Cardinal Health : Q3 2023 Press release

Exhibit 99.1

FOR IMMEDIATE RELEASE

Cardinal Health Reports Third Quarter Fiscal Year 2023 Results

and Raises Fiscal Year 2023 Non-GAAP EPS Guidance

• Revenue increased 13% to $50.5 billion
• GAAP1 operating earnings were $572 million; GAAP diluted EPS was $1.34
• Non-GAAPoperating earnings increased 11% to $606 million; non-GAAP diluted EPS increased 20% to $1.74
• Fiscal year 2023 non-GAAP EPS guidance raised and narrowed to $5.60 to $5.80, from $5.20 to $5.50
• Fiscal year 2023 adjusted free cash flow guidance raised and narrowed to $2.0 to $2.3 billion, from $1.5 to $2.0 billion

DUBLIN, Ohio, May 4, 2023 - Cardinal Health (NYSE: CAH) today reported third quarter fiscal year 2023 revenues of $50.5 billion, an increase of 13% from the third quarter of fiscal year 2022. Third quarter GAAP operating earnings were $572 million and GAAP diluted earnings per share (EPS) were $1.34. Third quarter non-GAAP operating earnings increased 11% to $606 million due to a significant increase in Pharmaceutical segment profit, partially offset by a decline in Medical segment profit. Non-GAAP diluted EPS increased 20% to $1.74, reflecting the improvement in non-GAAP operating earnings, a lower share count and lower interest expense, partially offset by a higher non-GAAP effective tax rate.

"Our third quarter results were led by continued momentum and growth in the Pharmaceutical segment," said Jason Hollar, CEO of Cardinal Health. "With the strong overall performance in the quarter, we are pleased to raise our full year non-GAAP EPS guidance by $0.35 at the midpoint. In Medical, we continue to see improvement in underlying performance and remain confident in our Medical Improvement Plan initiatives. Across the enterprise, we continue to operate with urgency to drive our businesses forward and create value for our shareholders."

Q3 FY23 summary

		Q3 FY23		Q3 FY22		Y/Y
	Revenue	$50.5 billion		$44.8 billion	13%
	Operating earnings/(loss)	$572 million		$(97) million		N.M.
	Non-GAAP operating earnings	$606 million		$545 million	11%
	Net earnings/(loss) attributable to Cardinal Health, Inc.	$345 million		$(1,391) million		N.M.
	Non-GAAP net earnings attributable to Cardinal Health, Inc.	$447 million		$402 million	11%
	Effective Tax Rate2	36.3%	(916.5)%
	Non-GAAP Effective Tax Rate	22.4%		20.1%
	Diluted EPS attributable to Cardinal Health, Inc.	$1.34	$(5.05)		N.M.
	Non-GAAP diluted EPS attributable to Cardinal Health, Inc.	$1.74	$1.45	20%

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Segment results

Pharmaceutical segment

				Q3 FY23				Q3 FY22			Y/Y
	Revenue		$	46.8	billion	$	41.0	billion		14%
	Segment profit	$	600	million	$	487	million	23%

Third-quarter revenue for the Pharmaceutical segment increased 14% to $46.8 billion, driven by brand and specialty pharmaceutical sales growth from existing customers.

Pharmaceutical segment profit increased 23% to $600 million in the third quarter, driven by positive generics program performance and a higher contribution from brand and specialty products.

Medical segment

				Q3 FY23				Q3 FY22			Y/Y
	Revenue	$	3.7	billion	$	3.9	billion	(5)%
	Segment profit	$	20	million	$	59	million	(66)%

Third-quarter revenue for the Medical segment decreased 5% to $3.7 billion, driven by lower Products and Distribution sales, primarily due to PPE volumes and pricing.

Medical segment profit decreased 66% to $20 million in the third quarter, primarily due to lower Products and Distribution volumes and unfavorable sales mix. Additionally, these results reflect both net unfavorable non- recurring adjustments, including simplification actions, and an improvement in PPE margins.

Fiscal year 2023 outlook1

The company raised and narrowed its fiscal year 2023 guidance range for non-GAAP diluted earnings per share attributable to Cardinal Health, Inc. to $5.60 to $5.80, from $5.20 to $5.50.

This guidance includes an update to fiscal year 2023 Pharmaceutical segment profit outlook to 10.5% to 12% growth, from 4% to 6.5% growth and Medical segment profit outlook to a decline of approximately 50%, from flat to a decline of 20%.

Additionally, the company now expects interest and other in the range of $95 to $105 million, a non-GAAP effective tax rate of 22% to 23%, diluted weighted average shares outstanding of 262 to 263 million, capital expenditures of ~$450 million and adjusted free cash flow of $2.0 to $2.3 billion.

