CONSHOHOCKEN, Pa.--(BUSINESS WIRE)--Cencora, Inc. (NYSE: COR) today announced that it priced $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% Senior Notes due February. ...

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]

Core Insights - Cardinal Health is a significant player in the healthcare sector, providing pharmaceuticals and medical products to over 100,000 locations daily, focusing on high-margin specialty services and clinical products [1] - Wells Fargo upgraded Cardinal Health to "Overweight" with a price target increase from $237 to $256, indicating a positive outlook on the stock [2][6] Financial Performance - Cardinal Health's Q2 2026 results exceeded expectations, reporting a 19% increase in revenue to $66 billion and a 36% rise in non-GAAP EPS to $2.63, driven by strong pharmaceutical demand [3][6] - The company raised its fiscal year 2026 EPS guidance to between $10.15 and $10.35, indicating a year-over-year growth of 23-26% [4][6] Segment Performance - All five operating segments achieved double-digit profit growth, with the Pharmaceutical and Specialty Solutions segment leading with a 29% increase [4] - Sales of GLP-1 medications contributed approximately 6 percentage points to the revenue growth in the Pharmaceutical and Specialty Solutions segment, while the BioPharma Solutions segment experienced over 30% revenue growth [5]

Pennsylvania-based Cencora, Inc. (COR) is a leading global pharmaceutical distribution and healthcare solutions company. It connects drug manufacturers with pharmacies, hospitals, and healthcare providers worldwide. With a market cap of approximately $70.5 billion, the company distributes brand, generic, and specialty medicines and also offers logistics, data, and commercialization services. The pharma distributor has significantly outperformed the broader market over the past year. COR stock has soared ...

Core Insights - McKesson Corporation (MCK) reported third-quarter fiscal 2026 adjusted earnings per share (EPS) of $9.34, exceeding the Zacks Consensus Estimate of $9.31 by 0.3%, and reflecting a year-over-year improvement of 16.3% driven by strong operational growth and acquisitions in the Oncology & Multispecialty segment [1][7] Revenue Details - Revenues reached $106.16 billion, surpassing the Zacks Consensus Estimate by 0.5%, and increased by 11.4% year over year, primarily due to higher prescription volumes from retail national account customers and growth in oncology and specialty product distribution [2][7] - The North American Pharmaceutical segment generated revenues of $88.3 billion, up 9% year over year, attributed to increased prescription volumes and specialty products [5] Segmental Analysis - The Oncology & Multispecialty segment reported revenues of $13 billion, a significant increase of 37% year over year, driven by growth in provider solutions and specialty distribution, along with contributions from acquisitions [8] - The Prescription Technology Solutions segment's revenues totaled $1.5 billion, up 9% year over year, supported by increased prescription volumes in third-party logistics and technology services [9] - The Medical-Surgical Solutions segment generated revenues of $3 billion, a modest increase of 1% year over year, with adjusted operating profit down 10% due to reduced volumes in physician office settings [10] Financial Performance - Adjusted gross profit was $3.66 billion, reflecting a year-over-year increase of 9.6%, while adjusted operating income rose 13.4% to $1.81 billion, with an operating margin of 1.9%, expanding nearly 22 basis points year over year [11] - Cash and cash equivalents stood at $2.96 billion, down from $4 billion in the previous quarter, with cumulative net cash provided by operating activities amounting to $2.73 billion [12] Fiscal 2026 Guidance - McKesson raised its EPS guidance for fiscal 2026 to a range of $38.80-$39.20 from the previous $38.35-$38.85, and expects total revenue growth of 12-16%, up from the prior guidance of 11-15% [13][16] Strategic Developments - The company is progressing towards the spin-off of its Medical-Surgical Solutions business, expected to be completed by the second half of calendar 2027, and has divested its retail and distribution businesses in Norway, marking its exit from European operations [15]

