CAH · 10-Q · 2026Q3 · Full report

Patient Recovery Tax Dispute

CARDINAL HEALTH INC · 2026-11-05 · Importance 40 · Surprise 42

In February 2026, the IRS issued a Notice of Proposed Adjustment related to the restructuring connected with Cardinal Health’s July 2017 acquisition of the Patient Recovery business. The IRS asserts that the transaction should be recharacterized, potentially creating additional federal income tax liability of approximately $ million, plus interest. Cardinal Health says it believes it has adequate tax reserves, while noting that the dispute’s resolution could affect financial results and cash flow.