International Business Insights: Contradictions in Performance and RCA Integration from Q3 2025 Earnings Call

Strong Financial Performance:
- Cencora, Inc. delivered adjusted operating income growth of 21% and adjusted diluted EPS growth of 20% in Q3 2025.
- The growth was driven by strong performance in the U.S. Healthcare Solutions segment, particularly in distribution businesses and contributions from the Retina Consultants of America (RCA) acquisition.

Revenue and Segment Performance:
- Consolidated revenue was $80.7 billion, up 9%, with U.S. Healthcare Solutions segment revenue at $72.9 billion, up 9%.
- Growth was broad-based across customer classes, driven by strong pharmaceutical utilization trends and GLP-1 product sales, although moderated by factors like biosimilar impacts and the loss of a low-margin grocery customer.

Impact of RCA Acquisition:
- The integration of RCA contributed significantly to Cencora's financial results, with a notable impact on operating income and gross profit margins.
- The acquisition enhanced capabilities in specialty markets, particularly in retina, and aligned with Cencora's strategic focus on high-margin, high-growth services.

International Segment Challenges:
- International Healthcare Solutions segment revenue grew 11% on an as-reported basis, but operating income declined due to softness in global specialty logistics and consulting.
- The decline was attributed to slower-than-expected demand from delayed clinical trial start-ups and lower activity in early-stage pharma consulting projects.

Guidance and Future Prospects:
- Cencora raised its fiscal 2025 guidance, anticipating adjusted diluted EPS to be between $15.85 to $16, reflecting strong U.S. performance and a rebalanced outlook for international growth.
- Despite some international headwinds, Cencora's long-term growth strategy remains intact, focused on specialty leadership and strategic investments in high-growth areas.