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 $17.95 and Adjusted Diluted EPS of $17.97

Fiscal 2027 Adjusted Diluted EPS Expected to be in the Range of $19.40 to $19.75, reflecting growth of 8 percent to 10 percent

Company introduces new reportable segments and provides segment-level long-term growth targets

Company increases its quarterly dividend by 10 percent

CONSHOHOCKEN, Pa.–(BUSINESS WIRE)–Cencora, Inc. (NYSE: COR) today reported that in its fiscal year 2026 fourth quarter ended September 30, 2026, revenue increased 5.5 percent to $88.4 billion. Revenue increased 5.0 percent to $337.4 billion for fiscal year 2026. On the basis of U.S. generally accepted accounting principles (GAAP), diluted earnings per share (EPS) was $2.71 for the fourth quarter of fiscal 2026, compared to $(1.75) in the prior year quarter. Adjusted diluted EPS, which is a non-GAAP measure that excludes items described below, increased 21.4 percent to $4.66 in the fiscal fourth quarter. For fiscal year 2026, diluted GAAP EPS increased 125.5 percent to $17.95. For fiscal year 2026, adjusted diluted EPS increased 12.3 percent to $17.97.

“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,” said 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.”

“As we enter fiscal 2027, our new operating model is designed to strengthen our execution and provide visibility to our progress,” Mr. Mauch continued. “By uniting our specialty businesses and elevating the voices of our customers, we are better able to advance our purpose and deliver sustained value for our shareholders.”

Fourth Quarter Fiscal Year 2026 Summary Results

Below, Cencora presents descriptive summaries of the Company’s GAAP and adjusted (non-GAAP) quarterly and fiscal year 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.

Fourth Quarter GAAP Results

• Revenue: In the fourth quarter of fiscal 2026, revenue was $88.4 billion, up 5.5 percent compared to the same quarter in the previous fiscal year, reflecting a 5.4 percent increase in revenue within the U.S. Healthcare Solutions segment and a 5.1 percent increase in revenue within the International Healthcare Solutions segment.
• Gross Profit: Gross profit in the fourth quarter of fiscal 2026 was $3.6 billion, a 21.9 percent increase compared to the same quarter in the previous fiscal year, primarily due to increases in gross profit in both reportable segments. Gross profit as a percentage of revenue was 4.08 percent, an increase of 55 basis points from the prior year quarter 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 increased sales of GLP-1s, which have lower gross profit margins.
• Operating Expenses: In the fourth quarter of fiscal 2026, operating expenses were $2.7 billion, an 8.2 percent decrease compared to the same quarter in the previous fiscal year, primarily due to the $723.9 million PharmaLex goodwill impairment charge recorded in the prior year quarter. The decrease in operating expenses was partially offset by operating expenses from OneOncology acquired in February 2026.
• Operating Income: In the fourth quarter of fiscal 2026, operating income was $906.8 million, an increase of $888.3 million compared to the same period in the previous fiscal year, due to the increase in gross profit and decrease in operating expenses. Operating income as a percentage of revenue was 1.03 percent in the fourth quarter of fiscal 2026 compared to 0.02 percent for the same period in the previous fiscal year.
• Interest Expense, Net: In the fourth quarter of fiscal 2026, net interest expense was $136.3 million, an increase of $58.5 million versus the prior year quarter primarily due to an increase in interest expense as a result of our issuance of senior notes and entering into variable-rate term loans to finance a portion of the February 2026 acquisition of OneOncology and a decrease in interest income.
• Income Tax Expense: Income tax expense was $258.1 million in the fourth quarter of fiscal 2026 compared to $146.0 million in the prior year quarter primarily due to discrete tax items, net expense in the current year quarter.
• Diluted Earnings Per Share: Diluted earnings per share was $2.71 in the fourth quarter of fiscal 2026, compared to $(1.75) in the previous fiscal year’s fourth quarter.
• Diluted Shares Outstanding: Diluted weighted average shares outstanding for the fourth quarter of fiscal 2026 were 191.7 million, a decrease of 1.1 percent versus the prior fiscal year fourth quarter due to share repurchases.

