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12:30
Aug 05 ◎

COR FY2026 Q3 Watch

Cencora, Inc. (COR) FY2026 Q3 Earnings Call

NVS COR MCK CAH AMGN ▾

Eva Boratto

Cencora management notes that biosimilar switches in Part D are causing revenue pressure but only marginal profit growth, whereas Part B switches provide significant upside due to the profitable wraparound services. — Indicates a significant pricing power shift and profit opportunity for Cencora as Part B biosimilar launches continue, and is a negative signal for innovator drug pricing power.

"European distribution business continued to benefit from the shift in timing of manufacturer price adjustments in a developing market country"

NVS WATCH

Bob Mauch

Guidance is being raised driven by strong execution, particularly in the US segment and MSOs, with confidence in continued momentum.

"As we look ahead, we remain confident in our ability to deliver continued growth in our U.S. and international healthcare solution segments consistent with our long-term guidance"

COR WATCH

Eva Boratto

After lapping customer losses, the US segment expects its strongest organic growth of the year in the fiscal fourth quarter, implying a significant decoupling from broader macro trends. — This suggests market share gains or durable tailwinds in the US specialty distribution market.

"when excluding one oncology, we expect to see the strongest organic growth of the year at the midpoint of our guidance."

MCK WATCH CAH WATCH

Bob Mauch

"Part D, much less so, but still good, even though we'll have a revenue pressure from time to time with those switches. But Part B will always be good"

AMGN WATCH

HIGH

12:30
May 06 ◎

COR FY2026 Q2 Watch

Cencora, Inc. (COR) FY2026 Q2 Earnings Call

CVS COR CI ▾

Bob Modge

The speed of brand-to-biosimilar conversions at a large mail-order pharmacy customer was faster than anticipated, meaningfully reducing revenue growth but not operating income. — This suggests PBMs and mail-order pharmacies are insourcing biosimilar distribution faster than expected, which could pressure revenue for wholesale distributors but may not hurt their long-term profits.

"The increase in brand conversions is a meaningful contributor to our reduced revenue growth expectations for the fiscal year, but results in higher margins for Sincora overall."

CVS WATCH CI WATCH

Jim Cleary

Guidance for EPS and operating income was raised, but revenue guidance was slashed due to faster brand-to-biosimilar conversions, slower GLP-1 growth, and other mix shifts, creating a mixed signal.

"Despite noise today, given some transitory items causing our results to be below expectations, we remain on track to deliver strong guidance for fiscal 2026."

COR WATCH

HIGH

13:30
Feb 04 ◎

COR FY2026 Q1 Watch

Cencora, Inc. (COR) FY2026 Q1 Earnings Call

MCK CAH REGN RHHBY ONC ▾

Jim Cleary

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.

"more than offsetting the headwind from the oncology customer loss."

MCK WATCH CAH WATCH

Bob Mosh

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.

"supporting research for a key biosimilar product, and due to their clinical familiarity and confidence, were leaders in its early adoption."

REGN WATCH RHHBY WATCH

Bob Mosh

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."

ONC WATCH

Bob Mosh

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."

RCA WATCH

Jim Cleary

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.

"we are pleased to now be reaffirming our full guidance range of $17.45 to $17.75 to reflect our strong execution, the continued performance of our U.S. healthcare solutions segment, and the expected contribution from One Oncology."

COR WATCH

HIGH

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