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COR missed Q2 earnings and revenue estimates, sending shares down 9.5% in pre-market trading.
Cencora raised fiscal 2026 EPS guidance but lowered its total revenue growth outlook.
COR saw strong specialty product and GLP-1 drug demand drive segment revenue growth.
Cencora, Inc. (COR - Free Report) reported second-quarter fiscal 2026 adjusted earnings per share (EPS) of $4.75, which missed the Zacks Consensus Estimate of $4.80 by 1%. The bottom line improved 7.5% year over year.
GAAP EPS was $8.40 compared with $3.68 in the year-ago period. The company’s second-quarter fiscal 2026 EPS included a $1.1 billion remeasurement gain related to the OneOncology acquisition.
Revenue Details
Revenues totaled $78.4 billion, up 3.8% year over year. The top line missed the Zacks Consensus Estimate by 3%.
Image Source: Zacks Investment Research
COR’s shares were down 9.5% in pre-market trading. So far this year, COR’s shares have lost 9.5% compared with the industry’s decline of 12.1%. The S&P 500 Index was up 6.8% in the same period.
Segmental Analysis
U.S. Healthcare Solutions
Revenues in this segment totaled $68.8 billion, up 2.9% 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. The revenue growth was partially offset by a decline in manufacturer prices related to certain brand pharmaceutical products, lower large mail order customers due to brand conversions, and loss of an oncology customer and a grocery customer last year.
Segmental operating income totaled $998.3 million, up 5.6% year over year. Higher gross profit (as a result of increased product sales and the February 2026 acquisition of OneOncology) contributed to the upside, partly offset by increased operating expenses and the loss of an oncology customer in 2025.
International Healthcare Solutions
This segment includes Alliance Healthcare, World Courier, Innomar and Profarma Specialty.
Revenues amounted to $7.6 billion, up 13% year over year. The top line increased 7.2% at constant currency (cc).
Operating income totaled $175.8 million, up 13.7% on a reported basis and 12.9% at cc. The growth was driven by higher operating income at the European distribution business and the global specialty logistics business.
Other
Revenues in the Other segment amounted to $2.1 billion, reflecting an increase of 5.1% year over year. The growth at Profarma and MWI Animal Health businesses was partially offset by lower sales at the consulting services businesses.
Operating income totaled $91.6 million, down 1.3% due to lower operating income at the consulting services businesses, offset in part by an increase in operating income at the MWI Animal Health business.
Margin Analysis
Cencora reported an adjusted gross profit of $3.37 billion, up 15.7% on a year-over-year basis. As a percentage of revenues, the adjusted gross margin was 4.31%, up 45 basis points (bps) year over year.
The company recorded an adjusted operating income of $1.26 billion, up 6% year over year. As a percentage of revenues, the adjusted operating margin was 1.61%, which expanded 3 bps from the year-ago quarter’s level.
Financial Update
COR exited the fiscal second quarter with cash and cash equivalents worth $2.18 billion compared with $1.75 billion in the previous quarter.
Cumulative net cash used in operating activities totaled $966.5 million against cumulative net cash provided by operating activities of $632.5 million a year ago.
Dividend Update
Cencora's board of directors declared a quarterly dividend of 60 cents per share. The new dividend is payable on June 1, 2026, to shareholders of record at the close of business on May 16, 2026.
FY26 Guidance
The company updated its outlook for fiscal 2026 earnings and revenues.
Adjusted EPS is now estimated to be in the $17.65-$17.95 range versus the earlier outlook of $17.45-$17.75. The Zacks Consensus Estimate is pegged at $17.37.
Total revenues are now projected to rise 4-6%, lower than the previous guidance of 7-9%. Sales at the U.S. Healthcare Solutions segment are anticipated to grow in the range of 4-6% (previously 7-9%). For the International Healthcare solutions business, revenues are projected to rise 8-10% reportedly and 6-8% at cc (previously 7-9% reportedly and 6-8% at cc).
