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- **OneOncology Acquisition Boosts Guidance**: U.S. Healthcare Solutions operating income growth raised to 14%-16% YoY, driven by MSO expansion.
- **Strong Q1 Financials**: Adjusted EPS $4.08 (+9%), revenue $85.9B (+5.5%), with U.S. segment operating income up 21%.
- **MSO Strategic Impact**: OneOncology and RCA enable clinical research leadership, revenue cycle efficiency, and advanced treatment access.
- **International Recovery**: Global Specialty Logistics volumes growing, offsetting European distribution timing challenges.
- **Capital Allocation Focus**: Debt paydown prioritized, with long-term plans for strategic M&A and dividend growth.

**【CEO Summary Section】**
- Announced completion of OneOncology acquisition, increasing U.S. Healthcare Solutions operating income guidance to 14%-16% YoY, up from 9%-11%.
- Highlighted three growth priorities: specialty leadership, market-leading MSO partnerships (RCA & OneOncology), and patient access expansion.
- Emphasized MSO value through clinical research (e.g., RCA's 1/3 of U.S. retina trials), revenue cycle management, and advanced imaging adoption.
- Noted strong performance in GLP-1s (+$1B YoY) and specialty utilization trends.

**【CFO Financial Commentary】**
- Q1 2026: Adjusted EPS $4.08 (+9%), revenue $85.9B (+5.5%), operating income $1.1B (+12%).
- U.S. Healthcare Solutions: Revenue $76.2B (+5%), operating income $831M (+21%), driven by RCA and specialty growth.
- International: Revenue $7.6B (+10%), operating income $142M (-14%) due to European distribution timing; Global Specialty Logistics volumes up.
- Updated FY26 guidance: EPS $17.45-$17.75, revenue +7%-9%, operating income +11.5%-13.5%.
- Interest expense expected $480M-$500M, up due to OneOncology financing.

**【Q&A Key Highlights】**
- **Operating Income Growth**: Excluding OneOncology, U.S. segment growth within 7%-10% long-term range, despite oncology customer loss.
- **OneOncology Contribution**: Neutral to EPS in first 12 months, with $30M annual noncontrolling interest benefit.
- **International Challenges**: European distribution timing headwind, offset by Global Specialty Logistics growth.
- **Share Repurchases**: Paused to prioritize debt paydown, with long-term focus on strategic acquisitions and dividend growth.
- **RCA Performance**: Exceeded expectations with clinical trial and imaging device adoption, driving organic growth and tuck-ins.

Cencora, Inc. (COR) Q1 2026 Earnings Call Transcript

- **Revenue Growth**: FY 2025 revenue up 9% to $321.3B, driven by 10% U.S. Healthcare Solutions growth and 6% International expansion.
- **EPS Guidance**: FY 2026 EPS $17.45-$17.75 (9%-11% growth), supported by specialty investments and $1B infrastructure spend.
- **Strategic Shifts**: 'Other' segment (MWI, Profarma) under strategic review; U.S. Healthcare Solutions focused on MSO and specialty with 6%-9% long-term AOI guidance.
- **MSO Momentum**: RCA and OneOncology driving 25% Q4 U.S. Healthcare Solutions AOI growth; full OneOncology ownership to enhance clinical trial access.
- **International Recovery**: World Courier specialty logistics rebounded; PharmaLex refocused on core services with 5%-8% long-term growth.

**【CEO Summary Section】**
- Fiscal 2025 revenue grew 9% to $321.3 billion, driven by 10% U.S. Healthcare Solutions segment growth and 6% International Healthcare Solutions growth.
- Raised long-term adjusted operating income guidance to 6%-9% and EPS to 9%-13%, reflecting specialty leadership and MSO platform investments.
- Announced $1 billion infrastructure investment through 2030 for specialty distribution, including a second National Distribution Center.
- Strategic review resulted in 'other' segment (MWI, Profarma, legacy consulting) being evaluated for alternatives, with U.S. Healthcare Solutions now focused on specialty and MSO growth.

