Cencora (NYSE: COR) lifts 2026 EPS outlook after Q2 revenue hits $78.4B
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Cencora reported solid fiscal 2026 second-quarter results with revenue of $78.4 billion, up 3.8% year-over-year. GAAP diluted EPS jumped to $8.40 from $3.68, boosted by a $1.1 billion gain tied to the OneOncology acquisition, while adjusted diluted EPS rose 7.5% to $4.75.
The company raised its fiscal 2026 adjusted EPS guidance to $17.65–$17.90 from $17.45–$17.75 and now expects about $3.0 billion in adjusted free cash flow. Management also plans to repurchase $1 billion of shares by the end of calendar 2026 and declared a quarterly dividend of $0.60 per share.
Positive
- Raised 2026 outlook: Adjusted diluted EPS guidance increased from $17.45–$17.75 to $17.65–$17.90, reflecting management’s higher expectations for full-year profitability.
- Stronger profitability: Fiscal Q2 2026 adjusted diluted EPS rose 7.5% year-over-year to $4.75, with gross margin improving to 4.58% on higher segment gross profit and the impact of OneOncology.
- Capital return acceleration: Cencora expects to repurchase $1 billion of shares by the end of calendar 2026 while maintaining a $0.60 quarterly dividend, supported by roughly $3.0 billion targeted adjusted free cash flow.
Negative
- None.
Insights
Cencora combines steady revenue growth with higher margins, a guidance raise, and sizable capital returns.
Cencora delivered fiscal Q2 2026 revenue of $78.4B, up 3.8%, while gross profit rose 17.3% to $3.6B as gross margin expanded to 4.58%. Segment trends were constructive, with U.S. Healthcare Solutions and International Healthcare Solutions both growing and contributing more operating income.
GAAP diluted EPS surged to $8.40, aided by a $1.1B gain from the OneOncology acquisition. Adjusted diluted EPS grew 7.5% to $4.75, giving a cleaner view of underlying performance. Interest expense increased after new debt to finance OneOncology, but operating income and adjusted operating income still improved.
The company raised its full‑year 2026 adjusted EPS outlook to $17.65–$17.90 and continues to target about $3.0B of adjusted free cash flow. Management expects to repurchase $1B of shares by the end of calendar 2026 and declared a $0.60 quarterly dividend, signaling confidence in cash generation and balance sheet capacity.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 revenue: $78.4B
Q2 2026 GAAP diluted EPS: $8.40
Q2 2026 adjusted diluted EPS: $4.75
+5 more
8 metrics
Q2 2026 revenue
$78.4B
Fiscal 2026 second quarter, up 3.8% year-over-year
Q2 2026 GAAP diluted EPS
$8.40
Compared to $3.68 in prior-year quarter
Q2 2026 adjusted diluted EPS
$4.75
Up 7.5% from $4.42 in prior-year quarter
2026 adjusted EPS guidance
$17.65–$17.90
Raised from $17.45–$17.75 for fiscal 2026
Planned share repurchases
$1B
Expected buybacks by end of calendar 2026
Quarterly dividend
$0.60 per share
Payable June 1, 2026 to holders of record May 15, 2026
Q2 2026 adjusted operating income
$1.263B
Adjusted non-GAAP operating income, up 6.0% year-over-year
Q2 2026 net income attributable to Cencora
$1.641B
GAAP net income for the quarter, up 128.6% year-over-year
Key Terms
Adjusted diluted EPS, LIFO credit, equity method investment, held for sale, +2 more
6 terms
Adjusted diluted EPS financial
"Second Quarter GAAP Diluted EPS of $8.40 and Adjusted Diluted EPS of $4.75"
Adjusted diluted EPS is a company’s profit per share after adding back or removing one-time items (like restructuring costs or gains) and dividing by the number of shares including potential shares from options and convertible securities. Investors use it as a cleaner view of ongoing earnings—like looking at a car’s regular fuel efficiency rather than a trip boosted by downhill coasting—to judge underlying performance and compare companies without temporary distortions.
LIFO credit financial
"a LIFO credit in the current year quarter compared to LIFO expense in the prior year quarter"
equity method investment financial
"gain of $1.1 billion on the remeasurement of its equity method investment"
An equity method investment is an accounting way to report ownership in another company when an investor has significant influence (commonly around 20–50% of voting rights). Instead of listing the other company’s full assets and debts, the investor records its share of that company’s profits or losses on its own income statement—like keeping track of your share of a neighborhood bakery’s monthly earnings. Investors care because those shared profits, losses and changes in the investee’s value directly affect the investor’s reported earnings and balance sheet, so this method can materially change a company’s financial picture and valuation.
held for sale financial
"MWI now being accounted for as “held for sale”"
An asset or a group of assets classified as 'held for sale' is one the company intends to sell rather than keep using, and management has committed to that plan with an active effort to find a buyer. Investors care because these items are removed from ongoing operating results and valued differently, offering a clearer view of the business’s continuing performance—think of it like marking a piece of furniture for the garage sale rather than counting it as part of your regular household setup.
adjusted free cash flow financial
"Adjusted free cash flow | ~$3.0B | $3.0B"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
constant currency financial
"results in “constant currency,” which is a non-GAAP financial measure"
Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.
Earnings Snapshot
Revenue: $78.4B · Guidance included
Q2 fiscal 2026
Revenue
$78.4B
3.8% YoY
GAAP diluted EPS
$8.40
128.3% YoY
Adjusted diluted EPS
$4.75
7.5% YoY
Adjusted operating income
$1.263B
6.0% YoY
Guidance
Fiscal 2026 adjusted diluted EPS guidance raised to $17.65–$17.90, with 4–6% revenue growth, 12–14% adjusted operating income growth, and approximately $3.0B adjusted free cash flow.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
_________________________________
FORM 8-K
_________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 6, 2026
_________________________________
(Exact name of registrant as specified in its charter)
_________________________________
Commission File Number: 1-16671
| (State or other jurisdiction of | (I.R.S. Employer | |||||||||||||
| incorporation or organization) | Identification No.) | |||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
(610 ) 727-7000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report.)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of exchange on which registered | |||||||||
| (NYSE) | |||||||||||
| (NYSE) | |||||||||||
| (NYSE) | |||||||||||
_________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02. Results of Operations and Financial Condition.
On May 6, 2026, Cencora, Inc. (the “Company”) issued a news release announcing the Company’s earnings for the fiscal quarter ended March 31, 2026. A copy of the news release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The information in this Current Report, including the exhibit attached hereto as Exhibit 99.1 and the information under Item 7.01 below, is being furnished to the Securities and Exchange Commission and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. This information shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 7.01. Regulation FD Disclosure.
On May 6, 2026, the Company is conducting a conference call and webcast scheduled to be held at 8:30 a.m. Eastern time regarding its results for the fiscal quarter ended March 31, 2026 and related matters.
A link to the conference call and slides prepared for the conference call are available on the Company's website at investor.cencora.com.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | ||||
| 99.1 | News Release of Cencora, Inc. dated May 6, 2026 | ||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Cencora, Inc. | |||||||||||
| Date: | By: | /s/ James F. Cleary | |||||||||
| Name: | James F. Cleary | ||||||||||
| Title: | Executive Vice President & Chief Financial Officer | ||||||||||
Exhibit 99.1
CENCORA REPORTS FISCAL 2026 SECOND QUARTER RESULTS
Revenue of $78.4 billion for the Second Quarter, a 3.8 percent Increase Year-Over-Year
Second Quarter GAAP Diluted EPS of $8.40 and Adjusted Diluted EPS of $4.75
Adjusted Diluted EPS Guidance Range Raised to $17.65 to $17.90 for Fiscal 2026
Cencora Expects to Repurchase $1 Billion in Shares by the End of Calendar 2026
CONSHOHOCKEN, PA, May 6, 2026 - Cencora, Inc. (NYSE: COR) reported that in its fiscal year 2026 second quarter ended March 31, 2026, revenue increased 3.8 percent year-over-year to $78.4 billion. On the basis of U.S. generally accepted accounting principles (GAAP), diluted earnings per share (EPS) was $8.40 for the second quarter of fiscal 2026 compared to $3.68 in the prior year second quarter. Adjusted diluted EPS, which is a non-GAAP financial measure that excludes items described below, increased 7.5 percent to $4.75 in the fiscal second quarter from $4.42 in the prior year second quarter.
Cencora is updating its outlook for fiscal year 2026. The Company does not provide forward-looking guidance on a GAAP basis as discussed below in Fiscal Year 2026 Expectations. Adjusted diluted EPS guidance has been raised from the previous range of $17.45 to $17.75 to a range of $17.65 to $17.90.
