Cencora Raises 2026 EPS Outlook as Specialty Businesses Strengthen

Cencora COR raised its fiscal 2026 adjusted earnings outlook after third-quarter results showed faster profit growth across both healthcare solutions segments. Adjusted earnings per share rose 12% year over year to $4.48, topping the Zacks Consensus Estimate by 2.5%.

The investor question is whether specialty-driven operating leverage can keep outweighing lower-margin product mix and higher financing costs. Recent results suggest specialty is doing more of the earnings work, even as reported revenue growth remains pressured by pricing changes and customer losses.

Cencora’s Q3 Beat Leads to a Higher EPS Outlook

Third-quarter revenues increased 5.1% to $84.76 billion, while adjusted operating income advanced 17% to $1.24 billion. Adjusted operating margin improved 15 basis points to 1.46% as gross profit growth outpaced the increase in operating expenses.

Cencora lifted fiscal 2026 adjusted earnings guidance to $17.75-$17.95 per share from $17.70-$17.90. It also narrowed adjusted operating income growth expectations upward to 13%-14% from 12%-14%, while maintaining consolidated revenue growth guidance of 4%-6%.

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COR’s U.S. Healthcare Business Drives Profit Growth

U.S. Healthcare Solutions revenues rose 4.9% to $74.9 billion, supported by higher unit volumes, specialty product sales and GLP-1 demand. Segment operating income climbed 15.9% to $966.2 million, aided by OneOncology and increased pharmaceutical sales.

Management said OneOncology and Retina Consultants of America performed ahead of expectations, while the core business generated double-digit organic operating income growth excluding OneOncology and the lost oncology customer. McKesson Corporation MCK is also expanding its oncology and multispecialty platform, including an agreement announced in August to acquire Precision Medicine Group for about $2.25 billion. Cardinal Health CAH, another major pharmaceutical distributor, provides a useful industry comparison because pharmaceutical distribution remains central to its business.

Cencora’s International Segment Adds Momentum

International Healthcare Solutions revenues increased 5.9% to $7.7 billion, or 6.1% at constant currency. Operating income rose 20.8% to $165.9 million and advanced 23.1% at constant currency.

European distribution and global specialty logistics drove the improvement. The quarter also benefited from the timing of manufacturer price changes in a developing market, a factor management does not expect to repeat in the fourth quarter.

COR’s GLP-1 Mix and Interest Costs Temper the Upside

GLP-1 sales increased $2.3 billion year over year and supported U.S. revenue growth, but these products carry lower gross profit margins than many other categories. Cencora also absorbed a $2.4 billion revenue headwind from manufacturer list-price reductions, along with the effects of a lost oncology customer and lower sales to a large mail-order customer.

Financing is another offset. Net interest expense increased 72% to $140.7 million, primarily because of debt raised to help fund the OneOncology acquisition and lower interest income. Cencora has made progress on debt repayment, but higher borrowing costs remain part of the earnings equation.

Cencora, Inc. Revenue (Quarterly)

Cencora, Inc. revenue-quarterly | Cencora, Inc. Quote

Cencora’s Strong Style Scores Meet a Hold Signal

The raised outlook and specialty execution support the earnings picture, but mix, pricing and financing pressures keep the near-term setup balanced. Cencora currently carries a Zacks Rank #3 (Hold), which points to a neutral near-term earnings-estimate signal rather than a clear buy or sell indication. McKesson and Cardinal Health currently carry a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy)stocks here.

COR has a Growth Score of A, VGM Score of A and Value Score of B, indicating favorable characteristics across growth and broader style measures. Its Momentum Score of D is less supportive. Because Style Scores are designed to complement the Zacks Rank, the combination suggests attractive fundamental traits alongside a more measured near-term view.

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