Cencora, Inc. (COR) Shares Slide as Revenue Miss Offsets Raised Operating Guidance

Shares of Cencora, Inc. (NYSE: COR) fell 8.8% to close at $329.85 on Wednesday, as investors weighed a marginal revenue miss and a sharp decline in international operating income against an improved full-year operating outlook. The stock gapped down at the open despite an adjusted earnings beat, marking its steepest one-day decline in over a year.

Company Description

Cencora, Inc. is a global pharmaceutical solutions company that sources and distributes brand-name, generic, and specialty pharmaceuticals. The company provides services to healthcare providers and pharmaceutical manufacturers, including clinical trial logistics, market access consulting, and specialty physician services. It operates through two main segments: U.S. Healthcare Solutions and International Healthcare Solutions, following its strategic pivot toward high-margin specialty healthcare platforms.

Market Performance and Valuation

• Current Stock Price: $329.85 (Close Feb 4, 2026)
• Market Capitalization: Approximately $64.05 billion
• 52-Week Context: The stock has traded between $237.71 and $377.54 over the past year. Wednesday’s decline wiped out approximately $6 billion in market value.
• Valuation: Cencora trades at a forward P/E of 18.7x based on the $17.60 midpoint of its fiscal 2026 guidance. This multiple remains above its historical five-year average, reflecting the market’s premium on its expanding oncology and specialty medicine footprint.

Fiscal First Quarter 2026 Results

Cencora reported financial results for the quarter ended December 31, 2025:

• Revenue: $85.93 billion, up 5.5% year-over-year, missing the $86.03 billion consensus estimate.
• Adjusted Diluted EPS: $4.08, up 9.4% from $3.73 in the prior-year period, beating the $4.04 analyst consensus.
• Adjusted Gross Margin: Expanded 37 basis points to 3.48%, primarily driven by the Retina Consultants of America (RCA) acquisition.
• Segment Performance:
  • U.S. Healthcare Solutions: Revenue rose 5% to $76.2 billion; operating income surged 21% to $831.3 million, fueled by strong demand for GLP-1 (weight loss) and oncology therapies.
  • International Healthcare Solutions: Revenue increased 9.6% to $7.6 billion, but operating income fell 13.9% (down 17% on a constant currency basis) due to unfavorable manufacturer price adjustments in a developing market.

Updated 2026 Guidance and Forecasts

The company updated its full-year outlook to reflect the completion of the OneOncology acquisition:

• Operating Income: Growth guidance raised to 11.5%–13.5% (from 8%–10%).
• Revenue Growth: Raised to 7%–9% (from 5%–7%).
• Adjusted EPS: Reaffirmed at $17.45 to $17.75, with the midpoint of $17.60 falling slightly below the analyst consensus of $17.62.
• Interest Expense: Full-year expectation increased to $480 million–$500 million due to financing costs for recent M&A.

Macro Pressures and Risk Factors

• Geopolitical/International: Profitability in the International segment was hampered by the timing of regulatory price resets in Europe and developing markets. Management expects this to unwind but remains cautious on currency volatility.
• Tariff & Trade: While not a direct importer of finished goods impacted by current electronics tariffs, the company noted that global logistics costs for its World Courier business remain sensitive to trade policy shifts.
• Leverage: The company reported negative adjusted free cash flow of $2.4 billion in the quarter (seasonal) and has paused share repurchases to prioritize debt paydown after the OneOncology closing.

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