10-QPeriod: Q1 FY2026

Cencora, Inc. Quarterly Report for Q1 Ended Dec 31, 2025

Filed February 4, 2026For Securities:COR

Summary

Cencora, Inc. reported solid financial results for the quarter ending December 31, 2025, demonstrating robust revenue growth driven by both its U.S. and International Healthcare Solutions segments. The company saw a significant increase in gross profit, largely attributed to the acquisition of RCA and favorable LIFO credit adjustments, while managing operating expenses effectively despite integration costs from recent acquisitions. Despite a notable increase in interest expense due to recent debt financings for acquisitions, Cencora maintained profitability, with net income attributable to Cencora, Inc. rising to $559.6 million. The company also provided strong forward-looking indications with the recent acquisition of OneOncology and an increased revolving credit facility, positioning it for continued growth and operational expansion. However, investors should remain aware of the ongoing opioid litigation accrual and other contingent liabilities, which represent a significant long-term financial commitment.

Financial Highlights

55 data points
Beta

Revenue

$85.93B

3.6% Gross Margin

Net Income

$559.65M

0.7% Net Margin

EPS (Diluted)

$2.87

Total Assets

$78.36B

Cash & Equivalents

$1.75B

Free Cash Flow

-$2.42B

Financial Statements
Beta
Revenue$85.93B
Cost of Revenue$82.86B
Gross Profit$3.07B
SG&A Expenses$1.80B
Operating Expenses$1.93B
Operating Income$760.45M
Net Income$559.65M
EPS (Basic)$2.88
EPS (Diluted)$2.87
Shares Outstanding (Basic)194.22M
Shares Outstanding (Diluted)195.32M

Key Highlights

  • 1Revenue increased by 5.5% to $85.9 billion year-over-year, driven by growth in both U.S. and International Healthcare Solutions segments, including $1 billion in sales from GLP-1 products.
  • 2Gross profit saw a substantial increase of 20.1% to $3.1 billion, boosted by the RCA acquisition, increased sales, and a $70.2 million rise in LIFO credit.
  • 3Net income attributable to Cencora, Inc. grew to $559.6 million ($2.87 diluted EPS), up from $488.6 million ($2.50 diluted EPS) in the prior year period.
  • 4The company recorded a goodwill impairment of $165.7 million related to its U.S. Consulting Services business classified as held for sale.
  • 5Total debt increased to $7.9 billion, primarily due to new debt financing for acquisitions, with a significant portion being variable-rate debt.
  • 6Cencora completed a major acquisition of OneOncology in early February 2026 for approximately $4.6 billion, funded by new debt financing.
  • 7The company maintains a substantial accrued litigation liability of $4.3 billion for opioid-related matters, with estimated payments of $426.2 million expected within the next year.

Frequently Asked Questions

Cencora's revenue grew by 5.5% to $85.9 billion, primarily driven by increased sales in both its U.S. Healthcare Solutions and International Healthcare Solutions segments. This growth was bolstered by strong unit volume increases, specialty product sales, and notably, $1.0 billion in sales from GLP-1 class products.

The acquisition of RCA, completed in January 2025, had a positive impact on Cencora's financial performance. It contributed to a significant increase in gross profit for the U.S. Healthcare Solutions segment and drove higher operating income for the segment. However, it also contributed to increased operating expenses and distribution, selling, and administrative costs.

Cencora's total debt increased to $7.9 billion as of December 31, 2025, largely due to financing new acquisitions. The company has access to substantial liquidity through its multi-currency revolving credit facility, which was increased to $5.5 billion in January 2026, and other credit facilities. Despite increased interest expenses, the company's operating cash flows and available credit lines are expected to be sufficient to meet its ongoing obligations, including significant opioid litigation payments.

Cencora has an accrued litigation liability of $4.3 billion for opioid-related matters, which is expected to be paid over 13 years. Of this amount, approximately $426.2 million is expected to be paid within the next year. While the company has accrued its estimated liability, it notes that the ultimate loss may differ materially from the amount accrued, and the ongoing litigation remains a significant contingency.