“Cencora delivered solid results in our second quarter as our team members continued to execute to meet the needs of our customers,” said Robert P. Mauch, President and Chief Executive Officer of Cencora.
“Our fiscal 2026 guidance reflects the strength of our business and focus on our strategy to create long-term value. As we move into the second half of our fiscal year, we are pleased to have made progress on debt paydown and to be in a position to resume opportunistic share repurchases,” Mr. Mauch continued.
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Second Quarter Fiscal Year 2026 Summary Results
| GAAP | Adjusted (Non-GAAP) | |||||||
| Revenue | $78.4B | $78.4B | ||||||
| Gross Profit | $3.6B | $3.4B | ||||||
| Operating Expenses | $2.4B | $2.1B | ||||||
| Operating Income | $1.1B | $1.3B | ||||||
| Other Income, Net | $1.1B | $8M | ||||||
| Interest Expense, Net | $140M | $140M | ||||||
| Effective Tax Rate | 22.0% | 18.9% | ||||||
| Net Income Attributable to Cencora, Inc. | $1.6B | $928M | ||||||
| Diluted Earnings Per Share | $8.40 | $4.75 | ||||||
| Diluted Shares Outstanding | 195.4M | 195.4M | ||||||
Below, Cencora presents descriptive summaries of the Company’s GAAP and adjusted (non-GAAP) quarterly results. In the tables that follow, GAAP results and GAAP to non-GAAP reconciliations are presented. For more information related to non-GAAP financial measures, including adjustments made in the periods presented, please refer to the “Supplemental Information Regarding Non-GAAP Financial Measures” following the tables.
Second Quarter GAAP Results
•Revenue: In the second quarter of fiscal 2026, revenue was $78.4 billion, up 3.8 percent compared to the same quarter in the previous fiscal year, primarily due to a 2.9 percent increase in revenue within the U.S. Healthcare Solutions segment and a 13.0 percent increase in revenue within the International Healthcare Solutions segment.
•Gross Profit: Gross profit in the second quarter of fiscal 2026 was $3.6 billion, a 17.3 percent increase compared to the same quarter in the previous fiscal year, primarily due to the increase in gross profit in both reportable segments and a LIFO credit in the current year quarter compared to LIFO expense in the prior year quarter, offset in part by lower gains from antitrust litigation settlements in the current year quarter compared to the prior year quarter. Gross profit as a percentage of revenue was 4.58 percent, an increase of 52 basis points from the prior year quarter primarily due to the increase in U.S. Healthcare Solutions’ gross profit margin as a result of the February 2026 acquisition of OneOncology, offset in part by higher sales of GLP-1s, which have lower gross profit margins.
•Operating Expenses: In the second quarter of fiscal 2026, operating expenses were $2.4 billion, a 20.9 percent increase compared to the same quarter in the previous fiscal year. This increase was primarily driven by higher expenses as a result of the February 2026 acquisition of OneOncology.
•Operating Income: In the second quarter of fiscal 2026, operating income was $1.1 billion, an increase of 10.3 percent compared to the same quarter in the previous fiscal year due to the increase in gross profit, offset in part by the increase in operating expenses. Operating income as a percentage of revenue was 1.46 percent in the second quarter of fiscal 2026 compared to 1.37 percent in the prior year quarter.
•Other Income, Net: In the second quarter of fiscal 2026, in connection with the acquisition of OneOncology, the Company recorded a gain of $1.1 billion on the remeasurement of its equity method investment and the extinguishment of the put option liability related to its previously held investment in OneOncology.
•Interest Expense, Net: In the second quarter of fiscal 2026, net interest expense was $140.5 million, an increase of $36.5 million from the prior year quarter primarily due to an increase in interest expense as a result of our issuance of senior notes and variable-rate term loans to finance the February 2026 acquisition of OneOncology and a decrease in interest income.
•Effective Tax Rate: The effective tax rate was 22.0 percent for the second quarter of fiscal 2026 compared to 22.7 percent in the prior year quarter.
•Diluted Earnings Per Share: Diluted earnings per share was $8.40 in the second quarter of fiscal 2026, a 128.3 percent increase compared to $3.68 in the previous fiscal year’s second quarter. The increase in diluted earnings per share
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included a $1.1 billion remeasurement gain related to the OneOncology acquisition, which was recorded as “Other (income) loss, net.”
•Diluted Shares Outstanding: Diluted weighted average shares outstanding for the second quarter of fiscal 2026 were 195.4 million, an increase of 0.1 percent versus the prior year second quarter.
Second Quarter Adjusted (non-GAAP) Results
•Revenue: No adjustments were made to the GAAP presentation of revenue. In the second quarter of fiscal 2026, revenue was $78.4 billion, up 3.8 percent compared to the same quarter in the previous fiscal year, primarily due to a 2.9 percent increase in revenue within the U.S. Healthcare Solutions segment and a 13.0 percent increase in revenue within the International Healthcare Solutions segment.
•Adjusted Gross Profit: Adjusted gross profit in the second quarter of fiscal 2026 was $3.4 billion, a 15.7 percent increase compared to the same quarter in the previous fiscal year primarily due to increases in gross profit in both reportable segments. Adjusted gross profit as a percentage of revenue was 4.31 percent in the fiscal 2026 second quarter, an increase of 45 basis points from the prior year quarter primarily due to the increase in U.S. Healthcare Solutions’ gross profit margin as a result of the February 2026 acquisition of OneOncology, offset in part by higher sales of GLP-1s, which have lower gross profit margins.
•Adjusted Operating Expenses: In the second quarter of fiscal 2026, adjusted operating expenses were $2.1 billion, a 22.5 percent increase compared to the same quarter in the previous fiscal year, primarily driven by higher expenses as a result of the February 2026 acquisition of OneOncology.
•Adjusted Operating Income: In the second quarter of fiscal 2026, adjusted operating income was $1.3 billion, a 6.0 percent increase compared to the same quarter in the prior fiscal year due to the increase in gross profit, offset in part by the increase in operating expenses. Adjusted operating income as a percentage of revenue was 1.61 percent in the fiscal 2026 second quarter, an increase of 3 basis points when compared to the prior year quarter.
•Interest Expense, Net: No adjustments were made to the GAAP presentation of net interest expense. In the second quarter of fiscal 2026, net interest expense was $140.5 million, an increase of $36.5 million from the prior year quarter primarily due to an increase in interest expense as a result of our issuance of senior notes and variable-rate term loans to finance the February 2026 acquisition of OneOncology and a decrease in interest income.
•Adjusted Effective Tax Rate: The adjusted effective tax rate was 18.9 percent for the second quarter of fiscal 2026 compared to 20.8 percent in the prior year quarter primarily due to discrete tax benefits in the current year quarter.
•Adjusted Diluted Earnings Per Share: Adjusted diluted earnings per share was $4.75 in the second quarter of fiscal 2026, a 7.5 percent increase compared to $4.42 in the previous fiscal year’s second quarter.
•Diluted Shares Outstanding: No adjustments were made to the GAAP presentation of diluted shares outstanding. Diluted weighted average shares outstanding for the second quarter of fiscal 2026 were 195.4 million, an increase of 0.1 percent versus the prior year second quarter.
Segment Discussion
The Company is organized geographically based upon the products and services it provides to its customers under two reportable segments: U.S. Healthcare Solutions and International Healthcare Solutions. Additionally, other businesses for which the Company is exploring strategic alternatives have been grouped together in Other. These businesses include MWI Animal Health, Profarma, U.S. Consulting Services, and certain components of PharmaLex.
U.S. Healthcare Solutions Segment
U.S. Healthcare Solutions revenue was $68.8 billion in the second quarter of fiscal 2026, an increase of 2.9 percent compared to the same quarter of the previous fiscal year primarily due to overall market growth largely driven by unit volume growth, including increased sales of specialty products to health systems and physician practices and products labeled for diabetes and/or weight loss in the GLP-1 class. The revenue growth was offset in part by a decline in manufacturer prices related to certain brand pharmaceutical products, lower sales to our large mail order customer as a result of brand conversions, and the 2025 losses of an oncology customer and a grocery customer. Segment operating income of $998.3 million in the second quarter of fiscal 2026 was up 5.6 percent compared to the same quarter in the previous fiscal year due to the increase in
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gross profit, as a result of the February 2026 acquisition of OneOncology and increased product sales, offset in part by the increase in operating expenses and the 2025 loss of an oncology customer.
