Cencora (COR) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 FY2026 rose 5.5% year-over-year to $85.9B, driven by growth in both U.S. and International Healthcare Solutions segments, with notable contributions from specialty products and GLP-1 class drugs.

• GAAP diluted EPS increased 14.8% to $2.87; adjusted diluted EPS grew 9.4% to $4.08 year-over-year.

• Completed acquisition of majority equity interest in OneOncology, strengthening specialty MSO and oncology partnerships.

• Gross profit increased 20.1% to $3.1 billion, aided by the RCA acquisition and a higher LIFO credit.

• Net income attributable to shareholders was $560M (GAAP), up 14.5% year-over-year; adjusted net income $797M.

Financial highlights

• Gross profit rose 20.1% to $3.1B; adjusted gross profit up 18.1% to $3.0B, with margin improvement to 3.48%.

• Adjusted operating income increased 11.9% to $1.1B; adjusted operating margin improved to 1.24%.

• Net interest expense rose to $72M, mainly due to debt for RCA and OneOncology acquisitions.

• Ended quarter with $1.8B cash; adjusted free cash flow for Q1 FY2026 was $(2.44)B due to seasonal working capital.

• Board declared a quarterly cash dividend of $0.60 per share, up 9% year-over-year.

Outlook and guidance

• FY2026 adjusted operating income growth guidance raised to 11.5%-13.5%.

• Adjusted diluted EPS guidance reaffirmed at $17.45-$17.75.

• Consolidated revenue growth guidance raised to 7%-9% for FY2026.

• U.S. Healthcare Solutions segment expected to grow 7%-9% in revenue and 14%-16% in adjusted operating income.

• Capital expenditures for FY2026 projected at $900M; adjusted free cash flow at ~$3.0B.