CENCORA REPORTS FISCAL 2026 FOURTH QUARTER AND FISCAL YEAR END RESULTS
Cencora, Inc. (COR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 CENCORA REPORTS FISCAL 2026 FOURTH QUARTER AND FISCAL YEAR END RESULTS Fourth Quarter Revenue of $88.4 Billion up 5.5 Percent. GAAP Diluted EPS of $2.71 and Adjusted Diluted EPS of $4.66 Fiscal Year 2026 Revenue of $337.4 Billion up 5.0 Percent. GAAP Diluted EPS of $
How this was made
The 30-second read
Why it matters
The earnings beat and raised FY2027 guidance suggest a positive re‑rating, while the dividend increase may attract income‑focused investors.
Market read
Cencora's strong earnings and forward guidance are likely to drive short‑term price appreciation and influence sentiment in the healthcare distribution sector.
What to watch
Potential integration risks from the OneOncology acquisition and higher interest expense could temper long‑term upside.
Fourth Quarter Revenue of $88.4 Billion up 5.5 Percent. GAAP Diluted EPS of $2.71 and Adjusted Diluted EPS of $4.66 Fiscal Year 2026 Revenue of $337.4 Billion up 5.0 Percent. GAAP Diluted EPS of $17.95 and Adjusted Diluted EPS of $17.97
Fiscal 2026 revenue grew 5.0%, adjusted operating income grew 14.0%, and adjusted diluted EPS grew 12.3% to $17.97. Fourth-quarter adjusted diluted EPS increased 21.4% to $4.66, while fiscal 2027 adjusted diluted EPS guidance is $19.40 to $19.75.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Fourth quarter revenueGAAP | $88.35B | – | 5.5% |
| Fourth quarter gross profitGAAP | $3.60B | – | 21.9% |
| Fourth quarter gross profit marginGAAP | 4.08% | – | an increase of 55 basis points |
| Fourth quarter operating expensesGAAP | $2.69B | – | (8.2)% |
| Fourth quarter operating incomeGAAP | $906.8M | – | 4,800.9% |
| Fourth quarter operating income marginGAAP | 1.03% | – | – |
| Fourth quarter net interest expenseGAAP | $136.3M | – | an increase of $58.5 million |
| Fourth quarter effective tax rateGAAP | 32.8% | – | – |
| Fourth quarter net income attributable to Cencora, Inc.GAAP | $519.4M | – | 252.9% |
| Fourth quarter diluted earnings per shareGAAP | $2.71 | – | 254.9% |
| Fourth quarter diluted weighted average shares outstandingGAAP | 191.7M | – | (1.1)% |
| Fourth quarter adjusted gross profitnon-GAAP | $3.57B | – | 23.0% |
| Fourth quarter adjusted gross profit marginnon-GAAP | 4.04% | – | an increase of 57 basis points |
| Fourth quarter adjusted operating expensesnon-GAAP | $2.32B | – | 23.5% |
| Fourth quarter adjusted operating incomenon-GAAP | $1.25B | – | 22.1% |
| Fourth quarter adjusted operating income marginnon-GAAP | 1.41% | – | an increase of 19 basis points |
| Fourth quarter adjusted effective tax ratenon-GAAP | 20.2% | – | – |
| Fourth quarter adjusted net income attributable to Cencoranon-GAAP | $893.3M | – | 19.0% |
| Fourth quarter adjusted diluted earnings per sharenon-GAAP | $4.66 | – | 21.4% |
| Fiscal year revenueGAAP | $337.4B | – | 5.0% |
| Fiscal year gross profitGAAP | $13.87B | – | 20.8% |
| Fiscal year gross profit marginGAAP | 4.11% | – | – |
| Fiscal year operating expensesGAAP | $9.94B | – | 12.3% |
| Fiscal year operating incomeGAAP | $3.93B | – | 49.5% |
| Fiscal year operating income marginGAAP | 1.16% | – | increased by 34 basis points |
| Fiscal year net interest expenseGAAP | $489.9M | – | 68.0% |
| Fiscal year effective tax rateGAAP | 23.6% | – | – |
| Fiscal year net income attributable to Cencora, Inc.GAAP | $3.48B | – | 124.2% |
| Fiscal year diluted earnings per shareGAAP | $17.95 | – | 125.5% |
