COR
HealthcareCencora
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Market Data
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XBRL · SEC EDGAR2007–2025(19yr)| Metric | FY 2007 | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $65.7B | $70.2B | $71.8B | $78.0B | $80.2B | $79.5B | $88.0B | $119.6B | $136.0B | $146.8B | $153.1B | $167.9B | $179.6B | $189.9B | $214.0B | $238.6B | $262.2B | $294.0B | $321.3B | +9.3% |
| Gross Profit | $2.2B | $2.0B | $2.1B | $2.4B | $2.5B | $2.7B | $2.5B | $3.0B | $3.5B | $4.3B | $4.5B | $4.6B | $5.1B | $5.2B | $6.9B | $8.3B | $9.0B | $9.9B | $11.5B | +15.8% |
| Gross Margin | 3.4% | 2.9% | 2.9% | 3.0% | 3.2% | 3.4% | 2.9% | 2.5% | 2.6% | 2.9% | 3.0% | 2.7% | 2.9% | 2.7% | 3.2% | 3.5% | 3.4% | 3.4% | 3.6% | +0.2pp |
| Operating Income | $788.7M | $827.9M | $883.7M | $1.1B | $1.2B | $1.3B | $898.4M | $778.9M | $417.4M | $1.5B | $1.1B | $1.4B | $1.1B | -$5.1B | $2.4B | $2.4B | $2.3B | $2.2B | $2.6B | +20.8% |
| Operating Margin | 1.2% | 1.2% | 1.2% | 1.4% | 1.5% | 1.6% | 1.0% | 0.7% | 0.3% | 1.0% | 0.7% | 0.9% | 0.6% | -2.7% | 1.1% | 1.0% | 0.9% | 0.7% | 0.8% | +0.1pp |
| Net Income | $469.2M | $250.6M | $503.4M | $636.7M | $706.6M | $719.0M | $433.7M | $276.5M | -$134.9M | $1.4B | $364.5M | $1.7B | $855.4M | -$3.4B | $1.5B | $1.7B | $1.7B | $1.5B | $1.6B | +3.0% |
| Net Margin | 0.7% | 0.4% | 0.7% | 0.8% | 0.9% | 0.9% | 0.5% | 0.2% | -0.1% | 1.0% | 0.2% | 1.0% | 0.5% | -1.8% | 0.7% | 0.7% | 0.7% | 0.5% | 0.5% | -0.0pp |
| Free Cash Flow | $1.1B | $599.8M | $637.9M | $924.0M | $1000.0M | $1.1B | $585.7M | $1.2B | $3.7B | $2.7B | $1.0B | $1.1B | $2.0B | $1.8B | $2.2B | $2.2B | $3.5B | $3.0B | $3.2B | +7.0% |
| FCF Margin | 1.7% | 0.9% | 0.9% | 1.2% | 1.2% | 1.4% | 0.7% | 1.0% | 2.7% | 1.8% | 0.7% | 0.6% | 1.1% | 1.0% | 1.0% | 0.9% | 1.3% | 1.0% | 1.0% | -0.0pp |
| EPS (Diluted) | $1.25 | $0.77 | $1.66 | $2.22 | $2.54 | $2.80 | $1.84 | $1.17 | $-0.62 | $6.32 | $1.64 | $7.53 | $4.04 | $-16.65 | $7.39 | $8.04 | $8.53 | $7.53 | $7.96 | +5.7% |
1. THE BIG PICTURE
Cencora is a low-margin giant attempting a high-stakes transformation, using its massive scale in pharmaceutical distribution to fund an entry into higher-margin specialty care and physician services. While it moves $323.5 billion in annual volume, its future depends on whether these new "adjacencies" can offset the razor-thin 0.8% net margins and the multi-billion dollar legal overhang of its core business.
2. WHERE THE RISKS HIT HARDEST
Cencora’s "scale and market breadth" (10-K Item 1) is undermined by extreme customer concentration; the loss of Walgreens or Boots, which together account for 25% of revenue and 38% of accounts receivable, would instantly erase the benefits of its national distribution network. Furthermore, Cencora's "lowest operating cost structure" (10-K Item 1) is a fragile advantage when weighed against a $4.3 billion opioid litigation liability that requires $416 million in cash outflows by late 2026 (Risks). Finally, the strategic push into specialty drugs—highlighted by 10.9% growth in GLP-1 products—is threatened by the Inflation Reduction Act, which introduces federal price negotiations that could compress the very margins Cencora is chasing (10-Q).
