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COR's Q4 adjusted EPS rose 21.4% to $4.66, while revenues grew 5.5% to $88.35B, beating estimates.
Specialty drug demand, GLP-1 sales and OneOncology drove growth, lifting COR's adjusted operating margin.
COR projects fiscal 2027 EPS of $19.40-$19.75, unveils a specialty-focused structure and dividend hike.
Cencora, Inc. (COR - Free Report) reported fourth-quarter fiscal 2026 adjusted earnings per share (EPS) of $4.66, which beat the Zacks Consensus Estimate of $4.56 by 2.2%. The bottom line increased 21.4% year over year.
GAAP earnings were $2.71 per share against a loss of $1.75 a year ago.
Revenue Details
Revenues rose 5.5% year over year to $88.35 billion, surpassing the consensus estimate of $88.16 billion by 0.2%. Higher specialty pharmaceutical volumes, growing GLP-1 drug demand and the OneOncology acquisition supported growth. Consolidated adjusted operating income advanced 22.1%.
For fiscal 2026, revenues increased 5% to $337.4 billion, while adjusted EPS rose 12.3% to $17.97.
Segmental Analysis
COR's U.S. Healthcare Solutions Business Grows
U.S. Healthcare Solutions revenues increased 5.4% year over year to $78.3 billion. Growth was driven by higher unit volumes, including increased sales of specialty pharmaceuticals to health systems and physician practices, alongside products indicated for diabetes and weight loss in the GLP-1 class.
The improvement was partly offset by lower manufacturer prices for certain branded pharmaceuticals and reduced sales to a large mail-order customer.
Segment operating income rose 22% to $997.6 million, supported by increased pharmaceutical sales and contributions from the February 2026 acquisition of OneOncology. Higher operating expenses partially limited the improvement. The segment's operating margin expanded to 1.27% from 1.10% a year ago.
Cencora's International Business Expands
International Healthcare Solutions revenues totaled $7.8 billion, up 5.1% on a reported basis and 7.8% at constant currency. The improvement reflected growth across all businesses within the segment.
Segment operating income increased 16.4% to $152.1 million. At constant currency, operating income advanced 18.9%, primarily supported by higher contributions from the Canadian and global specialty logistics businesses.
The segment's operating margin improved to 1.95% from 1.76% in the prior-year quarter, reflecting stronger profitability.
COR Records Higher Growth in Other Businesses
Revenues from the Other category rose 10.1% year over year to $2.3 billion. Growth at Profarma and MWI Animal Health was partly offset by lower consulting services sales, primarily following the April 2026 divestiture of U.S. Consulting Services.
Operating income in Other increased 35.8% to $101.1 million. The improvement was mainly driven by business growth at MWI Animal Health and, to a lesser extent, lower depreciation expense following its classification as held for sale.
Cencora has signed a definitive agreement to sell its stake in Profarma, with the transaction expected to close in the first quarter of fiscal 2027.
Adjusted gross profit increased 23% year over year to $3.57 billion. The adjusted gross margin expanded 57 basis points to 4.04%, primarily reflecting improved profitability in U.S. Healthcare Solutions following the OneOncology acquisition. Higher sales of lower-margin GLP-1 products partly offset the benefit.
Adjusted operating expenses climbed 23.5% year over year to $2.32 billion, mainly due to costs associated with OneOncology. Nevertheless, the adjusted operating margin improved 19 basis points to 1.41%.
Net interest expense increased 75.1% to $136.3 million, primarily due to acquisition-related financing costs and lower interest income. The adjusted effective tax rate declined to 20.2% from 20.6%.
COR Issues Fiscal 2027 Outlook
Cencora expects fiscal 2027 adjusted earnings of $19.40-$19.75 per share, reflecting growth of 8-10%. Revenues are projected to increase 3-5%, while adjusted operating income is expected to rise 4-6%.
Under the revised reporting structure, Pharmaceutical Distribution and Services revenues are expected to grow 4-6%, with operating income increasing 2-4%. Specialty Pharmaceutical and Provider Services revenues are projected to rise 9-14%, while operating income is expected to increase 18%-21%.
The company anticipates adjusted free cash flow of approximately $3.5 billion and capital expenditures of around $1 billion. Net interest expense is projected to be in the range of $490-$510 million.
Cencora Realigns Operations, Raises Dividend
Cencora announced a new organizational structure, effective from the first quarter of fiscal 2027, bringing its specialty businesses under Specialty Pharmaceutical and Provider Services. The remaining distribution operations will form Pharmaceutical Distribution and Services.
