CARDINAL HEALTH INC

Liquidity and Capital Resources

We currently believe that, based on available capital resources and projected operating cash flow, we have adequate capital resources to fund our operations and expected future cash needs as described below. If we decide to engage in one or more acquisitions, depending on the size and timing of such transactions, we may need to access capital markets for additional financing.

Cash and Equivalents

Our cash and equivalents balance was $5.3 billion at September 30, 2026 compared to $4.9 billion at June 30, 2026.

During the three months ended September 30, 2026, net cash provided by operating activities was $1.4 billion, which includes payments totaling $385 million related to the opioid litigation.

During the three months ended September 30, 2026, we deployed $500 million for share repurchases, $157 million for capital expenditures, $149 million for acquisitions, and $126 million for dividends.

At September 30, 2026, our cash and equivalents were held in cash depository accounts with major banks or invested in high quality, short-term liquid investments.

Changes in working capital, which impact operating cash flow, can vary significantly depending on factors such as the timing of customer payments, inventory purchases, payments to vendors, and tax payments in the regular course of business, as well as fluctuating working capital needs driven by customer and product mix.

The cash and equivalents balance at September 30, 2026 included $532 million of cash held by subsidiaries outside of the United States.

Other Financing Arrangements and Financial Instruments

Credit Facilities and Commercial Paper

In addition to cash and equivalents and operating cash flow, other sources of liquidity at September 30, 2026 include a $4.0 billion commercial paper program, backed by a $4.0 billion revolving credit facility that expires in August 2031. At September 30, 2026, we had no amounts outstanding under our commercial paper program or our revolving credit facility.

On August 7, 2026, we entered into a consolidated $4.0 billion 5-year revolving credit facility, in conjunction with the terminations of the existing $2.0 billion revolving credit facility, the $1.0 billion 364-Day revolving credit facility, and the $1.0 billion committed receivables sales facility.

On September 15, 2026, we also increased our commercial paper program to $4.0 billion. This program is backstopped by our revolving credit facility.

Between October 29 and November 2, 2026, we entered into $1 billion of uncommitted revolving credit facilities.

Our revolving credit facility requires us to maintain a consolidated net leverage ratio of no greater than 4.00-to-1.00. As of September 30, 2026, we were in compliance with this financial covenant.

Long-Term Debt and Other Short-Term Borrowings

We had total long-term obligations, including the current portion and other short-term borrowings, of $8.8 billion and $8.9 billion at September 30, 2026 and June 30, 2026, respectively.

Capital Deployment

Opioid Litigation Settlements

We had $3.9 billion accrued at September 30, 2026 related to certain national opioid litigation settlements, as further described within Note 6 of the "Notes to Condensed Consolidated Financial Statements." We expect the majority of the remaining payment amounts to occur through 2038. During the three months ended September 30, 2026, we made payments totaling $385 million related to opioid litigation, which included our sixth annual payment of $366 million under National Opioid Settlement Agreement ("the NOSA"). The amounts of future annual payments under the NOSA may differ from the payments that we have already made.

Capital Expenditures

Capital expenditures during the three months ended September 30, 2026 and 2025 were $157 million and $108 million, respectively.

Dividends

On each of May 5, 2026 and August 4, 2026, our Board of Directors approved a quarterly dividend of $0.5158 per share, or $2.06 per share on an annualized basis, which were paid on July 15, 2026 and October 15, 2026 to shareholders of record on July 1, 2026 and October 1, 2026, respectively.

Share Repurchases

During the three months ended September 30, 2026, we deployed $500 million for repurchases of our common shares under an accelerated share repurchase ("ASR") program. We funded the repurchases with available cash. See Note 10 of the "Notes to Condensed Consolidated Financial Statements" for additional information.