3. WHAT THE NUMBERS SAY TOGETHER
Cencora’s 5.5% quarterly revenue growth marks a deceleration from its TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter growth of 9.3%, a dip caused by the loss of a grocery and an oncology customer (10-Q). Despite generating $85.9 billion in quarterly revenue, Cencora’s Free Cash Flow (FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders) margin is negative (-0.6%), trailing every peer in its group, including McKesson (XBRL). This suggests that the heavy capital requirements of its distribution business and the $4.6 billion acquisition of OneOncology are currently outstripping its cash generation. Market sentiment remains wary; short interest sits at 3.1% of the float, indicating skepticism about Cencora's ability to manage its 13-year legal payment schedule while integrating large-scale acquisitions.
4. IS IT WORTH IT AT THIS PRICE?
At 18.0x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, the market is pricing in ~2.5% long-term growth (CAPM analysis). This represents a 27% premium to the peer median of 14.2x, a valuation that is difficult to justify given that Cencora ranks 5th of 6 in revenue growth and has the worst FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin in its peer group (XBRL). While Cencora's 7% to 9% revenue growth guidance for 2026 supports the market's implied growth rate, the 0.8% net margin offers no margin for error. For this price to be right, Cencora must prove it can convert its specialty acquisitions into positive cash flow; otherwise, the $4.3 billion opioid liability will continue to drain a company that already offers a bottom-tier buyback yield of 0.6%.
5. WHAT WOULD CHANGE THIS VIEW?
- Constructive if FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin turns positive and moves toward the peer median, signaling that specialty acquisitions are generating cash rather than just absorbing it.
- Cautious if Walgreens or Boots fails to renew its contract on current terms, given they represent 38% of accounts receivable.
- Cautious if capital expenditures exceed the $900 million guidance for 2026 without a corresponding expansion in operating margins.
6. BOTTOM LINE
Structural Advantage: A low-cost national distribution infrastructure integrated with a dominant specialty pharmaceutical footprint and physician service network.
Bottom Line: Cencora is a low-margin incumbent in a high-risk transition, and its current valuation premium is vulnerable to its massive legal liabilities and negative cash flow.
1. Top 5 Material Risks
- Customer Concentration: Walgreens and Boots accounted for approximately 25% of revenue in fiscal 2025 and 38% of accounts receivable as of September 30, 2025. The loss of these relationships or renewal at less favorable terms would materially impact revenue and cash flows.
- Opioid Litigation: Cencora has an accrued litigation liability of $4.3 billion as of September 30, 2025, related to the Distributor Settlement Agreement and other opioid-related matters. This liability is expected to be paid over 13 years, with $416.0 million due prior to September 30, 2026.
- Regulatory Pricing Reforms: The Inflation Reduction Act (IRA) introduces federal price negotiations for high-expenditure drugs and mandatory manufacturer discounts, which may impact customer pricing structures, manufacturer distribution relationships, and overall profitability.
- Acquisition Integration: Cencora’s strategy involves significant investments, such as the $718.4 million joint venture interest in OneOncology and the acquisition of RCA. Failure to integrate these businesses or achieve projected financial performance could result in impairment charges or diverted management resources.
- Cybersecurity Threats: As a frequent target for cyberattacks, Cencora faces risks of operational disruption, data loss, and increased costs. While prior incidents in February 2024 and March 2023 were not material, future breaches could result in litigation, regulatory action, and reputational damage.
2. Company-Specific Risks
- Generics Purchasing Services: The arrangement with Walgreens Boots Alliance Development GmbH (WBAD) is subject to market conditions; a decline in fees and rebates available through this arrangement could adversely affect margins.
- Highly Inflationary Economy: Cencora’s operations in Turkey are classified as a "highly inflationary economy" under GAAPGAAPGenerally Accepted Accounting Principles — the standard U.S. accounting rules all public companies must follow, which has necessitated the recording of incremental expenses in the consolidated financial statements.
- PharmaLex Impairment: Weakening demand for specialized services in the life sciences industry led to a full impairment of the remaining $723.9 million of goodwill in the PharmaLex reporting unit during fiscal 2025.
- Collective Bargaining: Approximately 24% of the workforce is covered by collective bargaining agreements, primarily outside the U.S., creating potential for operational disruption through strikes or labor tactics.
3. Regulatory/Legal Risks
- 340B Drug Discount Program: Ongoing disputes regarding contract pharmacy arrangements and potential rebate models could limit access to 340B pricing, impacting the business of Cencora’s covered entity customers.
- Medicare Part B Payments: CMS finalized a rule in October 2025 that may tighten standards for "bona fide service fee" exemptions, potentially resulting in reduced Part B payments for specialty products and forcing changes to manufacturer service fee relationships.
