Financial Data and Key Metrics Changes - Consolidated revenues increased 10% year-over-year to $103 billion, with adjusted earnings per diluted share rising 39% to $9.86 [5][21][39] - Gross profit increased 9% to $3.5 billion, while operating profit reached a record of $1.6 billion, up 26% year-over-year [22][23] - Interest expense declined 6% to $68 million, and the effective tax rate was 17.5%, down from 21% in the prior year [24][39] Business Line Data and Key Metrics Changes - North American Pharmaceuticals segment revenues were $86.5 billion, an increase of 8%, with operating profit up 13% to $851 million [25][26] - Oncology and Multispecialty segment revenues increased 32% to $12 billion, with operating profit rising 71% to $397 million [26][27] - Prescription Technology Solutions segment revenues increased 9% to $1.4 billion, with operating profit up 20% to $261 million [27] Market Data and Key Metrics Changes - Revenues from GLP-1 medications were $13.2 billion, a 24% increase year-over-year [26] - The company reported strong performance in health systems, benefiting from increased traffic and market-leading share [55] Company Strategy and Development Direction - The company introduced a new reporting structure to enhance transparency and focus on growth areas, specifically in Oncology and Multispecialty segments [6][21] - The strategy includes significant investments in automation and technology to improve operational efficiency and customer experience [14][15][39] - The company is targeting to separate the Medical-Surgical Solutions business through an IPO, expected to be completed by the second half of calendar 2027 [17][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business outlook, raising guidance for adjusted earnings per diluted share to $38.35-$38.85, reflecting strong first-half performance [5][33] - The company anticipates revenue growth of 11%-15% and operating profit growth of 12%-16% for fiscal 2026 [34][39] Other Important Information - The company reported a free cash flow of $2.2 billion for the quarter, with $4 billion in cash and cash equivalents [29][39] - Corporate expenses were flat year-over-year at $151 million, reflecting operational efficiencies [28][39] Q&A Session Summary Question: Understanding revenue growth versus operating profit expansion - Management noted that operating margin expansion was driven by a mix of new products and enhanced programs, particularly in Prescription Technology Solutions [41][42][43] Question: Oncology and Multispecialty guidance maintenance - Management indicated that strong growth was anticipated, with half driven by acquisitions and organic growth at about 13% year-over-year [49][50][51] Question: Health system strength - Management highlighted strong performance in the health system segment, attributing it to market-leading share and increased volumes [54][55] Question: Tax rate guidance - Management clarified that the tax rate for the second half is expected to be slightly higher, with specific guidance for the third quarter at 23%-25% [58][59] Question: Specialty trend continuation - Management confirmed continued good traffic and volumes in oncology, with a focus on treating more complicated patients [62][63] Question: Cash pay channel impact - Management expressed that the impact of cash pay channels on the prior authorization business is expected to be minimal, emphasizing their commitment to work with policymakers [72][75][76]