Cencora Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.89%.
Did COR Beat Earnings? Q4 2025 Results
Cencora posted a clean beat across both headline metrics in fiscal Q4 2025, with adjusted diluted EPS of $3.84 edging past the $3.79 consensus estimate by 1.32% and revenue of $83.73 billion topping expectations by 0.41% while climbing 5.9% year over year. The primary engine behind the quarter was the U.S. Healthcare Solutions segment, which generated $75.79 billion in revenue, up 5.7%, as robust demand for GLP-1 class products and specialty sales to health systems and physician practices drove volume, with the January 2025 acquisition of Retina Consultants of America providing an additional lift to U.S. gross profit margins. A $723.88 million goodwill impairment charge tied to the PharmaLex consulting business weighed heavily on GAAP results, a concern that has drawn attention from investors weighing the impairment against the company's 9% dividend hike to $0.60 per share quarterly. Looking ahead, Cencora guided fiscal 2026 adjusted diluted EPS to $17.45 to $17.75 on revenue growth of 5% to 7%, while raising its long-term adjusted EPS growth target to 9% to 13%, signaling confidence in its trajectory despite near-term consulting headwinds.
- Overall market growth primarily driven by unit volume growth
- Increased sales of specialty products to health systems and physician practices
- Growth in GLP-1 class products for diabetes and/or weight loss
- January 2025 acquisition of Retina Consultants of America (RCA) enhancing specialty positioning and gross profit margins
- LIFO credit of $57.0 million in Q4 vs $12.3 million LIFO expense in prior year quarter
- Share repurchases reducing diluted shares outstanding by 2.1%
“Cencora furthered key initiatives in fiscal 2025 to fortify our leading position in healthcare, most notably by enhancing our position in specialty through our acquisition of RCA as well as the decision to strategically refocus our existing business portfolio. Our strategic drivers of prioritizing growth-oriented investments, accelerating digital transformation, cultivating a best-in-class team member culture, and enabling productivity position Cencora to drive value for our stakeholders.”
Cencora CEO, on the earnings call
Forward Guidance & Outlook
For fiscal year 2026, Cencora expects revenue growth of 5%–7%, adjusted operating income growth of 8%–10%, and adjusted diluted EPS of $17.45 to $17.75. By revised segment: U.S. Healthcare Solutions revenue growth of 5%–7% and adjusted operating income growth of 9%–11%; International Healthcare Solutions revenue growth of 6%–8% and adjusted operating income growth of 5%–8%; Other revenue growth of 0%–4% with adjusted operating income declining 1%–4%. Net interest expense is expected at $315M–$335M, adjusted effective tax rate of 20%–21%, diluted shares outstanding of ~194M, adjusted free cash flow of ~$3.0B, and capital expenditures of ~$900M. Long-term guidance was raised to 9%–13% adjusted diluted EPS growth and 6%–9% adjusted operating income growth.
COR YoY Financials
COR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.