Fourth Quarter Adjusted (non-GAAP) Results

• Revenue: No adjustments were made to the GAAP presentation of revenue. In the fourth quarter of fiscal 2026, revenue was $88.4 billion, up 5.5 percent compared to the same quarter in the previous fiscal year, reflecting a 5.4 percent increase in revenue within the U.S. Healthcare Solutions segment and a 5.1 percent increase in revenue within the International Healthcare Solutions segment.
• Adjusted Gross Profit: Adjusted gross profit in the fourth quarter of fiscal 2026 was $3.6 billion, a 23.0 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 4.04 percent in the fiscal 2026 fourth quarter, an increase of 57 basis points when compared to 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 increased sales of GLP-1s, which have lower gross profit margins.
• Adjusted Operating Expenses: In the fourth quarter of fiscal 2026, adjusted operating expenses were $2.3 billion, a 23.5 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 fourth quarter of fiscal 2026, adjusted operating income was $1.2 billion, a 22.1 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 1.41 percent in the fiscal 2026 fourth quarter, an increase of 19 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 fourth quarter of fiscal 2026, net interest expense was $136.3 million, an increase of $58.5 million versus the prior year quarter primarily due to an increase in interest expense as a result of our issuance of senior notes and entering into variable-rate term loans to finance a portion of the February 2026 acquisition of OneOncology and a decrease in interest income.
• Adjusted Effective Tax Rate: The adjusted effective tax rate was 20.2 percent for the fourth quarter of fiscal 2026 compared to 20.6 percent in the prior year quarter.
• Adjusted Diluted Earnings Per Share: Adjusted diluted earnings per share was $4.66 in the fourth quarter of fiscal 2026, a 21.4 percent increase compared to $3.84 in the previous fiscal year’s fourth quarter.
• Adjusted Diluted Shares Outstanding: Adjusted diluted weighted average shares outstanding for the fourth quarter of fiscal 2026 were 191.7 million, a decrease of 1.8 percent versus the prior fiscal year fourth quarter due to share repurchases.

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 (which was divested in April 2026), and certain components of PharmaLex.

U.S. Healthcare Solutions Segment

U.S. Healthcare Solutions revenue was $78.3 billion in the fourth quarter of fiscal 2026, an increase of 5.4 percent compared to the same quarter in the previous fiscal year due to overall 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. The revenue growth was offset in part by a decline in manufacturer prices related to certain brand pharmaceutical products and lower sales to our large mail order customer. Segment operating income of $997.6 million in the fourth quarter of fiscal 2026 was up 22.0 percent compared to the same period in the previous fiscal year due to an increase in gross profit, as a result of increased pharmaceutical sales and the February 2026 acquisition of OneOncology, offset in part by an increase in operating expenses.

International Healthcare Solutions Segment

International Healthcare Solutions revenue was $7.8 billion in the fourth quarter of fiscal 2026, an increase of 5.1 percent compared to the same period in the prior fiscal year due to growth in all businesses within this reportable segment. Segment operating income in the fourth quarter of fiscal 2026 was $152.1 million, an increase of 16.4 percent, primarily due to increased operating income at our Canadian and global specialty logistics businesses. On a constant currency basis, International Healthcare Solutions revenue increased by 7.8 percent and operating income increased by 18.9 percent.

Other

Revenue in Other was $2.3 billion in the fourth quarter of fiscal 2026, an increase of 10.1% compared to the same period in the prior fiscal year primarily due to growth at Profarma and MWI Animal Health, offset in part by decreases in sales at our consulting services businesses primarily due to the April 2026 divestiture of U.S. Consulting Services. Operating income in Other in the fourth quarter of fiscal 2026 was $101.1 million, an increase of 35.8 percent, primarily due to an increase in operating income at MWI Animal Health due to business growth and, to a lesser extent, a decline in depreciation expense resulting from its classification as held for sale.

