COR Stock Gains as Q3 Earnings Beat on Segment Growth, EPS View Raised

Cencora, Inc. COR reported third-quarter fiscal 2026 adjusted earnings per share (EPS) of $4.48, which beat the Zacks Consensus Estimate of $4.37 by 2.5%. The bottom line increased 12% year over year.

GAAP earnings were $3.94 per share compared with $3.52 a year ago.

Revenue Details

Revenues rose 5.1% year over year to $84.76 billion but missed the consensus estimate of $84.89 billion by 0.2%. Growth across the U.S. and International Healthcare Solutions segments supported the top line, while consolidated adjusted operating income advanced 17%.

Following the better-than-expected earnings growth, Cencora raised its adjusted EPS guidance for fiscal 2026.

COR’s shares were up 3.5% in pre-market trading following the earnings release, likely driven by strong earnings growth and raised EPS outlook. So far this year, COR’s shares have lost 9.3% compared to a flat industry. The S&P 500 Index was up 13.2% in the same period.

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Segmental Analysis

COR's U.S. Healthcare Solutions Gains

U.S. Healthcare Solutions revenues increased 4.9% year over year to $74.9 billion. Growth was driven by higher unit volumes, including increased sales of specialty products to health systems and physician practices, as well as drugs indicated for diabetes and weight loss in the GLP-1 class.

The improvement was partly offset by lower manufacturer prices for certain branded pharmaceuticals, the loss of an oncology customer in 2025 and reduced sales to a large mail-order customer.

Segment operating income rose 15.9% to $966.2 million, aided by OneOncology and increased pharmaceutical sales. Higher operating expenses and the lost oncology account partially limited growth.

Cencora's International Business Expands

International Healthcare Solutions revenues totaled $7.7 billion, up 5.9% on a reported basis and 6.1% at constant currency. The improvement primarily reflected growth in the European distribution and global specialty logistics businesses.

Segment operating income increased 20.8% to $165.9 million. At constant currency, operating income advanced 23.1%, supported by higher contributions from both the European distribution operation and the global specialty logistics business.

COR Records Growth in Other Businesses

Revenues from the Other category rose 6.9% year over year to $2.3 billion. Growth at Profarma and MWI Animal Health was partly offset by lower consulting services sales following the April 2026 divestiture of U.S. Consulting Services.

Operating income in Other increased 24.8% to $108.7 million. The gain was mainly driven by business growth at MWI Animal Health and, to a lesser extent, lower depreciation expense after the business was classified as held for sale.

COR Posts Higher Profitability

Adjusted gross profit increased 23.2% year over year to $3.52 billion. The adjusted gross margin expanded 61 basis points to 4.16%, primarily reflecting a higher gross profit margin in the U.S. Healthcare Solutions business following the OneOncology acquisition.

The benefit was partly offset by increased sales of GLP-1 products, which carry lower gross profit margins.

Adjusted operating expenses climbed 26.8% to $2.28 billion, mainly due to costs associated with OneOncology.

Adjusted operating income totaled $1.24 billion, up 17% from the prior-year quarter. The adjusted operating margin improved 15 basis points to 1.46% as gross profit growth exceeded the impact of higher operating expenses.

Net interest expense increased 72% to $140.7 million. The rise reflected interest costs related to senior notes and variable-rate term loans issued to fund part of the OneOncology acquisition, along with lower interest income. The adjusted effective tax rate declined to 19.9% from 20.7%.

Cencora Raises Fiscal 2026 Outlook

Cencora raised its fiscal 2026 adjusted earnings guidance to $17.75-$17.95 per share from $17.70-$17.90. The company continues to project revenue growth of 4-6%, while adjusted operating income is now expected to rise 13-14%, compared with the prior outlook of 12-14%.

U.S. Healthcare Solutions revenues are expected to grow 4-6%, while operating income is projected to increase 14.5-15.5%. International Healthcare Solutions revenues are expected to grow approximately 8%, while operating income is forecasted to rise around 9%. Revenues and operating income in Other are projected to increase about 6% and 10%, respectively.

COR Completes Planned Share Repurchases

The company repurchased shares worth $1 billion during the fiscal third quarter, completing the amount it had previously expected to repurchase by the end of calendar 2026. Diluted weighted average shares declined 0.7% year over year to 193.9 million.

Cencora maintained its adjusted free cash flow forecast of approximately $3 billion and capital expenditure projection of about $900 million. The board also declared a quarterly cash dividend of 60 cents per share.

Wrapping Up

Cencora exited the fiscal third quarter on a mixed but encouraging note, with earnings surpassing the Zacks Consensus Estimate but revenues missing the same. The company also raised its fiscal 2026 adjusted earnings outlook and increased the lower end of its operating income growth forecast, reflecting confidence in continued business momentum.

The company continues to benefit from solid segmental execution, supported by higher specialty pharmaceutical volumes, growing GLP-1 drug demand and strength in its European distribution and global specialty logistics businesses. Growth at Profarma and MWI Animal Health also contributed to the quarterly performance.

The OneOncology acquisition continues to strengthen Cencora’s U.S. Healthcare Solutions segment, contributing to growth in both gross profit and operating income. The company’s $1 billion share repurchase during the quarter supported per-share earnings growth and underscored its commitment to returning capital to shareholders.

However, lower-margin GLP-1 sales remain a drag on profitability, while expenses associated with OneOncology increased operating costs. Higher interest expense related to acquisition financing is another headwind. Nevertheless, improving margins, broad-based segment growth and the raised earnings outlook position COR well for the remainder of fiscal 2026.

Cencora, Inc. Price, Consensus and EPS Surprise

Cencora, Inc. price-consensus-eps-surprise-chart | Cencora, Inc. Quote

COR’s Zacks Rank & Other Key Picks

Cencora currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the broader medical space are West Pharmaceutical WST, McKesson MCK and Cardinal Health CAH, each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

West Pharmaceutical reported second-quarter 2026 adjusted earnings per share (EPS) of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.

West Pharmaceutical has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.4%.

McKesson reported a fourth-quarter fiscal 2026 adjusted EPS of $11.69, which beat the Zacks Consensus Estimate by 1.1%. Revenues of $96.3 billion missed the Zacks Consensus Estimate by 5.5%.

McKesson has an estimated long-term earnings growth rate of 13.7%. MCK’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.1%.

Cardinal Health reported a third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.

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