Cencora Reports 5.5% Revenue Growth in Q1
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy COR?
Source: Newsfilter
- Significant Revenue Growth: Cencora reported revenue of $85.9 billion for Q1 of fiscal 2026, reflecting a 5.5% year-over-year increase, primarily driven by a 5.0% growth in the U.S. Healthcare Solutions segment and a 9.6% increase in the International Healthcare Solutions segment, indicating strong market performance.
- Earnings Per Share Increase: The GAAP diluted EPS for the first quarter was $2.87, up 14.8% from $2.50 in the prior year, while the adjusted diluted EPS rose to $4.08, a 9.4% increase from $3.73, showcasing enhanced profitability.
- Operating Income Guidance Raised: Cencora has raised its adjusted operating income growth guidance for fiscal 2026 from 8%-10% to 11.5%-13.5%, primarily due to the completion of the OneOncology acquisition and strong performance in the U.S. Healthcare Solutions segment, reflecting a proactive business expansion strategy.
- Acquisition of OneOncology: The completion of the OneOncology acquisition solidifies Cencora's position as a leading management services organization (MSO) in oncology care, expected to enhance partnerships with physicians and strengthen the company's leadership in the cancer care market.
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Analyst Views on COR
Wall Street analysts forecast COR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for COR is 394.00 USD with a low forecast of 360.00 USD and a high forecast of 417.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
9 Buy
1 Hold
0 Sell
Strong Buy
Current: 352.160
Low
360.00
Averages
394.00
High
417.00
Current: 352.160
Low
360.00
Averages
394.00
High
417.00
About COR
Cencora, Inc. is a global pharmaceutical sourcing and distribution services company. The Company helps both healthcare providers and pharmaceutical and biotech manufacturers improve patient access to products and enhance patient care. The Company operates through two segments: U.S. Healthcare Solutions and International Healthcare Solutions. The U.S. Healthcare Solutions segment distributes a comprehensive offering of brand-name, specialty brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to a variety of healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, long-term care and alternate site pharmacies, and other customers. The International Healthcare Solutions segment consists of businesses that focus on international pharmaceutical wholesale and related service operations and global commercialization services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Acquisition Completed: Cencora has finalized its acquisition of a controlling stake in OneOncology, with CEO Robert Mauch emphasizing that this move will elevate the fiscal 2026 adjusted operating income growth forecast to 11.5%-13.5%, showcasing the company's ongoing strength in the healthcare solutions sector.
- Financial Highlights: In Q1, Cencora reported an adjusted diluted EPS of $4.08, a 9% increase, while consolidated revenue reached $85.9 billion, up 5.5%, driven by solid growth in both U.S. Healthcare Solutions and Other segments, further solidifying the company's market position.
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- Revenue Performance: Cencora reported first-quarter fiscal revenue of $85.93 billion, reflecting a 5.5% year-over-year increase, although it fell short of Wall Street's estimate of $86.03 billion, indicating moderate market demand growth.
- Profitability Improvement: The adjusted earnings per share stood at $4.08, surpassing the consensus of $4.03, demonstrating significant progress in cost control and operational efficiency.
- Gross Profit Growth: Gross profit reached $3.1 billion, a 20.1% increase, primarily driven by higher gross profits across reportable segments and an increase in LIFO credits, reflecting ongoing improvements in profitability.
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