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Cencora (COR) Up 3.8% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Cencora (COR - Free Report) . Shares have added about 3.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cencora due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Cencora, Inc. before we dive into how investors and analysts have reacted as of late.
COR Q3 Earnings Beat on Segment Growth, EPS View Raised
Cencora reported third-quarter fiscal 2026 adjusted earnings per share of $4.48, which beat the Zacks Consensus Estimate of $4.37 by 2.5%. The bottom line increased 12% year over year.
GAAP earnings were $3.94 per share compared with $3.52 a year ago.
Revenue Details
Revenues rose 5.1% year over year to $84.76 billion but missed the consensus estimate of $84.89 billion by 0.2%. Growth across the U.S. and International Healthcare Solutions segments supported the top line, while consolidated adjusted operating income advanced 17%.
Following the better-than-expected earnings growth, Cencora raised its adjusted EPS guidance for fiscal 2026.
Segmental Analysis
COR's U.S. Healthcare Solutions Gains
U.S. Healthcare Solutions revenues increased 4.9% year over year to $74.9 billion. Growth was driven by higher unit volumes, including increased sales of specialty products to health systems and physician practices, as well as drugs indicated for diabetes and weight loss in the GLP-1 class.
The improvement was partly offset by lower manufacturer prices for certain branded pharmaceuticals, the loss of an oncology customer in 2025 and reduced sales to a large mail-order customer.
Segment operating income rose 15.9% to $966.2 million, aided by OneOncology and increased pharmaceutical sales. Higher operating expenses and the lost oncology account partially limited growth.
Cencora's International Business Expands
International Healthcare Solutions revenues totaled $7.7 billion, up 5.9% on a reported basis and 6.1% at constant currency. The improvement primarily reflected growth in the European distribution and global specialty logistics businesses.
Segment operating income increased 20.8% to $165.9 million. At constant currency, operating income advanced 23.1%, supported by higher contributions from both the European distribution operation and the global specialty logistics business.
COR Records Growth in Other Businesses
Revenues from the Other category rose 6.9% year over year to $2.3 billion. Growth at Profarma and MWI Animal Health was partly offset by lower consulting services sales following the April 2026 divestiture of U.S. Consulting Services.
Operating income in Other increased 24.8% to $108.7 million. The gain was mainly driven by business growth at MWI Animal Health and, to a lesser extent, lower depreciation expense after the business was classified as held for sale.
COR Posts Higher Profitability
Adjusted gross profit increased 23.2% year over year to $3.52 billion. The adjusted gross margin expanded 61 basis points to 4.16%, primarily reflecting a higher gross profit margin in the U.S. Healthcare Solutions business following the OneOncology acquisition.
The benefit was partly offset by increased sales of GLP-1 products, which carry lower gross profit margins.
Adjusted operating expenses climbed 26.8% to $2.28 billion, mainly due to costs associated with OneOncology.
Adjusted operating income totaled $1.24 billion, up 17% from the prior-year quarter. The adjusted operating margin improved 15 basis points to 1.46% as gross profit growth exceeded the impact of higher operating expenses.
Net interest expense increased 72% to $140.7 million. The rise reflected interest costs related to senior notes and variable-rate term loans issued to fund part of the OneOncology acquisition, along with lower interest income. The adjusted effective tax rate declined to 19.9% from 20.7%.
Cencora Raises Fiscal 2026 Outlook
Cencora raised its fiscal 2026 adjusted earnings guidance to $17.75-$17.95 per share from $17.70-$17.90. The company continues to project revenue growth of 4-6%, while adjusted operating income is now expected to rise 13-14%, compared with the prior outlook of 12-14%.
U.S. Healthcare Solutions revenues are expected to grow 4-6%, while operating income is projected to increase 14.5-15.5%. International Healthcare Solutions revenues are expected to grow approximately 8%, while operating income is forecasted to rise around 9%. Revenues and operating income in Other are projected to increase about 6% and 10%, respectively.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Cencora has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy.
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 this revision indicates a downward shift. Notably, Cencora has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Cencora is part of the Zacks Medical Services industry. Over the past month, Pediatrix Medical Group (MD - Free Report) , a stock from the same industry, has gained 1.4%. The company reported its results for the quarter ended June 2026 more than a month ago.
Pediatrix Medical Group reported revenues of $487.78 million in the last reported quarter, representing a year-over-year change of +4%. EPS of $0.63 for the same period compares with $0.53 a year ago.
