Financial Data and Key Metrics Changes - Cardinal Health reported total revenue for Q2 2026 increased by 19% to $66 billion, driven by strong demand in the pharmaceutical and specialty solutions segment [9][12] - Gross margin dollars increased by 24% to $2.4 billion, reflecting a favorable mix across businesses [9] - Operating earnings rose by 38% to $877 million compared to the prior year [10] - Non-GAAP diluted EPS for the quarter was $2.63, a 36% increase from $1.93 in the same quarter last year [11] Business Line Data and Key Metrics Changes - Pharmaceutical and Specialty Solutions segment revenue increased by 19% to $61 billion, with segment profit rising by 29% to $687 million [12] - GMPD segment revenue grew by 3% to $3.3 billion, with segment profit increasing to $37 million from $18 million in the prior year [13] - Other growth businesses, including Nuclear and Precision Health Solutions, At-Home Solutions, and OptiFreight Logistics, saw revenue increase by 34% to $1.7 billion, with segment profit up by 52% to $179 million [14][15] Market Data and Key Metrics Changes - The company expects specialty revenues to surpass $50 billion in fiscal 2026, indicating strong growth in this high-margin area [5] - The GMPD segment's revenue growth was partially driven by inventory restocking by distributors, which is expected to normalize in Q3 [13][20] Company Strategy and Development Direction - Cardinal Health is focused on strengthening its core business while expanding in specialty and other growth areas, with a commitment to operational excellence and simplification [4][23] - The acquisition of Solaris Health is expected to enhance the company's specialty platform and expand its capabilities [5][25] - The company is raising its fiscal year 2026 earnings per share guidance to a range of $10.15-$10.35, reflecting confidence in continued performance [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model and the ability to navigate the dynamic healthcare environment [23][31] - The company anticipates mid-teens profit growth in the second half of the fiscal year, despite not assuming outsized demand [19][38] - Management highlighted the importance of maintaining strong relationships with customers and adapting to market changes [91] Other Important Information - Cardinal Health generated $1.8 billion in adjusted free cash flow year-to-date and ended the quarter with a cash position of $2.8 billion [17] - The company has returned $1 billion to shareholders so far this year, including $750 million through share repurchase programs [17] Q&A Session Summary Question: Can you unpack or break down some of the components of the profit performance in Pharma Solutions? - Management noted strong demand across all categories in the pharma business, with significant contributions from specialty and generics, and emphasized strong execution by operations teams [34][35] Question: Is ADS performing ahead of your expectations? - Management indicated that the ADS acquisition is performing consistently with expectations, and core business remains strong across all three businesses in the other segment [43][44] Question: Can you provide more on capital allocation and opportunities for further transactions? - Management emphasized a disciplined capital allocation framework and noted flexibility to assess growth opportunities while protecting the core business [50][51] Question: How do you see the macro pricing environment impacting your guidance? - Management stated that anticipated changes in manufacturer pricing would be adjusted within the cost structure to preserve margins, with no significant impact expected on revenue [75][76] Question: How is the company modeling revenue or earnings for GLP-1s this year? - Management indicated that while GLP-1s have seen significant volume growth, they do not expect it to be a major driver of underlying profitability moving forward [81][82]

Q2 FY26 Earnings Cardinal Health, Inc. February 5, 2026 © 2026 Cardinal Health. All Rights Reserved. 1 © 2026 Cardinal Health. All Rights Reserved. • Q2 FY26 Earnings Cautions Concerning Forward-Looking Statements This presentation contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "c ...

