CAH - Earnings call transcript Q4 2024

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Operator

Good day, and welcome to the Fourth Quarter FY 2024 Cardinal Health Inc. Earnings Conference Call. My name is George, I'll be your coordinator for today's event. Please note that this conference is being recorded. [Operator Instructions] I'd now like to hand the call over to your host today, Mr. of President Vice Sims, Investor Relations. Matt ahead, go sir. Please

Matt Sims

CEO, Fourth Welcome thank 'XX Fiscal morning's Cardinal you Aaron our Health to Cardinal Quarter Health are Earnings today joining With and Hollar; Alt. us. and CFO, this for me Jason Conference Call, and

Investor find the morning's presentation this our of can press release section You investor website and earnings on Relations at ir.cardinalhealth.com.

during addressed that to non-GAAP making found forward-looking to from our remind on supporting reconciliations today, filings will to cause for the be unless to slide to GAAP. periods matters comments beginning basis, statement me can discussion description be risks in Instructions] results our risks presentation statements you subject at and our forward-looking are that uncertainties a let be the a of in called today, these will all differ relevant statements we non-GAAP those could GAAP our implied. [Operator the Since of actual out projected SEC specifically and the Please for press the the as that release. materially and attached or uncertainties. refer note schedules Please

I call the With now over Jason. to will that, turn

Jason Hollar

a and Health, note, financial we everyone. year Matt, the year that On with three across and portfolio. in Fiscal Thanks, significant execution have of headlines tandem results 'XX morning, operational delivered marked strong Cardinal today. good record for strategic key progress

our year XX% of original growing of Day. with exceeded year EPS First, QX above full momentum, the The both Investor $X.XX from the $X.XX year EPS we results and finished in guidance, outlook and was midpoint fiscal 'XX.

and positioning the of of $X year-end, billion after cash with to year adjusted We funding billion free also of approximately our $X growth delivered cash us returned investments. this $X.X flow even shareholders at for capital nearly year, billion

improvement finally, we resiliency the optimizing accelerate of Second, long-term value and growth our advance 'XX growth continue and some pharma year raising And our GMPD but key creation. have maximize reconfirming More finance upon while to guidance momentarily, specialty, in while portfolio build our also reflections. transition customer to brief of significant shareholder execute our plan and are strategy through a our for that targets. managed on first, the and we our fiscal to areas

long-term we efficiencies, year, of our our reorganization our actions take continue and performance, management to reporting enhance accountability ongoing This most year. Pharmaceutical the highlighted and program segment targeted We stability transparency. structure decisive and largest business and grew the We rate. revenue grew Solutions while strong from to performance enabling our business, to Specialty operating in focus drive by simplify saw significant Pharmaceutical and for above growth demand, XX% generics and Specialty business our our

anticipate billion, we As Specialty continued organic year over business next Specialty large 'XX, despite key Networks. of investments fiscal expiration. $XX areas contract is therapeutic and the the Specialty now acquisition areas We with in and of across prioritized growth year our growth

our In approximately segment initiatives, year-end improvement -- for the to inflation million executed business. $XXX improvement GMPD, returning achieved business our target, in year-over-year milestone the delivering We profitability we critical profit a mitigation plan and

team's of excites focused OptiFreight, Across collectively for future. for Nuclear, our a X% customers profit purposeful our and seen millions We've performance execute strong and at-Home the we Other about fiscal year and these us in Overall, commitment through demand operating against grew set investments were revenue create how ultimately Solutions businesses, XX% on focus 'XX. businesses these are our shareholders, and of patients. value segment priorities to to across and results our achieved positioned for our

not continue confidence the our to positive industry only growth. with is optimize year of trends our to enterprise. the page strong As and performance we we businesses, of 'XX, strength to but supporting the financial also the business fiscal our resilient broader And by reinforced take our actions turn

further provide Medical in creation our for Nuclear former concluded let further review the Last Aaron, over our on and develop of the an to business. update January, Pharma at-Home to June, of enhanced reminder, segment at on invest Health was course Precision for organizational in kicked growth and to Day resegmentation. off our September growth call determining the our business completing our the action hand which, XXXX. in focus retain segment of invest and while also in the businesses former long-term Solutions I we Investor shareholder with and review decision Before value me finalized within highlighted Then best as portfolio a Specialty and our Solutions review, OptiFreight and we of

share review All portfolio business' the GMPD of Review through Business and seen We today on conclusions have reviewing along, with Board, our collaboration XX. has Slide to some management, and and our understand the lens opportunities framework team Committee angle as every turnaround from the the preliminary in deeply been as complexities executes plan.

of 'XX In the fiscal remain in executing to we year our short, million segment impairment target $XXX and plan profit. committed GMPD

interest brand our critical and business review. but our patient a core are are not features products so The of Cardinal distribution GMPD We pleased to that and set is health unsurprised to formidable providers in see Health to broad care. only of the care many significant during operations expertise,

plan. our that GMPD have Ultimately, the the for business. potential we value on more review, for ahead horizon opportunities are creation confidence on we capitalizing best positioned to and continuing drive see by we growth this gained our shareholders Following operational the extensive meaningful turnaround continue to

baseline. according million $XXX our $XXX In next 'XX to drive initiatives, recognition, least the to a share more, X to to plan we actions while uncovered improvements for allocation expectations working plan. the through years repurchase fiscal capital simplification million, to framework. beyond raising total $XXX generate Even value opportunities be deployed continuing additional disciplined we're cash to is in at and our capital year unlock which further over From of these million our analysis near-term

of planned value ongoing continues of Review the as whole. in creation of the as now business efforts the Business are mechanics Committee by the In July future our and Board improve, reviews being a sunset overseen Board to terms as

As our approach ensure -- always, focused a objective receive in service to long-term invest customers that open-minded on the maximizing business continuing while take the we and thorough, expect. to products they and

deeper review plans in for our to to I'll our results first, go over But into and remarks. strategic segments let turn Aaron my it me our guidance. later

Aaron Alt

morning. good and Jason, you, Thank

fiscal discussing net fiscal Before are providing year 'XX, QX raised EPS. through 'XX that want I financials highlight to our we non-GAAP guidance, and prior period to success our year QX for slight increases reflecting today, revised

our preparation Solutions statements, of third-party identified financial business management long-standing a revenue error in the annual to of -- payers. from During related recognition accounting our at-Home

corrected in be fiscal and of further fiscal non-GAAP helpful, press in in prior included year 'XX, the $X.XX of these this also other we've 'XX have release year increases in in a As enterprise. timing result, $X.XX along The periods fiscal supplemental year recognized changes immaterial previously net our full with updated the item 'XX. and $X.XX EPS across impact out-of-period XX-K. year To we schedules in items fiscal by detail 'XX our

