\n| \n Diluted Shares Outstanding<\/b><\/p>\n<\/td>\n | \n 195.1M<\/i><\/p>\n<\/td>\n | \n 195.1M<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nBelow, Cencora presents descriptive summaries of the Company\u2019s GAAP and adjusted (non-GAAP) quarterly results. In the tables that follow, GAAP results and GAAP to non-GAAP reconciliations are presented. For more information related to non-GAAP financial measures, including adjustments made in the periods presented, please refer to the \u201cSupplemental Information Regarding Non-GAAP Financial Measures\u201d following the tables.\n<\/p>\n Second Quarter GAAP Results<\/span><\/b><\/p>\n\n- Revenue:<\/span> In the second quarter of fiscal 2025, revenue was $75.5 billion, up 10.3 percent compared to the same quarter in the previous fiscal year, primarily due to an 11.4 percent increase in revenue within the U.S. Healthcare Solutions segment.\n<\/li>\n<\/ul>\n
\n- Gross Profit:<\/span> Gross profit in the second quarter of fiscal 2025 was $3.1 billion, a 20.6 percent increase compared to the same period in the previous fiscal year, primarily due to the increase in gross profit in the U.S. Healthcare Solutions segment and larger gains from antitrust litigation settlements, offset in part by LIFO expense in the current year period in comparison to a LIFO credit in the prior year period and a decrease in gross profit in the International Healthcare Solutions segment. Gross profit as a percentage of revenue was 4.06 percent, an increase of 35 basis points from the prior year quarter due to the increase in U.S. Healthcare Solutions gross profit margin, primarily as a result of the January 2025 acquisition of Retina Consultants of America (RCA).\n<\/li>\n<\/ul>\n
\n- Operating Expenses:<\/span> In the second quarter of fiscal 2025, operating expenses were $2.0 billion, a 2.0 percent increase compared to the same quarter in the previous fiscal year, primarily due to an increase in distribution, selling, and administrative expenses as a result of the acquisition of RCA and to support our revenue growth, offset in part by lower litigation and opioid-related expenses compared to the prior year period, which included a $214.0 million litigation accrual related to the distribution of prescription opioid medications.\n<\/li>\n<\/ul>\n
\n- Operating Income:<\/span> In the second quarter of fiscal 2025, operating income was $1.0 billion, an increase of 87.3 percent compared to the same period in the previous fiscal year due to the increase in gross profit, offset in part by the increase in operating expenses. Operating income as a percentage of revenue was 1.37 percent in the second quarter of fiscal 2025 compared to 0.81 percent in the prior year quarter.\n<\/li>\n<\/ul>\n
\n- Interest Expense, Net:<\/span>In the second quarter of fiscal 2025, net interest expense was $104.0 million, an increase of 62.2 percent from the prior year quarter primarily due to an increase in interest expense as a result of our issuance of $1.8 billion of senior notes in December 2024 and the $1.5 billion variable-rate term loan, which we borrowed in January 2025, to finance a portion of the RCA acquisition, and increased revolving credit facility borrowings to cover seasonal short-term working capital needs.\n<\/li>\n<\/ul>\n
\n- Effective Tax Rate:<\/span> The effective tax rate was 22.7 percent for the second quarter of fiscal 2025 compared to 9.8 percent in the prior year quarter, which included discrete tax benefits associated with foreign valuation allowance adjustments.\n<\/li>\n<\/ul>\n
\n- Diluted Earnings Per Share:<\/span> Diluted earnings per share was $3.68 in the second quarter of fiscal 2025, a 76.1 percent increase compared to $2.09 in the previous fiscal year\u2019s second quarter.\n<\/li>\n<\/ul>\n
\n- Diluted Shares Outstanding:<\/span> Diluted weighted average shares outstanding for the second quarter of fiscal 2025 were 195.1 million, a decrease of 3.0 percent versus the prior year second quarter primarily due to share repurchases.\n<\/li>\n<\/ul>\n
Second Quarter Adjusted (non-GAAP) Results<\/span><\/b><\/p>\n\n- Revenue:<\/span> No adjustments were made to the GAAP presentation of revenue. In the second quarter of fiscal 2025, revenue was $75.5 billion, up 10.3 percent compared to the same quarter in the previous fiscal year, primarily due to an 11.4 percent increase in revenue within the U.S. Healthcare Solutions segment.\n<\/li>\n<\/ul>\n
\n- Adjusted Gross Profit:<\/span> Adjusted gross profit in the second quarter of fiscal 2025 was $2.9 billion, a 15.2 percent increase compared to the same period in the previous fiscal year due to the increase in gross profit in the U.S. Healthcare Solutions segment, offset in part by the decrease in gross profit in the International Healthcare Solutions segment. Adjusted gross profit as a percentage of revenue was 3.86 percent in the fiscal 2025 second quarter, an increase of 16 basis points from the prior year quarter due to the increase in U.S. Healthcare Solutions gross profit margin, primarily as a result of the January 2025 acquisition of RCA.\n<\/li>\n<\/ul>\n
\n- Adjusted Operating Expenses:<\/span> In the second quarter of fiscal 2025, adjusted operating expenses were $1.7 billion, a 15.2 percent increase compared to the same period in the previous fiscal year, primarily driven by an increase in distribution, selling, and administrative expenses as a result of the January 2025 acquisition of RCA and to support our revenue growth.\n<\/li>\n<\/ul>\n
