A month has gone by since the last earnings report for Cencora (COR Quick QuoteCOR - Free Report) . Shares have lost about 6.3% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Cencora due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Cencora, Inc. before we dive into how investors and analysts have reacted as of late.

COR Q4 Earnings & Revenues Beat Estimates, Gross Margin Improves

Cencora reported fourth-quarter fiscal 2025adjusted earnings per share of $3.84, which beat the Zacks Consensus Estimate of $3.74 by 2.7%. The bottom line also improved 15% year over year.

GAAP loss per share was $1.75 against earnings per share of 2 cents in the year-ago period. The significant decline was primarily due to a rise in operating expenses.

For full-year fiscal 2025, the company reported adjusted earnings per share of $16.00, up 16.3% year over year. GAAP earnings per share for fiscal 2025 was $7.96 compared with $7.53 in the previous year.

Revenue Details

Revenues totaled $83.73 billion, up 5.9% year over year. The top line beat the Zacks Consensus Estimate by 0.7%.

For full-year fiscal 2025, the company reported total revenues of $321.33 billion, up 9.3% year over year.

Segmental Analysis

U.S. Healthcare Solutions

Revenues in this segment totaled $75.8 billion, up 5.7% on a year-over-year basis. This improvement was driven by overall market growth on increased unit volume, including improved sales of GLP-1 drugs and specialty products.

Segmental operating income totaled $872.4 million, up 25.1% year over year. Higher gross profit (as a result of increased product sales and the January 2025 acquisition of RCA) contributed to the upside, partly offset by increased operating expenses.

International Healthcare Solutions

This segment includes Alliance Healthcare, World Courier, Innomar and Profarma Specialty.

Revenues amounted to $7.9 billion, up 7.6% year over year. The top line increased 5.7% at constant currency (cc).

Operating income totaled $150.7 million, down 2% on a reported basis and 6% at cc. The reported decline was due to lower operating income at COR’s global specialty logistics and specialized consulting services businesses.

Margin Analysis

Cencora reported an adjusted gross profit of $2.9 billion, up 18.4% on a year-over-year basis. As a percentage of revenues, the adjusted gross margin was 3.55%, up 36 basis points (bps) year over year.

The company recorded an adjusted operating income of $1.1 billion, up 20.6% year over year. As a percentage of revenues, the adjusted operating margin was 3.47%, which expanded 37 bps from the year-ago quarter’s level.

Financial Update

COR exited the fiscal fourth quarter with cash and cash equivalents worth $4.36 billion compared with $2.23 billion in the previous quarter.

Cumulative net cash used in operating activities totaled $4.98 billion compared with $618.1 million a year ago.

FY26 Guidance Issued

The company issued its outlook for fiscal 2026 earnings and revenues.

Adjusted earnings per share is estimated to be in the $17.45-$17.75 range.

Total revenues are projected to rise 5-7%. Sales at the U.S. Healthcare Solutions segment are anticipated to grow in the range of 5-7%. For the International Healthcare solutions business, revenues are projected to rise 6-8% reportedly as well as at cc.

Adjusted operating income is expected to improve 8-10% for fiscal 2026.

Operating income for the U.S. Healthcare Solutions segment is expected to improve 9-11%, while the same for the International Healthcare Solutions business is estimated to improve 5-8%, reportedly as well as at cc.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates revision.

VGM Scores

At this time, Cencora has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Cencora has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Cencora belongs to the Zacks Medical Services industry. Another stock from the same industry, Pediatrix Medical Group (MD Quick QuoteMD - Free Report) , has gained 2.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.

Pediatrix Medical Group reported revenues of $492.88 million in the last reported quarter, representing a year-over-year change of -3.6%. EPS of $0.67 for the same period compares with $0.44 a year ago.

Pediatrix Medical Group is expected to post earnings of $0.53 per share for the current quarter, representing a year-over-year change of +3.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +4.2%.

Pediatrix Medical Group has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.