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]