The company also announced an agreement to acquire American Oncology Network, comprising more than 350 oncology providers across 21 states. The acquisition is aligned with its specialty-focused growth strategy.
Cencora reaffirmed its long-term adjusted operating income growth target of 7-10% and adjusted EPS growth target of 10-14%. The company also raised its quarterly dividend by 10% to 66 cents per share, reinforcing its commitment to shareholder returns.
Wrapping Up
Cencora exited the fourth quarter of fiscal 2026 on a strong note, with both earnings and revenues surpassing the Zacks Consensus Estimate. The company benefited from higher specialty pharmaceutical volumes, growing GLP-1 drug demand and solid performance across its U.S. and International Healthcare Solutions segments.
The OneOncology acquisition contributed to higher gross profit and operating income, while growth at Profarma and MWI Animal Health further supported quarterly results. The company’s upbeat fiscal 2027 earnings outlook, new specialty-focused organizational structure and 10% dividend hike reinforce its long-term growth strategy.
However, increased sales of lower-margin GLP-1 products continued to pressure gross margins, while expenses associated with OneOncology drove operating costs higher. Elevated interest expenses related to acquisition financing remain another concern. Nevertheless, improving profitability, strong specialty business momentum and the company's strategic focus on higher-growth opportunities position COR favorably for fiscal 2027.
COR’s Zacks Rank & Other Key Picks
Cencora currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are OPKO Health (OPK - Free Report) , Globus Medical (GMED - Free Report) and Merit Medical Systems (MMSI - Free Report) .
OPKO Health, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted loss of 1 cent per share, which surpassed the Zacks Consensus Estimate by 87.5%. Revenues of $163.6 million beat the Zacks Consensus Estimate by 24.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
OPK has an estimated earnings growth rate of 23.3% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 95.1%.
Globus Medical, currently carrying a Zacks Rank #2, reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Merit Medical Systems, carrying a Zacks Rank #2 at present, reported second-quarter 2026 adjusted EPS of $1.19, which beat the Zacks Consensus Estimate by 23.9%. Revenues of $418.8 million surpassed the Zacks Consensus Estimate by 3.5%.
MMSI has an estimated long-term earnings growth rate of 10.4%. Merit Medical Systems’ earnings surpassed estimates in the trailing four quarters, with the average surprise being 14.1%.
View the Zacks #1 Rank List
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Cencora Q4 Earnings & Revenues Beat on Specialty Growth, Margins Expand
Key Takeaways
Cencora, Inc. (COR - Free Report) reported fourth-quarter fiscal 2026 adjusted earnings per share (EPS) of $4.66, which beat the Zacks Consensus Estimate of $4.56 by 2.2%. The bottom line increased 21.4% year over year.
GAAP earnings were $2.71 per share against a loss of $1.75 a year ago.
Revenue Details
Revenues rose 5.5% year over year to $88.35 billion, surpassing the consensus estimate of $88.16 billion by 0.2%. Higher specialty pharmaceutical volumes, growing GLP-1 drug demand and the OneOncology acquisition supported growth. Consolidated adjusted operating income advanced 22.1%.
For fiscal 2026, revenues increased 5% to $337.4 billion, while adjusted EPS rose 12.3% to $17.97.
Segmental Analysis
COR's U.S. Healthcare Solutions Business Grows
U.S. Healthcare Solutions revenues increased 5.4% year over year to $78.3 billion. Growth was driven by higher unit volumes, including increased sales of specialty pharmaceuticals to health systems and physician practices, alongside products indicated for diabetes and weight loss in the GLP-1 class.
The improvement was partly offset by lower manufacturer prices for certain branded pharmaceuticals and reduced sales to a large mail-order customer.
Segment operating income rose 22% to $997.6 million, supported by increased pharmaceutical sales and contributions from the February 2026 acquisition of OneOncology. Higher operating expenses partially limited the improvement. The segment's operating margin expanded to 1.27% from 1.10% a year ago.
Cencora's International Business Expands
International Healthcare Solutions revenues totaled $7.8 billion, up 5.1% on a reported basis and 7.8% at constant currency. The improvement reflected growth across all businesses within the segment.
Segment operating income increased 16.4% to $152.1 million. At constant currency, operating income advanced 18.9%, primarily supported by higher contributions from the Canadian and global specialty logistics businesses.
The segment's operating margin improved to 1.95% from 1.76% in the prior-year quarter, reflecting stronger profitability.
COR Records Higher Growth in Other Businesses
Revenues from the Other category rose 10.1% year over year to $2.3 billion. Growth at Profarma and MWI Animal Health was partly offset by lower consulting services sales, primarily following the April 2026 divestiture of U.S. Consulting Services.
