Cencora, Inc. (COR) Earnings & Analysis

Latest quarter

Cencora reported Q3 FY2026 revenue of $84.8 billion, up 5.07% from $80.7 billion a year earlier. The company reported adjusted EPS, as the consensus counts it, of $4.48 versus consensus of $4.37, while revenue of $84.8 billion was below consensus of $84.9 billion.

The filing attributed revenue growth to both reportable segments. U.S. Healthcare Solutions revenue grew with overall market volume, specialty sales to health systems and physician practices, and higher sales of products labeled for diabetes and/or weight loss in the GLP-1 class; manufacturer price declines, a lost oncology customer and lower sales to a large mail-order customer partly offset that growth. International Healthcare Solutions revenue increased primarily on European distribution sales.

Cencora reported a Q3 FY2026 gross margin of 4.26%, compared with 3.60% a year earlier, and an operating margin of 1.32%, compared with 1.08%. The filing said gross profit growth reflected both segments and higher LIFO credits, while operating expenses increased primarily following the February 2026 OneOncology acquisition. Cencora reported free cash flow of $2.4 billion, compared with −$74.0 million in Q3 FY2025.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Eva Boratto said the quarter’s outperformance was concentrated in U.S. Healthcare Solutions, where MSOs, the core business and specialty demand from health systems and physician providers contributed. She said OneOncology performed ahead of Cencora’s expectations, while operating-income growth excluding OneOncology and the lost oncology customer was in the double digits.

Boratto said U.S. segment revenue growth was supported by specialty demand and $2.3 billion of year-over-year GLP-1 sales growth. She said manufacturer list-price reductions created a $2.4 billion revenue headwind, alongside the prior loss of an oncology customer and lower sales to a large mail-order customer. Boratto said Cencora expects the fourth quarter to include double-digit growth across its reportable segments, with the U.S. segment benefiting from lapping the oncology-customer loss and an easier expense comparison.

On profitability, Boratto said adjusted operating income rose 17%, driven by U.S. execution, OneOncology and international growth, while share repurchases contributed to adjusted EPS growth. She said Cencora’s quarterly operating expenses reflected the OneOncology acquisition, and said the company had fully repaid its $800.0 million RCA financing-related term loan balance.

Bob Mauch said biosimilars are incrementally positive for the business, though Part D switches can reduce revenue because Cencora provides fewer associated services. He said Part B provides a larger profit opportunity because Cencora supports products and physicians through distribution, GPO and MSO services. Mauch also said Cencora’s specialty-logistics and 3PL operations compete through specialized, pharmaceutical-focused capabilities, despite credible competitors in the market.

When analysts asked about MSO investment, Mauch said Cencora intends to focus on tuck-in acquisitions in retina and oncology. On 340B policy guidance, Mauch said Cencora was still assessing the guidance and would continue engaging with regulators and legislators. Boratto said Cencora had no update on the timing of the I-Sight Retina carve-out acquisition and did not advise including it in models.

Guidance

Cencora raised its FY2026 adjusted EPS guidance to $17.75–$17.95 from $17.65–$17.90. Boratto said Cencora now expects FY2026 consolidated operating-income growth of 13.0%–14.0%, compared with its previous 12.0%–14.0% range. She also said Cencora now expects net interest expense of approximately $490 million, compared with a previous expectation of approximately $485 million.