CONSHOHOCKEN, PA — Cencora Inc. (NYSE: COR) raised its fiscal 2026 earnings outlook after third-quarter revenue increased 5.1% to $84.8 billion and operating income climbed 29%, as growth in pharmaceutical distribution, specialty products and the acquired OneOncology business lifted results.
The pharmaceutical distributor now expects adjusted diluted earnings of $17.75 to $17.95 per share for the year, up from its previous $17.70-to-$17.90 range. Cencora continues to project revenue growth of 4% to 6% and adjusted operating income growth of 13% to 14%.
Cencora also accelerated capital returns during the quarter, repurchasing $1 billion of stock — the amount it had previously expected to buy back through the end of calendar 2026.
Net income attributable to Cencora increased 11.1% to $763.5 million from $687.4 million a year earlier. GAAP diluted earnings per share rose 11.9% to $3.94 from $3.52, while adjusted EPS increased 12% to $4.48 from $4.00.
Operating income rose to $1.12 billion from $867.7 million, while gross profit climbed 24.1% to $3.61 billion. Gross margin expanded to 4.26% from 3.60%.
The February acquisition of OneOncology contributed to higher gross profit and operating expenses. Cencora also recorded a $102 million reduction in opioid liability related to the dismissal of litigation during the quarter.
Adjusted operating income increased 17% to approximately $1.24 billion, with adjusted operating margin rising to 1.46% from 1.31%.
“Our strong performance and confidence in our outlook enabled us to raise our fiscal 2026 guidance,” Chief Executive Officer Robert P. Mauch stated.
Cencora’s U.S. Healthcare Solutions business generated $74.9 billion in revenue, up 4.9%. Growth was driven largely by higher unit volumes, including specialty products supplied to health systems and physician practices and increased sales of GLP-1 products used for diabetes and weight loss.
Those gains were 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. U.S. Healthcare Solutions operating income increased 15.9% to $966.2 million, benefiting from OneOncology and higher pharmaceutical sales.
International Healthcare Solutions revenue increased 5.9% to $7.7 billion, supported by European pharmaceutical distribution and global specialty logistics. Segment operating income rose 20.8% to $165.9 million.
Businesses grouped under Cencora’s “Other” category generated $2.3 billion in revenue, up 6.9%, with growth at Profarma and MWI Animal Health partly offset by the April divestiture of U.S. Consulting Services. Operating income in the category increased 24.8% to $108.7 million.
Cencora is exploring strategic alternatives for businesses included in that category, including MWI Animal Health, Profarma and certain PharmaLex operations.
Higher borrowing costs related to OneOncology weighed on results below the operating line. Net interest expense increased $58.9 million to $140.7 million after Cencora issued senior notes and variable-rate term loans to finance part of the acquisition.
For the first nine months of fiscal 2026, revenue increased 4.8% to $249.04 billion from $237.60 billion. U.S. Healthcare Solutions revenue rose 4.3%, while International Healthcare Solutions increased 9.4%.
Operating cash flow totaled $1.69 billion during the nine-month period. After $511 million in capital expenditures and adjustments for antitrust litigation settlements, adjusted free cash flow totaled $1.14 billion.
Cencora expects approximately $3 billion in adjusted free cash flow for fiscal 2026 and about $900 million in capital expenditures. It projects roughly $490 million of net interest expense.
The board declared a quarterly cash dividend of 60 cents per common share, payable Aug. 31 to shareholders of record at the close of business Aug. 14.
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