The company does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. See "Use of Non-GAAP Measures" following the attached schedules for additional explanation.

Investor Day

The company plans to host an Investor Day at 9:00 a.m. Eastern Standard Time on June 8 in New York City to detail its growth strategies and provide updates on its long-term outlook, capital allocation framework and the ongoing business and portfolio review. The event will be live-webcast and archived on Cardinal Health's Investor Relations website.

Business Review Committee and Cooperation Agreement update

Cardinal Health's management and Board of Directors, with support from the Business Review Committee, continue to work through the comprehensive review of the company's strategy, portfolio, capital allocation framework, and operations. Given the importance of the work in maximizing Cardinal Health's potential for the benefit of all stakeholders, the Board has extended the term of the Business Review Committee for an additional year through July 15, 2024. In connection with this extension, Cardinal Health has also extended the term of the company's Cooperation Agreement with Elliott Investment Management L.P. ("Elliott") until the later

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of July 15, 2024 or until Elliott's representative ceases to serve on, or resigns from, the company's Board of Directors.

Recent highlights

• Cardinal Health initiated and completed a $250 million dollar accelerated share repurchase program in the third quarter, resulting in a total of $1.5 billion year-to-date share repurchases in fiscal year 2023.
• Cardinal Health announced the opening of two new distribution centers in Central Ohio. Both facilities support the company's Medical segment, focusing on its U.S. Medical Products and Distribution and at- Home Solutions businesses.
• Cardinal Health announced its collaboration with Signify Health to offer in-home clinical and medication management services through its Outcomes™ business.
• Cardinal Health was selected by Autolus to provide core distribution capabilities required for U.S. commercialization of CAR T-cell therapies.
• Cardinal Health recently introduced the Kangaroo OMNI™ Enteral Feeding platform, which is designed to accurately deliver thick formula and meet enteral feeding needs, from the hospital to home and infancy to end of life. OMNI™ is expected to launch in the United States and Canada in early fiscal year 2024.

Webcast

Cardinal Health will host a webcast today at 8:30 a.m. Eastern Standard Time to discuss third-quarter results. To access the webcast and corresponding slide presentation, go to the Investor Relations page at ir.cardinalhealth.com. No access code is required.

Presentation slides and a webcast replay will be available on the Investor Relations page for 12 months.

About Cardinal Health

Cardinal Health is a distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for health care facilities. With more than 50 years in business, operations in more than 30 countries and approximately 46,500 employees globally, Cardinal Health is essential to care. Information about Cardinal Health is available at cardinalhealth.com.

Contacts

Media: Erich Timmerman, [e-mail] and 614.757.8231

Investors: Kevin Moran, [e-mail] and 614.757.7942

1GAAP refers to U.S. generally accepted accounting principles. This news release includes GAAP financial measures as well as non-GAAP financial measures, which are financial measures not calculated in accordance with GAAP. See "Use of Non-GAAP Measures" following the attached schedules for definitions of the non-GAAP financial measures presented in this news release and see the attached schedules for reconciliations of the differences between the non-GAAP financial measures and their most directly comparable GAAP financial measures.

2During the third quarters of fiscal 2023 and 2022, GAAP effective tax rates were 36.3% and (916.5%), respectively, and included the impact of year-to-datenon-cash,pre-tax goodwill impairments of $863 million and $1.8 billion, respectively, in the Medical segment. These impairments increased the estimated annual effective tax rate in fiscal 2023 and significantly decreased the annual effective tax in fiscal 2022. Applying the tax rate to the year-to-date income/loss resulted in recognizing an interim tax expense in the third quarter of fiscal year 2023 and 2022 of approximately $74 million and $1.2 billion, respectively.

Cardinal Health uses its website as a channel of distribution for material company information. Important information, including news releases, financial information, earnings and analyst presentations, and information about upcoming presentations and events is routinely posted and accessible on the Investor Relations page at ir.cardinalhealth.com. In addition, the website allows investors and other interested persons to sign up automatically to receive email alerts when the company posts news releases, SEC filings and certain other information on its website.