Fiscal Year 2026 Summary Results

Summary Fiscal Year GAAP Results

In fiscal year 2026, GAAP diluted EPS was $17.95 compared to $7.96 in the prior fiscal year. Revenue increased 5.0 percent from the prior fiscal year to $337.4 billion. Gross profit increased 20.8 percent to $13.9 billion primarily due to increases in gross profit in both reportable segments and a higher LIFO credit in the current fiscal year compared to the prior fiscal year, offset in part by lower gains from antitrust litigation settlements in the current fiscal year compared to the prior fiscal year. Operating expenses increased 12.3 percent largely due to increased distribution, selling, and administrative expenses, primarily due to the February 2026 acquisition of OneOncology and the January 2025 acquisition of Retina Consultants of America (RCA). Operating expense growth was offset in part by lower impairment charges in the current fiscal year compared to the prior fiscal year. Operating income increased 49.5 percent due to the increase in gross profit, offset in part by the increase in operating expenses. Operating income margin increased by 34 basis points to 1.16 percent. Diluted weighted average shares outstanding in fiscal 2026 were 194.1 million, down 0.6 percent from the prior fiscal year primarily due to share repurchases.

Summary Fiscal Year Adjusted (non-GAAP) Results

In fiscal year 2026, adjusted diluted EPS was $17.97 compared to $16.00 in the prior fiscal year. Revenue increased 5.0 percent to $337.4 billion. Adjusted gross profit increased 20.0 percent to $13.5 billion primarily due to increases in gross profit in both reportable segments. Adjusted operating expenses increased 23.7 percent to $8.6 billion largely driven by an increase in distribution, selling, and administrative expenses, primarily due to the February 2026 acquisition of OneOncology and the January 2025 acquisition of RCA. Adjusted operating income increased 14.0 percent to $4.8 billion due to the increase in gross profit, offset in part by the increase in operating expenses. Adjusted operating income margin increased by 12 basis points to 1.43 percent, primarily due to the February 2026 acquisition of OneOncology and the January 2025 acquisition of RCA. Diluted weighted average shares outstanding in fiscal 2026 were 194.1 million, down 0.6 percent from the prior fiscal year primarily due to share repurchases.

Recent Company Highlights

• Cencora announced a new organizational and financial reporting structure intended to strengthen execution and improve visibility.
• Cencora announced it has signed a definitive agreement to acquire American Oncology Network, a physician-led network of more than 350 oncology providers across 21 states.
• The Company has signed a definitive agreement to sell its stake in Profarma, and the transaction is expected to close in the first quarter of fiscal 2027.

Dividend Declaration

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.

Reportable Segments (revised as of October 1, 2026)

In order to advance its growth priorities, Cencora recently completed a restructuring of its operating model intended to strengthen execution and improve visibility. As a result of this restructuring, the Company has reorganized all business components within the U.S. Healthcare Solutions and International Healthcare Solutions reportable segments. Beginning in the first quarter of fiscal 2027, the Company’s reporting structure will be comprised of Pharmaceutical Distribution and Services, Specialty Pharmaceutical and Provider Services, and Other. The Pharmaceutical Distribution and Services reportable segment will consist of U.S. and international wholesale pharmaceutical distribution and related services that support health systems, retail pharmacies, and alternate sites of care. The Specialty Pharmaceutical and Provider Services reportable segment will consist of specialty distribution services to physician practices, management services organizations, World Courier and third-party logistics (3PL) services, Innomar and strategic components of PharmaLex. Other, which is not considered a reportable segment, will continue to consist of businesses for which the Company is exploring strategic alternatives, including MWI Animal Health, Profarma, and the other components of PharmaLex.

Fiscal Year 2027 Expectations

The Company does not provide forward-looking expectations on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. Please refer to the Supplemental Information Regarding Non-GAAP Financial Measures following the tables for additional information.

Fiscal Year 2027 Expectations on an Adjusted (non-GAAP) Basis

Long-Term Growth Targets

The Company is reaffirming its long-term growth target that contemplates adjusted operating income growth of 7% to 10% and adjusted diluted EPS growth of 10% to 14%.

To reflect the Company’s new reporting structure, the Company is introducing long-term adjusted operating income growth targets for its newly defined segments:

Conference Call & Slide Presentation

The Company will host a conference call to discuss the results at 8:30 a.m. ET on November 4, 2026. A slide presentation for investors has also been posted on the Company’s website at investor.cencora.com. The live call will 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.

Replays of the call will be made available via webcast. 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:

• J.P. Morgan Healthcare Conference, January 11-14, 2027.

Please check the 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 #16 on the Global Fortune 500 with more than $300 billion in annual revenue. Learn more at investor.cencora.com

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.

Contacts

Bennett S. Murphy
Senior Vice President, Investor Relations and Enterprise Productivity
[email protected]

Read full story here