Cardinal strong results. our pleased against QX financial progress strategic finish am team our and the to Moving made in a which I to produced tremendous that priorities. a year to reinforce

by SG&A pharma, lower reached well-controlled points matched For margin our of and below costs, rates with interest GMPD both in with it We count. tax QX also across strong supported the Other, and even profit delivered better the historical and growth environment. growth lower results and improvements high the an operating inflationary EPS year, form line gross in share

margin growth XX% which reflecting the segment X% outpacing billion, million, billion our In company QX, of to revenue X% Gross Pharmaceutical in all and in cost $XXX businesses only the increased up earnings revenue to increased Solutions making consolidated disciplined to XX% This segment, of quarter, SG&A, Other. Specialty and translated reflecting versus $XX.X the in last grew $X.X operating to billion year. $X.X management. up total the GMPD

benefiting of interest to $XX prior strong Below the million versus quarter's year line, the improved Other from and million, $X performance. --

than ago announced fourth repurchases. Fourth net of XX%. finished were growth points the to quarter of effective X% average a previously shares tax result diluted due rate prior X.X share EPS at XXX XX.X%, Our The year. $X.XX, than quarter fourth lower quarter was year lower our percentage million, outstanding

our pharma Slide into the and on by driven growth billion, pharmaceutical XX. $XX.X segment to XX% results, from segment beginning brand sales with increased Fourth Moving customers. quarter specialty revenue existing

customers. strength pharmaceutical We see and largest demand continue and in specialty, health consumer spanning generics Brand, to our from categories: broad-based product across

be segment's the growth sales, GLP-X QX would X%. revenue Excluding

driven As we've fourth Segment profit line. contribute performance. meaningfully X% the commented million not do to by $XXX the GLP-X positive generics program in increased bottom quarter, to sales previously,

Pharma unanticipated headwind Oak. was the an volume in see million of dynamics program, the from the our midpoint results market growth segment to in Red performance announced the impact $XX and generics quarter guidance. to unwind QX X% the including This consistent previously prior between was profit of related and primary Within pharma's margin strong quarter the we our difference approximate customer large transition. despite growth continue

mitigation Recall to impact planning. controls with contract be that our cost we previously cost measures team loss offsetting by Networks customers, and contingency the of control these new part plans, started would observed as the Consistent that of offset implementing savings. began see the Specialty and

Networks. strong from biopharma growth from Specialty solutions in quarter, also saw the We including contributions

GMPD the XX. to Turning segment on Slide

prior GMPD results, approximately in GMPD improvement before the our in our from inflation million saw continued Fourth by The year customers. prior initiatives we volumes our quarter generally X% year-over-year offsetting pleased $X.X of an again was expectations revisions. revenue our We 'XX. mitigation against quite increase QX are inflationary by the delivered including million impacts, the GMPD for of of improvement gross fiscal which existing driven and to plan. by the Cardinal segment by We impact brand QX as billion achieved guidance in $XX consistent million during our progress with year the target quarter. the of profit end QX grew confirmed net volume period $XX growth driven the growth $XX of

encouraged optimize service satisfaction levels the business. the in tenacity continue opportunities and We by while be execution of the improved team to to additional customer identifying driving and

met cylinders supercharge access and demand to management customers. Finishing OptiFreight our key hit as with to profit continue on at-Home Logistics. OptiFreight we capital Precision and logistics to growth that with The by of driven Solutions, XX. forward, Fourth our Nuclear support business customer businesses: and have is $XXX Slide In across the of Nuclear All and in three as to strategically XX% seen on invest $X.X increased models growth. driven primarily Other billion will for for grew OptiFreight businesses all of the by execution. performance Solutions businesses, as three into their revenue Segment business to received Logistics. continues expansion story, million, Health strong aggregate parts XX% to all Solutions, growth going services increasing receive at-Home of our quarter

revenue to our I Together, commentary. will in year X% increased billion Fiscal to $X.X growth the growth with All operating be year five to a operating while reflecting fiscal on billion [ $X brief year-long increased X% segments. modest billion. XX% resulted billion across $XXX margin more efforts ] total increased XX% to 'XX in, from control excellent Gross $X.X it 'XX SG&A all to the earnings business. costs. of this an was full

line, the and on driven million, cash and to by XX% $XX income interest interest decreased increased Below equivalents. other

result to Our share $XXX $X.XX, well XX% above million, long-term of at than lower XX.X%. Average fiscal diluted XX%, repurchases. shares to outstanding rate due growth. EPS net year were annual a X% tax XX% 'XX our non-GAAP of The target of growth finished ago was effective

balance fiscal the cover turn before Now I sheet. let's to 'XX,

To balance and The with position 'XX. cash 'XX, our For cash to of for nearly ending cash robust time there, billion. billion earmarked held debt for area for Investor I free that remains us. in adjusted get generated million flow that the $X XXXX on paid Recall maturity fiscal deposits year Day fiscal we sheet. million June, opportunity prepaid additional an $XXX in assets the at commented cash was $XXX the flow, our includes last November $X.X be balance an Other

while results free was on a capital cash each year-long XXXX flow focused the of levels. element remaining optimize in entirely excellent working service result of team's effort our adjusted to Our almost our

the beneficial on about timing guidance. large to talk of our the fiscal cash 'XX has flow of occurred we dollars much expiration, We a expected. preparation contract of to contract July, the the of as in related for impact cash To a shortly contract the couple hundred as to balanced only results degree, attribute which lesser now I'll largely million flow reflect QX part unwind. our unwind

this outlook ratio, rating in from leverage the year, and achieved agencies. strengthened Also we our updates balance positive resulted credit our sheet targeted three which

more baseline capital of commitment we also and XXth to in share shareholder-friendly our in the to returned of than returning a repurchases manner, payments. million capital And through We dividend row. million continue for dividend deploy a year $XXX increased shareholders our in $XXX

discuss and of an guidance forward guidance on Slide XX. the are fiscal range look QX is increase let's 'XX from $X.XX least updated our increasing 'XX Now This $X.XX. preliminary fiscal at $X.XX. Today, our new to a call of to EPS during our we guidance

large customer Slide for XX% to 'XX consistent growth the to pharma. long-term significant fiscal customers from decline $XX the growth and and overall with our reflecting underlying growth customer, outlook revenue between X% primarily the billion be XX% strong large revenue, targeted in XX expiration. onboarding headwind expect as from nearly X%, of would due shows fiscal existing 'XX between expansions, well second we the as revenue for rate the reflects On the half Normalizing This of year. of XX%. and customer new our contract demand pharmaceutical generally

of expiration and additional of are will our segment three the incremental large them contract efficiencies. Note from throughout to assets Networks ramp profit on some a We volume, with of operational address to contributions 'XX. that track have Specialty this the level fiscal impact all these

market our program consistent dynamics expect We to for continue. generics

increased products and contributions biosimilars. expect including also brand We from specialty

consistent manufacturer with vaccines. related increases, several an assuming distribution years. expect generally headwind a the On past year-over-year are environment brand of We the modest we to COVID-XX price

