Cardinal Health : 3Q FY2021 Earnings Press Release

Exhibit 99.1

FOR IMMEDIATE RELEASE

Cardinal Health reports third-quarter results for fiscal year 2021

• Revenue was flat at $39.3 billion
• GAAP1 operating earnings decreased to $473 million, GAAP diluted EPS decreased to $0.40
• Non-GAAPoperating earnings decreased 4% to $689 million, non-GAAP diluted EPS decreased 6% to $1.53
• Company narrowed FY21 earnings guidance

DUBLIN, Ohio, May 6, 2021 - Cardinal Health (NYSE: CAH) today reported third-quarter fiscal year 2021 revenue of $39.3 billion, in-line with the third quarter of last year. Third-quarter GAAP operating earnings decreased 16% to $473 million, primarily due to the write-down of the net assets held for sale from the planned divestiture of the Cordis business. Third-quarter GAAP diluted earnings per share (EPS) decreased to $0.40, due to the previously-disclosed tax effect of the litigation charge in the first quarter.

Non-GAAP operating earnings decreased 4% to $689 million in the quarter due to the negative impact from COVID-19, primarily concentrated in the Pharmaceutical segment. Non-GAAP diluted EPS decreased 6% to $1.53 in the quarter, reflecting a higher non-GAAP effective tax rate, partially offset by lower interest expense.

"We remain focused on serving our customers and their patients and continue to advance our strategic priorities," said Mike Kaufmann, CEO of Cardinal Health. "With our resilient business model and strong fundamentals, we are navigating the effects of the pandemic and finding opportunities to adapt, innovate and invest for future growth."

Q3 FY21 summary

	Q3 FY21		Q3 FY20		Y/Y
Revenue	$39.3 billion		$39.2 billion		-%
Operating earnings	$473 million		$562 million	(16)%
Non-GAAP operating earnings	$689 million		$719 million	(4)%
Net earnings attributable to Cardinal Health, Inc.	$119 million		$350 million		N.M.
Non-GAAP net earnings attributable to Cardinal Health, Inc.	$451 million		$474 million	(5)%
Effective Tax Rate	72.8%	26.8%
Non-GAAP Effective Tax Rate	31.2%	25.7%
Diluted EPS attributable to Cardinal Health, Inc.	$0.40	$1.19		N.M.
Non-GAAP diluted EPS attributable to Cardinal Health, Inc.	$1.53	$1.62	(6)%

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Segment results

Pharmaceutical segment

		Q3 FY21				Q3 FY20			Y/Y
Revenue	$	35.1	billion		$	35.1	billion		-%
Segment profit	$	511	million	$	534	million	(4)%

Third-quarter revenue for the Pharmaceutical segment was flat at $35.1 billion. This reflects sales growth from Pharmaceutical Distribution and Specialty Solutions customers in the current period compared against the unfavorable prior-year comparison of the COVID-19-related acceleration in overall pharmaceutical sales.

Pharmaceutical segment profit decreased 4% to $511 million in the third quarter, primarily due to COVID-19- related volume declines in the company's generics program. This was partially offset by a higher contribution from brand sales mix.

Medical segment

		Q3 FY21				Q3 FY20			Y/Y
Revenue	$	4.2	billion		$	4.1	billion		3%
Segment profit	$	174	million		$	178	million	(2)%

Third-quarter revenue for the Medical segment increased 3% to $4.2 billion, driven by a net positive impact from COVID-19 on products and distribution. This increase was primarily due to the impact of personal protective equipment (PPE) sales and higher volumes in our Lab business, partially offset by the adverse effects of reduced elective procedures.

Medical segment profit decreased 2% to $174 million in the third quarter. Cost savings, including global manufacturing efficiencies, were offset by a decline in products and distribution. Additionally, the segment experienced a slight negative impact due to COVID-19.

Tax rate

During the third quarters of fiscal 2021 and 2020, GAAP effective tax rates were 72.8% and 26.8%, respectively. The increase was primarily due to the previously-disclosed tax effect of the litigation charge in the first quarter. Non-GAAP effective tax rates were 31.2% and 25.7%, respectively, for the third quarters of fiscal 2021 and 2020. Third-quarter fiscal 2021 effective tax rates reflect the resolution of all open issues with the IRS for fiscal years 2008 to 2010 as well as certain transfer pricing matters for fiscal years 2011 to 2014, which also impacted reserves for later years.

Fiscal year 2021 outlook1

Cardinal Health narrowed its fiscal year 2021 guidance range for non-GAAP diluted earnings per share attributable to Cardinal Health, Inc. to $5.90 to $6.05, from the prior range of $5.85 to $6.10.

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.

Recent highlights

• Cardinal Health Board of Directors approved a 1% increase in the company's quarterly dividend from $0.4859 per share to $0.4908 per share, or $1.96 on an annualized basis. The dividend will be payable on July 15, 2021 to shareholders of record at the close of business on July 1, 2021.
• Cardinal Health announced that it signed a definitive agreement to sell its Cordis business to Hellman & Friedman (H&F) for approximately $1 billion. The company anticipates the transaction to close in the first quarter of fiscal 2022.
• Cardinal Health recently launched Outcomes, a digital ecosystem that provides personalized medication therapy management, patient engagement and telepharmacy through its Connect™

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platform, connecting pharmacists, payers and pharmaceutical companies to improve medication adherence, drive better outcomes and lower the cost of care.

