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CFO Aaron Alt stated the company focuses on total enterprise and segment profit improvement rather than just core distribution gross margin. He highlighted that the emphasis on higher-margin specialty distribution and new revenue streams from MSO acquisitions are helping the overall gross profit profile.

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CEO Jason Hollar confirmed that the tariff impact is the most significant variable. He explained that the outlook for GMPD profit to be 'at least consistent' with fiscal 2025 is based on continued Cardinal Health brand growth and cost reductions being partially offset by the net impact of tariffs. He noted a recent reduction in force in Q3 as part of these cost mitigation efforts.

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CEO Jason Hollar explained that the investments in specialty demonstrate the company's commitment and understanding of the space, which is crucial for winning business with specialty physicians. He noted that while the impact varies by customer type, for specialty physicians, having a partner that can address all their needs—beyond just distribution—is critical. He described it as a 'flywheel effect' where enhanced capabilities attract partners, leading to growth that is currently outpacing the market.

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Executive Aaron Alt attributed the guidance raise to strong Q1 execution, successful management of the customer transition, simplification efforts, and contributions from new customers. He reiterated that COVID-19 remains a modest headwind for the full year and that GLP-1s contribute to revenue growth but are not a significant profit driver. He also outlined the expected cadence, with Q2 being slightly down before growth resumes in the second half.

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CFO Anna Bryson attributed the strong upsell season to broad-based strength across SMB customers, news and workflow modules, and health systems. She described the client portal as a "game changer" that provides crucial ROI insights, helping drive over 100% year-over-year bookings growth in the SMB cohort. She also noted that a diversified commercial product portfolio was a key contributor.

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CFO Anna Bryson acknowledged that Doximity has learned from past volatility, such as the post-COVID downturn, that upsells can be more variable. She confirmed that while no slowdown has been observed yet, the company's guidance prudently assumes client budget growth will be at the lower end of the 5% to 7% market range to account for this potential variability in upsell dollars.

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Co-Founder Dr. Nate Gross responded that it is 'too early to make calls' on administrative changes. He suggested a full DTC ad ban is unlikely, with pricing transparency being more feasible. He emphasized that Doximity is not basing its strategy on potential regulatory shifts but is focused on its current execution with clients.

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CEO Dan Scavilla stated his belief that the company has a complete portfolio and that the key is focus and execution. He expressed a preference for organic growth but remains open to opportunistic M&A. Regarding the implant business, he endorsed the current direction, stating he wants to accelerate progress and go 'deeper and faster' rather than making disruptive changes.

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CEO Simon Campion explained that the company is actively working to improve the SureSmile software user interface to make it more seamless for orthodontists and their staff, with an update expected by year-end or early 2026. He emphasized the strategic importance of re-engaging the orthodontist community, which represents the majority of the market volume.

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CEO Simon Campion responded that the company regularly assesses its portfolio but emphasized the unique value of its end-to-end dental offering. He stressed that scanners are the hub for digital workflows and that the DS Core platform is key to connecting procedures and driving growth across essential assets like implants and aligners, highlighting the significant under-penetration of digital dentistry globally.

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CEO Simon Campion explained that SureSmile's commercial team primarily focuses on general practitioners and will target orthodontists after software front-end improvements are complete. He highlighted SureSmile's healthy growth in Europe and mid-single-digit growth in North America (excluding one partner). He also noted that talented personnel from Byte are being redeployed to accelerate SureSmile software development. He did not quantify the top-line impact of SKU reduction.

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CEO Wendy Barnes attributed the 32% YoY growth in Pharma Solutions to strong, validated ROI for manufacturers, leading to expanded partnerships. CFO Chris McGinnis expressed high conviction in achieving 30% or higher growth for the full year. Regarding capital, McGinnis stated that after reinvesting in the business, the company will continue to use excess cash for share repurchases, as they believe the stock is undervalued.

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CFO Chris McGinnis explained that the performance is a mix of both revenue strength and cost control, but noted the company has more direct levers on the cost side. He anticipates some marketing spend will increase in the second half of the year but will be offset by ongoing operational efficiencies. CEO Wendy Barnes added that their strategic initiatives are designed to be 'durable' by creating deeply integrated partnerships that are difficult for competitors to displace, thereby increasing long-term control.

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CEO Wendy Barnes stated that GoodRx is insulated by its multi-PBM approach and direct relationships with major pharmacies, which allow it to improve pharmacy profitability. CFO Chris McGinnis added that by creating an aligned economic model that helps pharmacies solve pain points like unfilled scripts, GoodRx can increase its own revenue per script, even if there are mild headwinds to the total number of active consumers.