Core Viewpoint - McKesson Corporation has raised its fiscal 2026 profit forecast, driven by anticipated strong growth in its oncology and specialty drug distribution sectors [1] Company Summary - McKesson Corporation is focusing on expanding its oncology and specialty drug distribution businesses, which are expected to contribute significantly to its profit growth in fiscal 2026 [1]

Financial Data and Key Metrics Changes - The company reported consolidated revenues of $106.2 billion, an increase of 11% year-over-year, driven by broad-based growth across the business [21][28] - Adjusted earnings per diluted share increased 16% to $9.34, reflecting strong operational performance [22][28] - Operating profit rose 13% year-over-year to $1.7 billion, supported by increased demand for access solutions and strong growth in specialty distribution [22][28] Business Line Data and Key Metrics Changes - North American Pharmaceutical revenues increased by 9% to $88.3 billion, driven by higher prescription volumes and specialty product distribution strength [23][28] - Oncology and Multispecialty segment revenues surged 37% to $13 billion, with operating profit increasing 57% to $366 million, aided by provider growth and acquisitions [24][28] - Prescription Technology Solutions revenues grew by 9% to $1.5 billion, with operating profit rising 18% to $277 million, driven by demand for access solutions [25][28] Market Data and Key Metrics Changes - GLP-1 distribution revenues reached $14 billion, up $3 billion or 26% compared to the prior year, indicating strong market demand [23][28] - The company anticipates revenue growth of 12%-16% and operating profit growth of 13%-17% for fiscal 2026, reflecting sustained momentum across core businesses [28][29] Company Strategy and Development Direction - The company is focused on two strategic growth pillars: Oncology and Multispecialty, and Biopharma Services, aiming to leverage its scale and connectivity in the community space [7][9] - Investments are being made in technology and automation to enhance operational efficiency and improve patient access to medications [11][12] - The company is progressing with the separation of its Medical-Surgical business, targeting an IPO by the second half of calendar 2027 [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to extend momentum and execute against strategic priorities, highlighting a strong financial position and disciplined capital allocation [18][36] - The operating environment is viewed as navigable despite regulatory changes, with ongoing engagement with lawmakers to advocate for patient access and community care [68][69] Other Important Information - The company completed the divestiture of its Norwegian operations, marking the final step in its exit from Europe, which is expected to contribute approximately $1 billion in revenue for fiscal 2026 [20][28] - Free cash flow for the quarter was $1.1 billion, with a total of $9.6 billion for the trailing 12 months, demonstrating strong operational performance [26][27] Q&A Session Summary Question: Can you discuss the specific investments in technology and automation? - Management highlighted investments in AI and automation to improve workflows, resulting in increased productivity during the annual verification season [39][40] Question: What is the long-term opportunity to improve margins in the segment? - Management noted that half of the segment's revenue is related to third-party logistics, with ongoing automation expected to enhance margins [43][44] Question: Any nuances to consider for fiscal 2027 guidance? - Management indicated stable utilization trends and strong specialty distribution growth, with a focus on operational efficiency as positive indicators for future performance [50][51] Question: What is driving the margin improvement in Oncology and Multispecialty? - Management attributed margin improvements to provider additions and growth in specialty oncology products, with ongoing automation efforts expected to further enhance margins [55][57] Question: How is the company navigating regulatory changes? - Management expressed confidence in navigating the regulatory landscape, emphasizing constructive discussions with manufacturing partners regarding pricing strategies [68][69]