• Cardinal Health recently announced a partnership with FourKites, the largest predictive supply chain visibility platform, to create a cognitive supply chain network that combines real-time visibility, machine learning and artificial intelligence to facilitate the flow of inventory throughout the supply chain.
• Cardinal Health Specialty Solutions launched Cardinal Health™ Navista™ Tech Solutions (TS), an advanced suite of technology solutions to help community oncologists improve outcomes and costs associated with patient treatment as they transition to value-based care.
• Cardinal Health was awarded a $57.8 million contract, including options that if exercised by the U.S. Department of Health and Human Services (HHS) could reach $91.6 million, for the storage and distribution of 80,000 pallets of personal protective equipment (PPE) to support the Strategic National Stockpile (SNS).

Upcoming webcasted investor events

• Bank of America Healthcare Conference at 8:45 a.m. Eastern, May 11

Webcast

Cardinal Health will host a webcast today at 8:30 a.m. Eastern 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 until May 5, 2022.

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 healthcare facilities. With 50 years in business, operations in more than 40 countries and approximately 48,000 employees globally, Cardinal Health is essential to care. Information about Cardinal Health is available at cardinalhealth.com.

Contacts

Media: Sarah Shew, [e-mail] and 614.553.3401

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.

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 the ongoing COVID-19 pandemic and our critical role in the global healthcare supply chain including ongoing volume reductions in our generics program, our ability to recoup or mitigate cost increases to source certain personal protective or other equipment, and the possible impact of additional disruptions of our distribution or manufacturing facilities; 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 with CVS Health; risks associated with the distribution of opioids, including the financial impact associated with the outcome of ongoing lawsuits and investigations and risks and uncertainties associated with the ongoing settlement framework discussions with governmental authorities, including the risk that we may fail to reach a settlement agreement or that a final settlement or judicial decision could require us to pay more than we currently anticipate and the risk that the Congressional inquiry on our plan to take tax deductions for opioid-related losses could adversely impact our financial results; risks associated with the manufacture and sourcing of certain products, including risks related to our ability and the ability of third-party manufacturers to comply with applicable regulations; risks arising from the planned divestiture of our Cordis business, including the risk that we may not receive required regulatory approvals or that we may not be able to complete the divestiture in a timely manner and risks that we may fail to achieve the anticipated strategic objectives from the divestiture; our ability to manage uncertainties associated with the pricing of branded pharmaceuticals; and risks associated with our cost savings initiatives. 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 6, 2021. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement.

												Schedule 1
	Cardinal Health, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings (Unaudited)
				Third	Quarter						Year-to-Date
(in millions, except per common share amounts)			2021		2020	% Change			2021		2020	% Change
Revenue		$	39,275	$	39,157	- %		$	119,881	$	116,233	3 %
Cost of products sold			37,463		37,272	1 %			114,578		110,955	3 %
Gross margin			1,812		1,885	(4)%			5,303		5,278	- %
Operating expenses:
Distribution, selling, general and administrative expenses			1,120		1,165	(4)%			3,404		3,435	(1)%
Restructuring and employee severance			24		(6)				81		80
Amortization and other acquisition-related costs			111		130				345		395
Impairments and (gain)/loss on disposal of assets, net			69		(1)				78		7
Litigation (recoveries)/charges, net 1			15		35				1,085		5,729
Operating earnings/(loss)			473		562	(16)%			310		(4,368)	N.M
Other (income)/expense, net			(12)		19				(31)		21
Interest expense, net			45		60	(25)%			136		189	(28)%
Loss on early extinguishment of debt			-		5				1		9
Earnings/(loss) before income taxes			440		478	(8)%			204		(4,587)	N.M.
Provision for/(benefit from) income taxes 2			320		127	N.M			(293)		(237)	N.M.
Net earnings/(loss)			120		351	N.M			497		(4,350)	N.M.
Less: Net earnings attributable to noncontrolling interests			(1)		(1)				(2)		(2)
Net earnings/(loss) attributable to Cardinal Health, Inc.	$	119	$	350	N.M.	$	495	$	(4,352)	N.M.
Earnings/(loss) per common share attributable to Cardinal Health,
Inc.:
Basic	$	0.41	$	1.20	N.M.	$	1.69	$	(14.84)	N.M.
Diluted			0.40		1.19	N.M.			1.68		(14.84) 3	N.M.
Weighted-average number of common shares outstanding:
Basic			292		292				293		293
Diluted			294		294				294		293 3

1Litigation (recoveries)/charges, net includes pre-tax charges of $1.02 billion and $5.63 billion recorded in the first quarter of fiscal 2021 and 2020, respectively, related to the opioid litigation.

2Provision for/(benefit from) income taxes includes a tax benefit recorded during the nine months ended March 31, 2021 related to a net operating loss carryback. Our wholly-owned insurance subsidiary recorded a self-insurancepre-tax loss in its fiscal 2020 statutory financial statements primarily related to the opioid litigation charges previously accrued in our consolidated financial statements. This self-insurancepre-tax loss, which did not impact our pre-tax consolidated results, was deducted on our fiscal 2020 consolidated federal income tax return and contributed to a significant net operating loss for tax purposes. The net operating loss was carried back and adjusted our taxable income for fiscal 2015, 2016, 2017 and 2018 as permitted under the Coronavirus Aid, Relief and Economic Security ("CARES") Act. The total net benefit was $419 million.

In addition, the amount of tax expense increased by approximately $140 million during the three months ended March 31, 2021 while the amount of tax benefit increased by approximately $180 million during the nine months ended March 31, 2021 compared to the tax impacts that would have been recognized without the opioid litigation charge. The net tax benefits associated with the opioid litigation charges are $37 million and $488 million for fiscal 2021 and 2020, respectively.

• Due to the net loss for the nine months ended March 31, 2020, potentially dilutive common shares have not been included in the denominator of the dilutive per share computation due to their anti-dilutive effect.