Cencora (NYSE: COR) lifts adjusted EPS 12.3% but guides free cash flow lower

Posted by Stanley Muller on Nov 4th, 2026

What happened

Cencora, Inc. (NYSE: COR) forecast fiscal 2027 adjusted EPS of $19.40 to $19.75 and raised its quarterly dividend 10%. The company said the range reflects growth of 8% to 10%. It reported results on Nov. 4 for the fiscal year ended Sept. 30.

The board declared the new $0.66 quarterly dividend on Nov. 3, up from $0.60. It is payable Nov. 30 to holders of record on Nov. 13.

Cencora also signed a definitive agreement to buy American Oncology Network, a physician-led network of more than 350 oncology providers across 21 states. It signed a separate agreement to sell its stake in Profarma. Starting in fiscal 2027's first quarter, it will report Pharmaceutical Distribution and Services, Specialty Pharmaceutical and Provider Services, and Other.

Key numbers

Metric	Latest	Change	Source
Fiscal 2026 revenue	$337.4 billion	from $321.3 billion, +5.0%	SEC 8-K, Exhibit 99.1
Fiscal 2026 adjusted diluted EPS	$17.97	from $16.00, +12.3%	SEC 8-K, Exhibit 99.1
Fiscal 2026 GAAP diluted EPS	$17.95	from $7.96, +125.5%	SEC 8-K, Exhibit 99.1
Fourth-quarter adjusted diluted EPS	$4.66	from $3.84, +21.4%	SEC 8-K, Exhibit 99.1
Fiscal 2027 adjusted diluted EPS guidance	$19.40 to $19.75	+8% to +10%	SEC 8-K, Exhibit 99.1
Quarterly dividend per share	$0.66	from $0.60, +10.0%	Calculated from SEC 8-K, Exhibit 99.1

Read more: Cencora (COR) company research

Where fiscal 2026 growth came from

Revenue for the year was $337.4 billion, up 5.0% and $16.06 billion above fiscal 2025, by OptimistFi's calculation from the filing's income statement. Fourth-quarter revenue was $88.4 billion, up 5.5%. The U.S. Healthcare Solutions segment contributed $78.3 billion of it, up 5.4%.

Cencora said U.S. growth came from higher unit volume. That included more specialty product sales to health systems and physician practices and more GLP-1 diabetes and weight-loss drugs. Lower manufacturer prices on some brand drugs and reduced sales to a large mail-order customer offset part of the gain.

Adjusted diluted EPS for the year was $17.97, up 12.3% from $16.00. In the fourth quarter it was $4.66, up 21.4% from $3.84.

GAAP diluted EPS of $17.95 compares with $7.96 a year earlier, a 125.5% jump that includes one-time items. The year includes a $1.1 billion gain from revaluing Cencora's earlier OneOncology investment. The adjusted figure strips it out at $4.30 a share. The year-earlier fourth quarter had a GAAP loss of $1.75 a share, which included a $723.9 million PharmaLex goodwill impairment. This quarter's GAAP EPS was $2.71.

Fourth-quarter gross profit was 4.08% of revenue, up 55 basis points. Cencora credited the February 2026 OneOncology acquisition. GLP-1 sales, which carry lower margins, offset part of that.

Stock perps: every US stock that trades as a perpetual future, by leverage, live

What the fiscal 2027 outlook assumes

The guidance puts specialty well ahead of distribution. Specialty Pharmaceutical and Provider Services is guided to 18% to 21% adjusted operating income growth from $1.7 billion. Pharmaceutical Distribution and Services is guided to 2% to 4% from $2.7 billion. Company-wide adjusted operating income is guided to grow 4% to 6% from $4.8 billion, on revenue growth of 3% to 5%.

Revenue guidance follows the same split. Specialty is guided to grow 9% to 14% from $45.4 billion, and distribution 4% to 6% from $284.5 billion. Other holds MWI Animal Health, Profarma and parts of PharmaLex. It is guided to $200 million of adjusted operating income against $393 million in fiscal 2026.

Cencora guides net interest expense of $490 million to $510 million. It expects an adjusted tax rate of 20% against 19.5%, and 190 million diluted shares against 194.1 million. Adjusted free cash flow is guided to $3.5 billion against $3.8 billion in fiscal 2026. Capital expenditures are guided to $1.0 billion against $910 million.

The outlook assumes the Profarma sale closes in the first fiscal quarter and the MWI Animal Health merger with Covetrus closes March 31, 2027. Cencora also reaffirmed long-term targets of 7% to 10% adjusted operating income growth and 10% to 14% adjusted EPS growth. Its segment targets are mid-teens growth for specialty and mid-single digits for distribution.

Why it matters

OptimistFi has argued that Cencora's value comes from capturing growing specialty drug volumes and selling higher-margin services to manufacturers and providers. The guided gap between specialty and distribution growth fits that view. So does the American Oncology Network deal. The filing strengthens the case.

The caveat is how much of the gain came from acquisitions. Adjusted operating expenses rose 23.7% for the year, largely because of OneOncology and Retina Consultants of America. Adjusted gross profit rose 20.0%. Adjusted operating income grew 14.0%.

Net interest expense rose 68.0% after Cencora issued senior notes and took variable-rate term loans to pay for OneOncology. The adjusted free cash flow guide is also below the fiscal 2026 level, even as earnings are guided higher.

What's next

Cencora's next report covers fiscal first quarter 2027, the first under the new segment structure. Specialty operating income growing at the guided pace for the year would support the case. Slower growth there would weaken it.

The Profarma sale is expected to close in that quarter. The MWI Animal Health merger is assumed to close March 31, 2027. Management will attend the J.P. Morgan Healthcare Conference on Jan. 11-14, 2027.