Cencora fourth-quarter profit rises 21% on OneOncology deal

Cencora (COR) said in its press release that adjusted diluted earnings per share for the fiscal fourth quarter rose 21.4% to $4.66, in line with the $4.63 consensus estimate. Revenue was $88.35 billion, also in line with the $88.91 billion estimate.

Shares rose 1.8% to $346.49 as of 9:54 a.m. ET, from a regular-session close of $340.50.

Here's how the company did:

• Adjusted diluted EPS: $4.66 vs. $4.63 expected, up from $3.84 a year earlier
• GAAP diluted EPS: $2.71, compared with a loss of $1.75 a year earlier
• Revenue: $88.35 billion vs. $83.73 billion a year earlier

Fourth-quarter revenue rose 5.5% from a year earlier. U.S. Healthcare Solutions revenue grew 5.4%, and the company said gross profit rose 21.9%, helped by its February 2026 acquisition of OneOncology.

For the full fiscal year, adjusted diluted EPS rose 12.3% to $17.97, and revenue rose 5.0% to $337.40 billion.

According to its SEC filings, net income swung from a loss of $339.7 million in the fourth quarter of fiscal 2025 to a profit of $559.6 million in the first quarter of fiscal 2026.

“Fiscal 2026 was a pivotal year for Cencora, as we expanded our MSO platform through the acquisition of OneOncology, sharpened the focus of our portfolio and delivered record results,” said Robert P. Mauch, President and Chief Executive Officer of Cencora.

Fiscal 2027 outlook

Cencora expects fiscal 2027 adjusted diluted EPS of $19.40 to $19.75, reflecting growth of 8% to 10%.

The company expects adjusted free cash flow of about $3.5 billion and capital expenditures of about $1.0 billion. It expects net interest expense of $490 million to $510 million.

The outlook assumes the sale of the company’s Profarma stake closes in the first fiscal quarter and that the MWI Animal Health merger with Covetrus closes on March 31, 2027.

The company reaffirmed its long-term adjusted diluted EPS growth target of 10% to 14%.

New reporting structure

Beginning in the first quarter of fiscal 2027, Cencora will report two segments: Pharmaceutical Distribution and Services, and Specialty Pharmaceutical and Provider Services. Other businesses under exploration for strategic alternatives will not be a reportable segment.

The company set long-term adjusted operating income growth targets of mid-single digit percent growth for Pharmaceutical Distribution and Services, and mid-teens percent growth for Specialty Pharmaceutical and Provider Services.

Mauch continued: “By uniting our specialty businesses and elevating the voices of our customers, we are better able to advance our purpose and deliver sustained value for our shareholders.”

Dividend and portfolio moves

The board declared a quarterly dividend of 66 cents per share, a 10% increase from 60 cents. It is payable Nov. 30 to holders of record on Nov. 13.

Cencora also signed a definitive agreement to sell its stake in Profarma, with closing expected in the first quarter of fiscal 2027. It has also signed a definitive agreement to acquire American Oncology Network, a network of more than 350 oncology providers across 21 states.