Summing it growth be growth the back profit to and more anticipate of X%, segment all a weighted in range half X% testament It is this of strength pharma up, profit case segment the that will than to we resiliency business. usual. the

should year be in to be prior absolute profit the first expect the again with flat the lower the We business. QX profit dollar profit back segment growth slightly versus half for highest to half. quarter

on GMPD to Slide Turning XX.

we X%, of volume line, net onboarding expect incremental growth the distribution low On wins. by X% utilization single-digit top aided the as and growth as well new between from customer

this line, fiscal year On profit million reiterating path executing to inflation will $XXX approximately 'XX be year we segment our on improvement plan. we successfully The what annualization segment the by end is in year, these $XXX the GMPD from our the tailwind. a 'XX plan by After at expectation shared the bottom of for million are approximately year fiscal of offsetting 'XX fiscal unchanged quarter benefits of in ago. profit a

our The team X%. between streamline with remains plan. expect we pipeline efficiencies year in also to continue drive focused sales and on continuing and opportunity growth brand to and drive optimization Cardinal In the brand X% Cardinal cost operations. further growth Five-Point through 'XX, our fiscal Simplification

improvements cadence just ongoing the We in GMPD's while expect quarterly may year not that operational plan The once driven back will half-weighted be again a and it be and that easy. fiscal simple, profit in 'XX, Recognizing the does commercial seasonality fiscal make by 'XX. like business.

thereafter. resiliency. which, point sequential and Cardinal manufacturing in last half manufacturing QX to factors. QX start-up our to of shows year, domestic expanding $XX timing some with be timing due chain and Health the expect year, to year up with should we supply the year, year's this improvement unfavorable costs of Additionally, production includes updated the owns of increase expect unlike million $XX first enhance at Last we the these to associated cost million low to profit, QX plants

Turning on XX. Other Slide to

at-Home growth back, businesses segment with growth strength to our execution from revenue and Collectively, of with the targets. expect XX% businesses expect For profit to three increased contributing XX% our and investments. continued strategies 'XX. prioritization pleased all each of aided in demand, to of profit fiscal approximately of in OptiFreight, we growth these to of and across Nuclear, Solutions are our XX% be of Stepping all we we by anticipated growth range the segments these in see profit benefits operating

the lower range rates to on higher our increase and Other The cash balances, lower interest expect continues our on from of maturities. $XXX rates $XXX we short-term XXXX by our to line, calendar investment average be the year-over-year driven debt million and large the refinancing below in Moving million. of resulting cash

year to be to XX% We fiscal range continue of 'XX the to our expect tax in rate XX%. effective

initiatives, $XXX fiscal With repurchase increased creation have our to guidance 'XX of value our million a in expectations GMPD our ] we year, share near-term count XXX baseline to leading [ approximately year beyond the shares. million share

negative reflecting cash week timing. billion, impacts of QX the day Finally, flow we year free of 'XX contract from the large quarter fiscal well $X unwind expect the adjusted as as end approximately

sheet manage our allocation affect capital continue positions QX, these disciplined to us our fluctuations strong balance investments will consistent from making in and While dynamics business investment-grade strategic the cash significantly these with our through framework. well

we with close, To say team EPS the pleased 'XX the strategy, that of are X organization, customers free year working team delivered. fiscal standout growth of weeks clear confident our 'XX our notable have Cardinal throughout once I'm team was milestones XX% and billion, dedicated serve fiscal flow the adeptly. that adjusted behind a is filled with leaders again. to managing year us, of we will and adjusted With the $X we cash nearly to our Between deliver tirelessly

back that, over to I turn will With Jason. it

Jason Hollar

Aaron. Thanks,

focused go Specialty on our with priorities, deeper Solutions, where strategic specialty. beginning Pharma upon expanding in into foundation building strong core I'll we Now and our remain and

largest the country. from we hosted industry, attendees Everything Retail customer. Recently, the the the our X,XXX starts XXnd together in Annual with we do across Conference, bringing Business

and demonstrate role the resiliency. caring independent expand As pharmacies care in the community services communities, and destinations to remarkable continue the trusted value partner to to play retail their understand pharmacy, for retail their we health critical as

reimbursement retail industry to customers pharmacy invest continue the into clinical, to solutions future. of and full now advocacy support in suite empower our and our to business and We provide

to Health offer of in Consumer logistics will Our diagnostic a center comprehensive treatments medications, solutions. selection and slated XXXX over-the-counter open

cost other help participating Additionally, expand their manufacturers pharmacies to savings our new from engage benefits offers immunization vaccine alliance program patients programs. and and more

We're and breadth capabilities. to and the constantly evaluating through solutions bring manufacture ways our pharmacy offerings parts to of our innovative

contracting partnerships of for that company's joint put, commitment, a Averon upon Oak part we with Sourcing we As cost. overall to access program increasing collaboration choice biosimilars. will formed Health, for including and similar a Red over options builds the see for opportunities HUMIRA source are lower and products, at to objectives CVS Averon, by successful Simply that venture expand biosimilars, our to additional more couple therapy in biosimilars. provide have began with of Averon patients a time. we like

in to We're clinical, continue with specialty. team's platforms Continuing insight PPS business, expertise. operational Specialty pleased how technology integrated be Networks the our capabilities with quickly impressed and with and we and the has analytics generation

expected, fully oncology the demonstrated strategy our with largest services. are Specialty Networks' integrated our in in and its As area The capabilities integrated leveraging of enhance Nevista, to aligned urology, for technology practice advanced offering directly providing is we alliance market fully model, Specialty offering oncology. Networks' our

last and can world-class oncologists offerings of with we've pipeline industry the for active independent Nevista the strategy go-to-market team of find demonstrating the oncology Nevista remain our across course experts to customers team our a them engaging Over is of Nevista marketplace, how help year, build. foundational community good. technology consisting built to and completed The an

with of part XX% delivery of to the XPL, year. therapies growing comprehensive and of growth gene faster commercialization track and We're as with market continued our and a leading that its providers than cell during further offering facilitates Upstream services leveraging nearly record manufacturers, patients. has these our critical the specialty

gene handle features and associated logistical suite center innovation solutions to specialized deep storage Therapy frozen a Advanced new challenges therapies. the cell with Our

receivable improved space for invoicing for opportunities ordering, process and and the supporting pharmaceutical accounts process Additionally, products. the design dedicated provides collaboration

over approach recently to we of incremental committed our trade, total health expansions. service and has from going are customer resonated and completed year few in in onboarding customer wins system commercial and revenue of with classes a new $XX Across billion phases solutions-oriented and smoothly, 'XX customers, a earlier in fiscal we commitment the expect ramp-up that

consistently the was When addressing Turning that performance to constraints the the of first of plan, to business business. supply global highlighted GMPD. chain inflation Medical impact key we turn the the former around introduced on improvement and we originally our significant

