Cardinal Health let Elliott into the boardroom and rebuilt its profit base

Cardinal Health was not sold or broken up after Elliott arrived in 2022. Instead, the company signed a cooperation agreement, added four independent directors, and formed a Business Review Committee chaired by new CEO Jason Hollar.

The important decision was to turn the activist fight into an operating review of strategy, portfolio, capital allocation and operations. That kept the work inside the board process while forcing the medical-products business and growth assets to be measured harder.

By FY2025 Cardinal reported broad-based profit growth: non-GAAP operating earnings rose 15% to $2.8B, Global Medical Products and Distribution profit rose 47%, and the company raised FY2026 EPS guidance.

FY2025 non-GAAP operating earnings rose 15% to $2.8B; GMPD segment profit rose 47%.

The committee made the activist agenda specific enough for management to execute.

Board refreshment added pressure without putting the company into a public auction.

The later numbers show the turnaround came from segment execution, not only financial engineering.

When an activist is right about complexity, give the review a formal home and make management own the execution.

The Elliott cooperation agreement expired in FY2025. Cardinal Health kept investing in specialty, at-home and logistics growth businesses while using the recovered medical-products segment as proof that the review had changed operating discipline.