Financial Data and Key Metrics Changes - The company reported consolidated revenues of $106.2 billion, an increase of 11% year-over-year, driven by broad-based growth across the business [21][28] - Adjusted earnings per diluted share increased 16% to $9.34, reflecting strong operational performance [22][28] - Operating profit rose 13% year-over-year to $1.7 billion, supported by increased demand for access solutions and strong growth in specialty distribution [22][28] Business Line Data and Key Metrics Changes - North American pharmaceutical revenues increased by 9% to $88.3 billion, driven by higher prescription volumes and specialty product distribution strength [23][28] - Oncology and multispecialty segment revenues surged by 37% to $13 billion, with operating profit increasing by 57% to $366 million, aided by provider growth and acquisitions [24][28] - Prescription technology solutions revenues grew by 9% to $1.5 billion, with operating profit rising 18% to $277 million, driven by demand for access solutions [25][28] - Medical-surgical solutions revenues increased by 1% to $3 billion, but operating profit decreased by 10% to $265 million due to lower volumes [25][28] Market Data and Key Metrics Changes - GLP-1 distribution revenues reached $14 billion, up $3 billion or 26% compared to the prior year, indicating strong demand in the market [23][28] - The company continues to see stable utilization trends and strong specialty distribution growth across its North American pharmaceutical segment [29][30] Company Strategy and Development Direction - The company is focused on two strategic growth pillars: oncology and multispecialty, and biopharma services, leveraging its scale and leadership to meet evolving market needs [7][8] - Investments are being made in technology and automation to enhance operational efficiency and improve patient access to medications [11][12] - The company is progressing with the separation of its medical-surgical business, aiming for an IPO by the second half of calendar 2027 [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to extend momentum and execute against strategic priorities, raising full-year EPS guidance to a range of $38.80-$39.20, reflecting 17%-19% growth [5][28] - The company anticipates revenue growth of 12%-16% and operating profit growth of 13%-17% for the full year, supported by strong third-quarter performance [28][29] - Management highlighted the importance of community-based care and the role of advocacy in expanding patient access [9][10] Other Important Information - The company completed the divestiture of its Norwegian operations, marking the final step in its exit from Europe, which is expected to contribute approximately $1 billion in revenue for fiscal 2026 [20][28] - Free cash flow for the quarter was $1.1 billion, with a total of $9.6 billion for the trailing 12 months, demonstrating strong operational performance [26][27] Q&A Session Summary Question: Can you discuss the specific investments in technology and automation? - Management highlighted investments in AI and automation to improve workflows, resulting in increased productivity during the annual verification season [38][39] Question: What are the long-term opportunities for margin improvement in the segment? - Management noted that half of the segment's revenue is related to third-party logistics, with ongoing automation expected to improve margins [43][44] Question: Any nuances to consider for fiscal 2027 guidance? - Management indicated stable utilization trends and strong specialty distribution growth, with operational efficiency gains supporting positive growth [48][50] Question: What is driving the margin improvement in oncology and multispecialty? - Management attributed margin improvements to provider additions and continued growth in specialty oncology products [55][57] Question: How is the company navigating the regulatory environment? - Management expressed confidence in navigating the regulatory landscape, emphasizing constructive conversations with manufacturing partners [66][69]

Financial Data and Key Metrics Changes - Revenue increased by 11% to $106.2 billion, driven by broad-based growth across the business and higher prescription volumes [19][25] - Adjusted earnings per diluted share rose by 16% to $9.34, reflecting strong operational performance [21][25] - Operating profit increased by 13% year-over-year to $1.7 billion, supported by demand for access solutions and specialty distribution [20][25] Business Line Data and Key Metrics Changes - North American pharmaceutical revenues grew by 9% to $88.3 billion, with GLP-1 distribution revenues reaching $14 billion, up 26% year-over-year [21][22] - Oncology and multispecialty segment revenues surged by 37% to $13 billion, with operating profit increasing by 57% to $366 million [22][23] - Prescription technology solutions segment revenues rose by 9% to $1.5 billion, with operating profit up 18% to $277 million [23] Market Data and Key Metrics Changes - The U.S. Oncology Network now includes approximately 3,400 providers, with significant contributions from the integration of Florida Cancer Specialists and PRISM Vision [6][8] - The company reported strong demand for biopharma services, adding over 50 new programs across 43 unique brands during the quarter [9][60] Company Strategy and Development Direction - The company is focused on oncology and multispecialty services, leveraging its scale and leadership to meet evolving market needs [6][8] - Investments are being made in technology and automation to enhance operational efficiency and improve patient access to medications [10][36] - The company is progressing with the separation of its medical-surgical business, aiming for an IPO by the second half of calendar 2027 [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain momentum and execute strategic priorities, raising full-year EPS guidance to $38.80-$39.20, reflecting 17%-19% growth [4][25] - The company anticipates revenue growth of 12%-16% and operating profit growth of 13%-17% for the full year, supported by strong third-quarter performance [25][26] Other Important Information - The company completed the divestiture of its Norwegian operations, marking the final step in its exit from Europe [18] - Free cash flow for the quarter was reported at $1.1 billion, with plans to repurchase approximately $2.5 billion of shares [24][32] Q&A Session Questions and Answers Question: Can you talk about the specific investments you're making in technology and automation? - Management highlighted investments in AI and automation to improve workflows, allowing employees to support more patients efficiently during the annual verification season [35][36] Question: How should we think about the longer-term opportunity to improve margins in that segment? - Management noted that operating margins have grown over 130 basis points year-over-year, with a focus on automating capabilities and services for biopharma partners [38] Question: What are the key drivers of growth in the North American pharmaceutical segment? - Management pointed to strong specialty distribution growth and operational efficiency gains as key drivers of growth in the segment [40][52]