X profit to significant in of revenue the GMPD Fast quarters We various 'XX. to got offsetting million with year-over-year approximate year urgency, and operating seen Health We $XXX years exited to segment improvement year consecutive executing work, segment inflation. brand X an gross We've team the the quarters the consecutive ground. Our delivered growth. business actions losses forward successfully impact volume after X year-over-year Cardinal today, mitigation fiscal cover we of of -- incurred. work hard of solid growth

the year grew revenue the U.S. brand We Cardinal Health and X% overall for in X%

up recent Our key customer low. along And distribution U.S. for its over customers successfully from remains score distribution loyalty wins. points retaining index with XX we're pandemic some

highlight business significant Continue to are portfolio clear to into the our dive few. there opportunities it's review, still a I'll through capture.

we've actions of continue global supply some diversity chain Aaron we're our improve to to our confident as our the inflation. ability our our year-over-year year across year, mentioned, mitigate from a expected freight. in significant commodities, First, portfolio the increases the effectively to chain Between annualize cost be our profit in with tailwind and inflation a to international broader headwind 'XX resiliency, slight supply of fiscal in offsets even recent results and taken mitigation will next

produce predict five-point results. positive Cardinal number We've quarters in for remain indicators encouraging seen of a utilization Second, brand acceleration a plan continue and an growth. continues leading healthy overall to and environment Health to our now,

disciplined our the driven improved strategy has Third, performance. of execution simplification operational

X flow recently see and cash next the capital business the over we targeted With improvements opportunities only working drive to positive, years. stabilized turned free

always prioritizing we Star. Additionally, customers broaden efforts, footprints North and needs as such optimizing further the real our can our our simplification our of while geographic as estate

excellence create energized continued customers on phase of on additional shareholders. the to and the for simplification is commercial value journey, focused next execute to and team Our improvement our

PET Solutions, they order to exactly sites therapies need to manufacturers and Health Precision them. across when to and Nuclear are bring partner differentiated leading in cutting-edge ability pharmacies the patients these In positioning XX with nuclear our with country, XXX

patient We're Our 'XX, around ]. opportunities which such improve Theranostics with lives Telix into heavily use in growing as for Lucix [ seeing the driven investing through fiscal prostate Theranostics our theranostics been to excitement continues results we strong to of business advancement. over the for center XX% by have precision build demand products medicine, year cancer with the our

we fiscal Theranostics overall pipeline 'XX, similar oncology. In the year and but growing to by cardiology expect opportunities to we'll and growth, invest largely continue which is dominated includes of meet neurology,

be As novel ] an example, will radioligand our prostate support expanding year of Plavicto we fiscal therapies with Novartis' in [ 'XX.

We to increasing for and requiring increasing print PET cyclotron majority are geograph [ capacity also in scan. our companion PET investing diagnostics manufacturing radiotherapeutics demand the meet of ] a with emerging

$X.X business execution. Fiscal efficiency. revenue This foundational moving our our continues market not year and we commercial as groundwork care laid also billion Solutions for for than to was team's only future 'XX business at-Home aided the by a year home, the grow growth faster but into

warehouses our new such in state-of-the-art leverage, investing with capabilities, as technology been To automation. drive we've operating

Net and to from over our fruits distribution XX% XXXX. we X previously operational our foot -- Just warehouse patient facility South last featuring Texas square order market. the the our system month, for we Carolina, system Central our Promoter opened years, also brand-new We're the they've is the expect currently highest in in open in Score fulfillment plan with in been announced seeing Ohio up over This and year-over-year. a in center new investments XXX,XXX fastest and

year Logistics this delivered The with performance. OptiFreight exceptional team

optimize through platform total customers data-driven insights. and inefficiencies continues Our delivery uncover help shipping to Insights view

an a customer As result, index at our all-time high. loyalty is

of are program Cardinal on In value. expect Across it deliver growth the helping we team and to fiscal from and in continue 'XX great to momentum to customers track record benefit our our our new in 'XX, beyond. customers year execution, year simply, and and to our we bringing our enterprise, fiscal put confident continue expand targeted

former flow and but I Before can't year. this tremendous team's cash progress our acknowledge CFO me help on the up, wrap

least with year adjusted flow With even long-term positioned Investor outlined the creation. We at continue and financial possess our to over in fiscal 'XX period cash we're returning contract at in shareholders to expectations we the record exceed to despite flexibility Day maximizing free $X business, results 'XX value billion fiscal capital shareholder investing large 'XX, to the the expiration.

work In serve summary, year, our and was our company are to our most thank continue our great partner. and care's to fiscal want trusted 'XX to year care customers we be health excited driving and health who forward. dedicated another I employees continue

that, we will questions. your With take

Operator

coming [Operator Lisa first calling from is question from Instructions] The JPMorgan. Gill

Lisa Gill

for I better Thanks all you two just originally just nice the into going had Jason. One, said understand year, to things. next of margin X%. roughly detail, the driver want

X% X%. talking you're to Now

things, margin throughout anything 'XX? about a couple new Networks, think the I as you I'm in called the out cost that else of anything improvement the just or Specialty that customer, new you there about customer would especially curious But mitigation. contract is unique out call think we

Aaron Alt

it. about Thanks question. to the talk Happy for

We notwithstanding the talking raise and continued continued last in fiscal 'XX. over -- guide really some our of our pharma reflects pleased that in business, confidence in the we've It that the quarters. business of about confidence of the resiliency puts and for are to couple really been for the takes here team

existing contract I to the the revenue profile million on in want side of second, new the and with perspective low-margin basis, underlying reflecting it's touch headwind I'll the expansions from $XX of an customers. loss. impact revenue, Within that new is underlying XX% customer That's adjusted service customers to you business. take on nonrenewal. house but do the the in, down that a that of on X%, XX% XX% really a on to emphasize X% But all out XX% billion up we XX% existing of top on to guidance with growth the $XX guided if of an

adding it's the going call, tell and the doing we single-digit And to that the on with as to lot consistent X% and There's profitability and are we what we demand. generic things of portfolio in both growing the to X% in volume on, the growing guide, in growth so customers existing plans of do at The our earnings house. and carry called we expansions forward. but Rx with low the overall revenue can specialty existing high we side the get growth said on our single-digit core market in the from customers were going supports strong dynamics. customers confident new that, things you the It's and to are out increase That the a that a during base. we

their to But in margin We we and I customer, of hurt the I'm to of the in earnings business lost. new particularly Jason, Publix we nature profile us comment forward. profitability. release. not on our commented doesn't comment context on the particular we delighted would certainly the that announce margin that any customer, observe win will were on have that today Publix as formally a going add? you anything And we've of low carry the