Financial Data and Key Metrics Changes - Cardinal Health reported total revenue for Q2 increased by 19% to $66 billion, driven by strong demand in the pharmaceutical and specialty solutions segment [10] - Gross margin dollars increased by 24% to $2.4 billion, reflecting a favorable mix across businesses [10] - Non-GAAP diluted EPS for the quarter was $2.63, a 36% increase compared to $1.93 in the same quarter last year [12] Business Line Data and Key Metrics Changes - Pharmaceutical and Specialty Solutions segment revenue increased by 19% to $61 billion, with segment profit rising by 29% to $687 million [12][14] - GMPD segment revenue grew by 3% to $3.3 billion, with segment profit increasing to $37 million from $18 million in the prior year [15] - Other growth businesses, including Nuclear and Precision Health Solutions, at-Home Solutions, and OptiFreight Logistics, saw revenue increase by 34% to $1.7 billion, with segment profit up by 52% to $179 million [16] Market Data and Key Metrics Changes - The company expects specialty revenues to surpass $50 billion in fiscal 2026, indicating strong growth in this high-margin area [7] - The GMPD segment's revenue growth was partially attributed to inventory restocking by distributors, which is expected to normalize in Q3 [15][21] Company Strategy and Development Direction - Cardinal Health is focused on strengthening its core business while expanding in specialty and other growth areas, with a commitment to operational excellence and simplification [6][23] - The acquisition of Solaris Health is expected to enhance the company's specialty offerings and market position [7][25] - The company is committed to investing in technology and infrastructure to improve service levels and operational efficiency [25][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the dynamic healthcare environment and deliver sustainable growth [23][32] - The updated fiscal year 2026 EPS guidance was raised to a range of $10.15-$10.35, reflecting strong performance and momentum across the portfolio [19][23] - Management noted that while there are expectations for continued strong demand, they are not assuming outsized demand for the remainder of the year [39] Other Important Information - The company generated $1.8 billion in adjusted free cash flow year-to-date and ended the quarter with a cash position of $2.8 billion [18] - Cardinal Health has returned $1 billion to shareholders so far this year, including $375 million in share repurchases [18] Q&A Session Summary Question: Can you unpack or break down some of the components of the profit performance in Pharma Solutions? - Management noted strong demand across all categories in the pharma business, with significant contributions from specialty and generics, and emphasized strong execution by operations teams [35][37] Question: Can you parse apart the other segment a little bit? - Management indicated that the core business remains strong across the three businesses within the other segment, with the ADS acquisition performing at least consistent with expectations [46][48] Question: Can you give us a bit more on capital allocation and the capacity for further transactions? - Management highlighted a disciplined capital allocation framework and noted flexibility to assess growth opportunities while protecting the core business [52][56] Question: Should we expect to see manufacturer brand drug price decreases impact revenue or operating income? - Management stated that anticipated changes in manufacturer pricing would be adjusted within the cost structure to preserve margins, and they do not foresee significant impacts on revenue [76][78] Question: How is the company modeling revenue or earnings for GLP-1s this year? - Management indicated that while GLP-1s have seen significant volume growth, they do not expect it to be a meaningful driver for underlying profitability moving forward [84][85]

Financial Data and Key Metrics Changes - The company reported total revenue for Q2 increased by 19% to $66 billion, driven by strong demand in the pharmaceutical and specialty solutions segment [10][12] - Gross margin dollars increased by 24% to $2.4 billion, reflecting a favorable mix across businesses [10] - Non-GAAP diluted EPS for the quarter was $2.63, a 36% increase compared to $1.93 in the same quarter last year [12] Business Line Data and Key Metrics Changes - Pharmaceutical and Specialty Solutions segment revenue increased by 19% to $61 billion, with segment profit rising by 29% to $687 million [12][13] - GMPD segment revenue grew by 3% to $3.3 billion, with segment profit increasing to $37 million from $18 million in the prior year [15] - Other growth businesses, including Nuclear and Precision Health Solutions, At-Home Solutions, and OptiFreight Logistics, saw revenue increase by 34% to $1.7 billion, with segment profit up by 52% to $179 million [16] Market Data and Key Metrics Changes - The company expects specialty revenues to surpass $50 billion in fiscal 2026, indicating strong growth in this high-margin area [7] - The GMPD segment's revenue growth was partially attributed to inventory restocking by distributors, which is expected to normalize in Q3 [15][21] Company Strategy and Development Direction - The company is focused on strengthening its core distribution business while expanding in specialty and other growth areas [5][23] - The acquisition of Solaris Health is expected to enhance the company's capabilities in the specialty market [7][25] - The company is committed to operational excellence and simplification to drive value for customers and shareholders [23][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the dynamic healthcare environment and deliver sustainable growth [23][24] - The updated fiscal year 2026 EPS guidance was raised to a range of $10.15-$10.35, reflecting strong performance and momentum across the portfolio [19][20] - Management noted that while there are challenges in the market, the company is well-positioned to maintain profitability and growth [76][81] Other Important Information - The company generated $1.8 billion in adjusted free cash flow year-to-date and ended the quarter with a cash position of $2.8 billion [18] - The company has returned $1 billion to shareholders so far this year, including $375 million in share repurchases [18][19] Q&A Session Summary Question: Can you break down some components of the profit performance in Pharma Solutions? - Management noted strong demand across all categories, with significant contributions from specialty and generics, and emphasized strong execution by operations teams [35][37] Question: How is the ADS acquisition performing? - Management indicated that the ADS acquisition is performing at least consistent with expectations, with strong core growth across the three businesses in the other segment [44][46] Question: What is the outlook for capital allocation? - Management highlighted a disciplined capital allocation framework and noted flexibility to assess growth opportunities while protecting the core business [52][56] Question: How does the macro pricing environment impact guidance? - Management stated that anticipated changes in manufacturer pricing would be adjusted within the cost structure to preserve margins, with no significant impact expected on revenue guidance [74][76] Question: What is the impact of GLP-1s on revenue and earnings? - Management indicated that while GLP-1s have contributed to revenue growth, they do not anticipate it being a significant driver for underlying profitability going forward [80][81]

