY2026, partly fueled by artificial intelligence tools that improve inventory management and help meet demand for high-need drugs like GLP-1 therapies. The new logistics centers heavily feature automation, including robotics and automated labeling, which improve pick-and-pack accuracy and reduce physical demand on employees.

Cardinal Health, Inc. (CAH) - Canvas Business Model: Value Propositions

You're looking at the core value Cardinal Health, Inc. (CAH) delivers across the healthcare ecosystem as of late 2025. It's about scale, efficiency, and specialized access, all underpinned by data.

Reliable, high-volume, low-cost distribution for over $204.64 billion in pharma sales

The sheer scale of Cardinal Health, Inc.'s distribution is a primary value. The Pharmaceutical and Specialty Solutions segment alone generated US$204,644 million in revenue for fiscal year 2025. This massive volume supports the entire supply chain, ensuring product availability. For context on overall scale, total company revenue for fiscal year 2025 was $222.6 billion. This distribution capability is central to keeping costs managed for customers.

Cost optimization and supply chain efficiency for hospitals and pharmacies

Cardinal Health, Inc. helps providers fight rising costs through technology-enabled supply chain solutions. For example, customers using the WaveMark™ inventory management solution report an average of only 1.5% expirations on shelves, which is an 85% improvement over the industry average. Furthermore, this level of tracking enabled the average hospital using the system to capture $7.7 million in supplies and an additional $65,000 to $212,000 in product charges that otherwise would have been lost. The company also uses route optimization software, like that in OptiFreight®, to lower delivery costs and improve shipment speed to facilities.

The value proposition for efficiency can be summarized in these operational improvements:

• Inventory expiration reduction: 85% improvement over industry average.
• Lost revenue capture per hospital: Up to $7.7 million in supplies.
• Route optimization: Lowered delivery costs via OptiFreight®.
• Warehouse efficiency: New Consumer Health Logistics Center (CHLC) operational.

Data-driven insights for manufacturers and specialty providers

The company embeds data and analytics to help partners navigate complex markets. For instance, PPS Analytics leverages real-world data to improve patient care and clinical research. For biopharma manufacturers, Cardinal Health, Inc.'s Advanced Therapy Solutions team addresses the complexity of the payer landscape, especially as the projected pipeline of cell and gene therapies is estimated to have a budget impact of more than $40 billion by 2030. The company is also seeing strong financial returns from these specialized services; for example, the Specialty Alliance saw an approximate 5 cents higher than anticipated EPS contribution in fiscal year 2025.

Access to specialized care networks (oncology, gastroenterology, urology) via MSOs

Cardinal Health, Inc. builds value by expanding its Managed Service Organization (MSO) platforms to connect specialty providers. This includes building existing capabilities in gastroenterology and expanding into oncology through its Specialty Networks. A concrete step in bolstering urology access was the announcement of the acquisition of Solaris Health, described as the country's leading urology MSO. The company also noted it will be picking up distribution for the Specialty Alliance gastronurology portfolio starting in April 2026.

Branded medical products for over 75% of U.S. hospitals

Cardinal Health, Inc. is a comprehensive manufacturer and distributor, providing its own branded medical products alongside national brands. The company's products and services support nearly 90% of U.S. hospitals, which is well above the stated value proposition threshold of over 75%. This extensive reach is supported by more than 4,500 sourcing and manufacturing partners across the healthcare supply chain.

Here is a quick look at the scale of service delivery:

Metric	Value	Segment/Area
U.S. Hospitals Served	Nearly 90%	Overall Product/Service Footprint
Pharmaceutical & Specialty Solutions Revenue (FY2025)	$204,644 million	Pharmaceutical Distribution
Global Medical Products & Distribution Revenue (FY2025)	$12,636 million	Medical Products
Specialty BioPharma Revenue Growth Expectation (FY2026)	At least 20%	BioPharma Solutions

Finance: draft 13-week cash view by Friday.

Cardinal Health, Inc. (CAH) - Canvas Business Model: Customer Relationships

The relationship structure for Cardinal Health, Inc. (CAH) in late 2025 centers on tiered service models reflecting the scale and complexity of the customer.