International Healthcare Solutions Segment
International Healthcare Solutions revenue was $7.6 billion in the second quarter of fiscal 2026, an increase of 13.0 percent compared to the previous fiscal year’s second quarter primarily due to growth in our European distribution business. Segment operating income in the second quarter of fiscal 2026 was $175.8 million, an increase of 13.7 percent, primarily due to increased operating income at our European distribution business and our global specialty logistics business. On a constant currency basis, International Healthcare Solutions revenue increased by 7.2 percent in the second quarter of fiscal 2026 compared to the previous fiscal year’s second quarter, while segment operating income increased by 12.9 percent.
Other
Revenue in Other was $2.1 billion in the second quarter of fiscal 2026, an increase of 5.1 percent compared to the previous fiscal year’s second quarter due to growth at Profarma and MWI Animal Health, offset in part by a decrease in sales at our consulting services businesses. Operating income in Other in the second quarter of fiscal 2026 was $91.6 million, a decrease of 1.3 percent, primarily due to lower operating income at our consulting services businesses, offset in part by an increase in operating income at MWI Animal Health.
Recent Company Highlights & Milestones
•Cencora and Covetrus, a global animal health technology and services company, announced that they entered into a definitive agreement under which MWI Animal Health and Covetrus will merge, creating a combined company offering a comprehensive animal health platform.
•Cencora announced the signing of a definitive agreement to acquire EyeSouth Partners’ retina business. Upon completion of the transaction, the affiliated retina physicians of EyeSouth Partners will join Cencora’s Retina Consultants of America (“RCA”), a leading management services organization.
Fiscal Year 2026 Expectations on an Adjusted (non-GAAP) Basis
Cencora is now updating its fiscal year 2026 financial guidance which reflects its strong full year fiscal 2026 operating income growth in the U.S. Healthcare Solutions segment and updated operating income expectations in Other as a result of MWI now being accounted for as “held for sale”. Additionally, the Company has narrowed its expectations for interest expense and now expects an incrementally lower expected share count as it resumes opportunistic share repurchases.
2026 Guidance(1) | Fiscal 2025 Actuals | |||||||
| Revenue | 4% to 6% growth | $321.3B | ||||||
U.S. Healthcare Solutions Segment(2) | 4% to 6% growth | $285.0B | ||||||
International Healthcare Solutions Segment(2)(3) | 8% to 10% growth | $28.3B | ||||||
Other(2) | 1% to 5% growth | $8.2B | ||||||
| Adjusted operating income | 12% to 14% growth | $4.2B | ||||||
U.S. Healthcare Solutions Segment(2) | 14% to 16% growth | $3.3B | ||||||
International Healthcare Solutions Segment(2)(3) | 5% to 8% growth | $588M | ||||||
Other(2) | High-single digit growth | $352M | ||||||
| Adjusted diluted earnings per share | $17.65 to $17.90 | $16.00 | ||||||
| Net interest expense | ~$485M | $292M | ||||||
| Adjusted effective tax rate | ~20% | 20.6% | ||||||
| Diluted weighted average shares outstanding | Under 195.5M | 195.2M | ||||||
| Adjusted free cash flow | ~$3.0B | $3.0B | ||||||
| Capital expenditures | ~$900M | $668M | ||||||
(1) Bolded figures indicate updates to guidance metrics.
(2) For further detail on fiscal 2025 revised reportable segment information, please reference Exhibit 99.2 to the Company’s Current Report on Form 8-K dated November 5, 2025.
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(3) As reported guidance. For additional details regarding updated guidance expectations on a constant currency basis, please refer to our slide presentation for investors posted on the Company’s website at investor.cencora.com.
Dividend Declaration
The Company’s Board of Directors declared a quarterly cash dividend of $0.60 per common share, payable June 1, 2026, to stockholders of record at the close of business on May 15, 2026.
Conference Call & Slide Presentation
The Company will host a conference call to discuss its operating results at 8:30 a.m. ET on May 6, 2026. A slide presentation for investors has also been posted on the Company’s website at investor.cencora.com. Participating in the conference call will be:
•Robert P. Mauch, President & Chief Executive Officer
•James F. Cleary, Executive Vice President & Chief Financial Officer
The dial-in number for the live call will be +1 (833) 461-5787. From outside the United States and Canada, dial +1 (585) 542-9983. The meeting ID for the call will be 280720750 and the access code will be 528015. The live call will also be webcast via the Company’s website at investor.cencora.com. Users are encouraged to log on to the webcast approximately 10 minutes in advance of the scheduled start time of the call.
A replay of the webcast will be posted on investor.cencora.com approximately one hour after the completion of the call and will remain available for one year.
Upcoming Investor Event
Cencora management will be attending the following investor event in the coming months:
•Bank of America Global Healthcare Conference, May 12-14, 2026
Please check the Company website for updates regarding the timing of the live presentation webcasts, if any, and for replay information.
About Cencora
Cencora is a leading global pharmaceutical solutions organization centered on improving the lives of people and animals around the world. We partner with pharmaceutical innovators across the value chain to facilitate and optimize market access to therapies. Care providers depend on us for the secure, reliable delivery of pharmaceuticals, healthcare products, and solutions. Our worldwide team members contribute to positive health outcomes through the power of our purpose: We are united in our responsibility to create healthier futures. Cencora is ranked #10 on the Fortune 500 and #18 on the Global Fortune 500 with more than $300 billion in annual revenue. Learn more at investor.cencora.com
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Cencora’s Cautionary Note Regarding Forward-Looking Statements
Certain of the statements contained in this press release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Securities Exchange Act”). Words such as “aim,” “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “on track,” “opportunity,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” “strive,” “sustain,” “synergy,” “target,” “will,” “would” and similar expressions are intended to identify such forward-looking statements, but the absence of these words does not mean the statement is not forward-looking. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances and speak only as of the date hereof. These statements are not guarantees of future performance and are based on assumptions and estimates that could prove incorrect or could cause actual results to vary materially from those indicated. A more detailed discussion of the risks and uncertainties that could cause our actual results to differ materially from those indicated is included (i) in the "Risk Factors" and "Management's Discussion and Analysis" sections in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025 and elsewhere in that report and (ii) in other reports filed by the Company pursuant to the Securities Exchange Act. The Company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by the federal securities laws.
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CENCORA, INC.
FINANCIAL SUMMARY
(in thousands, except per share data)
(unaudited)
| Three Months Ended March 31, 2026 | % of Revenue | Three Months Ended March 31, 2025 | % of Revenue | % Change | ||||||||||||||||||||||||||||
| Revenue | $ | 78,355,916 | $ | 75,453,673 | 3.8% | |||||||||||||||||||||||||||
Cost of goods sold 1 | 74,767,577 | 72,393,864 | 3.3% | |||||||||||||||||||||||||||||
| Gross profit | 3,588,339 | 4.58% | 3,059,809 | 4.06% | 17.3% | |||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Distribution, selling, and administrative | 1,977,559 | 2.52% | 1,600,040 | 2.12% | 23.6% | |||||||||||||||||||||||||||
| Depreciation and amortization | 249,292 | 0.32% | 259,818 | 0.34% | (4.1)% | |||||||||||||||||||||||||||
| Litigation and opioid-related expenses | 13,858 | 11,524 | ||||||||||||||||||||||||||||||
| Acquisition and divestiture-related deal and integration expenses | 164,164 | 99,380 | ||||||||||||||||||||||||||||||
| Restructuring and other expenses | 40,873 | 52,857 | ||||||||||||||||||||||||||||||
| Total operating expenses | 2,445,746 | 3.12% | 2,023,619 | 2.68% | 20.9% | |||||||||||||||||||||||||||
| Operating income | 1,142,593 | 1.46% | 1,036,190 | 1.37% | 10.3% | |||||||||||||||||||||||||||
Other (income) loss, net 2 | (1,086,439) | 3,546 | ||||||||||||||||||||||||||||||
| Interest expense, net | 140,460 | 103,988 | 35.1% | |||||||||||||||||||||||||||||
| Income before income taxes | 2,088,572 | 2.67% | 928,656 | 1.23% | 124.9% | |||||||||||||||||||||||||||
| Income tax expense | 459,044 | 211,239 | ||||||||||||||||||||||||||||||
| Net income | 1,629,528 | 2.08% | 717,417 | 0.95% | 127.1% | |||||||||||||||||||||||||||
| Net loss attributable to noncontrolling interests | 11,804 | 454 | ||||||||||||||||||||||||||||||
| Net income attributable to Cencora, Inc. | $ | 1,641,332 | 2.09% | $ | 717,871 | 0.95% | 128.6% | |||||||||||||||||||||||||
| Earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 8.44 | $ | 3.70 | 128.1% | |||||||||||||||||||||||||||
Diluted | $ | 8.40 | $ | 3.68 | 128.3% | |||||||||||||||||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 194,545 | 193,796 | 0.4% | |||||||||||||||||||||||||||||
Diluted | 195,383 | 195,094 | 0.1% | |||||||||||||||||||||||||||||
________________________________________
1 Includes a $16.5 million gain from antitrust litigation settlements, a $210.0 million LIFO credit, and Türkiye foreign currency remeasurement expense of $12.2 million in the three months ended March 31, 2026. Includes a $198.6 million gain from antitrust litigation settlements, a $39.5 million LIFO expense, and Türkiye foreign currency remeasurement expense of $14.5 million in the three months ended March 31, 2025.