Financial Data and Key Metrics Changes - Cardinal Health reported total revenue for Q2 2026 increased by 19% to $66 billion, driven by strong demand in the pharmaceutical and specialty solutions segment [9][12] - Gross margin dollars increased by 24% to $2.4 billion, reflecting a favorable mix across businesses [9] - Operating earnings rose by 38% to $877 million compared to the prior year [10] - Non-GAAP diluted EPS for the quarter was $2.63, a 36% increase from $1.93 in the same quarter last year [11] Business Line Data and Key Metrics Changes - Pharmaceutical and Specialty Solutions segment revenue increased by 19% to $61 billion, with segment profit rising by 29% to $687 million [12] - GMPD segment revenue grew by 3% to $3.3 billion, with segment profit increasing to $37 million from $18 million in the prior year [13] - Other growth businesses, including Nuclear and Precision Health Solutions, At-Home Solutions, and OptiFreight Logistics, saw revenue increase by 34% to $1.7 billion, with segment profit up by 52% to $179 million [14][15] Market Data and Key Metrics Changes - The company expects specialty revenues to surpass $50 billion in fiscal 2026, indicating strong growth in this high-margin area [5] - The GMPD segment's revenue growth was partially driven by inventory restocking by distributors, which is expected to normalize in Q3 [13][20] Company Strategy and Development Direction - Cardinal Health is focused on strengthening its core business while expanding in specialty and other growth areas, with a commitment to operational excellence and simplification [4][23] - The acquisition of Solaris Health is expected to enhance the company's specialty platform and expand its capabilities [5][25] - The company is raising its fiscal year 2026 earnings per share guidance to a range of $10.15-$10.35, reflecting confidence in continued performance [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model and the ability to navigate the dynamic healthcare environment [23][31] - The company anticipates mid-teens profit growth in the second half of the fiscal year, despite not assuming outsized demand [19][38] - Management highlighted the importance of maintaining strong relationships with customers and adapting to market changes [91] Other Important Information - Cardinal Health generated $1.8 billion in adjusted free cash flow year-to-date and ended the quarter with a cash position of $2.8 billion [17] - The company has returned $1 billion to shareholders so far this year, including $750 million through share repurchase programs [17] Q&A Session Summary Question: Can you unpack or break down some of the components of the profit performance in Pharma Solutions? - Management noted strong demand across all categories in the pharma business, with significant contributions from specialty and generics, and emphasized strong execution by operations teams [34][35] Question: Is ADS performing ahead of your expectations? - Management indicated that the ADS acquisition is performing consistently with expectations, and core business remains strong across all three businesses in the other segment [43][44] Question: Can you provide more on capital allocation and opportunities for further transactions? - Management emphasized a disciplined capital allocation framework and noted flexibility to assess growth opportunities while protecting the core business [50][51] Question: How do you see the macro pricing environment impacting your guidance? - Management stated that anticipated changes in manufacturer pricing would be adjusted within the cost structure to preserve margins, with no significant impact expected on revenue [75][76] Question: How is the company modeling revenue or earnings for GLP-1s this year? - Management indicated that while GLP-1s have seen significant volume growth, they do not expect it to be a major driver of underlying profitability moving forward [81][82]

Q2 FY26 Earnings Cardinal Health, Inc. February 5, 2026 © 2026 Cardinal Health. All Rights Reserved. 1 © 2026 Cardinal Health. All Rights Reserved. • Q2 FY26 Earnings Cautions Concerning Forward-Looking Statements This presentation contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "c ...

Core Viewpoint - McKesson Corporation has raised its fiscal 2026 profit forecast, driven by anticipated strong growth in its oncology and specialty drug distribution sectors [1] Company Summary - McKesson Corporation is focusing on expanding its oncology and specialty drug distribution businesses, which are expected to contribute significantly to its profit growth in fiscal 2026 [1]