George Hill

Bob acknowledged credible new 3PL competitors but said Cencora competes at the higher end with differentiated, pharmaceutical-focused capabilities (World Courier, ICS). Eva said specialty and oncology utilization grew consistently through Q3 and Q4 implied guidance shows sequential improvement with the US at the strongest organic growth.

Jim acknowledged the question but said they don't currently break out Part B vs Part D earnings. Bennett clarified FY26 guidance excludes iSouth contribution. RCA has been lapped for one year; OneOncology will continue ramping.

Jim explained OneOncology is low-revenue/high-margin like RCA. Revenue counted once (intercompany eliminated). IRA list price changes fully anticipated in guidance. No meaningful difference between EBITDA and OI other than D&A.

Jim highlighted ROIC as key metric beyond just margins. Specialty wraparound services (GPO) and MSOs are accretive to margins. Core distribution still delivers strong ROIC even at lower margins due to working capital management.

Bob said nothing changing about the competitive market. Confident in leadership positioning in retina and oncology. Emphasized ongoing investment in both digital and physical infrastructure capabilities.

Jim explained RCA adds to margins both because it's higher-margin and because intercompany sales are eliminated in consolidation. Detailed the accounting determination: 15% physician equity is contingent liability not NCI, resulting in $0.14 additional EPS. Significant majority of EPS guidance increase from core US distribution.

Bob declined to rank value drivers, noting different specialties value different services. Emphasized dynamic marketplace with continuously changing physician needs.

Bob noted extensive modeling of IRA Part B scenarios, all deemed manageable. Said Part D impact so far is in reimbursement not list price.

CEO clarified the largest-customer renewal referenced GMPD, not the CVS pharma distribution agreement, and emphasized Cardinal's ~1% aggregate margin reflects the physical distribution role that models will continue to rely on even as they evolve.

CEO argued the 1% margin level is already the lowest in the supply chain, fully demanding continued fees. Said it's too early to comment on unified service fee implications.

Jason confirmed successful DSA fee adjustments for all 26 IRA items preserving margin. No reason to expect different for 27/28 items. Revenue may be impacted as WAC levels decline but margins remain stable. All factored into FY26 guidance with no meaningful changes from original assumptions.

Aaron noted H2 laps GIA/ION acquisitions and new customer wins, explaining cadence. Declined to break out further. Jason noted strength across all aspects but not prepared to break out Part B vs Part D specifically. Technical difficulty cut part of his response.

Aaron noted Specialty Networks is now part of broader core operations. Jason clarified Cardinal is NOT contributing assets to Solaris, they bring broader infrastructure and capabilities. Aaron directed to upcoming 10-K for liability classification details.

Aaron attributed margin expansion to specialty growth (higher margin, faster growing), MSO additions, and strong SG&A control, SG&A actually down ex-acquisitions.

Jason force-ranked: Brand/Specialty largest, Generics notable, vaccines slight tailwind. Broad strength across the board, not any single driver.

Mark sketched 2027 as broad-based: Medicaid improving (not flat), favorable MA mix, strong commercial sales, disciplined ACA pricing, and capital deployment supporting at least 12% EPS growth.

Mark explained DCP increase was seasonal and mix-related, not reflecting change in reserve approach. Prior year development was approximately $250 million, reestablished as margins through normal process.

Mark provided EPS bridge building blocks: stable commercial fully insured, continued fee-based strength, progress in ACA, Medicaid compressing to approximately -1.75%, MA margin improvement to at least 2% (>100bp improvement), low single-digit Carelon operating gain growth, and meaningful below-the-line step down from nonrecurrence of 2025 items.

Mark declined to set a floor, citing key pending variables including January Medicaid rate updates, Medicare AEP outcomes, enhanced subsidy status, and cost trends. Positioned today's commentary as preliminary planning assumptions with more specificity coming in January.

Mark described Q3-weighted earnings with Q4 supported by year-end nonoperating tax benefit and incremental expense reduction/cost management savings having greatest impact in Q4.

Mark confirmed V28 changes were anticipated and priced for but did not specifically address whether the impact is a lapping or stacking effect into 2026.

Morgan highlighted ACA as solid complementary business regardless of subsidy outcome. Mark confirmed effectuation rates consistent with prior years with no changes in assumptions.

Kenny detailed 5% top-line growth and 19% AOP growth from specialty distribution and product-launch timing, with customer, product, and channel mix as the margin drivers.

Britt confirmed manufacturer pricing activity right in line with expectations, consistent with past few years. Strong relationships and constructive conversations maintained. Price declines impact revenue but not material to bottom line economics.

Brian acknowledged DSCSA as a big industry investment that adds to McKesson's value proposition and barriers for new entrants, but doesn't expect it to be a material driver given market structure.

Britt clarified the $0.20 raise is specifically from Norway held-for-sale accounting, with no changes to PTS or medical segment guidance. U.S. Pharma guided to high end of range based on strong performance.

Britt confirmed savings are expected to be more than temporary but declined to quantify FY2026 impact, citing public policy as a wildcard and primary care weakness as the main headwind.

Britt quantified a ~20% increase in clinical-trial accruals since the joint venture began.

Asher validated the analyst's math on the prior-year settlement benefit and pointed to the greater-than-3% framing as the signal on underlying PDP margin.

Sarah distinguished between excess trend from fraudulent/inappropriate billing (current focus area with significant savings opportunity) versus eventual benefit design tightening that could reduce rates. Noted long runway before reaching benefit design level. States also taking direct action against suspect ABA providers rather than relying solely on MCOs, acknowledging systemic drag from fraud.

Drew clarified Florida retro was intra-year (Q1/Q2 to Q3), so full year 93.7% is the clean jump-off. High-cost drug carve-outs, kick payment pools, and reinsurance mechanisms contributing to 2026 margin stability.

Drew confirmed it is pharma (not pharmacy) pressure driving specialty costs. PDP long-term target remains 3%+ pretax margin from current 1% zone.

Drew confirmed sticking with $34B commercial revenue guidance despite strong start, wants to see membership slope over next 3-4 months before any raise.

Management confirmed CostVantage neutralized GLP-1 margin headwinds; 200 basis point GLP-1 category share growth driven by both DTC and insured channels.

Newman outlined: Medicare another year of margin improvement, Medicaid cautious outlook maintained, Commercial pricing discipline yielding strong performance. Nelson emphasized culture-driven execution.

Joyner confirmed growth should tie to script growth as CostVantage rolls out. Shah detailed CostVantage Medicare transition more than 60% complete, targeting 100% by start of 2026.

Shah detailed 12.5% top line growth and 7.6% AOI increase. Newman noted caution on consumer dynamics and immunization market demand for back half.