2 In connection with the acquisition of OneOncology, the Company recorded a $1.1 billion gain on the remeasurement of its equity method investment and the extinguishment of the put option liability related to its previously held investment in OneOncology in the three months ended March 31, 2026.
7
CENCORA, INC.
FINANCIAL SUMMARY
(in thousands, except per share data)
(unaudited)
| Six Months Ended March 31, 2026 | % of Revenue | Six Months Ended March 31, 2025 | % of Revenue | % Change | ||||||||||||||||||||||||||||
| Revenue | $ | 164,287,932 | $ | 156,940,733 | 4.7% | |||||||||||||||||||||||||||
Cost of goods sold 1 | 157,627,522 | 151,322,886 | 4.2% | |||||||||||||||||||||||||||||
| Gross profit | 6,660,410 | 4.05% | 5,617,847 | 3.58% | 18.6% | |||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Distribution, selling, and administrative | 3,772,848 | 2.30% | 3,072,095 | 1.96% | 22.8% | |||||||||||||||||||||||||||
| Depreciation and amortization | 509,693 | 0.31% | 538,310 | 0.34% | (5.3)% | |||||||||||||||||||||||||||
Litigation and opioid-related (credit) expenses, net 2 | (72,293) | 28,289 | ||||||||||||||||||||||||||||||
| Acquisition and divestiture-related deal and integration expenses | 242,583 | 138,092 | ||||||||||||||||||||||||||||||
| Restructuring and other expenses, net | 55,039 | 98,617 | ||||||||||||||||||||||||||||||
Impairment of assets, including goodwill 3 | 249,498 | — | ||||||||||||||||||||||||||||||
| Total operating expenses | 4,757,368 | 2.90% | 3,875,403 | 2.47% | 22.8% | |||||||||||||||||||||||||||
| Operating income | 1,903,042 | 1.16% | 1,742,444 | 1.11% | 9.2% | |||||||||||||||||||||||||||
Other (income) loss, net 4 | (1,107,039) | 61,420 | ||||||||||||||||||||||||||||||
| Interest expense, net | 212,869 | 131,921 | 61.4% | |||||||||||||||||||||||||||||
| Income before income taxes | 2,797,212 | 1.70% | 1,549,103 | 0.99% | 80.6% | |||||||||||||||||||||||||||
| Income tax expense | 601,558 | 337,967 | ||||||||||||||||||||||||||||||
| Net income | 2,195,654 | 1.34% | 1,211,136 | 0.77% | 81.3% | |||||||||||||||||||||||||||
| Net loss (income) attributable to noncontrolling interests | 5,325 | (4,665) | ||||||||||||||||||||||||||||||
| Net income attributable to Cencora, Inc. | $ | 2,200,979 | 1.34% | $ | 1,206,471 | 0.77% | 82.4% | |||||||||||||||||||||||||
| Earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 11.32 | $ | 6.23 | 81.7% | |||||||||||||||||||||||||||
Diluted | $ | 11.27 | $ | 6.18 | 82.4% | |||||||||||||||||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 194,383 | 193,780 | 0.3% | |||||||||||||||||||||||||||||
Diluted | 195,352 | 195,144 | 0.1% | |||||||||||||||||||||||||||||
________________________________________
1 Includes a $28.7 million gain from antitrust litigation settlements, a $287.6 million LIFO credit, and Türkiye foreign currency remeasurement expense of $23.0 million in the six months ended March 31, 2026. Includes a $221.5 million gain from antitrust litigation settlements, a $32.1 million LIFO expense, and Türkiye foreign currency remeasurement expense of $21.6 million in the six months ended March 31, 2025.
2 Includes an $86.8 million credit related to a derivative lawsuit settlement in the six months ended March 31, 2026.
3 Impairment of assets held for sale, including goodwill, related to our U.S. Consulting Services business.
4 In connection with the acquisition of OneOncology, the Company recorded a $1.1 billion gain on the remeasurement of its equity method investment and the extinguishment of the put option liability related to its previously held investment in OneOncology in the six months ended March 31, 2026.
8
CENCORA, INC.
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
(unaudited)
| Three Months Ended March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit | Operating Expenses | Operating Income | Income Before Income Taxes | Income Tax Expense | Net Income Attributable to Cencora | Diluted Earnings Per Share | |||||||||||||||||||||||||||||||||||||||||
GAAP | $ | 3,588,339 | $ | 2,445,746 | $ | 1,142,593 | $ | 2,088,572 | $ | 459,044 | $ | 1,641,332 | $ | 8.40 | |||||||||||||||||||||||||||||||||
| Gains from antitrust litigation settlements | (16,538) | — | (16,538) | (16,538) | (2,346) | (14,192) | (0.07) | ||||||||||||||||||||||||||||||||||||||||
| LIFO credit | (210,030) | — | (210,030) | (210,030) | (35,761) | (174,269) | (0.89) | ||||||||||||||||||||||||||||||||||||||||
Türkiye highly inflationary impact | 12,153 | — | 12,153 | 10,474 | — | 10,474 | 0.05 | ||||||||||||||||||||||||||||||||||||||||
| Acquisition-related intangibles amortization | — | (116,276) | 116,276 | 116,276 | 13,407 | 102,211 | 0.52 | ||||||||||||||||||||||||||||||||||||||||
| Litigation and opioid-related expenses | — | (13,858) | 13,858 | 13,858 | 9,454 | 4,404 | 0.02 | ||||||||||||||||||||||||||||||||||||||||
| Acquisition and divestiture-related deal and integration expenses | — | (164,164) | 164,164 | 164,164 | 32,393 | 131,771 | 0.67 | ||||||||||||||||||||||||||||||||||||||||
| Restructuring and other expenses | — | (40,873) | 40,873 | 40,873 | 4,265 | 36,608 | 0.19 | ||||||||||||||||||||||||||||||||||||||||
Remeasurement gain related to OneOncology acquisition 1 | — | — | — | (1,086,612) | (252,460) | (834,152) | (4.27) | ||||||||||||||||||||||||||||||||||||||||
| Other, net | — | — | — | 7,691 | (1,833) | 9,524 | 0.05 | ||||||||||||||||||||||||||||||||||||||||
Tax reform 2 | — | — | — | 1,880 | (12,482) | 14,362 | 0.07 | ||||||||||||||||||||||||||||||||||||||||
| Adjusted Non-GAAP | $ | 3,373,924 | $ | 2,110,575 | $ | 1,263,349 | $ | 1,130,608 | $ | 213,681 | $ | 928,073 | $ | 4.75 | 3 | ||||||||||||||||||||||||||||||||
| Adjusted Non-GAAP % change vs. prior year | 15.7 | % | 22.5 | % | 6.0 | % | 3.8 | % | (5.7) | % | 7.6 | % | 7.5 | % | |||||||||||||||||||||||||||||||||
| Percentages of Revenue: | GAAP | Adjusted Non-GAAP | ||||||||||||
Gross profit | 4.58% | 4.31% | ||||||||||||
Operating expenses | 3.12% | 2.69% | ||||||||||||
Operating income | 1.46% | 1.61% | ||||||||||||
________________________________________
1 In connection with the acquisition of OneOncology, the Company recorded a gain on the remeasurement of its equity method investment and the extinguishment of the put option liability related to its previously held investment in OneOncology.
2 Tax reform includes the foreign currency remeasurement of Swiss deferred tax assets arising from 2020 Swiss tax reform and the amortization of those deferred tax assets.
3 The sum of the components does not equal the total due to rounding.
Note: For more information related to non-GAAP financial measures, refer to the section titled “Supplemental Information Regarding Non-GAAP Financial Measures” of this release.
9
CENCORA, INC.
