Cencora sees double-digit specialty profit growth. Why not the group?
The new segments show where Cencora earns its profit. Specialty services carry a faster growth forecast, while planned business sales weigh on the group outlook.
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Cencora, Inc.
Cencora distributes pharmaceuticals and provides specialty logistics, practice management and other healthcare services.
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- COR
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- 0001140859
Distribution and specialty services
Cencora connects drug manufacturers with pharmacies, hospitals and physician practices. Its specialty operations also provide practice management, logistics for complex therapies and services that help bring treatments to market.
From October 1, 2026, the reporting structure separates Specialty Pharmaceutical and Provider Services from Pharmaceutical Distribution and Services. Earlier figures have been recast into the same structure.
In fiscal 2026, specialty segment operating income was $1.69 billion, about 35% of the $4.81 billion segment total after intersegment eliminations. Specialty's 3.73% operating margin compared with 0.96% in distribution. These segment measures exclude items such as intangible amortization and deal costs; consolidated GAAP operating profit is shown below.
The financial record
| Measure | FY2026 | FY2025 |
|---|---|---|
| Revenue | $337.4 | $321.3 |
| GAAP operating profit | $3.930 | $2.629 |
| Net income attributable to Cencora | $3.484 | $1.554 |
| Reported diluted EPS | $17.95 | $7.96 |
| Adjusted diluted EPS | $17.97 | $16.00 |
Fiscal 2026 net income included a $1.087 billion noncash accounting gain tied to completing the OneOncology purchase. That gain was recorded below operating profit. Adjusted earnings remove this gain along with specified acquisition, inventory, legal and other items.
Completed acquisitions and pending changes
Cencora completed the Retina Consultants of America acquisition on January 2, 2025, and the OneOncology acquisition on February 2, 2026. It sold its U.S. Consulting Services business in April 2026.
In October 2026, Cencora announced an agreement to acquire American Oncology Network. That deal remains pending in the November 4 update. The fiscal 2027 outlook contemplates the Profarma stake sale closing in the first fiscal quarter and assumes the MWI Animal Health merger with Covetrus closes on March 31, 2027.
The fiscal 2027 outlook
Cencora expects revenue growth of 3% to 5% and adjusted earnings of $19.40 to $19.75 a share. Adjusted operating income is forecast to rise 4% to 6%, with specialty services up 18% to 21% and distribution up 2% to 4%. Other is expected to contribute about $200 million, compared with $393 million, reflecting the assumed business exits.
Expected adjusted free cash flow is about $3.5 billion, with capital spending of about $1 billion. The specialty profit analysis explains the different growth rates.
Cash generation and financing
Fiscal 2026 operating cash flow was $4.790 billion. After $909.5 million of capital spending, free cash flow was $3.88 billion. The company's adjusted measure was $3.808 billion, excluding $73 million of antitrust settlement receipts.
Cencora issued $3 billion of senior notes and entered into $1.5 billion of term loans to fund part of the OneOncology purchase. Total net cash spent on all acquisitions during the year was $4.995 billion.
At September 30, cash and cash equivalents were $4.880 billion. Short-term debt was $203.2 million and long-term debt was $11.063 billion. The balance sheet also included $3.670 billion of noncurrent accrued litigation liabilities.
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