Key Takeaways Cencora will merge MWI with Covetrus in a deal valuing MWI at a $3.5 billion enterprise value.COR will receive $1.25B cash, $800M preferred equity and $1.45B common equity, keeping a 34.3% stake.The combined platform will integrate MWI's supply chain with Covetrus' tech to boost efficiency and growth.Cencora, Inc. (COR) recently announced that it has agreed to merge its wholly owned subsidiary, MWI Animal Health, with Covetrus in a transaction that values MWI at an enterprise value of $3.5 bil ...

格隆汇2月18日｜药品分销商Cencora表示，将把其子公司MWI动物保健公司与私人控股的Covetrus公司 合并，该交易对该部门的估值为35亿美元，此举旨在使其更加专注于其核心业务。根据协议，Cencora 将在交易完成时获得12.5亿美元现金，以及合并后公司的8亿美元优先股和14.5亿美元普通股，同时保留 合并后公司34.3%的非控股股权。 来源：格隆汇APP ...

Cencora's animal health unit to merge with Covetrus in $3.5 billion deal | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]- Companies[Cencora Inc]FollowFeb 18 (Reuters) - Drug distributor Cencora [(COR.N), opens new tab] will merge its MWI Animal Health with privately held Covetrus in a deal valuing the unit at $3.5 billion, the companies said on Wednesday, creating a combined animal-health distribution and technology company.Under ...

Investors in Cencora, Inc. (COR) need to pay close attention to the stock based on moves in the options market lately. That is because the Mar 20, 2026 $130 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean ...

CONSHOHOCKEN, Pa.--(BUSINESS WIRE)--Cencora, Inc. (NYSE: COR) today announced the closing of its public offering of $500 million aggregate principal amount of its 3.950% Senior Notes due February 13, 2029 (the "2029 Notes†), $500 million aggregate principal amount of its 4.250% Senior Notes due November 15, 2030 (the "2030 Notes†), $500 million aggregate principal amount of its 4.600% Senior Notes due February 13, 2033 (the "2033 Notes†), $1.0 billion aggregate principal amount of its 4.900% Se. ...

Core Viewpoint - Cencora, Inc. has successfully priced a total of $3.5 billion in senior notes with varying interest rates and maturity dates, indicating strong market demand for its debt offerings [1] Group 1: Debt Offerings - The company priced $500 million of its 3.950% Senior Notes due February 13, 2029 [1] - Additionally, $500 million of its 4.250% Senior Notes due November 15, 2030 was also priced [1] - The company further issued $500 million of its 4.600% Senior Notes due February 13, 2033 [1] - Lastly, Cencora priced $1.0 billion of its 4.900% Senior Notes due February [1]

Core Insights - Cencora, Inc. (NYSE:COR) is a significant player in the healthcare distribution sector, known for its extensive network and efficient supply chain solutions, competing with major distributors like McKesson and Cardinal Health [1][6] - Wells Fargo has maintained an "Overweight" rating for Cencora, raising its price target from $405 to $429, indicating optimism about the company's future performance [1][5][6] Investment Activity - BI Asset Management Fondsmaeglerselskab A S increased its holdings in Cencora by 17.9% during the third quarter, now owning 144,287 shares valued at approximately $45 million, representing about 0.07% of Cencora's total market value [2][6] - Other investors, including Ameritas Advisory Services LLC and Simplicity Wealth LLC, have also made new investments in Cencora, with stakes valued at around $157,000 and $555,000 respectively [3][6] - Grimes and Company Inc. increased its holdings by 3.6%, now owning 1,272 shares valued at $381,000 [3] Stock Performance - Cencora's stock is currently priced at $363.27, reflecting a price change of $4.02, or a 1.119% increase, with fluctuations between a low of $358.94 and a high of $367.28 on the day [4][6] - Over the past year, the stock has reached a high of $377.54 and a low of $237.71, indicating significant volatility [4][6] - Cencora's market capitalization stands at approximately $70.67 billion, with a trading volume of 946,209 shares, highlighting the company's strong position in the industry [5]