**【CFO Financial Commentary】**
- Q4 2025 adjusted diluted EPS: $3.84 (15% YoY growth), driven by U.S. Healthcare Solutions operating income up 25% to $872 million.
- FY 2025 free cash flow: $3 billion; FY 2026 guidance: $3 billion with $900M capex for infrastructure.
- FY 2026 guidance: EPS $17.45-$17.75 (9%-11% growth), U.S. Healthcare Solutions AOI 9%-11%, International 5%-8%.
- Interest expense: $315M-$335M due to RCA acquisition debt; effective tax rate 20%-21%.

**【Q&A Highlights】**
- **MSO Strategy**: Full OneOncology ownership expected to enhance clinical trial access and revenue cycle management. RCA's specialty logistics and oncology growth exceeded expectations.
- **Specialty Growth**: U.S. Healthcare Solutions specialty revenue growth offset generic deflation, with GLP-1 contribution moderating to 40bps in Q4.
- **International Recovery**: World Courier specialty logistics rebounded, while PharmaLex refocused on core services (pharmacovigilance, market access).
- **Capital Allocation**: 3%-4% EPS contribution from M&A; FY 2026 share buybacks ~$1B targeting 194M diluted shares.
- **Risk Management**: FY 2026 headwinds include 3Q loss of oncology customer and RCA lapping, offset by specialty infrastructure investments.

Cencora, Inc. (COR) Q4 2025 Earnings Call Transcript

- **EPS Guidance Raised**: $15.85-$16.00 (vs. $15.70-$15.95), reflecting U.S. segment strength.
- **Gross Margin Expansion**: 3.55% (up 36bps) driven by RCA and specialty growth.
- **Intl. Segment Risk**: Sequential improvement expected, but 2025 operating income down 6% YoY.
- **Strategic Focus**: Specialty leadership, digital transformation, and RCA integration key to long-term 8-12% EPS growth.

**【CEO Summary Section】**
- **Revenue and Earnings Growth**: Adjusted operating income grew 21% to $1.1 billion, while adjusted diluted EPS increased 20% to $15.85-$16.00. Guidance was raised due to strong U.S. Healthcare Solutions performance and strategic investments.
- **Growth Priorities**: 
  1. Enhancing patient care through DSCSA compliance and distribution infrastructure.
  2. Strengthening specialty leadership via RCA acquisition, supporting retina therapies and clinical trials.
  3. Leading with market leaders through partnerships with independent pharmacies and oncology networks.
- **Strategic Investments**: $3.3 billion debt raised for RCA acquisition; $1 billion in share repurchases.

**【CFO Financial Commentary】**
- **Revenue**: $80.7 billion (+9%), driven by U.S. segment (+9%) and GLP-1 sales (+19% YoY).
- **Gross Profit**: $2.9 billion (+21%), margin improved 36bps to 3.55% due to RCA contribution.
- **Operating Expenses**: $1.8 billion (+21%), reflecting RCA integration and revenue growth support.
- **Net Interest Expense**: $82 million (+$50 million YoY) due to RCA debt.
- **Free Cash Flow**: Full-year guidance maintained at $2-$3 billion.
- **Updated Guidance**: 
  - EPS: $15.85-$16.00 (vs. $15.70-$15.95 prior).
  - U.S. Segment Revenue: 9-10% growth (narrowed from 9-11%).
  - Intl. Segment Revenue: 6-7% as-reported (6-8% constant currency).

**【Q&A Key Highlights】**
- **U.S. Segment Moderation**: Biosimilar conversions and GLP-1 deceleration (+19% vs. prior growth) impacted top-line, but operating margin expanded due to specialty growth.
- **Intl. Segment Challenges**: Global specialty logistics and consulting under pressure, but sequential improvement expected in Q4.
- **RCA Integration**: Strong cultural fit and customer feedback; 4Q '26 full contribution anticipated.
- **Policy Risks**: MFN and tariff impacts on specialty pricing and supply chain; focus on maintaining community provider access.
- **Long-Term Outlook**: Confident in 5-8% operating income growth and 8-12% EPS growth, driven by specialty, digital transformation, and productivity.