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
(unaudited)
| Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit | Operating Expenses | Operating Income | Income Before Income Taxes | Income Tax Expense | Net Income Attributable to Cencora | Diluted Earnings Per Share | |||||||||||||||||||||||||||||||||||||||||
GAAP | $ | 3,059,809 | $ | 2,023,619 | $ | 1,036,190 | $ | 928,656 | $ | 211,239 | $ | 717,871 | $ | 3.68 | |||||||||||||||||||||||||||||||||
| Gains from antitrust litigation settlements | (198,646) | — | (198,646) | (198,646) | (54,162) | (144,484) | (0.74) | ||||||||||||||||||||||||||||||||||||||||
| LIFO expense | 39,469 | — | 39,469 | 39,469 | 10,899 | 28,570 | 0.15 | ||||||||||||||||||||||||||||||||||||||||
Türkiye highly inflationary impact | 14,479 | — | 14,479 | 18,394 | — | 18,394 | 0.09 | ||||||||||||||||||||||||||||||||||||||||
| Acquisition-related intangibles amortization | — | (137,011) | 137,011 | 137,011 | 35,632 | 100,628 | 0.52 | ||||||||||||||||||||||||||||||||||||||||
| Litigation and opioid-related expenses | — | (11,524) | 11,524 | 11,524 | 2,964 | 8,560 | 0.04 | ||||||||||||||||||||||||||||||||||||||||
| Acquisition and divestiture-related deal and integration expenses | — | (99,380) | 99,380 | 99,380 | 16,517 | 82,863 | 0.42 | ||||||||||||||||||||||||||||||||||||||||
| Restructuring and other expenses | — | (52,857) | 52,857 | 52,857 | 13,953 | 38,904 | 0.20 | ||||||||||||||||||||||||||||||||||||||||
| Other, net | — | — | — | 5,763 | 952 | 4,811 | 0.02 | ||||||||||||||||||||||||||||||||||||||||
Tax reform 1 | — | — | — | (4,855) | (11,367) | 6,512 | 0.03 | ||||||||||||||||||||||||||||||||||||||||
| Adjusted Non-GAAP | $ | 2,915,111 | $ | 1,722,847 | $ | 1,192,264 | $ | 1,089,553 | $ | 226,627 | $ | 862,629 | $ | 4.42 | 2 | ||||||||||||||||||||||||||||||||
| Percentages of Revenue: | GAAP | Adjusted Non-GAAP | ||||||||||||
Gross profit | 4.06% | 3.86% | ||||||||||||
Operating expenses | 2.68% | 2.28% | ||||||||||||
Operating income | 1.37% | 1.58% | ||||||||||||
________________________________________
1 Tax reform includes the foreign currency remeasurement of Swiss deferred tax assets arising from 2020 Swiss tax reform and the amortization of those deferred tax assets.
2 The sum of the components does not equal the total due to rounding.
Note: For more information related to non-GAAP financial measures, refer to the section titled “Supplemental Information Regarding Non-GAAP Financial Measures” of this release.
10
CENCORA, INC.
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
(unaudited)
| Six Months Ended March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit | Operating Expenses | Operating Income | Income Before Income Taxes | Income Tax Expense | Net Income Attributable to Cencora | Diluted Earnings Per Share | |||||||||||||||||||||||||||||||||||||||||
GAAP | $ | 6,660,410 | $ | 4,757,368 | $ | 1,903,042 | $ | 2,797,212 | $ | 601,558 | $ | 2,200,979 | $ | 11.27 | |||||||||||||||||||||||||||||||||
| Gains from antitrust litigation settlements | (28,690) | — | (28,690) | (28,690) | (5,708) | (22,982) | (0.12) | ||||||||||||||||||||||||||||||||||||||||
| LIFO credit | (287,592) | — | (287,592) | (287,592) | (57,222) | (230,370) | (1.18) | ||||||||||||||||||||||||||||||||||||||||
Türkiye highly inflationary impact | 23,042 | — | 23,042 | 19,197 | — | 19,197 | 0.10 | ||||||||||||||||||||||||||||||||||||||||
| Acquisition-related intangibles amortization | — | (241,434) | 241,434 | 241,434 | 48,038 | 191,905 | 0.98 | ||||||||||||||||||||||||||||||||||||||||
Litigation and opioid-related credit, net 1 | — | 72,293 | (72,293) | (72,293) | (14,384) | (57,909) | (0.30) | ||||||||||||||||||||||||||||||||||||||||
| Acquisition and divestiture-related deal and integration expenses | — | (242,583) | 242,583 | 242,583 | 42,432 | 200,151 | 1.02 | ||||||||||||||||||||||||||||||||||||||||
| Restructuring and other expenses, net | — | (55,039) | 55,039 | 55,039 | 11,546 | 43,493 | 0.22 | ||||||||||||||||||||||||||||||||||||||||
Impairment of assets, including goodwill 2 | — | (249,498) | 249,498 | 249,498 | 54,381 | 195,117 | 1.00 | ||||||||||||||||||||||||||||||||||||||||
Remeasurement gain related to OneOncology acquisition 3 | — | — | — | (1,086,612) | (252,460) | (834,152) | (4.27) | ||||||||||||||||||||||||||||||||||||||||
| Other, net | — | — | — | 6,817 | (8) | 6,825 | 0.03 | ||||||||||||||||||||||||||||||||||||||||
Tax reform 4 | — | — | — | (12,472) | (25,725) | 13,253 | 0.07 | ||||||||||||||||||||||||||||||||||||||||
| Adjusted Non-GAAP | $ | 6,367,170 | $ | 4,041,107 | $ | 2,326,063 | $ | 2,124,121 | $ | 402,448 | $ | 1,725,507 | $ | 8.83 | 5 | ||||||||||||||||||||||||||||||||
| Adjusted Non-GAAP % change vs. prior year | 16.8 | % | 22.1 | % | 8.6 | % | 5.9 | % | (1.8) | % | 8.5 | % | 8.3 | % | |||||||||||||||||||||||||||||||||
| Percentages of Revenue: | GAAP | Adjusted Non-GAAP | ||||||||||||
Gross profit | 4.05% | 3.88% | ||||||||||||
Operating expenses | 2.90% | 2.46% | ||||||||||||
Operating income | 1.16% | 1.42% | ||||||||||||
________________________________________
1 Includes an $86.8 million credit related to a derivative lawsuit settlement.
2 Impairment of assets held for sale, including goodwill, related to our U.S. Consulting Services business.
3 In connection with the acquisition of OneOncology, the Company recorded a gain on the remeasurement of its equity method investment and the extinguishment of the put option liability related to its previously held investment in OneOncology.
4 Tax reform includes the foreign currency remeasurement of Swiss deferred tax assets arising from 2020 Swiss tax reform and the amortization of those deferred tax assets.
5 The sum of the components does not equal the total due to rounding.
Note: For more information related to non-GAAP financial measures, refer to the section titled “Supplemental Information Regarding Non-GAAP Financial Measures” of this release.
11
CENCORA, INC.
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
(unaudited)
| Six Months Ended March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit | Operating Expenses | Operating Income | Income Before Income Taxes | Income Tax Expense | Net Income Attributable to Cencora | Diluted Earnings Per Share | |||||||||||||||||||||||||||||||||||||||||
GAAP | $ | 5,617,847 | $ | 3,875,403 | $ | 1,742,444 | $ | 1,549,103 | $ | 337,967 | $ | 1,206,471 | $ | 6.18 | |||||||||||||||||||||||||||||||||
| Gains from antitrust litigation settlements | (221,516) | — | (221,516) | (221,516) | (60,692) | (160,824) | (0.82) | ||||||||||||||||||||||||||||||||||||||||
| LIFO expense | 32,145 | — | 32,145 | 32,145 | 8,807 | 23,338 | 0.12 | ||||||||||||||||||||||||||||||||||||||||
Türkiye highly inflationary impact | 21,634 | — | 21,634 | 26,060 | — | 26,060 | 0.13 | ||||||||||||||||||||||||||||||||||||||||
Acquisition-related intangibles amortization | — | (301,867) | 301,867 | 301,867 | 82,707 | 217,975 | 1.12 | ||||||||||||||||||||||||||||||||||||||||
| Litigation and opioid-related expenses | — | (28,289) | 28,289 | 28,289 | 7,751 | 20,538 | 0.11 | ||||||||||||||||||||||||||||||||||||||||
| Acquisition and divestiture-related deal and integration expenses | — | (138,092) | 138,092 | 138,092 | 27,571 | 110,521 | 0.57 | ||||||||||||||||||||||||||||||||||||||||
| Restructuring and other expenses | — | (98,617) | 98,617 | 98,617 | 27,020 | 71,597 | 0.37 | ||||||||||||||||||||||||||||||||||||||||
| Loss on divestiture of non-core businesses | — | — | — | 35,539 | — | 35,539 | 0.18 | ||||||||||||||||||||||||||||||||||||||||
| Other, net | — | — | — | 7,694 | 1,875 | 5,819 | 0.03 | ||||||||||||||||||||||||||||||||||||||||
Tax reform 1 | — | — | — | 10,349 | (23,042) | 33,391 | 0.17 | ||||||||||||||||||||||||||||||||||||||||
Adjusted Non-GAAP | $ | 5,450,110 | $ | 3,308,538 | $ | 2,141,572 | $ | 2,006,239 | $ | 409,964 | $ | 1,590,425 | $ | 8.15 | 2 | ||||||||||||||||||||||||||||||||
| Percentages of Revenue: | GAAP | Adjusted Non-GAAP | ||||||||||||
Gross profit | 3.58% | 3.47% | ||||||||||||
Operating expenses | 2.47% | 2.11% | ||||||||||||
Operating income | 1.11% | 1.36% | ||||||||||||
________________________________________
1 Tax reform includes the foreign currency remeasurement of Swiss deferred tax assets arising from 2020 Swiss tax reform and the amortization of those deferred tax assets.