Company Overview - Cencora, Inc. is a leading global pharmaceutical distribution and healthcare solutions company with a market cap of approximately $70.5 billion, connecting drug manufacturers with pharmacies, hospitals, and healthcare providers worldwide [1] Stock Performance - Cencora's stock has significantly outperformed the broader market, soaring 46.6% over the past 52 weeks compared to the S&P 500 Index's 15.6% gains [2] - The stock is up 7.6% in 2026, surpassing the index's 1.7% rise [2] - Cencora has also outperformed the VanEck Pharmaceutical ETF, which gained 22.9% over the past 52 weeks and 6.5% year-to-date [3] Financial Results - For fiscal 2026 first-quarter results, Cencora reported revenue of about $85.9 billion, up 5.5% year over year, with adjusted diluted EPS rising to $4.08, an increase of roughly 9% from the prior year [5] - Adjusted gross profit climbed to $3 billion, supported by strong volumes and favorable segment mix, while adjusted operating income grew nearly 12% to $1.1 billion [5] Earnings Expectations - Analysts expect Cencora to deliver an adjusted EPS of $17.57 for the current year ending in September, representing a 9.8% year-over-year increase [6] - The company has a strong earnings surprise history, surpassing bottom-line estimates in each of the past four quarters [6] Analyst Ratings - Among the 16 analysts covering Cencora stock, the consensus rating is a "Strong Buy," based on 14 "Strong Buys" and two "Holds" [6] - The bullish sentiment has increased from a month ago when there were 12 "Strong Buy" suggestions [7] - Evercore ISI recently lowered its price target on Cencora to $420 from $440 while maintaining an "Outperform" rating, indicating that the recent 8% selloff appears overdone [7]

Revenue Growth - Revenue increased by $4.4 billion, or 5.5%, from the prior year quarter, driven by growth in both U.S. and International Healthcare Solutions segments [94]. - U.S. Healthcare Solutions revenue rose by $3.7 billion, or 5.0%, primarily due to unit volume growth, including a $1.0 billion increase in sales of GLP-1 products, offset by losses from a grocery and oncology customer [97]. - International Healthcare Solutions revenue increased by $0.7 billion, or 9.6%, mainly due to a $0.5 billion rise in sales at the European distribution business [98]. Profit and Operating Income - Gross profit increased by $514.0 million, or 20.1%, from the prior year quarter, with U.S. Healthcare Solutions gross profit up by $428.8 million, or 29.5% [100]. - Total segment operating income increased by $113.4 million, or 11.9%, with U.S. Healthcare Solutions operating income up by $144.4 million, or 21.0% [94]. - U.S. Healthcare Solutions' operating income increased by $144.4 million, or 21.0%, to $831.3 million, while International Healthcare Solutions' operating income decreased by $23.0 million, or 13.9%, to $142.2 million [114][115]. - Total segment operating income rose by 11.9% to $1.06 billion, driven by gains from antitrust litigation settlements and a LIFO credit [114]. Expenses and Impairments - Total operating expenses rose by $459.8 million, or 24.8%, primarily due to the acquisition of RCA and asset impairment in U.S. Consulting Services [94]. - Distribution, selling, and administrative expenses increased by $323.2 million, or 22.0%, compared to the prior year quarter, primarily due to the acquisition of RCA [106]. - An impairment of assets, including goodwill, of $249.5 million was recorded related to the U.S. Consulting Services business classified as held for sale [113]. Tax and Interest - The effective tax rates were 20.1% for the three months ended December 31, 2025, lower than the U.S. statutory rate due to benefits from lower taxed income and equity compensation [94]. - Interest expense, net increased by $44.5 million, or 159.2%, to $72.4 million, primarily due to the issuance of $1.8 billion in senior notes and a $0.8 billion variable-rate term loan [118]. - Effective tax rates were 20.1% for the three months ended December 31, 2025, compared to 20.4% in the prior year, benefiting from lower tax rates on certain income [119]. Cash Flow and Debt - Cash used in operations decreased by $0.4 billion to $2.3 billion, with significant cash outflows attributed to a $3.5 billion increase in inventories [124][125]. - Total debt as of December 31, 2025, was $7.92 billion, with $7.69 billion in additional credit facility availability [135]. - The company expects future cash flows from operations to be sufficient to meet ongoing cash requirements, including opioid litigation payments over the next 13 years [121]. - Cash and cash equivalents totaled $1.8 billion as of December 31, 2025, with a potential increase in net interest expense due to interest rate changes [154]. Capital Expenditures and Financing - Capital expenditures for the three months ended December 31, 2025, were $119.4 million, up from $105.9 million in the prior year, with plans to invest approximately $900 million in fiscal 2026 [129][130]. - Net cash provided by financing activities was $43.2 million, resulting from $0.3 billion in net borrowings under revolving credit facilities [132]. - A $1.5 billion delayed draw senior unsecured term loan facility was obtained in January 2026 to finance part of the acquisition of OneOncology [141]. - A $3.0 billion delayed draw senior unsecured term loan facility was also secured in January 2026 for the same acquisition [143]. Shareholder Returns and Obligations - The company authorized a share repurchase program of up to $2.0 billion, with $882.2 million available as of December 31, 2025 [147]. - The quarterly dividend was increased by 9% from $0.55 to $0.60 per share, with future dividends dependent on earnings and financial condition [148]. - The accrued litigation liability related to the Distributor Settlement Agreement is $4.3 billion, expected to be paid over the next 13 years [149]. - Total contractual obligations for future principal and interest payments amount to $13.7 billion as of December 31, 2025 [150]. - The company had $1.2 billion of variable-rate debt outstanding as of December 31, 2025 [153].