Dedicated account management for large hospital systems and chains

For major customers, the relationship is deeply embedded, often involving multi-year financial agreements. The company extended its Receivables Purchase Agreement, originally dated September 1, 2023, with an amendment executed on September 30, 2025, to extend the facility's maturity date to September 28, 2028. This suggests a commitment to long-term financial and supply chain integration with key lending and banking partners supporting these large relationships.

The impact of large customer contract shifts is evident; for instance, the previously communicated customer contract expiration negatively impacted Fiscal Year 2025 revenue, which was $222.6 billion. However, Q4 revenue increased 21% excluding this expiration, showing the underlying growth with other customers.

High-touch, consultative support for specialty physician practices (MSOs)

Cardinal Health, Inc. (CAH) has aggressively expanded its high-touch support through strategic acquisitions in the Management Services Organization (MSO) space, focusing on providing practice enhancement and administrative services.

• Acquired majority stake in GI Alliance, a gastroenterology MSO with over 900 physicians.
• Acquired Integrated Oncology Network (ION), supporting more than 50 practice sites.
• Announced agreement to acquire Solaris Health, a urology MSO with over 750 providers, for approximately $1.9 billion in cash.
• The Specialty Networks platform, which includes PPS Analytics, supports over 11,500 specialty providers, including more than 7,000 physicians across 1,200 independent physician practices (as of 2024 data).

This consultative approach is supported by technology platforms like PPS Analytics, which leverages real-world data for manufacturer partners and practitioner customers.

Automated and digital self-service for routine pharmacy and clinic orders

For routine transactions, the focus shifts to efficiency through digital tools and logistics optimization. The company continues to build out its logistics capabilities, such as the Consumer Health Logistics Center (CHLC) becoming fully operational in July 2025. Furthermore, OptiFreight Logistics is expanding its offerings within the hospital pharmacy setting to support growth.

The company emphasizes technology and practice management solutions to improve efficiency for specialty practices.

Long-term, contractual relationships for pharmaceutical distribution

The core pharmaceutical distribution business relies on securing and maintaining long-term supply agreements, though the risk of non-renewal is present. The non-renewal of the OptumRx contract, which generated 16% of Fiscal Year 2023 consolidated revenue, was a major event impacting Fiscal Year 2025 results.

Despite this, Cardinal Health, Inc. (CAH) reiterated its long-term segment profit Compound Annual Growth Rate (CAGR) target of 4% to 6% for Pharmaceutical and Specialty Solutions relative to a Fiscal Year 2023 baseline. The company raised its long-term target for this segment profit growth to 5% to 7% normalized growth at its June 2025 Investor Day.

The overall financial performance in Fiscal Year 2025, despite the contract loss, resulted in total operating earnings growth of 15% to $2.8 billion and non-GAAP diluted EPS of $8.24.

Customer Relationship Metric/Segment Focus	Associated Financial/Statistical Figure (FY2025 or Relevant Period)	Context/Segment
Fiscal Year 2025 Total Revenue	$222.6 billion	Enterprise-wide, impacted by contract expiration
FY2025 Adjusted Free Cash Flow	$2.5 billion	Enterprise-wide cash generation
Q4 FY2025 Revenue Excluding Contract Expiration	21% increase	Pharmaceutical and Specialty Solutions growth driver
Receivables Purchase Agreement Extension End Date	September 28, 2028	Large customer/financial partner relationship term
GI Alliance Physician Count (Acquired in FY2025)	Over 900 physicians	Specialty Physician Practices (MSO)
Specialty Networks Physician Count (Pre-Acquisitions Context)	More than 7,000 physicians	Specialty Physician Practices (MSO)
Long-Term PSS Segment Profit Growth Target (Raised FY2025)	5% to 7% normalized growth	Pharmaceutical and Specialty Solutions contractual outlook

Cardinal Health, Inc. (CAH) - Canvas Business Model: Channels

You're looking at how Cardinal Health, Inc. gets its products and services to the tens of thousands of locations it serves, from hospitals to homes. It's a massive physical and digital network, so let's look at the hard numbers defining its reach as of late 2025.

