### Summary ConclusionThis quarter's results exceeded expectations, primarily driven by strong organic sales growth (12%) and commercial execution, though profitability was weighed down by multiple cost pressures.

### Key DataTotal revenue reached $7.7 billion, up 12% year-over-year; Medline Brand revenue was $3.5 billion, up 7% year-over-year; Supply Chain Solutions revenue was $4.1 billion, up 16% year-over-year.

### Business ProgressNew customer contracts signed this quarter exceeded $650 million, achieving 65% of the full-year target, including an expanded partnership with Allina Health. Following the Tracy warehouse fire, the team quickly restored operations, added 1.6 million square feet of distribution capacity, and plans to add another 1 million square feet of DC capacity in California. On quality remediation, the company has discussed a global quality action plan with the FDA and expects to increase MDR reports in the second half of the year. Retail business showed weakness due to customer attrition, and the sales team has been restructured.

### Guidance and OutlookFull-year organic sales guidance has been raised to 9%-10% (from 8.5%-9.5%), but adjusted EBITDA guidance has been lowered to $3.3-$3.4 billion (from $3.5-$3.6 billion), primarily due to the Middle East conflict, the Tracy fire, operational investments, quality remediation, and retail weakness. Approximately 50% of the costs are expected to be temporary.

### Risk/Highlight SignalsManagement tone is positive: emphasizing strong new customer signings, upward sales guidance, and plans to restore profit growth through cost-saving measures. Negative: quality remediation and retail weakness represent permanent cost pressures, and the EBITDA guidance cut is significant.