Core Insights - Cencora, Inc. (COR) reported fiscal first-quarter 2026 adjusted earnings per share (EPS) of $4.08, beating the Zacks Consensus Estimate of $4.07 by 0.2% and showing a year-over-year improvement of 9.4% [1] - Total revenues reached $85.93 billion, reflecting a 5.5% year-over-year increase, aligning closely with the Zacks Consensus Estimate [2] Revenue Details - U.S. Healthcare Solutions segment revenues amounted to $76.2 billion, up 5% year-over-year, driven by increased unit volume and sales of GLP-1 drugs and specialty products [3] - International Healthcare Solutions segment revenues were $7.6 billion, up 7.6% year-over-year, with a reported increase of 9.6% and a constant currency increase of 6.2% [5] Segmental Analysis - U.S. Healthcare Solutions segment operating income totaled $831.3 million, up 21% year-over-year, supported by higher gross profit from increased product sales and the acquisition of RCA [4] - International Healthcare Solutions segment operating income was $142.2 million, down 13.9% on a reported basis and 17% at constant currency, attributed to lower operating income in global specialty logistics and consulting services [5] Margin Analysis - Adjusted gross profit was $3 billion, up 18.1% year-over-year, with an adjusted gross margin of 3.48%, an increase of 37 basis points [6] - Adjusted operating income reached $1.1 billion, up 11.9% year-over-year, with an adjusted operating margin of 1.24%, expanding by 8 basis points [6] Financial Update - Cencora ended the fiscal first quarter with cash and cash equivalents of $1.75 billion, down from $4.36 billion in the previous quarter [7] - Net cash used in operating activities was $2.31 billion, compared to $2.72 billion a year ago [7] Dividend Update - The board of directors declared a quarterly dividend of 60 cents per share, payable on March 2, 2026, to shareholders of record on February 13, 2026 [10] FY26 Guidance Updated - Adjusted EPS for fiscal 2026 is estimated to be in the range of $17.45-$17.75, with total revenues projected to rise by 7%-9%, an increase from the previous guidance of 5%-7% [11] - Adjusted operating income is expected to improve by 11.5%-13.5%, with U.S. Healthcare Solutions segment operating income anticipated to grow by 14-16% [12] Overall Performance - Cencora's fiscal first quarter showed mixed results, with earnings exceeding estimates while revenues were in line, and the revenue guidance for fiscal 2026 was above estimates [13] - The company experienced a 5.3% decline in shares during pre-market trading, despite a 23.2% increase in shares over the last six months compared to the industry growth of 18% [13]