Physical distribution centers and warehouses across the U.S.

Cardinal Health, Inc. relies on a vast network of physical infrastructure to move pharmaceuticals and medical products. The company continues to invest heavily in modernizing this footprint. For instance, the At-Home Solutions unit recently opened a new facility in Fort Worth, Texas, equipped with automation technologies. Furthermore, the company announced plans for a new 230,000-square-foot forward distribution hub in Indianapolis, designed with advanced robotics and warehouse automation. This complements the opening of a state-of-the-art consumer-health logistics center, which expanded network capacity by 20%. The At-Home Solutions business also has plans for automation expansion in one existing distribution center and in two new DCs planned for the West and the Northeast.

OptiFreight Logistics for freight management and cost reduction

OptiFreight Logistics, the technology-driven freight-management arm, is a key channel for managing direct shipments. This segment posted $324 million in revenue for fiscal year 2025. The business manages more than 22 million inbound, outbound, and intra-facility shipments annually. These shipments go to over 25,000 shipping locations, including hospitals, pharmacies, labs, and surgery centers. The service is designed to help customers realize significant savings, reporting up to $800 million in customer savings annually. The segment grew more than 20% in the first quarter of fiscal year 2026, building on its 2025 performance.

E-commerce platforms and digital ordering systems for customers

Digital transformation is central to how Cardinal Health, Inc. engages customers across its channels. The company has enhanced e-commerce platforms and upgraded online ordering systems to improve supply chain efficiency and order fulfillment. Artificial intelligence tools are now used within the Pharmaceutical and Specialty Solutions division to improve inventory management and better align supply with pharmacy and hospital needs, cutting delays. The OptiFreight Logistics service uses a cloud-based platform, TotalVue Insights, for tracking, reporting, and analytics, giving customers visibility into their shipping operations.

The digital tools support several key functions:

• Real-time inventory tracking.
• Predictive restocking capabilities.
• Data analytics for supply chain performance.
• Cloud-based pharmacy management tools.

Specialty Networks and MSO platforms for physician services

Cardinal Health, Inc. is expanding its reach into specialty care through strategic acquisitions that build out its Specialty Alliance platform. The company acquired a majority stake in GI Alliance, a leading gastroenterology MSO, for approximately $2.8 billion in cash. Additionally, the company is advancing its Urology Alliance through recent acquisitions like Urology America. The pending acquisition of Solaris Health is set to add access to more than 750 providers nationwide initially, growing to 3,000 specialty clinicians across 32 states once fully integrated into the Specialty Alliance platform. These MSO platform acquisitions contributed to segment profit growth in the fourth quarter of fiscal 2025.

At-Home Solutions for direct-to-patient medical supplies

The At-Home Solutions division is a direct channel to patients, seeing double-digit revenue growth in the second quarter of fiscal year 2025. This division recorded $3,480 million in revenue for fiscal year 2025. The segment was bolstered by the acquisition of Advanced Diabetes Supply Group (ADSG) for approximately $1.1 billion in cash. This segment serves the rising demand for in-home supplies and chronic care products.

Here is a snapshot of the scale across these key channel components for fiscal year 2025:

Channel Component	Metric	Value (FY 2025 or Latest Available)
OptiFreight Logistics	Revenue	$324 million
OptiFreight Logistics	Shipments Managed Annually	22 million
At-Home Solutions	Revenue	$3,480 million
Specialty Networks (Solaris Pending Reach)	Specialty Clinicians Access	3,000
Consumer-Health Logistics	Network Capacity Expansion	20%
MSO Acquisition (GI Alliance)	Cash Consideration	$2.8 billion

Finance: draft Q1 FY2026 cash flow projection update by Monday.

Cardinal Health, Inc. (CAH) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Cardinal Health, Inc. as of late 2025, which is heavily weighted toward the institutional side of healthcare delivery. The numbers show a clear focus on large-scale distribution and specialty care enablement.