Jason Hollar

Nothing add. to

Operator

from be Research. will question next Our coming Nephron Percher Eric calling from

Eric Percher

in your fair new offset material it's in you into Can was input and a in know and legacy able ability we've what past? that. to on freight trends contracts were sense you concern coming pass of of you of size it mentioned to contracts there customers? the say some terms you the to -- think to And how the give increase the macro Was looked to under along seen I current us looked the that or this the versus other I that quarter and versus costs. increase

Jason Hollar

Eric. the Thanks question, for Sure.

the little costs in -- sitting ago were freight the months. had bit I we all to down back those in think year back last a historic it's time here, levels. certainly, when way A important XX to gone

And all beginning the So we was really down. the the come enjoying the run-up calendar back year. at were it had of way

Sea when quarter issues the first that's we when first Red spike. third saw our in began, So the and

springtime spike I of our first the And is for was GMPD. you that we initial that remind gave reason known come guidance when

And so from that we guidance up the and knew already, step been X. about that's factored first from day in

steps, the Xx even getting in ago increases current different couple has chain where are look when in a two levels, of we pressure, when under there the actually since of in then spending having when still But two service. were were we were increases, woefully combined difficulty you at whole first the we X, short spring, years the supply then. reasonable Yes, was where been further January they the

increase to was the accordingly, lot Eric, there's little point of more So yes, an high not chain functioning And than the a not saying, nearly way tightly. price that is adjustments before. it's used be. very, manage bit the yet. monitor as higher, Long of at requires not efficiently as widespread least we yes, but most costs importantly, where very it something supply a here. they it But It's and are

that, to the including look couple years the it's And a cost. we had talked we addition and lot terms a products, peak. environment. big other that petroleum-based And little a about was also a and inflationary of that bit at at of of important are oil Those type fuel freight overall issue. in We this the of ago softer actually in

are some the all and overall, puts But haven't managing through overall, that past. pricing near evaluate stage, lever takes we're we We'll to before. necessary we to that have exercise extent to continue net-net, had in did So at very that the we the this that. manageable. than better have within And it we

Operator

Our Partners. Michael from next Cherny calling from Leerink question come will

Michael Cherny

streams bit dive job a Is I a some you little pieces growth, more then new. us to exit on if pharma a maybe pharma exiting we did just all growth color into you the a start give pieces rate question guess, a could you there moving on specialty? if profit the on run Maybe on be versus have the year? you moving can. loss way bit any will hangover, simple better the more where can expect straightforward contract more you mean, so can given a lie outlining the on I year underlying good I the is, the where from to you also that bit understanding, And the COVID color of have

Jason Hollar

Yes.

address Let of a those me try to few pieces.

being for anticipate So saw another of highlighted key the we still fiscal business this the of part to and next in able specialty grow we is comments a story that year, in our why 'XX, year. XX% We year growth. absolutely

recall as be over XX% time X at that was the specialty years CAGR Day anticipated last may the our to well. year, at You business prior Investor

made continue strong year of and another we investments that So to by the driven have growth widespread make.

a type type Advanced of future, rising biosimilars. Therapy year tide And Networks, a of and Specialty today talked course, has for of a years. it's We benefit business, about which March in in as whether Solutions over last acquisition CVS new growth the couple benefit tailwind. been on several X-, of general, focused then our for closed X-month of our with the the drivers Averon venture interesting Biosimilars,

continue for our areas all So they're degree will to fiscal mitigate to due But that we that fiscal that that. growth expect slower in to help all would some 'XX. think, grow nonrenewal contract these that where driving are while 'XX 'XX that specialty be of in we examples are business over to to

the of we I and the of for reduction overall in enterprise, 'XX also the this remarks still contract expect in of pharma to made spite our in comment grow spite impact in that that. the segment the nonrenewal, even for revenue business that fiscal specialty

tells our fiscal So core defined single-digit the from highlighted to profit nonrenewal, we perspective, has that double-digit would we've the our that type that we business specialty. you rate, growth growth it very in consistent lap anticipate algorithm as long-term been in as and which, past, 'XX of low PD a that for profit be run with for

feed growth. well look So continue as to opportunities inorganically to we'll invest continue that to at as to other organically

Operator

be Our next calling question from today Stanley. will from Wright Morgan Erin coming

Erin Wilson Wright

Great.

versus I first think split should half perspective, with those of in however EPS of guess, about some customer stranded changes that new building of that define Specialty in half? costs given of the often terms 'XX of terms second Optum offset? any just wins pieces terms an how in the you to there Networks of guide, were given first in unwind moving contributions, about we the or And otherwise? how cadence in on So or just want the whether it, the terms fiscal half you it's the thinking are or

Jason Hollar

that almost I'll Yes. similar have unchanged. your But The last quarter. stress have Aaron upfront, messages heard are is cadence walk these plan to through to phrases we question. I just some and you very, of wanted used from should what words very the

'XX. about where of past, today the bit with Aaron, a this business are for a in very and we cadence? Of the in last little get our similar smarter. few that and investments on to pencils our that all through a made We course, we what we sharpened year. a bit thoughts better this the But exit are walked get rate we factors course, is the we talking all understanding of little

Aaron Alt

Sure.

around in don't to it Optum end us with see the results about unwind. was So was go deeper to way as on what impact And need think existing planful QX well QX. the as is, being of our to in is that. our also can us happened But of the customer to QX. We operations our an that until financials the you incredibly customer

optimization respect. talked last customers ahead the cost well we -- offsetting earnings it, been team new three executing the existing wins, customer We've the course, the around as the it, already they've Networks, past as Specialty talked of in opportunities. in we're got with further got of during the contribution our that call pleased actions, and on expansion And of

relatively are provided way. degree we able today, because plans And us so in we behind of in with as QX. view with confidence that now additional guidance what the the acting and to provide we're an consistent But we're

that. low-margin on board There's no new customers And back-half were are loaded. we've as way avoid impact will QX. nonrenewal They customer. about, The largely coming our talked a large the to

have will difference impact the timing timing our the we prior so revenue to years and will over course of relative the and profitability certainly, year. And and a that

is first us with fact carefully of key the we also why a reason there delighted working QX. a quarter, adjusted cash free are monitoring of balanced impact, right? of capital cash course, for the strong strong a at There's and position flow The cash we cash our unwind with negative the the are during balance and QX that the end flow the impact

customer So onboarding, well. as already networks look, we in work is already on balance, expansions the optimization make to will and successful the and in and play. we play, new continue the on customer is that The cost specialty

