Cardinal Health is ramping up its digital transformation, reporting solid operational gains in its fiscal Q3 2025 despite flat overall revenue of $54.9 billion.
The company attributed much of its progress to new technologies that are improving supply chain efficiency, order fulfillment, and customer engagement. Adjusted to the expiration of a major customer contract, total Cardinal Health revenue grew 19% year over year.
The Pharmaceutical and Specialty Solutions division — Cardinal’s largest segment — posted a 20% revenue increase on an adjusted basis, with gains driven by artificial intelligence tools that improve inventory management and help meet demand for high-need drugs such as GLP-1 therapies. The company says its predictive systems now align better supply with pharmacy and hospital needs, cutting delays and excess stock.
Cardinal Health revenue in Q3
Emerging business units, including at-Home Solutions, Nuclear & Precision Health Solutions, and OptiFreight — collectively saw a 13% rise in revenue and a 22% increase in operating profit. These businesses benefited from enhanced ecommerce platforms and upgraded logistics tools. For instance, OptiFreight’s route optimization software lowered delivery costs and improved shipment speed to health care facilities.
The Medical segment, which has been undergoing a turnaround, saw a 2% increase in revenue. Digital upgrades to warehouse operations and online ordering systems contributed to the gain, along with early steps to boost domestic manufacturing and reduce reliance on international suppliers.
Cardinal Health also expanded its digital services for specialty care providers through its Management Services Organization (MSO) model. This quarter, the company added urology practices to its network via the acquisitions of Urology America and Potomac Urology. These practices will now have access to digital tools for billing, scheduling, and workflow management.
Executives emphasized that digital capabilities would remain central to Cardinal’s strategy moving forward. The company projects continued profit growth in the next fiscal year, supported by technology that enhances responsiveness, reduces costs, and positions Cardinal as a more integrated healthcare partner. More updates are expected at its Investor Day, scheduled for June 4.
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