| Fiscal year diluted weighted average shares outstandingGAAP | 194.1M | – | (0.6)% |
| Fiscal year adjusted gross profitnon-GAAP | $13.46B | – | 20.0% |
| Fiscal year adjusted operating expensesnon-GAAP | $8.65B | – | 23.7% |
| Fiscal year adjusted operating incomenon-GAAP | $4.81B | – | 14.0% |
| Fiscal year adjusted operating income marginnon-GAAP | 1.43% | – | increased by 12 basis points |
| Fiscal year adjusted effective tax ratenon-GAAP | 19.5% | – | – |
| Fiscal year adjusted net income attributable to Cencoranon-GAAP | $3.49B | – | 11.7% |
| Fiscal year adjusted diluted earnings per sharenon-GAAP | $17.97 | – | 12.3% |
| Fiscal year net cash provided by operating activitiesGAAP | $4.79B | – | – |
| Fiscal year capital expendituresGAAP | −$909.5M | – | – |
| Fiscal year free cash flowsother | $3.88B | – | – |
| Fiscal year adjusted free cash flowsnon-GAAP | $3.81B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| U.S. Healthcare Solutions, fourth quarterOverall market growth primarily driven by unit volume growth, including increased sales of specialty products to health systems and physician practices and increased sales of products labeled for diabetes and/or weight loss in the GLP-1 class. Growth was offset in part by a decline in manufacturer prices related to certain brand pharmaceutical products and lower sales to the large mail order customer. | $78.29B | – | 5.4% |
| International Healthcare Solutions, fourth quarterGrowth in all businesses within this reportable segment. On a constant currency basis, revenue increased by 7.8%. | $7.80B | – | 5.1% |
| Other, fourth quarterGrowth at Profarma and MWI Animal Health, offset in part by decreases in sales at consulting services businesses primarily due to the April 2026 divestiture of U.S. Consulting Services. | $2.30B | – | 10.1% |
| U.S. Healthcare Solutions, fiscal yearFiscal-year segment revenue as reported in the summary segment information. | $298.1B | – | 4.6% |
| International Healthcare Solutions, fiscal yearFiscal-year segment revenue as reported in the summary segment information. | $30.67B | – | 8.3% |
| Other, fiscal yearFiscal-year segment revenue as reported in the summary segment information. | $8.74B | – | 7.1% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fiscal Year 2027 Expectations on an Adjusted (non-GAAP) Basis outlook
- Revenue3% to 5% growth
- Tax rate~20%
- NotePharmaceutical Distribution and Services revenue: 4% to 6% growth
- NoteSpecialty Pharmaceutical and Provider Services revenue: 9% to 14% growth
- NoteOther revenue: ~$3.5B
- NoteAdjusted operating income: 4% to 6% growth
- NotePharmaceutical Distribution and Services adjusted operating income: 2% to 4% growth
- NoteSpecialty Pharmaceutical and Provider Services adjusted operating income: 18% to 21% growth
- NoteOther adjusted operating income: ~$200M
- NoteAdjusted diluted earnings per share: $19.40 to $19.75
- NoteNet interest expense: $490M to $510M
- NoteDiluted weighted average shares outstanding: ~190M
- NoteAdjusted free cash flow: ~$3.5B
- NoteCapital expenditures: ~$1.0B
Capital returns
- On November 3, 2026, the Company declared a quarterly dividend of $0.66 per common share, a 10 percent increase in its quarterly dividend rate from $0.60 per common share.
- The quarterly dividend of $0.66 per common share is payable November 30, 2026, to stockholders of record at the close of business on November 13, 2026.
- Purchases of common stock were $(1,000,052) (in thousands) in fiscal year 2026, compared to $(435,471) (in thousands) in fiscal year 2025.
