Cencora (COR) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 FY2026 rose 3.8% year-over-year to $78.4 billion, driven by growth in both U.S. and International Healthcare Solutions segments, with notable contributions from specialty products and GLP-1 class drugs.

• Adjusted diluted EPS increased 7.5% year-over-year to $4.75, and GAAP diluted EPS surged 128.3% to $8.40, reflecting business resilience and a $1.1 billion gain from the OneOncology acquisition remeasurement.

• Operating income grew in both U.S. and International Healthcare Solutions segments, supported by specialty sales and recent acquisitions.

• Announced definitive agreements to merge MWI Animal Health with Covetrus and to acquire EyeSouth Partners' retina business, expanding animal and specialty health platforms.

• Resumed opportunistic share repurchases, targeting $1 billion by year-end, and declared a quarterly cash dividend of $0.60 per share.

Financial highlights

• Q2 revenue grew 3.8% year-over-year to $78.4 billion; gross profit rose 17.3% to $3.6 billion, with gross margin improving to 4.58% (GAAP) and 4.31% (adjusted).

• Operating income reached $1.14 billion (GAAP, up 10.3%) and $1.3 billion (adjusted, up 6.0%).

• Net income attributable to shareholders was $1.64 billion for the quarter, up 128% year-over-year.

• Net interest expense increased to $140 million, reflecting higher debt from the OneOncology acquisition.

• Ended March with $2.2 billion in cash and generated $1.1 billion in free cash flow for the quarter.

Outlook and guidance

• FY2026 adjusted diluted EPS guidance raised to $17.65–$17.90, with consolidated revenue growth expected at 4–6% and adjusted operating income growth at 12–14%.

• U.S. Healthcare Solutions revenue projected to grow 4–6%, operating income 14–16%; International revenue expected to grow 8–10%.

• Adjusted free cash flow guidance for FY2026 is ~$3.0 billion; capital expenditures expected at ~$900 million.

• Ongoing opioid litigation payments of $4.3 billion over 13 years are not expected to impact dividend payments.

• Guidance reflects strong operating income growth and narrowed interest expense expectations.