Operating income in Other increased 35.8% to $101.1 million. The improvement was mainly driven by business growth at MWI Animal Health and, to a lesser extent, lower depreciation expense following its classification as held for sale.
Cencora has signed a definitive agreement to sell its stake in Profarma, with the transaction expected to close in the first quarter of fiscal 2027.
Cencora, Inc. Price, Consensus and EPS Surprise
Cencora, Inc. price-consensus-eps-surprise-chart | Cencora, Inc. Quote
COR Posts Higher Profitability
Adjusted gross profit increased 23% year over year to $3.57 billion. The adjusted gross margin expanded 57 basis points to 4.04%, primarily reflecting improved profitability in U.S. Healthcare Solutions following the OneOncology acquisition. Higher sales of lower-margin GLP-1 products partly offset the benefit.
Adjusted operating expenses climbed 23.5% year over year to $2.32 billion, mainly due to costs associated with OneOncology. Nevertheless, the adjusted operating margin improved 19 basis points to 1.41%.
Net interest expense increased 75.1% to $136.3 million, primarily due to acquisition-related financing costs and lower interest income. The adjusted effective tax rate declined to 20.2% from 20.6%.
COR Issues Fiscal 2027 Outlook
Cencora expects fiscal 2027 adjusted earnings of $19.40-$19.75 per share, reflecting growth of 8-10%. Revenues are projected to increase 3-5%, while adjusted operating income is expected to rise 4-6%.
Under the revised reporting structure, Pharmaceutical Distribution and Services revenues are expected to grow 4-6%, with operating income increasing 2-4%. Specialty Pharmaceutical and Provider Services revenues are projected to rise 9-14%, while operating income is expected to increase 18%-21%.
The company anticipates adjusted free cash flow of approximately $3.5 billion and capital expenditures of around $1 billion. Net interest expense is projected to be in the range of $490-$510 million.
Cencora Realigns Operations, Raises Dividend
Cencora announced a new organizational structure, effective from the first quarter of fiscal 2027, bringing its specialty businesses under Specialty Pharmaceutical and Provider Services. The remaining distribution operations will form Pharmaceutical Distribution and Services.
The company also announced an agreement to acquire American Oncology Network, comprising more than 350 oncology providers across 21 states. The acquisition is aligned with its specialty-focused growth strategy.
Cencora reaffirmed its long-term adjusted operating income growth target of 7-10% and adjusted EPS growth target of 10-14%. The company also raised its quarterly dividend by 10% to 66 cents per share, reinforcing its commitment to shareholder returns.
Wrapping Up
Cencora exited the fourth quarter of fiscal 2026 on a strong note, with both earnings and revenues surpassing the Zacks Consensus Estimate. The company benefited from higher specialty pharmaceutical volumes, growing GLP-1 drug demand and solid performance across its U.S. and International Healthcare Solutions segments.
The OneOncology acquisition contributed to higher gross profit and operating income, while growth at Profarma and MWI Animal Health further supported quarterly results. The company’s upbeat fiscal 2027 earnings outlook, new specialty-focused organizational structure and 10% dividend hike reinforce its long-term growth strategy.
However, increased sales of lower-margin GLP-1 products continued to pressure gross margins, while expenses associated with OneOncology drove operating costs higher. Elevated interest expenses related to acquisition financing remain another concern. Nevertheless, improving profitability, strong specialty business momentum and the company's strategic focus on higher-growth opportunities position COR favorably for fiscal 2027.
COR’s Zacks Rank & Other Key Picks
Cencora currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are OPKO Health (OPK - Free Report) , Globus Medical (GMED - Free Report) and Merit Medical Systems (MMSI - Free Report) .
OPKO Health, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted loss of 1 cent per share, which surpassed the Zacks Consensus Estimate by 87.5%. Revenues of $163.6 million beat the Zacks Consensus Estimate by 24.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
OPK has an estimated earnings growth rate of 23.3% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 95.1%.
Globus Medical, currently carrying a Zacks Rank #2, reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Merit Medical Systems, carrying a Zacks Rank #2 at present, reported second-quarter 2026 adjusted EPS of $1.19, which beat the Zacks Consensus Estimate by 23.9%. Revenues of $418.8 million surpassed the Zacks Consensus Estimate by 3.5%.
MMSI has an estimated long-term earnings growth rate of 10.4%. Merit Medical Systems’ earnings surpassed estimates in the trailing four quarters, with the average surprise being 14.1%.