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CEO & Director Brian Tyler explained that the strong specialty growth is broad-based across all segments. He attributed the durable performance to a successful formula that combines capturing strong organic market growth with their strategy of expanding provider networks. This expansion includes recruiting physicians, adding smaller practices to existing ones, and executing large-scale acquisitions like Florida Cancer Specialists.

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CEO Brian Tyler described forecasting the illness season as a 'hazardous activity' and declined to speculate on Q4. For the longer term, he expressed confidence in the alternate site market, citing macro trends like aging demographics, patient convenience, and cost-effective care as fundamental drivers that align with McKesson's strategy and assets.

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EVP & CFO James Cleary stated that while formal 2026 guidance will come later, the company is confident in its long-term targets of 5-8% organic operating income growth and 8-12% EPS growth. He confirmed that fiscal 2026 will benefit from a full year of RCA contribution. Key variables for the upcoming year include utilization trends, the timing of capital deployment like share repurchases, and an assumed improvement in the international segment's performance after a soft fiscal 2025.

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CFO Jim Cleary explained that the Q2 outperformance was driven by organic growth in the core U.S. distribution business, fueled by strong utilization and broad-based specialty sales. He positioned the RCA and OneOncology investments as a 'natural evolution' of adding value-added services. CEO Bob Mauch added that Cencora remains committed to investing in its specialty capabilities.

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CEO Robert Mauch explained that Cencora's strategy is centered on pharmaceuticals, building a comprehensive portfolio of services, and partnering with market-leading customers. He emphasized that expanding into managed service organizations (MSOs) is a logical strategic extension of Cencora's long-standing support for community providers.

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Bennett Murphy, SVP, Head of Investor Relations and Treasury, confirmed that the potential oncology customer loss is included in the FY2025 forecast. He clarified that excluding the headwind from commercial COVID vaccines, the top end of the U.S. Healthcare Solutions operating income guidance range would be 8%, rather than the stated 6.5%.

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President & CEO Joe Hogan responded that the focus is shifting to the "last mile" by working more closely with individual doctor practices. The strategy involves helping them channel national advertising demand more effectively and implement conversion tactics, including ensuring patients have access to financing options, similar to what larger DSOs do.

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CFO John Morici attributed the margin expansion primarily to operational improvements within Align's control. He cited enhanced manufacturing efficiencies, material and logistical savings, and productivity gains from innovations like touchless ClinCheck. He stated these factors help offset known tariff impacts. Morici confirmed that the company did not disclose the specific DSP number for the quarter but noted its contribution to growth.

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CFO John Morici stated that 2025 Clear Aligner volume growth is projected to be in the mid-single digits. CEO Joe Hogan added that he does not foresee a significant shift in competitive dynamics, believing Align's innovations like 'ClinCheck in minutes' provide a distinct advantage and that the company is building momentum.

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CEO Joe Hogan explained that the new products will offer greater design freedom and will be particularly appealing to the orthodontic community for treating complex cases, though they will also benefit general practitioners. CFO John Morici confirmed that there are no other significant one-time impacts like the U.K. VAT issue anticipated for the upcoming year.

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President, CEO, and Chairman Adam Schechter explained that the robust 9% growth in Diagnostics was evenly split between organic growth and acquisitions. He highlighted that organic volume growth of 3.5% is well above historical norms, driven by successful hospital and regional lab deals that expand geographic access and a strategic focus on specialty testing areas like oncology and neurology, which grow 3-4 times faster than the overall market and pull through routine test volume.

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President, CEO, and Chairman Adam Schechter explained that the 9% growth in Diagnostics was evenly split between organic growth and acquisitions. He highlighted that organic volume growth of 3.5% is well above the historical 1-2% rate, driven by two key strategies: winning hospital and regional lab deals to expand geographic access and focusing on high-growth specialty areas like oncology and neurology, which pull through routine testing.

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Chairman and CEO Adam Schechter stated that the BLS segment grew 3% and maintained a strong book-to-bill of 1.13. He explained that the 3-5% full-year guidance range was held steady, despite favorable currency, to account for potential macro uncertainties like study start delays. Schechter confirmed that while they are monitoring the situation, no significant study delays have been observed to date.

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CEO Adam Schechter explained that margin expansion is expected in both Diagnostics and Biopharma, driven by the Invitae acquisition becoming accretive in the second half of 2025 and overcoming headwinds from weather. He noted that while recent volume growth has been historically high, he expects it to normalize over time, though Labcorp may continue to gain market share. CFO Julia Wang added that 2025 Diagnostics growth is expected to be balanced, with half from organic business and half from acquisitions completed in 2024.

