Q4FY2025 highlights and the year-to-date context:
- Revenue: $90.823B in Q4, up 18.95% YoY and -4.69% QoQ (trailing four-quarter metrics). Management attributed the quarterly strength to U.S. Pharmaceutical volume, growth in specialty distributions, and higher demand for access and affordability solutions within RxTS.
- Gross Profit: $3.639B, up 5.08% YoY and 10.81% QoQ. Gross margin stood at ~4.01% for the quarter (0.0401).
- Operating Income: $1.591B, up 15.96% YoY and 29.98% QoQ.
- Net Income: $1.26B, up 59.29% YoY and 43.34% QoQ.
- Diluted EPS: $10.12 for Q4 (YoY +66%), with annual EPS of $33.05 (+20% YoY).
- Free Cash Flow (FY2025): $5.2B; Free cash flow margin and capital deployment remained strong with $3.1B in share repurchases and $345M in dividends for the year.
- Cash position and liquidity: Ended Q4 with cash and cash equivalents of $5.69B and total liquidity around $10.0B.
- Segment highlights: U.S. Pharmaceutical revenues $83.2B (+21% YoY); GLP-1 revenues $10.9B (+46% YoY); RxTS revenues $1.3B (+13% QoQ); Medical-Surgical revenues $2.9B (+1%); International revenues $3.5B (-2% YoY).
- Balance sheet and leverage: Total assets $75.14B; Total liabilities $76.83B; stockholders’ equity reported as negative in the period (–$2.07B), with net debt of approximately –$1.70B (net cash).
- FY2026 outlook: Revenue growth 11–15%; operating profit growth 8–12%; diluted EPS guidance of $36.75–$37.55 (roughly 11–14% YoY growth, excluding net gains in FY2025). Management reaffirmed long-term adjusted EPS growth target of 12–14%.
- Acquisitions and strategic actions: Completed controlling stake acquisitions in PRISM Vision Holdings (accretive to FY2026 by ~$0.20–$0.30 per share) and Core Ventures (expected to close in June 2025, contributing $0.40–$0.60 per share). The company also confirmed a plan to separate the Medical-Surgical segment into an independent company to unlock value and sharpen capital deployment.
- Management tone: Leadership emphasized disciplined portfolio management, cost optimization (roughly $100M in savings in H2 FY2025), and sustained investment in technology, automation, and AI to improve efficiency and patient access. The executive team reiterated confidence in the core platform’s resilience and long-term growth trajectory despite policy and macro uncertainties.