The largest customer group is served through the Pharmaceutical and Specialty Solutions segment, which generated $204.64 billion in revenue for Fiscal Year 2025, making up 91.91% of the company's total $222.6 billion revenue for the year. This segment is the engine for distribution to pharmacies and health systems.

Here is a breakdown of the key customer groups Cardinal Health, Inc. serves, mapped against their reported segment data:

Customer Segment Group	Primary Segment Link	FY 2025 Revenue (USD)	FY 2025 Revenue Share (Approximate)
Retail and independent pharmacies (core pharmaceutical distribution)	Pharmaceutical and Specialty Solutions	$204.64 billion	91.91%
Hospitals and Integrated Delivery Networks (IDNs)	Pharmaceutical and Specialty Solutions / GMPD	$204.64 billion (Pharma) + $12.64 billion (Medical Products)	Combined core distribution and medical products
Specialty physician practices (oncology, GI, urology)	Pharmaceutical and Specialty Solutions (via MSO platforms/specialty drugs)	Included within $204.64 billion	Growing contribution via acquisitions like Integrated Oncology Network
Pharmaceutical and medical device manufacturers	Global Medical Products and Distribution (GMPD)	$12.64 billion	5.67%
Patients requiring at-Home Solutions and nuclear health services	Other Segment (at-Home Solutions & Nuclear/Precision Health)	$3.480 billion (at-Home) + $1.578 billion (Nuclear)	Part of the $5.38 billion Other segment

The customer base for medical products and devices, which often includes hospitals and surgery centers, falls largely under the Global Medical Products and Distribution (GMPD) segment, which posted $12.64 billion in revenue in Fiscal Year 2025.

Cardinal Health, Inc. has actively bolstered its service to specialty practices through strategic investments. For example, the company executed a $1.12 billion acquisition of Integrated Oncology Network to strengthen its cancer care footprint.

The fastest-growing area, which directly serves patients needing specific services, is captured in the Other segment, which reached $5.38 billion in FY2025 revenue. This segment is composed of several distinct customer-facing units:

• at-Home Solutions revenue was $3.480 billion in FY2025.
• Nuclear and Precision Health Solutions revenue was $1.578 billion in FY2025.
• OptiFreight Logistics revenue was $324 million in FY2025.

The company's strategy involves using digital tools to better align supply with the needs of its pharmacy and hospital customers, which is a key part of retaining and serving these large entities.

Cardinal Health, Inc. (CAH) - Canvas Business Model: Cost Structure

You're looking at the major drains on Cardinal Health, Inc.'s bottom line as of late 2025. For a company this size, the costs are massive, and they center around moving product and integrating new, high-value specialty businesses.

High Cost of Goods Sold (COGS) for pharmaceuticals remains the single largest expense category, which is typical for a major distributor. This cost directly reflects the wholesale price paid for the drugs and medical products Cardinal Health, Inc. distributes. For the full fiscal year 2025, the Cost of products sold was reported at $214,410 million, which is a slight decline from the $219,413 million reported in fiscal year 2024. This figure is very close to the total fiscal year 2025 revenue of $222.6 billion, underscoring the thin margins inherent in the distribution business.

The operational side requires significant investment in physical infrastructure. You see substantial operating expenses tied up in logistics, warehousing, and transportation to keep the supply chain moving efficiently. While specific line items for just logistics are hard to isolate, Selling, General, and Administrative (SG&A) expenses give you a sense of the scale. For the three months ended December 31, 2024, SG&A expenses were $1.3 billion, an increase partially driven by the recent acquisitions. The company's structure relies on a vast network, and maintaining that network is a continuous, high-cost endeavor.

Capital expenditures (CapEx) are essential for future efficiency and growth, particularly in automation and facilities upgrades. Cardinal Health, Inc. has committed to a high level of reinvestment here. They expect capital expenditures in fiscal year 2026 to be approximately $600 million, primarily for manufacturing, distribution infrastructure, and technology. This follows capital expenditures of $547 million in fiscal 2025 and $511 million in fiscal 2024. Honestly, planning for at least $600 million annually shows this is a non-negotiable cost of staying competitive.

