Why Is Cencora (COR) Up 2% Since Last Earnings Report?

It has been about a month since the last earnings report for Cencora (COR). Shares have added about 2% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Cencora due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Cencora, Inc. before we dive into how investors and analysts have reacted as of late.

Cencora Q1 Earnings Beat, Gross Margin Improves

Cencorareported fiscal first-quarter 2026adjusted earnings per share of $4.08, which beat the Zacks Consensus Estimate of $4.07 by 0.2%. The bottom line also improved 9.4% year over year.

GAAP earnings per share was $2.87, up 14.8% compared with the year-ago period’s figure.

Revenue Details

Revenues totaled $85.93 billion, up 5.5% year over year. The top line was almost in line with the Zacks Consensus Estimate.

Segmental Analysis

U.S. Healthcare Solutions

Revenues in this segment totaled $76.2 billion, up 5% on a year-over-year basis. This improvement was driven by overall market growth on increased unit volume, including improved sales of GLP-1 drugs and specialty products.

Segmental operating income totaled $831.3 million, up 21% year over year. Higher gross profit (as a result of increased product sales and the January 2025 acquisition of RCA) contributed to the upside, partly offset by increased operating expenses.

International Healthcare Solutions

This segment includes Alliance Healthcare, World Courier, Innomar and Profarma Specialty.

Revenues amounted to $7.6 billion, up 7.6% year over year. The top line increased 9.6% on a reported basis and 6.2% at constant currency (cc).

Operating income totaled $142.2 million, down 13.9% on a reported basis and 17% at cc. The decline was due to lower operating income at COR’s global specialty logistics and specialized consulting services businesses.

Margin Analysis

Cencora reported an adjusted gross profit of $3 billion, up 18.1% on a year-over-year basis. As a percentage of revenues, the adjusted gross margin was 3.48%, up 37 basis points (bps) year over year.

The company recorded an adjusted operating income of $1.1 billion, up 11.9% year over year. As a percentage of revenues, the adjusted operating margin was 1.24%, which expanded 8 bps from the year-ago quarter’s level.

Financial Update

COR exited the fiscal first quarter with cash and cash equivalents worth $1.75 billion compared with $4.36 billion in the previous quarter.

Net cash used in operating activities totaled $2.31 billion compared with $2.72 billion a year ago.

Dividend Update

Cencora's board of directors declared a quarterly dividend of 60 cents per share. The new dividend is payable on March 2, 2026, to shareholders of record at the close of business on Feb. 13, 2026.

FY26 Guidance Updated

The company provided its outlook for fiscal 2026 earnings and revenues.

Adjusted earnings per share is estimated to be in the $17.45-$17.75 range.

Total revenues are now projected to rise 7%-9% compared with the previous guidance of 5%-7%. Sales at the U.S. Healthcare Solutions segment and the International Healthcare Solutions segment are now also anticipated to grow in the range of 7%-9%.

Adjusted operating income is now expected to improve in the range of 11.5%-13.5% compared with previous guidance of 8-10% for fiscal 2026.

Operating income for the U.S. Healthcare Solutions segment is now expected to improve 14-16%, while the same for the International Healthcare Solutions business is estimated to improve 5-8%, reportedly as well as at cc.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Cencora has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Cencora has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Cencora is part of the Zacks Medical Services industry. Over the past month, HCA Healthcare (HCA), a stock from the same industry, has gained 4%. The company reported its results for the quarter ended December 2025 more than a month ago.

HCA reported revenues of $19.51 billion in the last reported quarter, representing a year-over-year change of +6.7%. EPS of $8.01 for the same period compares with $6.22 a year ago.

HCA is expected to post earnings of $7.18 per share for the current quarter, representing a year-over-year change of +11.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for HCA. Also, the stock has a VGM Score of A.

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