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CFO Glenn Eisenberg stated that the underlying business is benefiting from top-line growth and LaunchPad initiatives, which are on track to deliver $100-$125 million in savings. He noted that many of 2024's headwinds, such as Invitae, weather, and calendar days, are expected to become tailwinds for margins in 2025. CEO Adam Schechter added that LaunchPad is about continuous improvement, with technology and AI presenting new opportunities for future cost reductions.

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CEO Steve Cutler advised caution, stating it's too early to 'declare victory' on a biotech recovery. However, he noted that three of the top four awards in the quarter were from the biotech segment. He suggested there might be a lag between broader funding market data and the execution of well-funded projects, expressing encouragement but acknowledging continued volatility.

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CEO Dr. Steve Cutler explained that the biotech segment remains challenging and uncertain, admitting previous recovery forecasts were premature. He noted that while capital can be raised for good science, customers are cautious, leading to delayed decisions, de-scoped projects, and some cancellations. Dr. Cutler stated that while RFP flow is solid, converting opportunities into revenue-generating projects is the primary challenge, and the company is not yet ready to call the end of the difficulties in this segment.

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CFO Kevin Brady described the elevated pass-through mix as the "new normal" for the near term due to a therapeutic mix shift. CEO August Troendle attributed the lower win rate to losing a couple of very large projects, not a weakness in any specific area. Regarding capital allocation, CFO Kevin Brady reiterated their opportunistic approach to share repurchases.

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CEO August Troendle stated that he did not perceive any specific monthly cadence to the cancellations, noting they were spread across the quarter and not necessarily linked to FDA news. Regarding client sentiment on a market recovery, he commented bluntly, 'I don't think anybody knows,' indicating a high degree of uncertainty in the channel.

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CEO James Davis characterized the growth as primarily 'offensive.' He explained that with pricing relatively flat, the increase was driven by strong growth in tests per requisition and a favorable test mix. Key contributors included advanced diagnostics, work with functional medicine entities, and the company's consumer-initiated testing business. He indicated that he expects these positive trends to continue through the rest of the year.

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James Davis, Chairman, CEO and President, confirmed that discussions with health plans to redirect work from more expensive labs are continuous. He highlighted the new preferred lab network agreement with Optum Health as an example of how Quest partners with large enterprise providers to improve quality and value. He agreed that external cost pressures like tariffs could help accelerate this shift of volume to Quest.

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CEO Jim Davis attributed the growth to continued strong test per requisition trends, driven by new advanced diagnostics in brain health, cardiometabolic, and autoimmune testing, which are still in early growth stages. He also noted a favorable payer mix shift towards Medicare Advantage. CFO Sam Samad added that while test per req will improve in 2025, the rate of improvement is expected to moderate.

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CEO Jim Davis clarified that the benefits from the Elevance contract, which expands network access in key states, will begin in 2025 and fuel future organic growth. CFO Sam Samad added that pricing is expected to be flattish to slightly improving and that recent hospital outreach acquisitions are also a key driver of market share gains.

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CEO Peter Anevski stated that while all new modules are generating sales interest, the menopause product is seeing the highest member engagement due to its larger addressable market compared to maternity. President Michael Sturmer added that despite some macro uncertainty potentially affecting the average size of opportunities, the overall pipeline in terms of dollars and number of deals is comparable to the prior year, highlighting the benefit of a diversified client base across 45 industries.

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CEO Peter Anevski stated it is too early to provide financial contribution details for the new services until member marketing and engagement data becomes available. CFO Mark Livingston confirmed there are no trapped costs from the client loss and noted that its EBITDA contribution was lower than the company average, with the full impact already factored into the 2025 guidance.

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CEO Pete Anevski described the initial sell-through as 'positive,' with 1.5 million lives gaining access, but noted that future revenue contribution will depend on utilization patterns. Regarding the international deal, he positioned it as a strategic investment to build a global offering for multinational employers, stating it is more of an opportunity for 2025 with no material impact on current reported lives.

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Chief Administrative and Financial Officer Glenn Coleman confirmed that the fee share renegotiations are proceeding in line with expectations, noting they are now over 75% complete, which is slightly ahead of their prior schedule. President and CEO Michael Alkire explained that expanded partnerships are driven by a holistic need for performance improvement beyond just tariffs, encompassing broader cost reduction, labor productivity, and revenue cycle management as health systems face mounting financial pressures.