2 The sum of the components does not equal the total due to rounding.
Note: For more information related to non-GAAP financial measures, refer to the section titled “Supplemental Information Regarding Non-GAAP Financial Measures” of this release.
12
CENCORA, INC.
SUMMARY SEGMENT INFORMATION
(in thousands)
(unaudited)
| Three Months Ended March 31, | ||||||||||||||||||||
| Revenue | 2026 | 2025 | % Change | |||||||||||||||||
| U.S. Healthcare Solutions | $ | 68,765,078 | $ | 66,819,265 | 2.9% | |||||||||||||||
| International Healthcare Solutions | 7,565,749 | 6,696,779 | 13.0% | |||||||||||||||||
| Other | 2,055,571 | 1,956,407 | 5.1% | |||||||||||||||||
Intersegment eliminations | (30,482) | (18,778) | ||||||||||||||||||
Revenue | $ | 78,355,916 | $ | 75,453,673 | 3.8% | |||||||||||||||
| Three Months Ended March 31, | ||||||||||||||||||||
| Operating income | 2026 | 2025 | % Change | |||||||||||||||||
| U.S. Healthcare Solutions | $ | 998,300 | $ | 944,969 | 5.6% | |||||||||||||||
| International Healthcare Solutions | 175,797 | 154,598 | 13.7% | |||||||||||||||||
| Other | 91,633 | 92,851 | (1.3)% | |||||||||||||||||
| Intersegment eliminations | (2,381) | (154) | ||||||||||||||||||
Total segment operating income | 1,263,349 | 1,192,264 | 6.0% | |||||||||||||||||
| Gains from antitrust litigation settlements | 16,538 | 198,646 | ||||||||||||||||||
| LIFO credit (expense) | 210,030 | (39,469) | ||||||||||||||||||
Türkiye highly inflationary impact | (12,153) | (14,479) | ||||||||||||||||||
| Acquisition-related intangibles amortization | (116,276) | (137,011) | ||||||||||||||||||
| Litigation and opioid-related expenses | (13,858) | (11,524) | ||||||||||||||||||
| Acquisition and divestiture-related deal and integration expenses | (164,164) | (99,380) | ||||||||||||||||||
| Restructuring and other expenses | (40,873) | (52,857) | ||||||||||||||||||
Operating income | $ | 1,142,593 | $ | 1,036,190 | 10.3% | |||||||||||||||
| Percentages of Revenue: | ||||||||||||||||||||
| U.S. Healthcare Solutions | ||||||||||||||||||||
| Gross profit | 3.28% | 2.82% | ||||||||||||||||||
| Operating expenses | 1.82% | 1.40% | ||||||||||||||||||
| Operating income | 1.45% | 1.41% | ||||||||||||||||||
| International Healthcare Solutions | ||||||||||||||||||||
| Gross profit | 10.76% | 10.70% | ||||||||||||||||||
| Operating expenses | 8.44% | 8.39% | ||||||||||||||||||
| Operating income | 2.32% | 2.31% | ||||||||||||||||||
| Other | ||||||||||||||||||||
| Gross profit | 15.16% | 16.27% | ||||||||||||||||||
| Operating expenses | 10.70% | 11.53% | ||||||||||||||||||
| Operating income | 4.46% | 4.75% | ||||||||||||||||||
| Cencora, Inc. (GAAP) | ||||||||||||||||||||
| Gross profit | 4.58% | 4.06% | ||||||||||||||||||
| Operating expenses | 3.12% | 2.68% | ||||||||||||||||||
| Operating income | 1.46% | 1.37% | ||||||||||||||||||
| Cencora, Inc. (Non-GAAP) | ||||||||||||||||||||
| Adjusted gross profit | 4.31% | 3.86% | ||||||||||||||||||
| Adjusted operating expenses | 2.69% | 2.28% | ||||||||||||||||||
| Adjusted operating income | 1.61% | 1.58% | ||||||||||||||||||
Note: For more information related to non-GAAP financial measures, refer to the section titled “Supplemental Information Regarding Non-GAAP Financial Measures” of this release.
13
CENCORA, INC.
SUMMARY SEGMENT INFORMATION
(in thousands)
(unaudited)
| Six Months Ended March 31, | ||||||||||||||||||||
| Revenue | 2026 | 2025 | % Change | |||||||||||||||||
| U.S. Healthcare Solutions | $ | 144,976,903 | $ | 139,374,559 | 4.0% | |||||||||||||||
| International Healthcare Solutions | 15,189,722 | 13,655,674 | 11.2% | |||||||||||||||||
| Other | 4,184,518 | 3,958,862 | 5.7% | |||||||||||||||||
Intersegment eliminations | (63,211) | (48,362) | ||||||||||||||||||
Revenue | $ | 164,287,932 | $ | 156,940,733 | 4.7% | |||||||||||||||
| Six Months Ended March 31, | ||||||||||||||||||||
| Operating income | 2026 | 2025 | % Change | |||||||||||||||||
| U.S. Healthcare Solutions | $ | 1,829,630 | $ | 1,631,894 | 12.1% | |||||||||||||||
| International Healthcare Solutions | 317,953 | 319,778 | (0.6)% | |||||||||||||||||
| Other | 183,050 | 190,180 | (3.7)% | |||||||||||||||||
| Intersegment eliminations | (4,570) | (280) | ||||||||||||||||||
Total segment operating income | 2,326,063 | 2,141,572 | 8.6% | |||||||||||||||||
| Gains from antitrust litigation settlements | 28,690 | 221,516 | ||||||||||||||||||
| LIFO credit (expense) | 287,592 | (32,145) | ||||||||||||||||||
Türkiye highly inflationary impact | (23,042) | (21,634) | ||||||||||||||||||
| Acquisition-related intangibles amortization | (241,434) | (301,867) | ||||||||||||||||||
| Litigation and opioid-related credit (expenses), net | 72,293 | (28,289) | ||||||||||||||||||
| Acquisition and divestiture-related deal and integration expenses | (242,583) | (138,092) | ||||||||||||||||||
| Restructuring and other expenses, net | (55,039) | (98,617) | ||||||||||||||||||
| Impairment of assets, including goodwill | (249,498) | — | ||||||||||||||||||
Operating income | $ | 1,903,042 | $ | 1,742,444 | 9.2% | |||||||||||||||
| Percentages of Revenue: | ||||||||||||||||||||
| U.S. Healthcare Solutions | ||||||||||||||||||||
| Gross profit | 2.85% | 2.39% | ||||||||||||||||||
| Operating expenses | 1.59% | 1.22% | ||||||||||||||||||
| Operating income | 1.26% | 1.17% | ||||||||||||||||||
| International Healthcare Solutions | ||||||||||||||||||||
| Gross profit | 10.56% | 10.84% | ||||||||||||||||||
| Operating expenses | 8.46% | 8.50% | ||||||||||||||||||
| Operating income | 2.09% | 2.34% | ||||||||||||||||||
| Other | ||||||||||||||||||||
| Gross profit | 15.20% | 16.07% | ||||||||||||||||||
| Operating expenses | 10.83% | 11.26% | ||||||||||||||||||
| Operating income | 4.37% | 4.80% | ||||||||||||||||||
| Cencora, Inc. (GAAP) | ||||||||||||||||||||
| Gross profit | 4.05% | 3.58% | ||||||||||||||||||
| Operating expenses | 2.90% | 2.47% | ||||||||||||||||||
| Operating income | 1.16% | 1.11% | ||||||||||||||||||
| Cencora, Inc. (Non-GAAP) | ||||||||||||||||||||
| Adjusted gross profit | 3.88% | 3.47% | ||||||||||||||||||
| Adjusted operating expenses | 2.46% | 2.11% | ||||||||||||||||||
| Adjusted operating income | 1.42% | 1.36% | ||||||||||||||||||
Note: For more information related to non-GAAP financial measures, refer to the section titled “Supplemental Information Regarding Non-GAAP Financial Measures” of this release.