Adjusted operating income is expected to improve 12-14% for fiscal 2026 (previously 11.5-13.5%).
Operating income for the U.S. Healthcare Solutions segment is expected to improve 14-16%, while the International Healthcare Solutions segment is still estimated to grow 5-8%, reportedly as well as at cc.
Cencora exited the fiscal second quarter on a weak note, with both earnings and revenues missing the Zacks Consensus Estimate. The company also lowered its revenue guidance for fiscal 2026. However, the higher growth estimates for operating income look promising, reflecting strong operational efficiency.
The company continues to witness robust segmental performance due to growth in all markets and strong demand for specialty products and GLP-1 drugs. Per management, Cencora delivered a solid performance by playing a crucial role in the healthcare system while maintaining efficiency throughout its business. The company has been focused on its priorities. It has thoughtfully deployed capital to deliver long-term growth.
The acquisition of OneOncology appears promising, as it is likely to bring additional revenues in fiscal 2026.
Although COR’s margin has improved during the quarter, it continues to be negatively impacted by lower-margin GLP-1 drugs and the lack of exclusive COVID-19 therapy sales, which had higher margins. The company’s rising expenses to support business activities amid inflationary challenges put pressure on the operating margin. Cut-throat competition in the MedTech space is another headwind.
COR’s Zacks Rank & Stocks to Consider
COR carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space that have announced quarterly results are West Pharmaceutical Services, Inc. (WST - Free Report) , Intuitive Surgical (ISRG - Free Report) and Cardinal Health, Inc. (CAH - Free Report) .
West Pharmaceutical reported first-quarter 2026 earnings per share (EPS) of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
West Pharmaceutical has a long-term estimated growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.37%.
Intuitive Surgical reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.19%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%. It currently carries a Zacks Rank of 2 (Buy).
Intuitive Surgical has a long-term estimated growth rate of 14.9%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.82%.
Cardinal Health, carrying a Zacks Rank of 2 at present, reported third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.
Cardinal Health has a long-term estimated growth rate of 15.6%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%.
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COR Stock Falls on Q2 Earnings & Revenue Miss, FY26 EPS View Raised
Key Takeaways
Cencora, Inc. (COR - Free Report) reported second-quarter fiscal 2026 adjusted earnings per share (EPS) of $4.75, which missed the Zacks Consensus Estimate of $4.80 by 1%. The bottom line improved 7.5% year over year.
GAAP EPS was $8.40 compared with $3.68 in the year-ago period. The company’s second-quarter fiscal 2026 EPS included a $1.1 billion remeasurement gain related to the OneOncology acquisition.
Revenue Details
Revenues totaled $78.4 billion, up 3.8% year over year. The top line missed the Zacks Consensus Estimate by 3%.
Image Source: Zacks Investment Research
COR’s shares were down 9.5% in pre-market trading. So far this year, COR’s shares have lost 9.5% compared with the industry’s decline of 12.1%. The S&P 500 Index was up 6.8% in the same period.
Segmental Analysis
U.S. Healthcare Solutions
Revenues in this segment totaled $68.8 billion, up 2.9% 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. The revenue growth was partially offset by a decline in manufacturer prices related to certain brand pharmaceutical products, lower large mail order customers due to brand conversions, and loss of an oncology customer and a grocery customer last year.
Segmental operating income totaled $998.3 million, up 5.6% year over year. Higher gross profit (as a result of increased product sales and the February 2026 acquisition of OneOncology) contributed to the upside, partly offset by increased operating expenses and the loss of an oncology customer in 2025.
International Healthcare Solutions
This segment includes Alliance Healthcare, World Courier, Innomar and Profarma Specialty.
Revenues amounted to $7.6 billion, up 13% year over year. The top line increased 7.2% at constant currency (cc).
Operating income totaled $175.8 million, up 13.7% on a reported basis and 12.9% at cc. The growth was driven by higher operating income at the European distribution business and the global specialty logistics business.
