Cencora — Fiscal 2026 Fourth Quarter Earnings Summary

Financial Performance:

• Q4 2026 revenue was $88.4 billion, a 5.5% increase year-over-year; Fiscal 2026 revenue totaled $337.4 billion, a 5.0% increase.
• Q4 2026 GAAP diluted EPS was $2.71 compared to $(1.75) in the prior year quarter; Fiscal 2026 GAAP diluted EPS was $17.95, a 125.5% increase.
• Q4 2026 Adjusted diluted EPS was $4.66, a 21.4% increase; Fiscal 2026 Adjusted diluted EPS was $17.97, a 12.3% increase.
• Q4 2026 Gross profit was $3.6 billion (21.9% increase), with a gross profit margin of 4.08% (up 55 basis points).
• Q4 2026 Operating expenses were $2.7 billion (8.2% decrease), driven by a $723.9 million goodwill impairment charge in the prior year quarter.
• Q4 2026 Operating income was $906.8 million (up $888.3 million), with an operating margin of 1.03%.
• Q4 2026 Net interest expense was $136.3 million, an increase of $58.5 million due to debt issued to finance the OneOncology acquisition.
• Fiscal 2026 Adjusted Free Cash Flow was approximately $3.8 billion; Capital expenditures were $910 million.
• Diluted weighted average shares outstanding were 191.7 million in Q4 2026 (down 1.1%) and 194.1 million for Fiscal 2026 (down 0.6%), primarily due to share repurchases.
• Total assets were $87.1 billion as of September 30, 2026, compared to $76.6 billion in the prior year; Long-term debt increased to $11.1 billion from $7.5 billion.

Guidance and Future Outlook:

• Fiscal 2027 Adjusted Diluted EPS is expected to be $19.40 to $19.75, reflecting 8% to 10% growth.
• Fiscal 2027 Revenue is expected to grow 3% to 5%.
• Fiscal 2027 Adjusted Operating Income is expected to grow 4% to 6%.
• Fiscal 2027 Adjusted Free Cash Flow is expected to be approximately $3.5 billion; Capital expenditures are expected to be approximately $1.0 billion.
• Long-term growth targets include Adjusted Operating Income growth of 7% to 10% and Adjusted Diluted EPS growth of 10% to 14%.
• Segment-specific long-term Adjusted Operating Income growth targets: Pharmaceutical Distribution and Services (mid-single digit percent) and Specialty Pharmaceutical and Provider Services (mid-teens percent).
• Fiscal 2027 expectations assume the sale of Profarma equity interest closes in Q1 and the MWI Animal Health merger with Covetrus closes on March 31, 2027.

Business Segments and Product Lines:

• U.S. Healthcare Solutions: Q4 2026 revenue was $78.3 billion (up 5.4%); Operating income was $997.6 million (up 22.0%). Growth driven by unit volume, specialty products, and GLP-1 class products, offset by lower manufacturer prices and reduced sales to a large mail order customer.
• International Healthcare Solutions: Q4 2026 revenue was $7.8 billion (up 5.1%); Operating income was $152.1 million (up 16.4%). On a constant currency basis, revenue increased 7.8% and operating income increased 18.9%.
• Other: Q4 2026 revenue was $2.3 billion (up 10.1%); Operating income was $101.1 million (up 35.8%). Growth driven by Profarma and MWI Animal Health, offset by the April 2026 divestiture of U.S. Consulting Services.
• Acquisitions: OneOncology acquired in February 2026; Retina Consultants of America (RCA) acquired in January 2025.
• Divestitures: U.S. Consulting Services divested in April 2026; Definitive agreement signed to sell stake in Profarma (expected to close Q1 Fiscal 2027).
• New Segments: Beginning Q1 Fiscal 2027, reporting structure will comprise Pharmaceutical Distribution and Services, Specialty Pharmaceutical and Provider Services, and Other.

Market and Competitive Landscape:

• Q4 2026 revenue growth in U.S. Healthcare Solutions was driven by overall market growth and increased sales of specialty products to health systems and physician practices.
• Increased sales of GLP-1 class products (diabetes/weight loss) contributed to revenue growth but had lower gross profit margins.
• Cencora is ranked #10 on the Fortune 500 and #16 on the Global Fortune 500.

Risks and Challenges:

• Forward-looking statements are subject to uncertainty, including risks detailed in the Form 10-K for the fiscal year ended September 30, 2025.
• LIFO expense/credit is dependent on future inflation/deflation of brand and generic pharmaceuticals, which is outside the Company's control.
• Acquisition-related intangibles amortization depends on the timing and amount of future acquisitions.
• The timing and amount of legal settlements are unpredictable and unavailable for reasonable estimation.
• Foreign currency exchange rate fluctuations impact reported results.

Management Commentary and Tone:

• CEO Robert P. Mauch described Fiscal 2026 as a "pivotal year" marked by the OneOncology acquisition and record results.
• Management stated the new operating model is designed to strengthen execution and provide visibility to progress.
• The tone reflects confidence in moving forward with "significant momentum and clear strategic priorities."

Other Key Points:

• The Company declared a quarterly dividend of $0.66 per common share, a 10% increase from the previous rate of $0.60.
• The Company signed a definitive agreement to acquire American Oncology Network, a physician-led network of over 350 oncology providers across 21 states.
• The Company announced a new organizational and financial reporting structure to strengthen execution.
• A conference call to discuss results was scheduled for November 4, 2026, at 8:30 a.m. ET.
• Management will attend the J.P. Morgan Healthcare Conference on January 11-14, 2027.