14
CENCORA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
| March 31, | September 30, | ||||||||||
| 2026 | 2025 | ||||||||||
| ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 2,176,496 | $ | 4,356,138 | |||||||
Accounts receivable, net | 24,893,220 | 25,225,299 | |||||||||
Inventories | 20,010,006 | 20,492,480 | |||||||||
| Right to recover assets | 1,574,708 | 1,625,817 | |||||||||
| Prepaid expenses and other | 636,815 | 539,339 | |||||||||
| Assets held for sale | 3,849,666 | — | |||||||||
Total current assets | 53,140,911 | 52,239,073 | |||||||||
Property and equipment, net | 2,805,419 | 2,539,076 | |||||||||
Goodwill and other intangible assets | 22,507,385 | 17,450,701 | |||||||||
| Deferred income taxes | 192,825 | 208,810 | |||||||||
Other long-term assets | 3,005,560 | 4,152,452 | |||||||||
Total assets | $ | 81,652,100 | $ | 76,590,112 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 51,881,816 | $ | 54,719,761 | |||||||
| Accrued expenses and other | 3,195,861 | 2,982,993 | |||||||||
Short-term debt | 202,660 | 117,785 | |||||||||
| Liabilities held for sale | 851,949 | — | |||||||||
Total current liabilities | 56,132,286 | 57,820,539 | |||||||||
Long-term debt | 12,182,860 | 7,542,988 | |||||||||
Accrued income taxes | 352,768 | 337,631 | |||||||||
Deferred income taxes | 1,748,178 | 1,620,724 | |||||||||
| Accrued litigation liability | 3,856,483 | 3,881,283 | |||||||||
| Other liabilities | 3,794,575 | 3,639,862 | |||||||||
| Total stockholders’ equity | 3,584,950 | 1,747,085 | |||||||||
| Total liabilities and stockholders’ equity | $ | 81,652,100 | $ | 76,590,112 | |||||||
15
CENCORA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| Six Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating Activities: | |||||||||||
Net income | $ | 2,195,654 | $ | 1,211,136 | |||||||
| Adjustments to reconcile net income to net cash (used in) provided by operating activities | (244,232) | 815,487 | |||||||||
| Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures: | |||||||||||
Accounts receivable | (308,675) | (218,043) | |||||||||
Inventories | (120,202) | 34,252 | |||||||||
Accounts payable | (2,193,885) | (669,479) | |||||||||
| Other, net | (295,190) | (540,897) | |||||||||
| Net cash (used in) provided by operating activities | (966,530) | 632,456 | |||||||||
| Investing Activities: | |||||||||||
Capital expenditures | (284,994) | (234,953) | |||||||||
| Cost of acquired companies, net of cash acquired | (4,932,036) | (3,947,761) | |||||||||
| Cost of equity investments | (19,210) | (192,576) | |||||||||
Other, net | 62,024 | (45,372) | |||||||||
| Net cash used in investing activities | (5,174,216) | (4,420,662) | |||||||||
Financing Activities: | |||||||||||
Net debt borrowings 1 | 4,377,761 | 3,455,501 | |||||||||
Purchases of common stock | — | (435,471) | |||||||||
Cash dividends on common stock | (243,972) | (222,076) | |||||||||
| Employee tax withholdings related to restricted share vesting | (105,186) | (77,558) | |||||||||
| Other, net | (6,832) | (2,984) | |||||||||
| Net cash provided by financing activities | 4,021,771 | 2,717,412 | |||||||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (14,825) | (48,520) | |||||||||
| Decrease in cash, cash equivalents, and restricted cash, including cash classified within assets held for sale | (2,133,800) | (1,119,314) | |||||||||
| Less: Increase in cash classified within assets held for sale | (24,487) | — | |||||||||
| Decrease in cash, cash equivalents, and restricted cash | (2,158,287) | (1,119,314) | |||||||||
Cash, cash equivalents, and restricted cash at beginning of period 2 | 4,394,549 | 3,297,880 | |||||||||
Cash, cash equivalents, and restricted cash at end of period 2 | $ | 2,236,262 | $ | 2,178,566 | |||||||
________________________________________
1 Includes the issuance of $3.0 billion of senior notes and $1.5 billion of term loans to finance a portion of the February 2, 2026 acquisition of OneOncology in the six months ended March 31, 2026. Includes the issuance of $1.8 billion of senior notes and a $1.5 billion term loan to finance a portion of the January 2, 2025 acquisition of Retina Consultants of America in the six months ended March 31, 2025.
2 The following represents a reconciliation of cash and cash equivalents in the Condensed Consolidated Balance Sheets to cash, cash equivalents, and restricted cash in the Condensed Consolidated Statements of Cash Flows:
| March 31, 2026 | September 30, 2025 | March 31, 2025 | September 30, 2024 | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 2,176,496 | $ | 4,356,138 | $ | 1,978,061 | $ | 3,132,648 | ||||||||||||||||||
| Restricted cash (included in Prepaid Expenses and Other) | 59,766 | 38,411 | 132,298 | 98,596 | ||||||||||||||||||||||
| Restricted cash (included in Other Long-Term Assets) | — | — | 68,207 | 66,636 | ||||||||||||||||||||||
| Cash, cash equivalents, and restricted cash | $ | 2,236,262 | $ | 4,394,549 | $ | 2,178,566 | $ | 3,297,880 | ||||||||||||||||||
16
SUPPLEMENTAL INFORMATION REGARDING
NON-GAAP FINANCIAL MEASURES
To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses the non-GAAP financial measures described below. The non-GAAP financial measures should be viewed in addition to, and not in lieu of, financial measures calculated in accordance with GAAP. These supplemental measures may vary from, and may not be comparable to, similarly titled measures by other companies.
The non-GAAP financial measures are presented because management uses non-GAAP financial measures to evaluate the Company’s operating performance, to perform financial planning, and to determine incentive compensation. Therefore, the Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors. The presented non-GAAP financial measures exclude items that management does not believe reflect the Company’s core operating performance because such items are outside the control of the Company or are inherently unusual, non-operating, unpredictable, non-recurring, or non-cash. We have included the following non-GAAP earnings-related financial measures in this release:
•Adjusted gross profit and adjusted gross profit margin: Adjusted gross profit is a non-GAAP financial measure that excludes gains from antitrust litigation settlements, LIFO expense (credit), and Türkiye highly inflationary impact. Adjusted gross profit margin is the ratio of adjusted gross profit to total revenue. Management believes that these non-GAAP financial measures are useful to investors as a supplemental measure of the Company’s ongoing operating performance. Gains from antitrust litigation settlements, LIFO expense (credit), and Türkiye highly inflationary impact are excluded because the Company cannot control the amounts recognized or timing of these items. Gains from antitrust litigation settlements relate to the settlement of lawsuits that have been filed against brand pharmaceutical manufacturers alleging that the manufacturer, by itself or in concert with others, took improper actions to delay or prevent generic drugs from entering the market. LIFO expense (credit) is affected by changes in inventory quantities, product mix, and manufacturer pricing practices, which may be impacted by market and other external influences.
•Adjusted operating expenses and adjusted operating expense margin: Adjusted operating expenses is a non-GAAP financial measure that excludes acquisition-related intangibles amortization; litigation and opioid-related (credit) expenses, net; acquisition and divestiture-related deal and integration expenses; restructuring and other expenses, net; and impairment of assets, including goodwill. Adjusted operating expense margin is the ratio of adjusted operating expenses to total revenue. Acquisition-related intangibles amortization is excluded because it is a non-cash item and does not reflect the operating performance of the acquired companies. We exclude acquisition and divestiture-related deal and integration expenses and restructuring and other expenses, net that relate to unpredictable and/or non-recurring business activities. We exclude the amount of litigation and opioid-related (credit) expenses, net and the impairment of assets, including goodwill, that are unusual, non-operating, unpredictable, non-recurring or non-cash in nature because we believe these exclusions facilitate the analysis of our ongoing operational performance.
