Cardinal Health will keep supplying CVS Health with pharmaceuticals through at least mid-2032 under a binding agreement announced Thursday, Oct. 1.

The Dublin-headquartered company said in a press release that it signed a binding letter of intent to extend its existing distribution deal with CVS Health through June 30, 2032. The agreement covers Cardinal Health's current scope of distribution services to CVS, one of its largest customers.

Cardinal Health operates its corporate headquarters at 7000 Cardinal Place and runs a 250,000-square-foot west campus in Dublin. The company employs about 58,000 people worldwide and reported $254.2 billion in total revenue for fiscal year 2026.

CEO Jason Hollar called CVS Health a long-standing partner and said Cardinal Health would continue serving CVS customers. Alongside the renewal, the company reaffirmed its fiscal year 2027 non-GAAP earnings-per-share guidance of 13% to 15% growth, or $12.40 to $12.60 per share. Cardinal Health also held steady on its long-term EPS growth rate guidance of 12% to 14%.

The deal comes after Cardinal Health lost its pharmaceutical distribution contract with OptumRx at the end of June 2024. That contract had accounted for roughly 17% of the company's revenue in fiscal year 2024, according to Cardinal's own 2024 10K. Fiscal year 2025 revenues fell 2% to $222.6 billion as a result, though underlying growth excluding that lost contract was about 18%.

The deal keeps CVS Health revenue on Cardinal Health's books through at least mid-2032. The two companies also share a separate business relationship through Red Oak Sourcing.That arrangement was extended in 2021 for a total term of 15 years.

The binding letter of intent is not a final signed contract. Cardinal Health did not disclose the agreement's financial value.

The company said further updates may come during its first-quarter earnings call on Nov. 5.