Operator

comes from today question calling Bank America. Lutz Allen Our next of from

Allen Lutz

the performed to are thoughts One how then relative there around seeing growth? And STELARA? for to changes Can from gross launch HUMIRA or for then you internal Aaron. And any you dollar any impact insulin insights your pricing model. gross profit biosimilar talk about profit are shifts or

Aaron Alt

as -- of the progression observe year. over and anticipated quarter I'll start. Look, the largely I would we that gross our margin course the

chair complicated surprises very way. in business the various management a parts and my no from have between that We real

of the Second part was... question

Jason Hollar

take there's HUMIRA It to, and there. element of insulin just that. let also related I yes, think pricing impact me So was a general the

questions. probably of So couple a different

Within but the course, of you offset the to benefit the saw, quarter, we of for that relates change ongoing insulin -- as did a year. highlighted happened as the -- -- of WACC Aaron similar at have we adjustments GLP-X the the we before, did the it calendar beginning pricing growth as

'XX, to related offset fiscal a around we through I just question price type also change. quarter until there that the we'd HUMIRA, second was assume biosimilar a So of get an anticipate of migration. to the There bit be and of

of is joint we're it with for focused on say low to with and a start still that actions to see some cost. bit. have more bit a rates. CVS seen It's it's of within meaningfully wouldn't that started Averon maybe to just still at afterwards, reasons why penetration at one quarter Certainly, increase moved even so move patients look an along and industry. to penetration that generally the continue seems low up broadly has little done pick the affordable more. ways to the fairly broad venture our I biosimilars speaking therapy little a throughout for but bit access little fairly need that we the a things in have marketplace It's So little bit to the that we But further.

to part continue do we'll there. So our

Operator

be today next from Our UBS. will Caliendo question of Kevin coming

Kevin Caliendo

the to things So business. this trying we've some I'm learned triangulate about of the GMPD just quarter

segments. guide Minor & domestic Owens stronger-than-expected talking to acute costs and of try peers Medline winning in same the you of all results We're and up put plants. and greater side? At moving a investments are side results, and the shipping you capture care in more and trend that seen time, it we've your seen go Is the You're fair Schein seeing lower those about the say that's McKesson share not happening? worse-than-expected percentage higher. to We've business to maybe that's pocket. that on just Is downstream system at make Henry health up put and in hospital

the that can costs the versus And the domestic higher, overs importing? more I second costs on basis manufacturing driven the are idea you -- that coming guess be by are shipping now tariffs price is a domestic be in -- more competitive investments that because part of could

Jason Hollar

Yes.

We more it's focused benefit from certainly not GMPD physician true offices. the is of acute customers, So that ASC an model. widely towards do do migration participate and we more in

nothing an that So It's trends. broad as we've that element. out is called

speaking, generally utilization And type much consistent so to on have fairly don't single-digit I we're sale a of on range. same-store other more low this than the basis, go past seeing there year, that

So we that seeing are growth. there's like-for-like

point we've for end growing were this What the us. of that 'XX point. not the or was 'XX year beginning of with at last that consistently We highlighted -- the was market fairly is inflection

the of grown largely there. 'XX, we've point the or course plus market, a with minus here Over or

after especially So -- our over single digit very consistent growth with that quarter. low type first of

main ASC So widespread from. think shifts of presence that looking we definitely that we there's driver think wouldn't benefit we But I a call an we we're have do but there, what don't at.

the China. the that Health we investments, of And that than geographic know have certainly to relates you XX% don't of ongoing China. domestic. let less only manufacturing in Cardinal source but I can it manufacturing to very tariff of We risk. specifically, call diversified, we're here related we also believe in competitive domestic total a we We've the investments as questions -- direct making, branded our terms out product It's did one in not stressed footprint. In they're limited some

China, to have Asia, have broad a domestic important well footprint. a don't believe a specifically So we is beyond Central, We South base supply and do nearshore, China as exposure, but exposure America. we diversified large as

across our increased the resiliency. supply have we investments improve the So chain to

a there's U.S. within areas the couple specifically. And of

specific a and You've to capability we seen have the some focus, to of the of syringes in States. United related area tariffs happen that is

just we're of doubling that's on that where so really down one example And investment.

a a example, and this financial that, at and build example yes, on the particular one and consideration. So are all behind we model But cost freight We always of look risk. margin where about we're just that's a they a that opportunity the ensuring products our customers really more in than opportunity. volume on This investment, get leaning and of more need. cost pure is

So you got to those look at factors. all

Operator

next Baird. from The of question Eric be coming Coldwell will

Eric Coldwell

segment Medicaid off the a where to million and Kevin's I be seeing months. quickly could the so, result in roughly if if behavior coming people some disenrollment. -- we're related several as in that? the think Medical possibly I'm here if in consumer and wondering probably the to about XX -- wanted And question of impacts tagging ask seen of And of to extent on quantify last specifically, impacts? specify you the you've those to I shifts kit could

Jason Hollar

going answer Thanks for before, I the context. Yes. to fairly is be similar think said but I different in a question, what my to Again, Eric.

customers, payers to customers. those of base very broad very behind a have We broad-based

So necessarily all have reimbursements even as those insight the time we don't the to from. are coming where

in again, growth is we're lot we any variations. just And we above broadly that talking, same-store The what of believe a more is. types sales underlying see and of not information, fluctuations and utilization of what beyond rate not type

where are some if that those this our driver as a to generally of trends is business at going. there I'm not stage, So meaningful seeing speaking,

Operator

question George calling Bank. Hill coming in be Deutsche from Our from today will next

George Hill

is Two pieces? number you cadence be and Aaron, guess, willing half would for number color particularly one, to expectations moving the earnings large parter, given I QX the versus on any QX year, the more back provide of

a distribution. on. environment on then the you've drug been space coming Would just We've And pretty Jason an a This quick for while competitive the we for know -- got now. loss. a love update in stable got new has is the one business

that dynamic changed of to should make Just be of? changing nothing's in be the sure we kind want that or aware nothing should

