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Here's Why You Should Retain Cencora Stock in Your Portfolio Now
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Key Takeaways
Cencora shares rose 13.4% in six months as its U.S. Healthcare Solutions business supports growth.
Cencora benefits from strong specialty drug demand in oncology and retina, backed by MSO investments.
Cencora faces headwinds from international weakness, slower GLP-1 growth, and the loss of a grocery customer.
Cencora, Inc. (COR - Free Report) is well-poised for growth on the back of a robust U.S. Healthcare Solutions business and product launches. However, intense competition is a concern.
Shares of this Zacks Rank #3 (Hold) company have risen 13.4% in the past six months compared with the industry’s 12.1% gain. The S&P 500 Index has jumped 13.6% in the same time frame.
Cencora is one of the world’s largest pharmaceutical service companies. It is focused on providing drug distribution and related services to reduce healthcare costs and improve patient outcomes. The company has a market capitalization of $67.15 billion.
Image Source: Zacks Investment Research
COR’s bottom line is anticipated to improve 11.9% over the next five years. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 5.51%.
Positive Factors Driving COR’s Prospects
Durable Specialty Pharmaceutical and Utilization Tailwinds: Cencora continues to benefit from sustained pharmaceutical utilization trends, particularly within specialty drugs distributed to physician practices and health systems. Management highlighted strong demand across oncology and retina, supported by favorable demographics and ongoing innovation in pharmaceuticals.
As a market-leading distributor aligned with top manufacturers, Cencora is structurally positioned to benefit regardless of which drug innovators ultimately win. This dynamic underpins management’s confidence in long-term organic operating income growth of 6-9%, even as near-term performance continues to outpace long-term averages.
Expanding MSO Platform Enhances Growth and Strategic Moat: Cencora’s expansion into management services organizations (MSOs) represents a natural evolution of its specialty distribution leadership. Investments in OneOncology and Retina Consultants of America deepen relationships with physician practices while enabling higher-value services, such as practice management, clinical trials support and administrative optimization. These MSOs drive both organic growth and acquisition-led expansion while reinforcing Cencora’s pharmaceutical-centric strategy.
Management emphasized that oncology and retina are the most pharma-intensive specialties, making them ideal platforms for sustainable, synergistic growth across distribution, services and GPO offerings.
Biosimilars as a Structural Margin and Profitability Tailwind: Rising adoption of biosimilars in the Part B market remains a meaningful profitability driver for Cencora. While biosimilars may moderate reported revenue growth, management emphasized they generate higher margins than branded products, supporting operating income expansion.
Strong physician adoption in oncology and retina reinforces this benefit, particularly within MSO and GPO channels. As additional biosimilars launch over time, Cencora is positioned to benefit from a recurring cycle of innovation, patent expirations, and product transitions that consistently favor gross profit dollars and return on invested capital.
Negative Factors Hurting COR
Weakness in International Healthcare Solutions: The international segment continues to face declines in global specialty logistics and consulting, caused by subdued clinical trial activity and slower-than-expected recovery in biotech services. The operating income for the segment was down 2% in the fourth quarter of fiscal 2025, worse than previous expectations.
GLP-1 Growth Moderation and Loss of Low-Margin Revenue Sources: Although GLP-1 sales remain strong, their growth has slowed to 19%, down from earlier periods, weakening one of the company’s major drivers of top-line expansion.Additionally, COR lost a large grocery-channel customer — high revenues but very low margin — which is weighing on reported revenue growth. These factors led the company to trim its U.S. revenue outlook to the lower end of the range.
COR has been witnessing a positive estimate revision trend for fiscal 2026. In the past 60 days, the Zacks Consensus Estimate for earnings has increased from $17.59 to $17.62 per share.
The consensus mark for first-quarter fiscal 2026 revenues is pegged at $85.88 billion, indicating a 5.4% improvement from the year-ago reported actuals. The bottom-line estimate is pinned at $4.04, implying year-over-year growth of 8.3%.
Stocks to Consider
Some better-ranked stocks in the broader medical space are Medpace Holdings (MEDP - Free Report) , Intuitive Surgical (ISRG - Free Report) and Boston Scientific (BSX - Free Report) .
Medpace, currently carrying a Zacks Rank #2 (Buy), reported third-quarter 2025 earnings per share (EPS) of $3.86, which surpassed the Zacks Consensus Estimate by 10.29%. Revenues of $659.9 million beat the Zacks Consensus Estimate by 3.04%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy)stocks here.
MEDP has an estimated earnings growth rate of 17.1% for 2025 compared with the industry’s 16.6% growth. The company beat on earnings in each of the trailing four quarters, the average surprise being 14.28%.
Intuitive Surgical, sporting a Zacks Rank #1 at present, posted third-quarter 2025 adjusted EPS of $2.40, which exceeded the Zacks Consensus Estimate by 20.6%. Revenues of $2.51 billion topped the Zacks Consensus Estimate by 3.9%.
ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 11.9% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.34%.
Boston Scientific, currently carrying a Zacks Rank #2, reported third-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion outperformed the Zacks Consensus Estimate by 1.9%.