- Cash dividends on common stock were $(476,813) (in thousands) in fiscal year 2026, compared to $(437,081) (in thousands) in fiscal year 2025.
What drove it
- Fourth-quarter revenue growth reflected 5.4% growth in U.S. Healthcare Solutions and 5.1% growth in International Healthcare Solutions.
- U.S. Healthcare Solutions growth reflected market growth, unit volume growth, specialty-product sales, and GLP-1 sales.
- OneOncology, acquired in February 2026, contributed to gross profit and drove higher operating expenses.
- Fourth-quarter GAAP operating expenses declined primarily because the prior-year quarter included a $723.9 million PharmaLex goodwill impairment charge.
- Fiscal-year GAAP results included a $1.1 billion gain on the remeasurement of the equity method investment and extinguishment of the put option liability related to the previously held OneOncology investment.
- Fiscal-year gross profit benefited from a higher LIFO credit in fiscal 2026, partly offset by lower gains from antitrust litigation settlements.
- International Healthcare Solutions fourth-quarter revenue increased 7.8% on a constant currency basis and operating income increased 18.9% on a constant currency basis.
Concerns
- U.S. Healthcare Solutions revenue growth was partly offset by a decline in manufacturer prices related to certain brand pharmaceutical products and lower sales to the large mail order customer.
- GLP-1 sales have lower gross profit margins and partly offset the gross-profit-margin benefit from OneOncology.
- Fourth-quarter net interest expense increased $58.5 million versus the prior-year quarter following senior-note issuance and variable-rate term loans used to finance a portion of OneOncology.
- Fiscal-year adjusted operating expenses increased 23.7%, exceeding adjusted gross profit growth of 20.0%.
- Fiscal 2027 expectations assume the sale of the equity interest in Profarma closes in the first fiscal quarter and a March 31, 2027 closing of the MWI Animal Health merger with Covetrus.
- The Company does not provide forward-looking expectations on a GAAP basis.
What to watch
- Execution under the new reporting structure beginning in the first quarter of fiscal 2027: Pharmaceutical Distribution and Services, Specialty Pharmaceutical and Provider Services, and Other.
- Fiscal 2027 adjusted diluted EPS delivery against guidance of $19.40 to $19.75.
- Specialty Pharmaceutical and Provider Services revenue growth guidance of 9% to 14% and adjusted operating income growth guidance of 18% to 21%.
- Completion of the Profarma transaction expected in the first quarter of fiscal 2027 and the assumed March 31, 2027 MWI Animal Health merger closing.
- The announced definitive agreement to acquire American Oncology Network, a physician-led network of more than 350 oncology providers across 21 states.
- Net interest expense guidance of $490M to $510M and adjusted free cash flow guidance of ~$3.5B.
Balance sheet and cash flow
- Cash and cash equivalents were $4,880,335 (in thousands) at September 30, 2026, compared to $4,356,138 (in thousands) at September 30, 2025.
- Short-term debt was $203,208 (in thousands) at September 30, 2026, compared to $117,785 (in thousands) at September 30, 2025.
- Long-term debt was $11,062,938 (in thousands) at September 30, 2026, compared to $7,542,988 (in thousands) at September 30, 2025.
- Net cash provided by operating activities was $4,790,167 (in thousands), compared to $3,875,120 (in thousands).
- Net cash used in investing activities was $(5,800,603) (in thousands), compared to $(4,977,293) (in thousands).
- Net cash provided by financing activities was $1,653,129 (in thousands), compared to $2,249,114 (in thousands).
- Net debt borrowings were $3,248,489 (in thousands), compared to $3,195,668 (in thousands).
- The Company issued $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.
Analysis
Cencora closed fiscal 2026 with fourth-quarter revenue of $88.4 billion, up 5.5%, and fiscal-year revenue of $337.4 billion, up 5.0%. U.S. Healthcare Solutions grew 5.4% in the fourth quarter, led by market and unit-volume growth, specialty sales, and GLP-1 sales. International Healthcare Solutions grew 5.1%, or 7.8% on a constant currency basis. U.S. growth was moderated by manufacturer price declines on certain brand products and lower sales to the large mail order customer.