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CEO Michael Alkire explained that Premier focuses on supply chain diversification and relies on 'firm for the term' pricing in most contracts to shield providers from tariff impacts. CFO Glenn Coleman added that strong gross administrative fee growth of nearly 5% year-to-date, favorable fee share renegotiations, and new member wins contributed to the outperformance in Supply Chain Services.

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CEO Michael Alkire stated that utilization is stable to slightly increasing and that Premier is using technology to identify new contract opportunities and help members manage high labor costs. He outlined a capital investment strategy focused on expanding the supply chain portfolio (PPI, purchase services), enhancing the ordering platform, and growing Performance Services (HCC, prior authorization, real-world evidence). CFO Craig McKasson added that moving the Remitra platform into supply chain services will improve digital alignment and invoicing capabilities.

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President and CEO Paul Keel affirmed that accretive M&A is a key capital allocation priority after funding organic growth. He stated that with private market dental multiples having decreased, Envista views the current environment as an opportunity to leverage its strong market position and balance sheet to pursue attractive assets at more favorable valuations.

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CFO Eric Hammes explained that as a business representing about 10% of sales, every point of margin improvement in Spark contributes 10 basis points to Envista's total margin. For diagnostics, he stated the 2025 guidance assumes a performance of flat to low single-digit growth, an improvement over 2024's decline, aided by favorable comps but not assuming a significant market recovery.

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CEO Paul Keel explained that Envista's strategy involves balancing investments to accelerate growth with productivity improvements to fund them. He noted that while 2024 is a rebalancing year where investments exceed incremental gross margin, the goal is for future growth to make these investments self-funding.

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President and CEO David Joyner positioned CostVantage as a key innovation. Prem Shah, EVP and Chief Pharmacy Officer, added that the model aims to increase transparency and create predictable margins. He confirmed that 100% of commercial scripts and cash discount cards have transitioned to the model, and the company is working to move the remaining scripts for 2026. He described the overall PCW business as performing strongly, with script share growing to 27.6%.

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CFO Tom Cowhey acknowledged a slow start to 2024 for the segment but noted that accelerating momentum in Q2 and Q3 provides confidence for the full year. He indicated a cautious initial outlook for 2025. CEO J. Joyner, who previously led the segment, added that it will finish 2024 strong, supported by a successful selling season, biosimilar launch momentum, and high client satisfaction, expressing confidence for 2025.

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CEO William Feehery attributed the strong performance to both good execution and strategic investments in new and updated products, which are helping to increase wallet share. He confirmed plans to continue investing in the software suite, AI, and core products. Regarding the political environment, Feehery stated that while they are monitoring developments, it is too early to make any definitive plans or pronouncements.

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CFO Mala Murthy outlined a dual approach. For the variable-margin BetterHelp segment, profit growth is contingent on achieving revenue stabilization and growth. For the Integrated Care segment, which has operating leverage, the strategy is to drive top-line growth through engagement and higher-value services while maintaining discipline on COGS, OpEx, and stock-based compensation.

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CFO Mala Murthy explained that the capital allocation process aligns investments with strategic priorities and balances them with expected returns. She stated that success will be measured by both financial metrics, like revenue growth, and key operating metrics, such as Chronic Care Management (CCM) conversion rates and enrollment gains.

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CEO Tim Wentworth stated that the company has not broken out specific contributions from procurement improvements in its guidance. Qualitatively, he described the goal as becoming 'world-class at buying drugs,' which they are not today. He emphasized that discussions with Cencora are focused on creating a long-term, modernized, and competitive drug purchasing model that would be mutually beneficial, and he is pleased with the progress of these ongoing discussions.

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CEO Tim Wentworth acknowledged the process for monetizing VillageMD has been longer than hoped but emphasized the goal is to preserve value and not rush a complex transaction that involves many stakeholders, including physicians. He stated the company is being 'methodical' and can manage its short-term cash needs through other means, such as its revolver and proceeds from other asset sales like Cencora, thus avoiding a fire sale of VillageMD.

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CEO Tim Wentworth explained that the number was determined using internal models and challenged by an external firm. He noted that the industry has been overbuilt, and reducing capacity is not a bad thing. He expressed confidence that the remaining footprint will be well-positioned to serve payers effectively, as network adequacy requirements have evolved with technology and home delivery.

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CEO Ari Bousbib explained the 5% growth expectation for R&DS in 2025 is based on current information, including major cancellations and the two significant trial delays. He anticipates the IRA-driven reprioritization cycle will conclude by year-end. He suggested the quarterly growth cadence for R&DS in 2025 could be a 'mirror image' of 2024, starting low and accelerating through the year.

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