Other
Revenues in the Other segment amounted to $2.1 billion, reflecting an increase of 5.1% year over year. The growth at Profarma and MWI Animal Health businesses was partially offset by lower sales at the consulting services businesses.
Operating income totaled $91.6 million, down 1.3% due to lower operating income at the consulting services businesses, offset in part by an increase in operating income at the MWI Animal Health business.
Margin Analysis
Cencora reported an adjusted gross profit of $3.37 billion, up 15.7% on a year-over-year basis. As a percentage of revenues, the adjusted gross margin was 4.31%, up 45 basis points (bps) year over year.
The company recorded an adjusted operating income of $1.26 billion, up 6% year over year. As a percentage of revenues, the adjusted operating margin was 1.61%, which expanded 3 bps from the year-ago quarter’s level.
Financial Update
COR exited the fiscal second quarter with cash and cash equivalents worth $2.18 billion compared with $1.75 billion in the previous quarter.
Cumulative net cash used in operating activities totaled $966.5 million against cumulative net cash provided by operating activities of $632.5 million a year ago.
Dividend Update
Cencora's board of directors declared a quarterly dividend of 60 cents per share. The new dividend is payable on June 1, 2026, to shareholders of record at the close of business on May 16, 2026.
FY26 Guidance
The company updated its outlook for fiscal 2026 earnings and revenues.
Adjusted EPS is now estimated to be in the $17.65-$17.95 range versus the earlier outlook of $17.45-$17.75. The Zacks Consensus Estimate is pegged at $17.37.
Total revenues are now projected to rise 4-6%, lower than the previous guidance of 7-9%. Sales at the U.S. Healthcare Solutions segment are anticipated to grow in the range of 4-6% (previously 7-9%). For the International Healthcare solutions business, revenues are projected to rise 8-10% reportedly and 6-8% at cc (previously 7-9% reportedly and 6-8% at cc).
Adjusted operating income is expected to improve 12-14% for fiscal 2026 (previously 11.5-13.5%).
Operating income for the U.S. Healthcare Solutions segment is expected to improve 14-16%, while the International Healthcare Solutions segment is still estimated to grow 5-8%, reportedly as well as at cc.
Cencora, Inc. Price, Consensus and EPS Surprise
Cencora, Inc. price-consensus-eps-surprise-chart | Cencora, Inc. Quote
Our Take
Cencora exited the fiscal second quarter on a weak note, with both earnings and revenues missing the Zacks Consensus Estimate. The company also lowered its revenue guidance for fiscal 2026. However, the higher growth estimates for operating income look promising, reflecting strong operational efficiency.
The company continues to witness robust segmental performance due to growth in all markets and strong demand for specialty products and GLP-1 drugs. Per management, Cencora delivered a solid performance by playing a crucial role in the healthcare system while maintaining efficiency throughout its business. The company has been focused on its priorities. It has thoughtfully deployed capital to deliver long-term growth.
The acquisition of OneOncology appears promising, as it is likely to bring additional revenues in fiscal 2026.
Although COR’s margin has improved during the quarter, it continues to be negatively impacted by lower-margin GLP-1 drugs and the lack of exclusive COVID-19 therapy sales, which had higher margins. The company’s rising expenses to support business activities amid inflationary challenges put pressure on the operating margin. Cut-throat competition in the MedTech space is another headwind.
COR’s Zacks Rank & Stocks to Consider
COR carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space that have announced quarterly results are West Pharmaceutical Services, Inc. (WST - Free Report) , Intuitive Surgical (ISRG - Free Report) and Cardinal Health, Inc. (CAH - Free Report) .
West Pharmaceutical reported first-quarter 2026 earnings per share (EPS) of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
West Pharmaceutical has a long-term estimated growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.37%.
Intuitive Surgical reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.19%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%. It currently carries a Zacks Rank of 2 (Buy).
Intuitive Surgical has a long-term estimated growth rate of 14.9%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.82%.
Cardinal Health, carrying a Zacks Rank of 2 at present, reported third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.
Cardinal Health has a long-term estimated growth rate of 15.6%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%.