Cencora, Inc. (COR) Q3 2025 Earnings Call Transcript

- **Q2 Growth Stars**: 10% revenue growth, 16% EPS beat, and 23% U.S. segment OI surge highlight strong execution.
- **Strategic Wins**: Expanded specialty leadership via RCA/OneOncology MSOs, 3PL European expansion, and health system partnerships.
- **Guidance Boost**: $0.14 EPS from RCA accounting change; U.S. OI growth raised to 17.5%-19.5% vs. 14.5%-16.5%.
- **Risks**: International specialty softness (clinical trials down) and GLP-1 headwinds in H2.

**【CEO Summary Section】**
- **Revenue and EPS Growth**: Reported 10% revenue growth and 16% adjusted diluted EPS growth for Q2 2025, driven by strong performance in the U.S. Healthcare Solutions segment.
- **Strategic Focus**: Highlighted three key areas of growth:
  1. **Leveraging Expertise**: Examples include supporting independent pharmacies in pharmacy deserts and providing biopharma insights on bladder cancer treatment trends.
  2. **Customer Partnerships**: Increased engagement at industry events (e.g., specialty pharma conferences, chained pharmacies) to anticipate customer needs.
  3. **Specialty Leadership**: Expanded 3PL services in Europe and deepened U.S. health system partnerships, emphasizing end-to-end solutions for specialty medications.
- **Global Positioning**: U.S. segment growth offset international softness in specialty logistics due to subdued clinical trial activity.

**【CFO Financial Commentary】**
- **Q2 Financials**: 
  - Revenue: $75.5 billion (+10%), driven by GLP-1 sales (+36% YoY) and specialty product growth.
  - Gross Profit: $2.9 billion (+15%), margin improved 16bps due to RCA acquisition.
  - Operating Expenses: $1.7 billion (+15%), primarily from RCA-related costs.
  - Operating Income: $1.2 billion (+15%), U.S. segment up 23%.
- **Guidance Update**: 
  - Full-year EPS raised to $15.70-$15.95 (prev. $15.30-$15.60), +$0.14 from RCA accounting change.
  - U.S. Healthcare Solutions OI growth narrowed to 17.5%-19.5% (prev. 14.5%-16.5%).
  - International OI expected to decline 4%-1% (prev. flat), due to clinical trial softness.
- **Liquidity**: $2 billion cash balance, no share buybacks planned; focus on deleveraging post-RCA.

**【Q&A Highlights】**
- **Specialty Growth Drivers**: CEO emphasized broad-based utilization trends, biosimilar adoption, and MSO expansion (RCA, OneOncology) as key growth engines.
- **International Challenges**: CFO noted subdued clinical trial activity and pricing adjustments in Europe, but highlighted 3PL operational strength.
- **RCA Impact**: CFO clarified $0.14 EPS boost from RCA accounting change, with core U.S. distribution driving 80% of guidance increase.
- **Tariff Risks**: CFO stated no material business impact from tariffs, focusing on patient access advocacy.
- **Health System Strategy**: CEO highlighted solutions for specialty medication distribution and care coordination, with partnerships across all care settings.

