CAH · 10-Q · 2026Q3 · Full report

Tariff Costs and Refunds

CARDINAL HEALTH INC · 2026-11-05 · Importance 34 · Surprise 42

Cardinal Health paid approximately $200 million in IEEPA tariffs between February 2025 and 2026, primarily on products sourced, manufactured, or distributed through Global Medical Products and Distribution. By September 30, 2026, the company had recovered the majority of refunds for accepted Phase 1 and Phase 2 claims, and it expects to return to customers the portion reflecting estimated tariff-related price increases after receiving all refunds. GMPD continued to incur costs from tariffs imposed under other legal authorities, and customer price increases and cost optimization had not fully offset the adverse impact. Higher tariff costs could therefore continue to pressure GMPD segment profit and consolidated operating income.

Key facts

• Cardinal Health expects to return to customers the portion of IEEPA tariff refunds reflecting estimated increased prices customers paid after it receives all IEEPA tariff refunds from the U.S. government. source
• In February 2026, the U.S. Supreme Court ruled the IEEPA tariffs unlawful, after which CBP worked to establish a phased process to administer refunds required by the ruling. source
• Cardinal Health paid approximately $200 million in IEEPA tariffs between February 2025 and 2026 on products it sources, manufactures, or distributes, primarily in GMPD. source
• The U.S. government launched Phase 1 IEEPA refund requests in April 2026 and Phase 2 in June 2026; additional phases were expected to be communicated later. source
• Most Cardinal Health IEEPA refund requests fall under Phase 2, and requests under Phases 1 and 2 had been submitted and accepted by CBP. source
• The ultimate resolution of IEEPA tariff refunds could affect future results, including GMPD segment profit and consolidated operating income. source
• As of September 30, 2026, Cardinal Health had recovered the majority of refunds for claims submitted under Phases 1 and 2. source