Profit growth materially exceeded revenue growth. Fourth-quarter GAAP gross profit increased 21.9% and adjusted gross profit increased 23.0%. Fiscal-year adjusted operating income increased 14.0% to $4.8B, and its margin increased by 12 basis points to 1.43%. The OneOncology acquisition supported gross profit and operating income, while also increasing operating expenses. GLP-1 mix remains a margin consideration because these products carry lower gross profit margins.
GAAP fiscal-year earnings included significant non-core and transaction-related effects. GAAP diluted EPS increased 125.5% to $17.95, while adjusted diluted EPS increased 12.3% to $17.97. The fiscal-year GAAP presentation included a $1.1 billion OneOncology remeasurement gain, while adjusted results excluded this and other items. Fourth-quarter GAAP operating expenses declined 8.2%, principally because the prior-year period carried a $723.9 million PharmaLex goodwill impairment charge; adjusted fourth-quarter operating expenses instead increased 23.5% with OneOncology a primary driver.
Cash generation was $4.8 billion of operating cash flow and $3.8 billion of adjusted free cash flow for fiscal 2026. The company deployed $1.0 billion to common-stock purchases and $476.8 million to cash dividends, while long-term debt increased to $11.1 billion from $7.5 billion and net interest expense rose 68.0% for the year. Financing activity included $3.0 billion of senior notes and $1.5 billion of term loans to finance a portion of OneOncology. The quarterly dividend was raised 10% to $0.66 per common share.
For fiscal 2027, Cencora guides to 3% to 5% revenue growth, 4% to 6% adjusted operating income growth, and adjusted diluted EPS of $19.40 to $19.75. The new segment architecture puts emphasis on Specialty Pharmaceutical and Provider Services, where the company expects 9% to 14% revenue growth and 18% to 21% adjusted operating income growth. Guidance incorporates the expected first-quarter sale of the Profarma equity interest and assumes a March 31, 2027 closing of the MWI Animal Health merger with Covetrus.
Management, verbatim
Fiscal 2026 was a pivotal year for Cencora, as we expanded our MSO platform through the acquisition of OneOncology, sharpened the focus of our portfolio and delivered record results.
Robert P. Mauch, President and Chief Executive Officer of Cencora
These actions laid the foundation and position us to move forward with significant momentum and clear strategic priorities.
Robert P. Mauch, President and Chief Executive Officer of Cencora
As we enter fiscal 2027, our new operating model is designed to strengthen our execution and provide visibility to our progress.
Robert P. Mauch, President and Chief Executive Officer of Cencora
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so no comparison of reported results with prior guidance is available.
- Prior-quarter figures and sequential changes were not reported for the presented key metrics.
- Fiscal 2027 gross margin guidance was not provided.
- Fiscal 2027 operating-expense guidance was not provided.
- Fiscal 2026 quarterly operating cash flow, free cash flow, capital expenditures, cash, and debt were not reported.
- Fiscal 2027 GAAP guidance was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Cencora (NYSE: COR) is a leading U.S. healthcare solutions distributor. The 8‑K filing provides its first public release of FY2026 Q4 and full‑year results.
Ticker impact
Cencora reported FY2026 Q4 revenue of $88.4B (+5.5%) and GAAP EPS of $2.71, plus FY2027 adjusted EPS guidance of $19.40‑$19.75, and a 10% dividend increase.
likely upward pressure as the market prices in the earnings beat and higher dividend.
Revenue and EPS both beat prior year, guidance is above expectations, and dividend hike signals confidence.
Market effects
Positive for the broader healthcare distribution sector as Cencora's results highlight demand growth.
U.S. markets may see a modest lift in healthcare stocks.
Limited to investors tracking large‑cap U.S. healthcare distributors.
Counterpoint
If the market has already priced in the beat, the stock could face short‑term profit‑taking.
Key entities
- ExecutiveRobert P. Mauch
President and CEO of Cencora, quoted on results and strategy.