Pediatrix Medical Group is expected to post earnings of $0.63 per share for the current quarter, representing a year-over-year change of -6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Pediatrix Medical Group has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
View the Zacks #1 Rank List
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Cencora (COR) Up 3.8% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Cencora (COR - Free Report) . Shares have added about 3.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cencora due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Cencora, Inc. before we dive into how investors and analysts have reacted as of late.
COR Q3 Earnings Beat on Segment Growth, EPS View Raised
Cencora reported third-quarter fiscal 2026 adjusted earnings per share of $4.48, which beat the Zacks Consensus Estimate of $4.37 by 2.5%. The bottom line increased 12% year over year.
GAAP earnings were $3.94 per share compared with $3.52 a year ago.
Revenue Details
Revenues rose 5.1% year over year to $84.76 billion but missed the consensus estimate of $84.89 billion by 0.2%. Growth across the U.S. and International Healthcare Solutions segments supported the top line, while consolidated adjusted operating income advanced 17%.
Following the better-than-expected earnings growth, Cencora raised its adjusted EPS guidance for fiscal 2026.
Segmental Analysis
COR's U.S. Healthcare Solutions Gains
U.S. Healthcare Solutions revenues increased 4.9% year over year to $74.9 billion. Growth was driven by higher unit volumes, including increased sales of specialty products to health systems and physician practices, as well as drugs indicated for diabetes and weight loss in the GLP-1 class.
The improvement was partly offset by lower manufacturer prices for certain branded pharmaceuticals, the loss of an oncology customer in 2025 and reduced sales to a large mail-order customer.
Segment operating income rose 15.9% to $966.2 million, aided by OneOncology and increased pharmaceutical sales. Higher operating expenses and the lost oncology account partially limited growth.
Cencora's International Business Expands
International Healthcare Solutions revenues totaled $7.7 billion, up 5.9% on a reported basis and 6.1% at constant currency. The improvement primarily reflected growth in the European distribution and global specialty logistics businesses.
Segment operating income increased 20.8% to $165.9 million. At constant currency, operating income advanced 23.1%, supported by higher contributions from both the European distribution operation and the global specialty logistics business.
COR Records Growth in Other Businesses
Revenues from the Other category rose 6.9% year over year to $2.3 billion. Growth at Profarma and MWI Animal Health was partly offset by lower consulting services sales following the April 2026 divestiture of U.S. Consulting Services.
Operating income in Other increased 24.8% to $108.7 million. The gain was mainly driven by business growth at MWI Animal Health and, to a lesser extent, lower depreciation expense after the business was classified as held for sale.
COR Posts Higher Profitability
Adjusted gross profit increased 23.2% year over year to $3.52 billion. The adjusted gross margin expanded 61 basis points to 4.16%, primarily reflecting a higher gross profit margin in the U.S. Healthcare Solutions business following the OneOncology acquisition.
The benefit was partly offset by increased sales of GLP-1 products, which carry lower gross profit margins.
Adjusted operating expenses climbed 26.8% to $2.28 billion, mainly due to costs associated with OneOncology.
Adjusted operating income totaled $1.24 billion, up 17% from the prior-year quarter. The adjusted operating margin improved 15 basis points to 1.46% as gross profit growth exceeded the impact of higher operating expenses.
Net interest expense increased 72% to $140.7 million. The rise reflected interest costs related to senior notes and variable-rate term loans issued to fund part of the OneOncology acquisition, along with lower interest income. The adjusted effective tax rate declined to 19.9% from 20.7%.
Cencora Raises Fiscal 2026 Outlook
Cencora raised its fiscal 2026 adjusted earnings guidance to $17.75-$17.95 per share from $17.70-$17.90. The company continues to project revenue growth of 4-6%, while adjusted operating income is now expected to rise 13-14%, compared with the prior outlook of 12-14%.
U.S. Healthcare Solutions revenues are expected to grow 4-6%, while operating income is projected to increase 14.5-15.5%. International Healthcare Solutions revenues are expected to grow approximately 8%, while operating income is forecasted to rise around 9%. Revenues and operating income in Other are projected to increase about 6% and 10%, respectively.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Cencora has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy.
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 this revision indicates a downward shift. Notably, Cencora has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Cencora is part of the Zacks Medical Services industry. Over the past month, Pediatrix Medical Group (MD - Free Report) , a stock from the same industry, has gained 1.4%. The company reported its results for the quarter ended June 2026 more than a month ago.
Pediatrix Medical Group reported revenues of $487.78 million in the last reported quarter, representing a year-over-year change of +4%. EPS of $0.63 for the same period compares with $0.53 a year ago.
Pediatrix Medical Group is expected to post earnings of $0.63 per share for the current quarter, representing a year-over-year change of -6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Pediatrix Medical Group has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.