Cencora, Inc.

Cencora reported Q3 fiscal 2026 revenue of $84.8 billion, up 5% year over year. Adjusted gross profit was $3.5 billion, up 23%, and adjusted gross margin expanded 61 basis points to 4.16%. Adjusted operating income was $1.2 billion, up 17%, and adjusted EPS increased 12%. U.S. Healthcare Solutions revenue was $74.9 billion, up 5%, with segment operating income up 16% to $966 million. International Healthcare Solutions revenue was $7.7 billion, up 6%, with operating income up 21% as reported and 23% constant currency. Other revenue was $2.3 billion, up 7%, and operating income was $109 million, up 25%. Net interest expense was $141 million, cash was $2.8 billion at quarter-end, and year-to-date adjusted free cash flow was $1.1 billion. Full-year adjusted free cash flow guidance remains approximately $3 billion. Management raised fiscal 2026 adjusted EPS guidance to $17.75-$17.95 from $17.70-$17.90, kept consolidated revenue guidance unchanged, said U.S. revenue growth should be in the lower half of the 4%-6% range, and now expects International revenue growth of approximately 8% at the low end of the prior range (about 7% constant currency). Consolidated operating income growth is now expected to be 13%-14%.

Bob Mauch said the quarter reflected strong execution across Cencora and continued investment in its specialty and pharmaceutical-centric strategy. He emphasized three pillars: the specialty pharmaceutical platform, digital transformation, and talent/culture, while arguing that biosimilars, Part B in particular, remain a durable opportunity. His tone was confident and upbeat, especially around long-term growth, MSO integration, and the company’s ability to keep delivering within its long-term guidance range.

Eva Boratto highlighted that adjusted operating income grew 17% and adjusted EPS rose 12%, with the quarter benefiting from strong U.S. Healthcare Solutions performance, continued International growth, and share repurchases. She pointed to consolidated adjusted gross profit of $3.5 billion, margin of 4.16%, cash of $2.8 billion, year-to-date adjusted free cash flow of $1.1 billion, and unchanged full-year free cash flow guidance of about $3 billion. She also noted net interest expense of $141 million, the repayment of the full $800 million RCA financing-related term loan balance, and updated full-year guidance reflecting $1 billion of buybacks and a lower share count of about 194 million.

Analysts pressed on the apparent reacceleration in U.S. Healthcare Solutions, especially specialty and oncology, and management said the improvement was driven by stronger utilization trends, MSOs, and OneOncology outperforming expectations. Questions also focused on Part B versus Part D biosimilars, 340B, ASP rule changes, and whether the Street’s 2027 growth assumptions fit management’s view; Bob said the company is comfortable with its long-term guidance and sees Part B biosimilars as a durable positive. Management also said OneOncology remains neutral on adjusted EPS net of financing on a 12-month basis, its operating income is modestly better than initial expectations, and the company is still assessing regulatory changes including 340B and ASP-related proposals.