•Adjusted operating income and adjusted operating income margin: Adjusted operating income is a non-GAAP financial measure that excludes the same items that are described above and excluded from adjusted gross profit and adjusted operating expenses. Adjusted operating income margin is the ratio of adjusted operating income to total revenue. Management believes that these non-GAAP financial measures are useful to investors as a supplemental way to evaluate the Company’s performance because these do not reflect unusual, non-operating, unpredictable, non-recurring or non-cash amounts or items that are outside the control of the Company.
•Adjusted income before income taxes: Adjusted income before income taxes is a non-GAAP financial measure that excludes the same items that are described above and excluded from adjusted operating income. In addition, the remeasurement gain related to the OneOncology acquisition, gain (loss) on remeasurement of an equity investment, the gain (loss) on the currency remeasurement of the deferred tax asset relating to 2020 Swiss tax reform, and the loss on divestiture of non-core businesses are excluded from adjusted income before income taxes because these amounts are unusual, non-operating, and non-recurring. Management believes that this non-GAAP financial measure is useful to investors because it facilitates the calculation of the Company’s adjusted effective tax rate.
•Adjusted income tax expense: Adjusted income tax expense is a non-GAAP financial measure that excludes the income tax expense (benefits) associated with the same items that are described above and excluded from adjusted income before income taxes. Certain discrete tax expense (benefits) are also excluded from adjusted income tax expense. Further, the amortization of deferred tax assets relating to 2020 Swiss tax reform is excluded from adjusted income tax expense. Management believes that this non-GAAP financial measure is useful to investors as a supplemental way to evaluate the Company’s performance because it does not reflect unusual, non-operating, unpredictable, non-recurring or non-cash amounts or items that are outside the control of the Company.
17
•Adjusted effective tax rate: Adjusted effective tax rate is a non-GAAP financial measure that is determined by dividing adjusted income tax expense by adjusted income before income taxes. Management believes that this non-GAAP financial measure is useful to investors because it presents an effective tax rate that does not reflect unusual, non-operating, unpredictable, non-recurring, or non-cash amounts or items that are outside the control of the Company.
•Adjusted net income attributable to Cencora: Adjusted net income attributable to the Company is a non-GAAP financial measure that excludes the same items that are described above. Management believes that this non-GAAP financial measure is useful to investors as a supplemental way to evaluate the Company’s performance because it does not reflect unusual, non-operating, unpredictable, non-recurring or non-cash amounts or items that are outside the control of the Company.
•Adjusted diluted earnings per share: Adjusted diluted earnings per share excludes the per share impact of adjustments including gains from antitrust litigation settlements; LIFO expense (credit); Türkiye highly inflationary impact; acquisition-related intangibles amortization; litigation and opioid-related (credit) expenses, net; acquisition and divestiture-related deal and integration expenses; restructuring and other expenses, net; the impairment of assets, including goodwill; the remeasurement gain related to the acquisition of OneOncology; (loss) on remeasurement of an equity investment; the gain (loss) on the currency remeasurement related to 2020 Swiss tax reform; and the loss on divestiture of non-core businesses, in each case net of the tax effect calculated using the applicable effective tax rate for those items. In addition, the per share impact of certain discrete tax items and the per share impact of the amortization of deferred tax assets relating to 2020 Swiss tax reform are also excluded from adjusted diluted earnings per share. Management believes that this non-GAAP financial measure is useful to investors because it eliminates the per share impact of the items that are outside the control of the Company or that we consider to not be indicative of our ongoing operating performance due to their inherent unusual, non-operating, unpredictable, non-recurring, or non-cash nature.
•Adjusted Free Cash Flow: Adjusted free cash flow is a non-GAAP financial measure defined as net cash provided by operating activities, excluding significant unpredictable or non-recurring cash payments or receipts relating to legal settlements, minus capital expenditures. Adjusted free cash flow is used internally by management for measuring operating cash flow generation and setting performance targets and has historically been used as one of the means of providing guidance on possible future cash flows. The Company does not provide forward looking guidance on a GAAP basis for free cash flow because the timing and amount of favorable and unfavorable settlements excluded from this metric, the probable significance of which cannot be determined, are unavailable and cannot be reasonably estimated. Below is a reconciliation of operating cash flows to adjusted free cash flows for the six months ended March 31, 2026:
| Reconciliation of adjusted free cash flows | |||||
| Operating cash flows | $(966.5)M | ||||
| Capital expenditures | $(285.0)M | ||||
| Free cash flows | $(1,251.5)M | ||||
| Less gains from antitrust litigation settlements | $(28.7)M | ||||
| Adjusted free cash flows | $(1,280.2)M | ||||
The Company also presents certain information related to current period operating results in “constant currency,” which is a non-GAAP financial measure. These amounts are calculated by translating current period results at the foreign currency exchange rates used in the comparable period in the prior year. The Company presents such constant currency financial information because it has significant operations outside of the United States reporting in currencies other than the U.S. dollar and this presentation provides a framework to assess how its business performed excluding the impact of foreign currency exchange rate fluctuations. Below is a summary of revenue and adjusted operating income on an as-reported basis and on a constant currency basis for the three months ended March 31, 2026:
18
| Revenue | Adjusted Operating income | |||||||
| Consolidated | ||||||||
| As reported | $78.4B | $1,263M | ||||||
| Impact of foreign currency translation | $(0.4)B | $(1)M | ||||||
| Constant currency | $78.0B | $1,262M | ||||||
| International Healthcare Solutions segment | ||||||||
| As reported | $7.6B | $176M | ||||||
| Impact of foreign currency translation | $(0.4)B | $(1)M | ||||||
| Constant currency | $7.2B | $175M | ||||||
In addition, the Company has provided non-GAAP fiscal year 2026 guidance for diluted earnings per share, operating income, effective income tax rate, and free cash flow that excludes the same or similar items as those that are excluded from the historical non-GAAP financial measures, as well as significant items that are outside the control of the Company or inherently unusual, non-operating, unpredictable, non-recurring or non-cash in nature. The Company does not provide forward looking guidance on a GAAP basis for such metrics because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. For example, LIFO expense (credit) is largely dependent upon the future inflation or deflation of brand and generic pharmaceuticals, which is out of the Company’s control, and acquisition-related intangibles amortization depends on the timing and amount of future acquisitions, which cannot be reasonably estimated. Similarly, the timing and amount of favorable and unfavorable settlements, the probable significance of which cannot be determined, are unavailable and cannot be reasonably estimated.
Contact: Bennett S. Murphy
Senior Vice President, Investor Relations and Enterprise Productivity
bennett.murphy@cencora.com
###
19
FAQ
How did Cencora (COR) perform in its fiscal 2026 second quarter?
Cencora reported fiscal Q2 2026 revenue of $78.4 billion, up 3.8% year-over-year, with GAAP diluted EPS of $8.40 and adjusted diluted EPS of $4.75. Profitability improved as gross profit grew 17.3% and operating income increased 10.3% compared to the prior-year quarter.
What is the difference between Cencora’s GAAP and adjusted EPS for Q2 2026?
For fiscal Q2 2026, Cencora’s GAAP diluted EPS was $8.40, while adjusted diluted EPS was $4.75. The GAAP figure includes a $1.1 billion gain related to the OneOncology acquisition and other items, whereas the adjusted EPS excludes such non-core impacts for a clearer view of ongoing performance.
What guidance did Cencora (COR) provide for fiscal 2026 earnings?
Cencora raised its fiscal 2026 adjusted diluted EPS guidance to $17.65–$17.90, up from $17.45–$17.75. The company also forecasts 4–6% revenue growth, 12–14% adjusted operating income growth, and approximately $3.0 billion in adjusted free cash flow for the full year.
How did Cencora’s business segments perform in Q2 2026?
In Q2 2026, U.S. Healthcare Solutions revenue grew 2.9% to $68.8 billion, while International Healthcare Solutions revenue rose 13.0% to $7.6 billion. Segment operating income increased 5.6% in U.S. Healthcare Solutions and 13.7% in International Healthcare Solutions, helped by European distribution and specialty logistics growth.
What major transaction affected Cencora’s Q2 2026 results?
Cencora’s Q2 2026 results were significantly influenced by its acquisition of OneOncology. The company recorded a $1.1 billion gain from remeasuring its prior equity method investment and extinguishing a related put option liability, which boosted GAAP earnings and contributed to higher reported EPS.