The recent strategic shift toward specialty services brings new, large-scale costs related to integration. You have to account for the cash outlay for these major purchases, plus the ongoing costs of merging operations. The acquisition of Integrated Oncology Network (ION) was completed in December 2024 for $1.1 billion in cash. Then, the majority stake in GI Alliance (GIA) closed in January 2025 for approximately $2.8 billion in cash, part of a combined $3.9 billion deal that also included Advanced Diabetes Supply Group (ADSG). These transactions are expected to generate transaction and integration costs that can temporarily impact GAAP operating earnings.

The workforce supporting these complex operations represents a major fixed cost. Cardinal Health, Inc. employs a large, specialized staff across distribution, manufacturing, and the newly acquired specialty practice management services. As of the latest available data around September 2025, the company reported having 57.7K employees. That's a specialized workforce that requires significant ongoing investment in compensation and benefits.

Here's a quick look at how some of these key cost and investment figures stack up:

Cost Component	Fiscal Year 2025 Amount (or Latest)	Fiscal Year 2024 Amount
Cost of Goods Sold (COGS)	$214,410 million	$219,413 million
Capital Expenditures (CapEx)	$547 million	$511 million
Projected FY2026 CapEx	~$600 million	N/A
ION Acquisition Cost (Cash)	$1.1 billion	N/A
GI Alliance Majority Stake Cost (Cash)	~$2.8 billion	N/A
Total Employees	57.7K	N/A

You can see the sheer scale of the COGS relative to revenue, which is the primary cost driver. Also note the significant cash deployment for acquisitions in the recent past, which will translate into integration costs and potentially higher interest expense as debt is used to finance growth.

Cardinal Health, Inc. (CAH) - Canvas Business Model: Revenue Streams

You're looking at the core ways Cardinal Health, Inc. brings in cash as of late 2025. It's heavily weighted toward moving pills and supplies, but the growth story is in the specialty services.

The single largest source of revenue is the distribution of pharmaceuticals. This is the bedrock of the business, though it saw a slight dip year-over-year due to a major contract expiration.

Here's the quick math on the major revenue components for Fiscal Year 2025:

Revenue Stream Component	FY2025 Revenue Amount	Notes
Pharmaceutical distribution sales (Pharmaceutical Member Segment)	$204.64 billion	Largest segment, representing about 91.91% of total revenue.
Global Medical Products and Distribution (GMPD) Segment Revenue	$12.64 billion	Includes sales of Cardinal Health branded medical/surgical products and national brand products.
Other Operating Segments Revenue	$5.38 billion	Comprises Nuclear and Precision Health Solutions, at-Home Solutions, and OptiFreight Logistics.
OptiFreight Logistics Services Revenue (2025)	$324 million	Revenue from logistics optimization and transportation management solutions.
Total Fiscal Year 2025 Sales	$222.58 billion	Total annual revenue for FY2025.

Sales of Cardinal Health Brand medical and surgical products are embedded within the Global Medical Products and Distribution (GMPD) segment revenue of $12.64 billion for FY2025. This segment also handles national brand products for various healthcare providers.

Fees generated from specialty services are a key driver of profit growth, particularly within the Pharmaceutical and Specialty Solutions segment. These revenue sources include:

• Growth from BioPharma Solutions, which supports pharmaceutical manufacturers for specialty products.
• Management fees from MSO platforms, such as the contributions from the recently acquired GI Alliance and Integrated Oncology Network.

Revenue from Nuclear and Precision Health Solutions is reported within the 'Other' segment, which totaled $5.38 billion in FY2025. This area focuses on nuclear pharmacies, radiopharmaceutical manufacturing, and expanding capabilities in theranostics for oncology and neurology.

Logistics and freight management services, specifically through OptiFreight Logistics, contributed $324 million in revenue for 2025. This is a component of the 'Other' segment, which saw strong growth, with Q4 revenue for the entire 'Other' category reaching $1.6 billion.

Finance: draft 13-week cash view by Friday.