Financial Data and Key Metrics Changes - Cencora achieved adjusted operating income and adjusted diluted EPS growth of 16% in fiscal 2025 [3][4] - Adjusted diluted EPS for Q4 was $3.84, a 15% increase, with consolidated revenue of $83.7 billion, up 6% [13][19] - Consolidated gross profit was $2.9 billion, up 18%, with a gross profit margin of 3.47%, an increase of 37 basis points [13][14] - Consolidated operating income was $1.0 billion, up 20% compared to the prior year quarter [14][20] - Fiscal 2025 consolidated revenue was $321.3 billion, up 9% [19] Business Line Data and Key Metrics Changes - U.S. healthcare solutions segment revenue was $75.8 billion, up approximately 6% year-over-year, with operating income increasing by 25% to $872 million [15][16] - International healthcare solutions segment revenue was $7.9 billion, an increase of 8% on an as-reported basis, but operating income decreased by 2% [16][17] - GLP-1 products contributed $876 million, or 10% year-over-year growth, to the U.S. healthcare solutions segment [15][16] Market Data and Key Metrics Changes - The international healthcare solutions segment saw a rebound in global specialty logistics business, with shipment volumes returning to growth [17][74] - The U.S. healthcare solutions segment is expected to grow at a rate of 5%-7% in fiscal 2026 [23] Company Strategy and Development Direction - Cencora's strategy focuses on three growth priorities: leading with market leaders, enhancing patient access to pharmaceuticals, and strengthening its position in specialty [4][28] - The company is raising long-term guidance for adjusted operating income growth to 6%-9% and adjusted EPS growth to 9%-13% [4][28] - Significant investments totaling $1 billion through 2030 are planned to enhance distribution network and specialty distribution capacity [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued market growth and the strength of the business [3][4] - The company is focused on driving growth through disciplined investments and enhancing customer experience [5][6] - Management acknowledged challenges in the global consulting services businesses but remains optimistic about core business growth [17][18] Other Important Information - Cencora generated $3 billion of adjusted free cash flow and ended the year with a cash balance of $4.4 billion [20] - The company announced a 9% increase in its quarterly dividend, marking the 21st consecutive annual dividend increase [21] Q&A Session Summary Question: Strategic view on business and potential divestitures - Management emphasized a focused strategic execution and disciplined capital allocation to align with growth areas [32][35] Question: Next steps for the MSO platform - Management highlighted the potential for leveraging clinical trial expertise and back-office activities across MSO platforms [40][42] Question: Durability of U.S. healthcare segment growth - Management noted exceptional results in the U.S. segment and confidence in long-term guidance despite recent headwinds [46][49] Question: Profitability and strategic alternatives for businesses in the "other" segment - Management confirmed that all businesses in the "other" segment are profitable, with some exploring strategic alternatives for long-term success [78][81] Question: Margin expansion sustainability - Management indicated that the higher margin specialty segment is expected to continue outpacing revenue growth, contributing positively to margins [85][87] Question: Changes in macro assumptions and guidance - Management clarified that the guidance increase is driven by improved positioning and asset mix rather than changes in macro assumptions [90]