Cencora (COR)-7 May 25-2025 Q2 Earnings call transcript

- **Q1 Growth Drivers**: 13% revenue growth driven by 14% U.S. segment expansion, 53% GLP-1 sales growth, and RCA acquisition. Adjusted EPS up 14% to $3.73.
- **Strategic Acquisitions**: RCA adds $0.35 EPS accretion over 12 months, aligning with specialty MSO expansion strategy. OneOncology investment complements retina innovation.
- **COVID-19 Headwinds**: Q1/Q2 COVID-19 vaccine contribution halved YoY, with $0.06 EPS headwind from exclusive therapies.
- **Updated Guidance**: Full-year EPS raised to $15.25-$15.55, U.S. OI growth 14.5%-16.5%, driven by specialty utilization and RCA integration.
- **Global Specialty Logistics**: Clinical trial activity subdued in Q1, but premium service demand expected to recover later in FY25.
- **Animal Health Resilience**: 7% Q1 growth in companion and production animal markets, supported by strong management execution.


**【CEO Summary Section】**
- **Revenue Growth and Strategic Acquisitions**: Q1 revenue increased 13% to $81.5 billion, driven by 14% growth in the U.S. Healthcare Solutions segment. The acquisition of Retina Consultants of America (RCA) on January 2, 2025, expanded leadership in the high-growth retina MSO segment, with 53% year-over-year growth in GLP-1 product sales.
- **Specialty Leadership and MSO Expansion**: Emphasized the logical evolution from specialty GPOs to MSOs, with RCA's clinical research capabilities and physician partnerships. The OneOncology investment and RCA acquisition align with the long-term strategy to support community providers and capitalize on pharmaceutical innovation.
- **Technology and Efficiency**: Invested in digital transformation to streamline operations, enhance customer experience, and leverage global talent for scalability. This includes upgrading systems to maintain best-in-class infrastructure standards.
- **Customer-Centric Innovation**: Launched a product showcase demonstrating solutions in inventory management, specialty GPO, and cell therapy. Global teams collaborated with customers to address evolving needs, such as European market access and specialty logistics.

**【CFO Financial Commentary】**
- **Q1 Financial Highlights**: Adjusted diluted EPS of $3.73 (14% YoY growth), consolidated revenue of $81.5 billion (13% YoY), and operating income of $949 million (7% YoY growth). The U.S. segment contributed $767 million in operating income (10% YoY growth), offsetting $0.06 EPS headwind from COVID-19 therapies.
- **GLP-1 and COVID-19 Impact**: GLP-1 sales grew $3.2 billion (53% YoY), but lower-margin products reduced gross profit margin by 20 basis points. COVID-19 vaccine contribution halved YoY, with a similar Q2 headwind expected.
- **Updated Guidance**: Raised full-year adjusted EPS to $15.25-$15.55 (from $15.15-$15.45), driven by U.S. segment growth (9%-11% revenue, 14.5%-16.5% OI growth) and RCA's $0.35 EPS accretion over 12 months. International segment revenue growth revised to 4%-5% (from 7%-9%) due to currency headwinds.
- **Liquidity and Capital Allocation**: Used $2.8 billion in cash for operations, with free cash flow expected $2-$3 billion annually. Prioritized deleveraging post-RCA acquisition, with interest expense rising to $290-$310 million.

**【Q&A Key Themes】**
- **MSO Strategy and Competition**: RCA's clinical research network and physician partnerships differentiate it in the retina MSO space. Biosimilar adoption in EYLEA is expected to follow Part B trends, with faster utilization than Part D. Global specialty logistics faces temporary clinical trial softness but long-term premium service demand.
- **GLP-1 Growth and Utilization Trends**: GLP-1 sales growth is expected to decelerate in later quarters, but broad utilization trends (e.g., post-COVID script resumption) support U.S. segment resilience. Animal Health business grew 7% Q1, driven by companion and production animal markets.
- **RCA Integration and Financial Impact**: RCA's accretion ramps over FY25, with minimal revenue impact but significant OI contribution. Management emphasized no double-counting of product sales in specialty business.
- **COVID-19 and Walgreens Updates**: Q2 COVID-19 vaccine headwind mirrors Q1, with no significant contribution. Walgreens remains a strategic partner, with ongoing discussions to unlock value in the U.S. and U.K. sourcing relationships.


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