Aaron Alt

we're thoughtful the of for eye observe business would just I Sure, within very the doing pieces I'll within the within both we businesses Other. given pharma three and growth an GMPD planning course, in have year start. and we're number the on keeping business, the moving of the being that

we've rolling within a years. the flat with where Within we only the referenced customer perspective, the nature the drivers be half given unwind first pharma, through. versus what Largely, business branded That's previous back-ended are prior will true the onboarding. be from customer in what and have to pharma see cadence is year. slightly new been will inflation down of the natural QX consistent

would not so there lot And call I news out. a of different that

about perspective, million the we very push plan. see be what where that there we we executing ahead. to we how do, were and calling we're want near-term are and and that From just why as tried against be going, what doing going year to purposeful is a on drivers We transparent focused quarter forward. $XX in clear met in to to we as and during which 'XX every it we're some will accomplished do business, had out QX, And fiscal We success we number I we profit make QX we specifically to that you great carry told we're just are the plan the in up call again. that investing

in is GMPD past. be to the with described plan generally clear. how improvement rather, I want metric There's The consistent the though, no there, cadence and we've the plan

a have we can't before, of important the perspective. of topic we see we and the now We've in to the course, called results seasonality great that's dip forget from course, QX QX. a as out ahead. into benefit you the QX of lapping inflation push QX And Of that mitigation why from

Jason Hollar

Yes.

said to question, industry. what I'll relates second it say before, hey, the X% we're I As

but vast several long-term more that have have change couple contracts would are I agreements. hands X-year So These the competitive that say it's notable, that don't period-to-period. that of stable. majority several been of there's types

stress years, majority X chance, there that opportunity to risk every But occur. that the don't. vast or again, I'll So is just the for

-- on as We've positioning. about competitive good that our example. that the and focused work levels, systems our customers. Atrix know our with results experience, competitive. message We We're platforms. we're our service platforms value resonate behind one know very it, really and our initiatives feel Interlogix about positioning our the much tools the our We we for health and and talked and propositions And

just not what and to we price, but positioning going I'm with about components value through value really good have. with the going those that to offerings. having at and been that is, them degree offset we've And them that's at we feel to why able

Operator

Davis Barclays. The of coming next be Stephanie will question from

Unknown Analyst

is Stephanie. on [ quarter. AI This ] map. on about was hear the your hoping more road Congrats to I Ana for

You've within how AI should highlighted platform. improve use the potential And we efficiency to about wondering learning cases and AI machine think savings'? just cost deployments Intralogic and additional

Jason Hollar

operate. we I today what of broad. it's everywhere. without manufacturers and providers PPS phrase of AI. and using Their how talked It's the for for mean varied. about in broad-based. It's is the taking the really call areas, call getting well analytics electronic Networks. data, every out it Examples in AI, thanks question. the insights. great It's Yes, We of don't example all is actionable we that but so that core Specialty records in as medical is a that synthesizing It as

or now that in working other at sorry, as Palantir various more even even other footprint into is and on distribution the mentioned, I've you our in just in sites I'm innovative, forms to automation platforms, new those XX look and is more And efficient XX% value. we're and of over into commented This a -- at-Home the you bringing launching network. that last the manufacturing setting create the Atrix, with XX some be to technology partners of Interlogix, automation Solutions to When our months, productive.

good where of do it's trying office. I'm more beyond back the to what then we're I essence our the and don't everyone hit same question, want And feel that. and not the and is getting guess communication get business, customer talk And really drum like the definitely cases else just driving basic in to we're even about buzzwords really we is I beat into use about [indiscernible] service our

Operator

We'll Elizabeth now move from to calling Evercore. Anderson

Elizabeth Anderson

talk How Can you I moving expand speaking, moving think your two about sort times in the about One, are was sort pharma wondering from couple prior expansion what you on are, of we about increase people they a like talked comments categories? of about customer you course of generally pharma those things. call. Are across if could medical? to maybe that? they different of do across the

think that those changes the How mentioned. do And those of are long-term you cutting, cost rightsizing about then change some obviously, do of we it there's think going the if But of of how more guys we sort more putting about the sounds the some like through some we structural? about for forward? benefits you're think of sort --

Jason Hollar

start. I'll Yes,

where business it's their expansion, growth. themselves, already primary them supporting we footprint, On for the of or and are just the a we're distributor are relationships on whether more they expanding these acquisitions their customer existing customer and are taking

and relationship expanding existing an that. upon it's So

into you about of the you go that sense And of already bit So I'm use on more can examples as can it's there. what detail a Perhaps, one talking there. Aaron, little committed we're in where the BioPlus cost?

Aaron Alt

Sure.

did at X% operate the our nonrenewal. commented So I assessing would end point team the of margin the opportunities and of back the I guess I go on we the a customer operating earlier, that of job out a day, But great as business. face

us continue so it's service. to our with of cost But mindful structure the us. always North around to how of be customer important for do ensure the Star And we

ahead. are customer offset reviews continue And across identified we more create help Star they our and ensuring But to of service broad-ranging we as undertook loss. us, us impact operational push the we importantly, for focus been the near-term the the enterprise. more that will we've With during customer the pleased that efficient changes structure we North -- QX, so a actions

framework the operating Many have already new already. implemented. changes We're of been that

productive And and from operate that broader We assess are would support for of continue they are the the okay, and coming changes what opportunities. emphasize how existing the also new customers we our look to these around say, our the ideas I customers line? can better on in teams as

Operator

Stephen to move now of Baxter Fargo. Wells We'll

Stephen Baxter

like guess question. you're base? that because change I that the saying restatement just period items. Is comparability removing the right think target a million that's the to about wanted It run higher on XXXX ask of post the first it? GMPD base out higher GMPD. restatement rate in there's way couple sounds the to the to doesn't with $XXX I about issue no So you're

you the or on I based to then the for XXXX issues I'm if $XX profit business higher million to just out And restatement don't trying here? schedule those we're understand XXXX net $XX about thinking why think provided, the than cumulative timing is million in things previous.

