Cencora, Inc. Q2 FY2026 earnings call

Bob mentioned operating income growth in U.S. and international healthcare solution segments, adjusted diluted EPS growth of 7.5%, resumption of share repurchases. Focus on digital transformation in pharmaceutical supply chain, strengthening position in specialty pharmaceuticals across channels, optimizing portfolio. Jim discussed consolidated results, segment level results. U.S. healthcare solutions had volume growth but was tempered by factors. International healthcare solutions had growth in European distribution and global specialty logistics. Other had growth at Profarma and MWI but decline in legacy U.S. hub consulting services

U.S. healthcare solutions revenue was $68.8 billion, up 3%. Operating income increased 6% to $998 million. International healthcare solutions revenue was $7.6 billion, up 13% on an as-reported basis and 7% on a constant currency basis. Operating income was $176 million, up ~14% on an as-reported basis and 13% on a constant currency basis. Other revenue was $2.1 billion, up 5%. Operating income was $92 million, down 1%

Adjusted diluted EPS guidance raised to $17.65 to $17.90 from $17.45 to $17.75. Consolidated revenue growth expected 4-6% vs previous 7-9%. U.S. healthcare solutions revenue growth 4-6%. Operating income growth 12-14% vs previous 11.5-13.5%. Interest expense expected ~$485 million. Full year diluted shares outstanding expected under 195.5 million with resumption of share repurchases

Transitory items like manufacturer price reductions, loss of oncology and grocery customers, weather impact on patient appointments, COVID-19 vaccine headwinds. Biosimilar conversions in Part D space potentially affecting revenue though not meaningful profit hit, but Part B space has benefits. Speed of brand conversions for large mail-order pharmacy customer being faster than anticipated

Q: Lisa Gill asked about core underlying growth impact on operating profit and long-term growth rates.

A: Jim explained revenue and operating income drivers, growth headwinds, and long-term guidance.

Q: Michael Cherney asked about second half growth risk-weighting.

A: Jim discussed guidance update, drivers, and confidence in growth acceleration.

Q: Glenn Santangelo asked about biosimilar conversions impact on operating profit.

A: Brandon Stallings explained Part D and Part B biosimilar impacts.

Q: Elizabeth Anderson asked about US oncology business performance.

A: Jim talked about One Oncology acquisition and integration.

Q: Eric Percher asked about price reduction discussions and margin confidence.

A: Bob explained value provided and confidence in maintaining margin.

Q: Charles Rhee asked about Part D biosimilar conversion speed and margin.

A: Bob and Jim explained conversion speed and margin impact.

Q: Alan Lutz asked about US healthcare solutions EBIT growth and GLP-1 growth.

A: Jim answered on growth excluding headwinds and GLP-1 growth.

Q: Daniel Grossleit asked about international business growth sustainability.

A: Jim and Bob talked about World Courier growth.

Q: Kevin Caliendo asked about core growth slowdown and G&A leverage.

A: Jim addressed core growth and operating expense leverage.

Q: Erin Wright asked about capital deployment and MSO opportunities.

A: Patrick Corbett talked about capital deployment and MSO acquisitions.

Q: George Hill asked about US segment AOI apportionment.

A: Jim said current financials don't present by Part B/Part D but evaluating visibility