Cencora Q2 revenue and adjusted EPS miss estimates, raises FY outlook

Overview

• Pharmaceutical distributor's fiscal Q2 revenue rose 3.8% yr/yr but missed analyst expectations

• Adjusted EPS for fiscal Q2 rose 7.5% but missed analyst expectations

• Company raised full-year adjusted EPS guidance and plans $1 bln share buyback by end-2026

Outlook

• Cencora raises fiscal 2026 adj diluted EPS guidance to $17.65-$17.90

• Company expects fiscal 2026 revenue growth of 4%-6%

• Cencora plans to repurchase $1 bln in shares by end of calendar 2026

Result Drivers

• SEGMENT GROWTH - Revenue growth driven by 2.9% increase in U.S. Healthcare Solutions and 13.0% increase in International Healthcare Solutions, mainly due to higher unit volumes and growth in European distribution

• ONEONCOLOGY ACQUISITION - Gross profit margin improvement and higher operating expenses attributed to the February 2026 acquisition of OneOncology

• LOWER MARGIN PRODUCT MIX - Higher sales of GLP-1 products, which have lower gross profit margins, partially offset gross profit margin gains

Company press release: ID:nBw41ZmYba

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

• Wall Street's median 12-month price target for Cencora Inc is $400.00, about 30.8% above its May 5 closing price of $305.90

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 20 three months ago

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