Aaron Alt

seeing that is revisions periods no the why $XXX is comparability comparability direct The answer there question. unimpacted is to prior has into your forward. the you're -- carried the The well, million is financials income be we've there an were will derived not today. which -- impact Appreciate for revisions issue. shifting There we as of is period. by Yes. the The or for expense the of been X-year provided years the X --

though, part which environment. tied do strong does the And control a of to edge periods, in this we of part -- is around recognition community our a in that to around prior I et in revenue is at do issue emphasize, and nonrecurring time, same others revenue of base. which here as building auditors was we've park would from business, the and reflect right for we other, to We were disclose part the gotten cetera. thing the feedback X.X% our and adjustments operation of business, want than maintaining that identified their less careful our issue -- at-Home decided the the it comments overall it's and

we timing 'XX so carry clean to about we by unimpacted And to our only talk a as be financials comparability, now walk not into progress with set fiscal with of forward. but able

Operator

Charles next question TD of Cowen. from will Rhyee come The

Lucas Romanski

talk Charles. thinking at-Home growth? that Should and in for Other to be about about in on target Can about any you fiscal segment from of the set? outperforming 'XX segment. of Lucas the what's terms is This we businesses Wanted Nuclear expected OptiFreight, these XX% ask you've

Aaron Alt

present opportunity. do of Jason's aggregated around his an tone the Well, for of as a guidance we basis. guidance think these each perspective, comments presents But voice on Health Other you want we from the carry I provide businesses enthusiasm away and to We take three in to Cardinal forward.

that investing They're differently. unique. the perspective. each them from businesses. also are those of a managed are It's We financial businesses we case The aggregate in

platforms distribution 'XX, points automation. about at PET in the has The business and of and 'XX. has in invest network its opened opportunities well that investing presents. customer is about Theranostics expanding our the service have digital experience. as continued to we we've We talked length business, excitement in in recently At-Home two are of and as new OptiFreight Nuclear

so the again, part if or an cases, in a in you're view, a picture benefit be while portfolio. we And from the what which some the presenting guide, month are on parts investing other reaping year of or we'll go a of I in year aggregated reflects, the seeing Jason? to is same the month back consistent financial in Other basis

Jason Hollar

especially in is are to comments -- across invest the 'XX. continuing that investing in investment fiscal fiscal the one three an we 'XX was but we all growth And we to to say the prior thing contribute are would period, heavy that did are businesses Yes, expected clarify I range.

business. it put about Theranostics expansion PET to second as our some announced investments And then example talked perspective our ago that our we've Precision with one phase a we lot talked analogs or expansion. we that and highlighted, have Health year. we Solutions is into year this about business last also about This of in Just a a Nuclear

had secular and enjoy into is addition in is distribution very fiscal centers -- putting Aaron $XXX into are 'XX also we're that's grow 'XX, trends each business, and to capital in From these then million, to that investing making we're further big very we that that a in investments. position about to representative from 'XX each, of the representative mainly that Solutions they leadership we're because mentioned, the ability then continue reflecting that inputs the but investments to different of the the at-Home these by deeply that have bolstered we but businesses believe specific their three benefit

Operator

our Grosslight today last Daniel And Citi. of ladies gentlemen, and be from coming will question

Daniel Grosslight

quarter. Will And detail any of on on when point? that? are CVS more that obligations was with that [indiscernible]? agreement that get at renew? I kind or interact does there Averon. to And Congrats quarterly does how serving strong this just hoping then And then bit with be a payments associated lastly, purchase

Jason Hollar

Okay.

crammed in you there. about four So

specific first question Averon... Averon, on the So

Matt Sims

-- color. Just speaking broadly

Jason Hollar

consistent a But so few there's question is different service I CVS. well, more is specific concept question It's it this reflecting with think referenced So it. think I Sourcing, I the can jointly a a times, no. what just was, The answer behind will, both if customers, capabilities that different our we and we you through as different patients have did benefit needs, space. in Oak Red those combining

where we we with operate way would different have to similar So expect a in that. benefits associated

about I the will. think type you're Oak what there's structure you Red for -- same have There payments, of payment and of Sourcing, schedule are not talking if equalization -- are kind we that

structured quite that regard. with So It a bit is not does structure exist this. differently in that

in then So about renewal terms there CVS. of -- I there's and -- question the a we think

the Red so the goes then Oak contract through the 'XX through distribution And goes goes through agreement contract -- 'XX. and

example agreements, have the of outside So that ensure about to this those certainly much ways various serve patients. any an how of is and of in very better we to partnership underlying we're all those our customers it's of and to type that thinking look with

Operator

call the to you remarks. questions. Mr. Hollar, closing you. would or we for any have like additional over any don't further to Thank back turn I

Jason Hollar

us. for joining thank Thank Yes. all you you, and

a was pleasantries to that points addition well hope want this, I additional I of for to usual that our your that, lot many a the I In today. there do in to just reflecting it's I as year-end know minute given point at back but have guidance, step as within call, this clarified we digest the

key today. reemphasize very want do same three started the I points the beginning end I to had I at of where But just commentary and to those

We by share earnings the for with First momentum. of XX% both our year. quarter per year all, we grew the the fiscal and terrific finished

that that last growing the You last our the the in nearly significant board, segment, that of performance but most we business, unwind. of strong some a across from largest, on having growth in our pharma years, despite in increase XX% add by saw quarter really our contract impacts year, driven top performance the over that's EPS those couple of

that in as it's is marketplace. industry we GMPD, but seeing part, business mitigation we're as improvement continues utilization inflation, hard the our driving long, we're year journey, and good gotten is of a within enterprise, offered That, being driving a the forward. million need ] that really this by have on But GMPD, whether $XXX successful also well we've the able of to was [ the very see pharma but focus driven going this there, business across now that that to lot

excited but there, trends the continuing Our Really across well. robust about seeing the business. growth board. we're while as secular demand Other the 'XX double-digit growth invest in XX% Utilization in businesses, ongoing to

very Cash that's take flexibility forward. strong, in year that flow, nearly not well billion combination, last us But for you billion really and positions going year year. $X this financial only when this nearly $X

right. All

business of also fiscal why with in about that's but The feel momentum, that our despite transition. 'XX was that our and because very we second EPS driving guidance, our growth point both confident in fiscal raised 'XX largest we pharma, customer

on and then Very management and forward, going also continue we're cash optimizing those to our operational all doing is strategy And we'll portfolio. and lastly, driving focused flow while consistent, team we've you. key communicate. with had transparent that focus This thirdly priorities, our dialogue

the we time. we've our or We're even well progress of in Networks, to that partnership it's spite excited whether of furthering quite headwinds that business We're acquisition, the the integration areas in identified. across number about customer that positioned our of grow largest our continue a to ongoing about, with we've any largest type Specialty some done of talked

near-term within value And opportunistic actions, of fiscal share that is will that, responsibly the business to we specifically today. course, shareholder additional more 'XX. repurchases creation. And in to GMPD And we've communicated even prioritize year behind some translating continue all

forward attention keeping lot be and about, appreciate we but there, and lot progress. you updated to on a look a to So our excited and time your

Operator

gentlemen, much attendance. will and you your Thank Ladies you Thank conference. so conclude sir. that today's for

and day good goodbye. a Have disconnect. can You

Cardinal Health (CAH) 14 Aug 242024 Q4 Earnings call transcript