\n- Adjusted Operating Income:<\/span> In the second quarter of fiscal 2025, adjusted operating income was $1.2 billion, a 15.3 percent increase compared to the same period in the prior fiscal year, driven by an increase in the U.S. Healthcare Solutions segment, partially offset by a decrease in the International Healthcare Solutions segment. Adjusted operating income as a percentage of revenue was 1.58 percent in the fiscal 2025 second quarter, an increase of 7 basis points when compared to the prior year quarter.\n<\/li>\n<\/ul>\n
\n- Interest Expense, Net:<\/span>No adjustments were made to the GAAP presentation of net interest expense. In the second quarter of fiscal 2025, net interest expense was $104.0 million, an increase of 62.2 percent from the prior year quarter primarily due to an increase in interest expense as a result of our issuance of $1.8 billion of senior notes in December 2024 and the $1.5 billion variable-rate term loan, which we borrowed in January 2025, to finance a portion of the RCA acquisition, and increased revolving credit facility borrowings to cover seasonal short-term working capital needs.\n<\/li>\n<\/ul>\n
\n- Adjusted Effective Tax Rate:<\/span> The adjusted effective tax rate was 20.8 percent for the second quarter of fiscal 2025 compared to 20.9 percent in the prior year quarter.\n<\/li>\n<\/ul>\n
\n- Adjusted Diluted Earnings Per Share:<\/span> Adjusted diluted earnings per share was $4.42 in the second quarter of fiscal 2025, a 16.3 percent increase compared to $3.80 in the previous fiscal year\u2019s second quarter.\n<\/li>\n<\/ul>\n
\n- Diluted Shares Outstanding:<\/span> No adjustments were made to the GAAP presentation of diluted shares outstanding. Diluted weighted average shares outstanding for the second quarter of fiscal 2025 were 195.1 million, a decrease of 3.0 percent versus the prior year second quarter primarily due to share repurchases.\n<\/li>\n<\/ul>\n
Segment Discussion<\/span><\/b><\/p>\n\nThe Company is organized geographically based upon the products and services it provides to its customers under two reportable segments: U.S. Healthcare Solutions and International Healthcare Solutions.\n<\/p>\n U.S. Healthcare Solutions<\/span><\/i><\/p>\n\nU.S. Healthcare Solutions revenue was $68.3 billion in the second quarter of fiscal 2025, an increase of 11.4 percent compared to the same quarter in the previous fiscal year due to overall market growth primarily driven by unit volume growth, including increased sales of products labeled for diabetes and\/or weight loss in the GLP-1 class and specialty products to physician practices and health systems. There was no significant increase in U.S. Healthcare Solutions revenue resulting from the acquisition of RCA as inventory sales from our specialty distribution business to RCA are now being eliminated in consolidation. Segment operating income of $1.0 billion in the second quarter of fiscal 2025 was up 22.8 percent compared to the same period in the previous fiscal year primarily due to the increase in gross profit, as a result of increased product sales and the January 2025 acquisition of RCA, offset in part by the increase in operating expenses.\n<\/p>\n International Healthcare Solutions<\/span><\/i><\/p>\n\nInternational Healthcare Solutions revenue was $7.2 billion in the second quarter of fiscal 2025, an increase of 0.7 percent compared to the previous fiscal year\u2019s second quarter. Segment operating income in the second quarter of fiscal 2025 was $159.3 million, a decrease of 17.3 percent, primarily due to lower operating income at our global specialty logistics business and our European distribution business. On a constant currency basis, International Healthcare Solutions revenue increased by 5.7 percent while segment operating income decreased by 13.9 percent.\n<\/p>\n Recent Company Highlights & Milestones<\/span><\/b><\/p>\n\n- \nCencora released its 2024 Corporate Responsibility Report and microsite, outlining the integration with business objectives and a focus on business resiliency and sustainable operations. For the seventh consecutive year, selected information within the 2024 report was assured by ERM Certification and Verification Services.\n<\/li>\n<\/ul>\n
Fiscal Year 2025 Expectations<\/span><\/b><\/p>\n\nThe Company does not provide forward-looking guidance on a GAAP basis as to certain financial information, where the probable significance of the information cannot be determined, is not available or cannot be reasonably estimated. Please refer to the Supplemental Information Regarding Non-GAAP Financial Measures following the tables for additional information.\n<\/p>\n Fiscal Year 2025 Expectations on an Adjusted (non-GAAP) Basis<\/span><\/b><\/p>\n\nCencora is now updating its fiscal year 2025 financial guidance to reflect stronger earnings growth in the U.S. Healthcare Solutions segment and a lower contribution from the International Healthcare Solutions segment.\n<\/p>\n \nThere is no reduction to updated EPS guidance for a noncontrolling interest in RCA because the 15% equity interest retained by certain RCA physicians and members of management is accounted for by the Company as a contingent liability as opposed to a noncontrolling interest in equity.\n<\/p>\n \nThe Company now expects:\n<\/p>\n |