Cencora Reports Strong Q3 Results with Raised Guidance and $1B Buyback
Cencora (NYSE:COR) reported strong fiscal third-quarter results, raising its full-year adjusted EPS guidance to between $17.75 and $17.95. Revenue increased by 5.1% year-over-year to $84.8 billion, while adjusted earnings per share rose 12.0% to $4.48. The company also repurchased $1 billion of its stock during the quarter ahead of schedule. Profit growth outpaced sales due in part to a widened gross margin and contributions from the OneOncology acquisition. Both US and International Healthcare Solutions segments saw significant operating income increases, driven by pharmaceutical sales and logistics performance. However, rising adjusted operating expenses—partly attributed to the same acquisition—and increased interest costs highlight underlying financial pressures. Despite these challenges, Cencora’s margin expansion appears robust for now. The company faces ongoing risks from lower-margin GLP-1 drug growth and customer losses in its US business. While hedge fund ownership has slightly increased, short interest remains low at 2.70% of the float.
Topics: buybacks Cencora guidance raise operating income growth