COR · Cencora, Inc.

Cencora’s fiscal 2026 second quarter results reflect strong top-line growth and improved profitability, though GAAP EPS was significantly inflated by a $1.1 billion non-recurring gain tied to the February 2026 OneOncology acquisition—specifically from remeasuring its prior equity investment and extinguishing a put option liability. Excluding that item, adjusted EPS rose 7.5% to $4.75, supported by gross profit growth (up 15.7% non-GAAP) and margin expansion in the U.S. Healthcare Solutions segment, partially offset by higher operating expenses stemming from the same acquisition. Revenue growth of 3.8% was broad-based: U.S. segment grew 2.9%, aided by specialty product volume and GLP-1 sales (though those lower-margin products pressured gross margin), while International surged 13.0%—7.2% on a constant-currency basis—driven by European distribution. Management highlighted execution against customer needs and strategic progress, including debt reduction and the resumption of share repurchases ($1B authorized by year-end). The raised full-year adjusted EPS guidance range ($17.65–$17.90) reflects confidence in sustained operating income growth across segments, particularly U.S. Healthcare Solutions (+14–16% expected), even as Other businesses are now classified as held-for-sale following the Covetrus-MWI Animal Health merger agreement. The $0.60 dividend reaffirms capital return discipline, and the conference call emphasized long-term value creation through integration and disciplined capital allocation.