BSX has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.5% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.36%.
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Here's Why You Should Retain Cencora Stock in Your Portfolio Now
Key Takeaways
Cencora, Inc. (COR - Free Report) is well-poised for growth on the back of a robust U.S. Healthcare Solutions business and product launches. However, intense competition is a concern.
Shares of this Zacks Rank #3 (Hold) company have risen 13.4% in the past six months compared with the industry’s 12.1% gain. The S&P 500 Index has jumped 13.6% in the same time frame.
Cencora is one of the world’s largest pharmaceutical service companies. It is focused on providing drug distribution and related services to reduce healthcare costs and improve patient outcomes. The company has a market capitalization of $67.15 billion.
Image Source: Zacks Investment Research
COR’s bottom line is anticipated to improve 11.9% over the next five years. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 5.51%.
Positive Factors Driving COR’s Prospects
Durable Specialty Pharmaceutical and Utilization Tailwinds: Cencora continues to benefit from sustained pharmaceutical utilization trends, particularly within specialty drugs distributed to physician practices and health systems. Management highlighted strong demand across oncology and retina, supported by favorable demographics and ongoing innovation in pharmaceuticals.
As a market-leading distributor aligned with top manufacturers, Cencora is structurally positioned to benefit regardless of which drug innovators ultimately win. This dynamic underpins management’s confidence in long-term organic operating income growth of 6-9%, even as near-term performance continues to outpace long-term averages.
Expanding MSO Platform Enhances Growth and Strategic Moat: Cencora’s expansion into management services organizations (MSOs) represents a natural evolution of its specialty distribution leadership. Investments in OneOncology and Retina Consultants of America deepen relationships with physician practices while enabling higher-value services, such as practice management, clinical trials support and administrative optimization. These MSOs drive both organic growth and acquisition-led expansion while reinforcing Cencora’s pharmaceutical-centric strategy.
Management emphasized that oncology and retina are the most pharma-intensive specialties, making them ideal platforms for sustainable, synergistic growth across distribution, services and GPO offerings.
Biosimilars as a Structural Margin and Profitability Tailwind: Rising adoption of biosimilars in the Part B market remains a meaningful profitability driver for Cencora. While biosimilars may moderate reported revenue growth, management emphasized they generate higher margins than branded products, supporting operating income expansion.
Strong physician adoption in oncology and retina reinforces this benefit, particularly within MSO and GPO channels. As additional biosimilars launch over time, Cencora is positioned to benefit from a recurring cycle of innovation, patent expirations, and product transitions that consistently favor gross profit dollars and return on invested capital.
Negative Factors Hurting COR
Weakness in International Healthcare Solutions: The international segment continues to face declines in global specialty logistics and consulting, caused by subdued clinical trial activity and slower-than-expected recovery in biotech services. The operating income for the segment was down 2% in the fourth quarter of fiscal 2025, worse than previous expectations.
GLP-1 Growth Moderation and Loss of Low-Margin Revenue Sources: Although GLP-1 sales remain strong, their growth has slowed to 19%, down from earlier periods, weakening one of the company’s major drivers of top-line expansion.Additionally, COR lost a large grocery-channel customer — high revenues but very low margin — which is weighing on reported revenue growth. These factors led the company to trim its U.S. revenue outlook to the lower end of the range.
Cencora, Inc. Price
Cencora, Inc. price | Cencora, Inc. Quote
Estimate Trend
COR has been witnessing a positive estimate revision trend for fiscal 2026. In the past 60 days, the Zacks Consensus Estimate for earnings has increased from $17.59 to $17.62 per share.
The consensus mark for first-quarter fiscal 2026 revenues is pegged at $85.88 billion, indicating a 5.4% improvement from the year-ago reported actuals. The bottom-line estimate is pinned at $4.04, implying year-over-year growth of 8.3%.
Stocks to Consider
Some better-ranked stocks in the broader medical space are Medpace Holdings (MEDP - Free Report) , Intuitive Surgical (ISRG - Free Report) and Boston Scientific (BSX - Free Report) .
Medpace, currently carrying a Zacks Rank #2 (Buy), reported third-quarter 2025 earnings per share (EPS) of $3.86, which surpassed the Zacks Consensus Estimate by 10.29%. Revenues of $659.9 million beat the Zacks Consensus Estimate by 3.04%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy)stocks here.
MEDP has an estimated earnings growth rate of 17.1% for 2025 compared with the industry’s 16.6% growth. The company beat on earnings in each of the trailing four quarters, the average surprise being 14.28%.
Intuitive Surgical, sporting a Zacks Rank #1 at present, posted third-quarter 2025 adjusted EPS of $2.40, which exceeded the Zacks Consensus Estimate by 20.6%. Revenues of $2.51 billion topped the Zacks Consensus Estimate by 3.9%.
ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 11.9% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.34%.
Boston Scientific, currently carrying a Zacks Rank #2, reported third-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion outperformed the Zacks Consensus Estimate by 1.9%.
BSX has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.5% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.36%.