Financial Data and Key Metrics Changes - Adjusted operating income grew by 21% and adjusted diluted EPS increased by 20% in Q3 2025 [6][16] - Consolidated revenue reached $80.7 billion, up 9%, with a gross profit of $2.9 billion, reflecting a 21% increase [17][18] - Consolidated operating income was $1.1 billion, also up 21% compared to the prior year [19] Business Line Data and Key Metrics Changes - U.S. Healthcare Solutions segment revenue was $72.9 billion, up 9%, with operating income increasing by 29% to $902 million [22][23] - International Healthcare Solutions segment revenue was $7.8 billion, up approximately 11%, but operating income decreased by 13% [24] Market Data and Key Metrics Changes - GLP-1 product sales increased by $1.4 billion or 19% year-over-year, although growth is moderating [22][38] - International segment revenue growth is expected to be 6% to 7% on an as-reported basis, up from a previous range of 3% to 4% [29] Company Strategy and Development Direction - The company is focused on enhancing patient care, strengthening specialty leadership, and leading with market leaders [7][11] - Investments in technology and capabilities are prioritized, including the acquisition of RCA and a pathway to full ownership in One Oncology [14][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the U.S. Healthcare Solutions segment's strong performance and the potential for sequential improvement in the International segment [41][42] - The company anticipates continued strong pharmaceutical utilization trends despite challenges in the international market [31][56] Other Important Information - The effective income tax rate was 20.7%, slightly down from 21% in the prior year [20] - The company ended the quarter with a cash balance of $2.2 billion and year-to-date adjusted free cash flow of approximately $100 million [21] Q&A Session Summary Question: Can you discuss the U.S. Healthcare segment's revenue growth moderation? - Management noted that revenue growth moderation was due to factors like biosimilars and a loss of a low-margin grocery customer, while operating income growth remained strong [36][38][40] Question: What is the outlook for the international business? - Management indicated that clinical trial activity has been subdued, impacting the international segment, but expects sequential growth in the global specialty logistics business [41][42] Question: How is the RCA acquisition tracking against expectations? - Management expressed satisfaction with the RCA acquisition, highlighting strong cultural fit and positive early customer feedback [46][47] Question: What are the potential impacts of the proposed hospital outpatient perspective rule? - Management acknowledged the potential competitive impacts but emphasized ongoing engagement with policymakers to maintain access for community providers [95] Question: What are the moving pieces for 2026 growth? - Management highlighted confidence in long-term guidance, with expectations for organic operating income growth of 5% to 8% and EPS growth of 8% to 12% [55][57] Question: How is the competitive environment in specialty distribution evolving? - Management stated that they remain focused on their strengths in specialty markets and continue to invest in capabilities to meet customer needs [81][83] Question: What is the impact of tariffs on the business? - Management reported no material impacts from tariffs but continues to monitor the situation closely [65][66][70]