Cencora reported strong Q1 FY26 results, beating expectations (EPS $4.08, +9% YoY), raised full-year guidance across revenue and operating income, and closed its transformative acquisition of OneOncology (now 92% owned). The core US Healthcare Solutions business is performing well, though the loss of an oncology customer and the offboarding of a grocery customer are headwinds. The MSO strategy, anchored by OneOncology and RCA, is central to the bullish outlook, with management highlighting clinical trial and biosimilar adoption leadership. Completed acquisition of OneOncology, increasing ownership to 92% (from 35%); massive revenue and operating income boost expected for remaining 8 months of FY26.
Cencora reported strong Q1 FY26 results, beating expectations (EPS $4.08, +9% YoY), raised full-year guidance across revenue and operating income, and closed its transformative acquisition of OneOncology (now 92% owned). The core US Healthcare Solutions business is performing well, though the loss of an oncology customer and the offboarding of a grocery customer are headwinds. The MSO strategy, anchored by OneOncology and RCA, is central to the bullish outlook, with management highlighting clinical trial and biosimilar adoption leadership. Completed acquisition of OneOncology, increasing ownership to 92% (from 35%); massive revenue and operating income boost expected for remaining 8 months of FY26.
Cencora reported strong Q1 FY26 results, beating expectations (EPS $4.08, +9% YoY), raised full-year guidance across revenue and operating income, and closed its transformative acquisition of OneOncology (now 92% owned). The core US Healthcare Solutions business is performing…
Guidance · revenue to 8%
Guidance · revenue to 8%
US Healthcare Solutions segment grew operating income 21% in Q1, driven by RCA and strong specialty growth, more than offsetting the headwind from an oncology customer loss.
Cencora's tone is strongly positive, driven by a beat-and-raise quarter, the closure of OneOncology deal, and raised full-year operating income and revenue guidance, reflecting confidence in its specialty and MSO strategy.
Management repeatedly highlighted strong execution, raised full-year guidance, and expressed confidence in strategic MSO investments and long-term growth.
“more than offsetting the headwind from the oncology customer loss.”
“supporting research for a key biosimilar product, and due to their clinical familiarity and confidence, were leaders in its early adoption.”
“we continue to see encouraging trends for our global specialty logistics services, with volumes growing again this quarter.”
“we would expect second quarter net interest expense to be about double our first quarter interest expense.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Free cash flow | FY2026 | $3B | $3B | MAINTAINED |
| Op marginUS_HEALTHCARE_SOLUTIONS | FY2026 | 14%–16% | 15% | RAISED |
| Op margin | FY2026 | 11.5%–13.5% | 12.5% | RAISED |
| Revenue | FY2026 | 7%–9%above vs consensus | 8% | RAISED |
| RevenueUS_HEALTHCARE_SOLUTIONS | FY2026 | 7%–9% | 8% | RAISED |
| RevenueINTERNATIONAL_HEALTHCARE | FY2026 | 7%–9% | 8% | RAISED |
The UUG subsidiary's joint venture interest and non-controlling loss add-back are new, below-the-line contributions to Cencora's net income, separate from the operating income contribution.
“we've completed our acquisition of the majority of the remaining equity interests in One Oncology. And I welcome CEO, Dr. Jeff Patton, and the entire One Oncology team to Sancora.”
Thank you, Bennett. Hi, everyone, and thank you for joining Sencor's fiscal 2026 first quarter earnings call. I'll begin by thanking our team members. who drive our strong performance while advancing our purpose. This morning, we were pleased to announce that we've completed our acquisition of the majority of the remaining equity interests in One Oncology. And I welcome CEO, Dr. Jeff Patton, and the entire One Oncology team to Sancora. Your commitment to and expertise in supporting community oncology practices is a cornerstone of the Sancora strategy. In the first quarter of fiscal 2026, we delivered adjusted operating income growth of 12% and adjusted diluted EPS growth of 9%, driven by our market-leading capabilities. To reflect our performance and the contribution from our recently completed acquisition of One Oncology, we are raising our fiscal 2026 guidance to reflect year-over-year adjusted operating income growth of 11.5% to 13.5%. Our results were driven by continued strength in our US healthcare solutions business as we executed our pharmaceutical centric strategy and work to advance commercial solutions. Our dedication to understanding customer needs and delivering …
RCA is performing better than expected, contributing to over one-third of US retina clinical trial research, which is a key driver of Cencora's specialty growth and the raised guidance.
“we celebrated the one-year anniversary of RCA joining Sancora. Over the past year, we've been very pleased with the addition of RCA, both in terms of their performance and leadership in driving pharmaceutical innovation.”
… areas like clinical research, revenue cycle management, and data-driven clinical insights to support physicians and advance care. Focusing on our growth priority of leading with market leaders, Our MSOs demonstrate the value of our commitment to support healthcare leaders at the forefront of innovation. While much focus today will be appropriately on completing the acquisition of One Oncology, in January, we celebrated the one-year anniversary of RCA joining Sancora. Over the past year, we've been very pleased with the addition of RCA, both in terms of their performance and leadership in driving pharmaceutical innovation. RCA has clearly differentiated itself. through its clinical trial and research capabilities, contributing to more than one-third of all retina clinical trial research conducted in the United States. And we see significant potential extending this offering across our MSO platform. In addition to expanding research capabilities, RCA physicians continue to enhance the patient care journey by adopting advanced technologies in their practices that have a meaningful impact on patient experience. Since completing the acquisition, we've supported the deployment of …
Cencora's US operating income growth of 21% in Q1 was aided by the 'loss of an oncology customer' to a competitor, implying a competitor (likely McKesson or Cardinal Health) gained a major oncology distribution contract. — Indicates a competitive share shift in oncology distribution, where a large customer was acquired by a competitor.
… and physicians. As a reminder, this quarter we faced a more challenging revenue comparison due to a large grocery customer we off-boarded in the second quarter of fiscal 2025 and the fourth quarter fiscal 2025 loss of an oncology customer as a result of it being acquired. U.S. healthcare solution segment operating income increased 21% to $831 million, primarily driven by the RCA acquisition and continued specialty growth in health systems and physician practices, more than offsetting the headwind from the oncology customer loss. Our teams continue executing at a high level across the segment, contributing to our strong performance. In the quarter, we saw particularly good volumes and trends in our health systems business, where we continue to see benefits from our focus on strategic partnerships, leveraging our expertise and specialty. At RCA, we saw better than expected volume, excellent trends in research, and new physicians joining the platform. Turning now to our international healthcare solution segment, In the quarter, international healthcare solutions revenue was $7.6 billion, up approximately 10% on an as reported basis and 6% on a constant currency basis, driven …
RCA's better-than-expected performance and high clinical trial contribution suggests accelerated adoption of cell-based gene therapies and biosimilars in retina care, a leading indicator for pharmaceutical suppliers. — Indicates that physician education via MSOs is driving faster biosimilar uptake, which could pressure innovator drug revenues sooner.