01—Abstract
Summary
Summary of the 10-Q filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Cencora, Inc. reported strong revenue growth of 3.8%a in the quarter and 4.7% for the six-month period ended March 31, 2026, driven by its U.S. and International Healthcare Solutions segments.
This growth was significantly bolstered by specialty products and the increasing demand for GLP-1 class drugs, contributing $1.9 billionb in the quarter and $2.9 billion year-to-date. The company also saw a substantial increase in gross profit, up 17.3% and 18.6% for the respective periods, benefiting from strong segment performance and a favorable LIFO adjustment, partially offset by reduced gains from antitrust settlements. The acquisition of OneOncology for $7.4 billion in February 2026 was a major event, significantly impacting balance sheet items like goodwill and other intangible assets, and driving increased operating expenses and interest expenses due to associated debt financing.
While revenue growth was solid, operating expenses rose considerably, largely due to integration costs and impairments related to divested businesses. The company's liquidity remains strong, supported by its revolving credit facilities, though net cash used in operating activities increased year-over-year due to working capital changes.
02—Key points
Key Highlights
- Revenue increased by 3.8% to $78.4 billion for the quarter and 4.7% to $164.3 billion for the six months ended March 31, 2026, driven by both U.S. and International Healthcare Solutions segments.
- Significant growth in specialty products and GLP-1 class drugs contributed $1.9 billion and $2.9 billion to revenue in the quarter and six-month period, respectively.
- Gross profit increased by 17.3% to $3.6 billion for the quarter and 18.6% to $6.7 billion for the six months, aided by LIFO credits and strong segment performance.
- The company completed the significant acquisition of OneOncology for $7.4 billion in February 2026, impacting its balance sheet and future operations.
- Operating expenses increased by 20.9% for the quarter and 22.8% for the six months, primarily due to acquisition-related costs and an impairment charge for assets held for sale.
- Net cash used in operating activities increased to $1.0 billion for the six months ended March 31, 2026, from $0.6 billion in the prior year, driven by changes in working capital.
- Interest expense, net, increased by 35.1% for the quarter and 61.4% for the six months, largely due to new debt incurred to finance the OneOncology acquisition.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Cencora, Inc. kept $0.02.
- Revenue$78.36B100.0%
- Cost of revenue−$74.77B95.4%
- Gross profit$3.59B4.6%
- Operating costs−$2.45B3.1%
- Operating income$1.14B1.5%
- Interest, other & tax$498.7M0.6%
- Net income$1.64B2.1%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed May 6, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $78.36B$75.45B | +3.8% |
| Cost of Revenue | $74.77B$72.39B | +3.3% |
| Gross Profit | $3.59B$3.06B | +17.3% |
| SG&A Expenses | $1.98B$1.60B | +23.6% |
| Operating Expenses | $2.11B$1.72B | +22.5% |
| Operating Income | $1.14B$1.04B | +10.3% |
| Net Income | $1.64B$717.87M | +128.6% |
| EPS (Basic) | $8.44$3.70 | +128.1% |
| EPS (Diluted) | $8.40$3.68 | +128.3% |
| Shares Outstanding (Basic) | 194.54M193.80M | +0.4% |
| Shares Outstanding (Diluted) | 195.38M195.09M | +0.1% |
05—Questions
Frequently Asked Questions
What was the impact of the OneOncology acquisition on Cencora's financial statements?
The acquisition of OneOncology for $7.4 billion in February 2026 significantly increased Cencora's assets, including goodwill and intangible assets, and led to higher operating expenses due to integration costs. It also resulted in increased interest expense as the acquisition was financed partly through new debt. The company's consolidated results now include a portion of OneOncology's operations.
How did Cencora's revenue performance differ between its segments?
Both the U.S. Healthcare Solutions and International Healthcare Solutions segments showed revenue growth. U.S. Healthcare Solutions saw a 2.9% increase for the quarter and 4.0% for the six months, driven by specialty products and GLP-1 drugs. International Healthcare Solutions experienced stronger growth, with a 13.0% increase for the quarter and 11.2% for the six months, primarily due to its European distribution business.
What is the current status of Cencora's opioid litigation accrual?
Cencora's accrued litigation liability for opioid-related matters stood at $4.3 billion as of March 31, 2026. This amount is expected to be paid over 13 years, with approximately $415.7 million due within the next year. The company continues to accrue its estimated liability and is unable to estimate potential losses for matters not included in the accrual.
How has Cencora's debt structure changed recently?
Cencora's debt increased significantly due to the financing of the OneOncology acquisition. In February 2026, the company issued approximately $3.0 billion in senior notes and $1.5 billion in term loans. As of March 31, 2026, total debt was approximately $12.4 billion, with over $2.2 billion in variable-rate debt and the remainder in fixed-rate debt.
06—Continue