McKesson Corporation Third Quarter Fiscal 2026 Earnings Call February 4, 2026 1 © 2026 McKesson Corporation. All rights reserved. Cautionary Statements Cautionary Statements In an effort to provide additional and useful information regarding the Company's financial results and other financial information as determined by generally accepted accounting principles (GAAP), certain materials in this presentation include non-GAAP information. The Company believes the presentation of non-GAAP measures provides use ...

Financial Data and Key Metrics Changes - Adjusted diluted EPS increased by 9% to $4.08, driven by strong performance in the US Healthcare Solutions segment [15][16] - Consolidated revenue reached $85.9 billion, up 5.5%, attributed to growth in both reportable segments [15][16] - Consolidated gross profit was $3.0 billion, an 18% increase, with a gross profit margin of 3.48%, up 37 basis points [16] - Operating income rose by 12% to $1.1 billion, reflecting strong execution and growth in the US Healthcare Solutions segment [16][19] Business Line Data and Key Metrics Changes - US Healthcare Solutions revenue was $76.2 billion, up 5%, with operating income increasing by 21% to $831 million [19][20] - International Healthcare Solutions revenue was $7.6 billion, up approximately 10% on an as-reported basis, but operating income decreased by 14% [20][21] - Revenue in Other was $2.1 billion, up 6%, primarily due to growth at MWI Animal Health and ProPharma [22] Market Data and Key Metrics Changes - Strong sales growth in the US for GLP-1 products increased by $1 billion or 11% over the prior year quarter [15][16] - International Healthcare Solutions segment faced challenges due to timing of manufacturer price adjustments in a developing market country [21][57] Company Strategy and Development Direction - The company completed the acquisition of One Oncology, enhancing its capabilities in community oncology and supporting its pharmaceutical-centric strategy [5][14] - Three growth priorities include strengthening leadership in specialty, leading with market leaders, and enhancing patient access to pharmaceuticals [7][12] - The MSO expansion is seen as a natural extension of the company's leadership in specialty pharmaceuticals, aiming to unlock new opportunities [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term guidance for adjusted operating income growth in the US, now expected to be 14%-16% [35][36] - The company anticipates continued strength in the US Healthcare Solutions segment, driven by utilization trends and specialty sales [35][71] - Management noted that the international segment is expected to rebound, maintaining guidance for adjusted operating income growth of 5%-8% for the fiscal year [57] Other Important Information - The company has paused share repurchases to prioritize debt paydown following the One Oncology acquisition [17][29] - Adjusted free cash flow for the quarter was negative $2.4 billion, with expectations of approximately $3 billion for the full year [18] Q&A Session Summary Question: Clarification on operating income growth and deceleration - Management clarified that adjusted operating income growth in the US was 21% in the December quarter, and guidance for the full year has been increased to 14%-16% [33][35] Question: Opportunities in the MSO platform for AOI growth - Management highlighted short-term and long-term opportunities in leveraging clinical trial excellence and revenue cycle management across the MSO platforms [39][41] Question: Impact of strategic partnerships with health systems - Management emphasized the importance of relationships with health systems and the expected growth from these partnerships [45][46] Question: Timing dynamics in the international segment - Management explained that the international segment faced a timing issue with manufacturer price adjustments, but expects a rebound in performance [56][57] Question: Revenue guidance changes and One Oncology contribution - Management noted that One Oncology's impact on revenue guidance is limited due to its lower revenue business model but contributes positively to operating income [80][81]

