Cencora, Inc.COR
Recorded
Cencora, Inc. 2026 Q3 Earnings Call
Review the key takeaways and the transcript of this earnings call.
PeriodQ3 2026Duration1 hr 1 min
Key takeaways
- Cencora Inc. reported fiscal 2026 third quarter revenue of $84.8 billion, a 5% increase year over year, driven by growth in both reportable segments and other businesses.
- Consolidated adjusted gross profit rose 23% to $3.5 billion, with gross profit margin expanding 61 basis points to 4.16%, primarily due to the February acquisition of one oncology.
- Adjusted operating income increased 17% to $1.2 billion, supported by strong execution in the U.S. Health Care Solutions segment and international growth.
- The U.S. Health Care Solutions segment revenue grew 5% to $74.9 billion, with specialty products and GLP-1 sales up $2.3 billion year over year, offset by manufacturer list price reductions, loss of an oncology customer, and lower sales to a large mail order customer.
- U.S. Health Care Solutions operating income increased 16% to $966 million, with strong performance from MSOs including one oncology and RCA.
- International Health Care Solutions revenue rose 6% to $7.7 billion, driven by European distribution and specialty logistics growth, with operating income up 21% to $166 million.
- The Other segment revenue increased 7% to $2.3 billion, with operating income up 25%, largely due to MWI Animal Health, which is accounted for as held for sale.
- Net interest expense was $141 million, up $59 million due to debt raised for the one oncology acquisition; effective tax rate was 19.9%.
- Diluted shares outstanding decreased 0.7% to 193.9 million due to $1 billion in share repurchases at an average price of $268 per share.
- Adjusted free cash flow was $1.1 billion year to date, with full year guidance of approximately $3 billion unchanged.
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