Cencora Lifts 2026 Sales Outlook Despite Q1 Revenue Miss

Cencora Inc. (NYSE:COR) on Wednesday reported its first quarter fiscal year revenue of $85.93 billion, up 5.5% year-over-year, below the Wall Street estimate of $86.03 billion. Sales increased primarily due to a 5% increase in revenue within the U.S. Healthcare Solutions segment and a 9.6% increase in revenue within the International Healthcare Solutions segment. The drug wholesale and distribution company reported adjusted earnings of $4.08 per share, beating the consensus of $4.03. Gross profit was $3.1 billion, a 20.1% increase, primarily due to the increase in gross profit in both reportable segments and an increase in the LIFO credit in the current year quarter. Gross margin was 3.58%, an increase of 44 basis points from the prior year quarter due to the increase in U.S. Healthcare Solutions' gross profit margin, driven primarily by the January 2025 acquisition of Retina Consultants of America (RCA). Operating income was $760.4 million, an increase of 7.7%, while margin was 0.88% compared to 0.87% a year ago. Segment Overview U.S. Healthcare Solutions revenue was $76.2 billion, up 5% primarily due to overall market growth largely driven by unit volume growth, including increased sales of specialty products to health systems and physician practices and products labeled for diabetes and/or weight loss in the GLP-1 class, offset in part by a decrease in sales due to the losses of a grocery customer and an oncology customer. International Healthcare Solutions’ revenue was $7.6 billion, up 9.6%, primarily due to growth in the European distribution business. Outlook Cencora reaffirmed fiscal 2026 adjusted earnings guidance of $17.45-$17.60 per share versus the consensus of $17.61. The company raised its 2026 sales growth guidance from 5%-7% to 7%-9%. Cencora raised its fiscal sales guidance from $337.37 billion-$343.79 billion to $343.79 billion-$350.22 billion compared to the consensus of $341.04 billion. Price Action: COR stock is down 6.67% at $337.62 at the last check on Wednesday, according to Benzinga Pro data. Image: Shutterstock