- Anti-Bribery and Trade Laws: Cencora is subject to the U.S. Foreign Corrupt Practices Act (FCPA) and the U.K. Bribery Act; violations could lead to civil and criminal fines, disgorgement of profits, and debarment from government contracting.
- EU Pharmaceutical Legislation: The EU’s "pharmaceutical package" and the Critical Medicines Act propose mandatory stockpiling and notification duties, which may increase compliance and logistics costs.
4. Financial Impact Map
Customer Concentration → Revenue and Accounts Receivable → 25% of revenue and 38% of accounts receivable tied to Walgreens and Boots. Opioid Litigation → Accrued Expenses and Other / Accrued Litigation Liability → $416.0 million current liability and $3.9 billion long-term liability. Regulatory Pricing Reforms (IRA) → Revenue and Profitability → Impacts manufacturer distribution relationships and customer pricing structures. Acquisition Integration → Goodwill and Long-Lived Assets → Potential for impairment charges if acquired businesses fail to meet projections. Cybersecurity Threats → Operating Expenses → Increased costs for security measures, investigation, remediation, and potential litigation/regulatory fines.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 8-K | Feb 2026 | — |
| 10-Q | Feb 2026 | Dec 2025 |
| 14A | Jan 2026 | — |
| 10-K | Nov 2025 | Sep 2025 |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
Cencora to Acquire EyeSouth Partners Retina Division for $1.1 Billion
- ▸Acquiring EyeSouth Partners retina division for $1.1 billion
- ▸EyeSouth physicians to join Retina Consultants of America
- ▸Reaffirmed FY26 adjusted diluted EPS guidance of $17.45–$17.75
- ▸CFO James F. Cleary to retire effective June 30, 2026
- ▸Executive search firm retained to identify successor for CFO role
Cencora to acquire EyeSouth Partners' retina business for $1.1 billion
- ▸Cencora to acquire EyeSouth Partners' retina business for $1.1 billion
- ▸Deal expands Cencora's specialty medical arm and eye care market presence
- ▸EyeSouth retina physicians to join Retina Consultants of America
- ▸STAAR Surgical shares rose 3.7% following sector-wide positive sentiment
- ▸Ophthalmology sector outlook strengthened by large-scale industry investment
Cencora to Acquire EyeSouth Retina Business for $1.1B to Expand Eye Care Platform
- ▸Acquiring EyeSouth retina business for $1.1 billion
- ▸Expansion of Retina Consultants of America (RCA) platform
- ▸Strategic move to strengthen foothold in eye care market
- ▸Transaction aims to scale specialized physician practice management
Cencora to acquire EyeSouth Partners' retina business for $1.1 billion
- ▸Acquisition price set at $1.1 billion
- ▸Target is EyeSouth Partners' retina business unit
- ▸Transaction expands Cencora's specialty pharmacy and physician services footprint
Cencora to acquire EyeSouth Partners' retina business for $1.1 billion in cash
- ▸Acquiring EyeSouth Partners' retina business for $1.1 billion
- ▸Target business to integrate into Retina Consultants of America (RCA)
- ▸Expected to be slightly accretive to adjusted diluted EPS within 12 months
- ▸Transaction subject to customary closing conditions and regulatory approvals
- ▸Fiscal 2026 guidance does not currently reflect transaction closing
Cencora Q1 revenue $85.9B +5.5% YoY, fiscal Q4 earnings beat consensus estimates
- ▸Q1 consolidated revenue $85.9B, up 5.5% YoY
- ▸Fiscal Q4 earnings outpaced consensus estimates
- ▸U.S. segment strength offset international business miss
- ▸Considering strategic alternatives for animal health and non-core PharmaLex business
- ▸61 hedge funds held COR shares at end of Q4
Delta Air Lines raises Q1 2026 revenue forecast on accelerating travel demand
- ▸Delta Air Lines raised Q1 2026 revenue forecast citing strong business and household demand
- ▸American Airlines expects stronger revenue growth for early 2026 than previously forecast
- ▸Uber and Nvidia announced autonomous vehicle fleet partnership for LA and San Francisco
- ▸Cencora CFO James Cleary to retire end of June; company searching for successor
- ▸US crude oil prices rose 2.3% to $95.64 per barrel amid Middle East conflict
Cencora CFO James Cleary to retire June 30; FY26 EPS guidance reaffirmed at $17.45–$17.75
- ▸CFO James F. Cleary retiring effective June 30, 2026
- ▸Cleary to serve in advisory capacity through end of 2026
- ▸Executive search firm engaged for internal and external successor candidates
- ▸FY26 adjusted diluted EPS guidance reaffirmed at $17.45–$17.75
- ▸Cleary served as CFO since November 2018