Cencora Reports Strong Q1 2026 Earnings and Raises Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy COR?
Source: seekingalpha
- 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.
- Outlook Revision: The company raised its fiscal 2026 consolidated revenue growth guidance to 7%-9% and reaffirmed its EPS guidance range of $17.45 to $17.75, reflecting confidence in the sustained performance of the U.S. Healthcare Solutions segment and the expected contributions from OneOncology.
- Risks and Challenges: Despite facing challenges from the loss of a major oncology customer, management expects this issue to ease in Q4, while the International Healthcare Solutions segment is experiencing revenue pressure due to manufacturer price adjustments; however, the company maintains its full-year guidance, demonstrating strong resilience.
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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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- 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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- 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.
- Outlook Revision: The company raised its fiscal 2026 consolidated revenue growth guidance to 7%-9% and reaffirmed its EPS guidance range of $17.45 to $17.75, reflecting confidence in the sustained performance of the U.S. Healthcare Solutions segment and the expected contributions from OneOncology.
- Risks and Challenges: Despite facing challenges from the loss of a major oncology customer, management expects this issue to ease in Q4, while the International Healthcare Solutions segment is experiencing revenue pressure due to manufacturer price adjustments; however, the company maintains its full-year guidance, demonstrating strong resilience.
See More
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- Market Fluctuations: The S&P 500 Index is up 0.08%, the Dow Jones Industrial Average is up 0.54%, while the Nasdaq 100 Index is down 0.56%, indicating the complexity of market sentiment amid mixed corporate earnings results.
- Divergent Corporate Performance: Super Micro Computer forecasts Q3 net sales of at least $12.3 billion, significantly above the $10.25 billion consensus, leading to a stock price increase of over 15%; conversely, Advanced Micro Devices' weak Q1 sales forecast results in a stock decline of over 13%, reflecting a reassessment of tech stocks.
- Labor Market Signals: The January ADP employment change rose by 22,000, below the expected 45,000, indicating weakness in the labor market that could influence future monetary policy decisions.
- Government Funding Plan: The funding package signed by President Trump extends funding for the Department of Homeland Security through February 13, while other departments are funded until September 30, alleviating concerns over a government shutdown and boosting investor confidence.
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- Earnings Impact: Super Micro Computer forecasts Q3 net sales significantly above expectations, leading to a stock price increase of over 13%, while Advanced Micro Devices saw its stock drop more than 15% due to weak Q1 sales forecasts, reflecting a cautious market outlook on tech stocks.
- Mixed Economic Data: The January ADP employment change rose by 22,000, below the expected 45,000, while the ISM services index remained steady at 53.8, stronger than the anticipated decline to 53.5, highlighting the complexities of economic recovery that could influence future monetary policy.
- Mortgage Applications Decline: MBA mortgage applications fell by 8.9% for the week ending January 30, with the purchase mortgage sub-index down 14.4%, indicating weakened housing demand that may negatively impact the real estate market.
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- 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.
- Outlook: Cencora reaffirmed its fiscal 2026 adjusted earnings guidance of $17.45-$17.60 per share and raised its sales growth forecast from 5%-7% to 7%-9%, showcasing confidence in future performance.
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