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Cautions Concerning Forward-Looking Statements

This release contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "project," "continue," "likely," and similar expressions, and include statements reflecting future results or guidance, statements of outlook and various accruals and estimates. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties include risks arising from ongoing inflationary pressures and supply chain constraints, including the risk that our plans to mitigate such effects may not be as successful as we anticipate; the possibility that our Medical unit goodwill could be further impaired due to increases in global interest rates, possible unfavorable changes in the U.S. statutory tax rate or additional changes to our long-term financial plan; competitive pressures in Cardinal Health's various lines of business; the performance of our generics program, including the amount or rate of generic deflation and our ability to offset generic deflation and maintain other financial and strategic benefits through our generic sourcing venture or other components of our generics programs; ongoing risks associated with the distribution of opioids, including the financial impact associated with the settlements with governmental authorities, the risk that challenges to our plans to take tax deductions for opioid-related losses could adversely impact our financial results; risks arising from the Department of Justice investigation which we believe concerns our anti-diversion program and risks associated with the injunctive relief requirements under the national settlement, including the risk that we may incur higher costs or operational challenges in the implementation and maintenance of the required changes; risks associated with the manufacture and sourcing of certain products, including risks related to our ability and the ability of third- party manufacturers to import or export certain products or component parts and to comply with applicable regulations; our ability to manage uncertainties associated with the pricing of branded pharmaceuticals; and risks associated with our cost savings initiatives or other business process initiatives, such as the Medical Improvement Plan, including the possibility that they could fail to achieve the intended results. 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. This release reflects management's views as of May 4, 2023. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement. 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. Cardinal Health provides definitions and reconciliations of non-GAAP financial measures and their most directly comparable GAAP financial measures at ir.cardinalhealth.com.

																	Schedule 1
		Cardinal Health, Inc. and Subsidiaries
	Condensed Consolidated Statements of Earnings/(Loss) (Unaudited)
					Third Quarter								Year-to-Date
	(in millions, except per common share amounts)
			2023		2022			% Change				2023		2022		% Change
	Revenue		$	50,487	$	44,836			13 %		$	151,559	$	134,261		13 %
	Cost of products sold			48,702		43,154	13 %				146,497		129,321		13 %
	Gross margin			1,785		1,682			6 %				5,062		4,940		2 %
	Operating expenses:
	Distribution, selling, general and administrative expenses			1,179		1,137	4 %				3,567		3,402		5 %
	Restructuring and employee severance			16		31							62		56
	Amortization and other acquisition-related costs			74		79							216		237
	Impairments and (gain)/loss on disposal of assets, net 1			20		471							883		1,764
	Litigation (recoveries)/charges, net			(76)		61							(256)		113
	Operating earnings/(loss)			572		(97)			N.M.				590		(632)		N.M.
	Other (income)/expense, net			-		3							(5)		(14)
	Interest expense, net			28		38	(26)%				78		115		(32)%
	Loss on early extinguishment of debt			-		-							-		10
	Gain on sale of equity interest in naviHealth			-		(1)							-		(2)
	Earnings/(loss) before income taxes			544		(137)			N.M.				517		(741)		N.M.
	Provision for income taxes 2			197		1,253			N.M.				189		328		N.M.
	Net earnings/(loss)			347		(1,390)			N.M.				328		(1,069)		N.M.
	Less: Net earnings attributable to noncontrolling interests			(2)		(1)							(3)		(2)
	Net earnings/(loss) attributable to Cardinal Health, Inc.		$	345	$	(1,391)			N.M.		$	325	$	(1,071)		N.M.
	Earnings/(Loss) per common share attributable to Cardinal Health,
	Inc.:
	Basic	$	1.35	$	(5.05)			N.M.		$	1.24	$	(3.82)		N.M.
	Diluted			1.34		(5.05)			N.M.				1.23		(3.82)		N.M.
	Weighted-average number of common shares outstanding:
	Basic			256		275							263		281
	Diluted			258		275							264		281

1. Impairments and (gain)/loss on disposal of assets, net included pre-tax goodwill impairment charges related to the Medical segment of $863 million recorded during the nine months ended March 31, 2023. During the three and nine months ended March 31, 2022, impairments and (gain)/loss on disposal of assets, net included pre-tax impairment charges of $474 million and $1.8 billion related to the Medical segment, respectively.
2. For fiscal 2023, the estimated net tax benefit related to the impairments is $68 million and is included in the annual effective tax rate. As a result, the amount of tax expense recognized increased approximately by an incremental $74 million during the three months ended March 31, 2023. The incremental interim tax benefit recognized during the nine months ended March 31, 2023 was $66 million and will reverse in the fourth quarter of the fiscal year. For fiscal 2022, the estimated net tax benefit related to the impairment was $126 million and was included in the annual effective tax rate. As a result, the amount of tax expense recognized during the three and nine months ended March 31, 2022 increased approximately by an incremental $1.2 billion and $180 million, respectively, and lowered the provision for income taxes during the fourth quarter of fiscal 2022 by approximately $180 million.