Financial Data and Key Metrics Changes - Cencora reported adjusted diluted EPS of $4.08, an increase of 9% year-over-year, driven by strong performance in the US Healthcare Solutions segment [13][4] - Consolidated revenue reached $85.9 billion, up 5.5%, attributed to growth in both reportable segments [13][14] - Consolidated gross profit was $3.0 billion, an increase of 18%, with a gross profit margin of 3.48%, up 37 basis points [15][13] - Operating income increased by 12% to $1.1 billion, reflecting strong execution and growth in the US Healthcare Solutions segment [15][13] Business Line Data and Key Metrics Changes - US Healthcare Solutions revenue was $76.2 billion, up 5%, with operating income increasing 21% to $831 million, driven by the RCA acquisition and specialty growth [18][19] - International Healthcare Solutions revenue was $7.6 billion, up approximately 10%, but operating income decreased by 14% due to timing of manufacturer price adjustments [19][20] - Revenue in Other was $2.1 billion, up 6%, primarily due to growth at MWI Animal Health and ProPharma [20] Market Data and Key Metrics Changes - The US market saw strong sales growth in GLP-1 products, which increased by $1 billion or 11% over the prior year quarter [14] - International Healthcare Solutions segment revenue growth was 6% on a constant currency basis, reflecting solid performance across European distribution [19][20] Company Strategy and Development Direction - Cencora's strategy focuses on three growth priorities: strengthening leadership in specialty, leading with market leaders, and enhancing patient access to pharmaceuticals [5][6] - The recent acquisition of One Oncology is expected to drive significant value creation and support long-term growth [12][4] - The company aims to leverage its MSO platform to enhance solutions for providers and biopharma, focusing on clinical research and data-driven insights [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges and capitalize on growth opportunities, particularly in the US Healthcare Solutions segment [11][12] - The company raised its fiscal 2026 guidance for adjusted operating income growth to 11.5%-13.5% and revenue growth to 7%-9% [23][24] - Management highlighted the importance of strategic partnerships with health systems and the ongoing focus on operational excellence [45][44] Other Important Information - Cencora ended the quarter with $1.8 billion in cash and reported negative adjusted free cash flow of $2.4 billion due to seasonal working capital needs [17] - The company expects full-year adjusted free cash flow to be approximately $3 billion as working capital dynamics improve [17] Q&A Session Summary Question: Concerns about operating income growth and deceleration - Management clarified that adjusted operating income growth in the US was 21% in the December quarter, and they remain confident in their long-term guidance despite headwinds from lost customers [31][34] Question: Opportunities in the MSO platform for AOI growth - Management discussed leveraging clinical trial excellence and revenue cycle management capabilities across the MSO platform to drive growth [37][39] Question: Strategic partnerships with health systems - Management emphasized the importance of understanding health systems' strategies and how Cencora can support their growth [44] Question: Impact of One Oncology acquisition on revenue guidance - Management indicated that One Oncology's contribution is more significant to operating income than revenue, as the MSO business model has lower revenue but higher margins [81][80] Question: International market dynamics and pricing trends - Management confirmed no significant changes in pricing trends in Europe due to MFN policies, with a focus on maintaining strong performance in the international segment [88][87]

Core Insights - Cencora exceeded Wall Street profit estimates for the first quarter, driven by strong demand for specialty medicines and GLP-1 therapies [1] Company Performance - Cencora reported a profit that surpassed analyst expectations, indicating robust financial health and operational efficiency in the current market [1] Industry Trends - The sustained demand for specialty medicines and GLP-1 therapies highlights a growing trend in the pharmaceutical industry, suggesting potential for continued growth in these segments [1]