Cencora Reports Fiscal 2025 Third Quarter Results

8/6/25 6:30:00 AM ET

Other Pharmaceuticals

Health Care

Get the next $COR alert in real time by email

Revenue of $80.7 billion for the Third Quarter, an 8.7 percent Increase Year-Over-Year

Third Quarter GAAP Diluted EPS of $3.52 and Adjusted Diluted EPS of $4.00

Adjusted Diluted EPS Guidance Range Raised to $15.85 to $16.00 for Fiscal 2025

Cencora, Inc. (NYSE:COR) reported that in its fiscal year 2025 third quarter ended June 30, 2025, revenue increased 8.7 percent year-over-year to $80.7 billion. On the basis of U.S. generally accepted accounting principles (GAAP), diluted earnings per share (EPS) was $3.52 for the third quarter of fiscal 2025 compared to $2.42 in the prior year third quarter. Adjusted diluted EPS, which is a non-GAAP financial measure that excludes items described below, increased 19.8 percent to $4.00 in the fiscal third quarter from $3.34 in the prior year third quarter.

Cencora is updating its outlook for fiscal year 2025. The Company does not provide forward-looking guidance on a GAAP basis as discussed below in Fiscal Year 2025 Expectations. Adjusted diluted EPS guidance has been raised from the previous range of $15.70 to $15.95 to a range of $15.85 to $16.00.

"Cencora delivered strong financial results in the third fiscal quarter, driven by our pharmaceutical-centric strategy and focus on our growth priorities," said Robert P. Mauch, President and Chief Executive Officer of Cencora.

"Our teams are fueling our growth as they identify opportunities and customer-centric solutions that strengthen our value proposition as the partner of choice," Mauch continued. "We are guided by our purpose and focused on our strategic drivers of digital transformation, investing in our talent and culture, prioritizing growth-oriented investments and increasing productivity."

Third Quarter Fiscal Year 2025 Summary Results

	GAAP	Adjusted (Non-GAAP)
Revenue	$80.7B	$80.7B
Gross Profit	$2.9B	$2.9B
Operating Expenses	$2.0B	$1.8B
Operating Income	$0.9B	$1.1B
Interest Expense, Net	$82M	$82M
Effective Tax Rate	23.0%	20.7%
Net Income Attributable to Cencora, Inc.	$687M	$781M
Diluted Earnings Per Share	$3.52	$4.00
Diluted Shares Outstanding	195.2M	195.2M

Below, Cencora presents descriptive summaries of the Company's GAAP and adjusted (non-GAAP) quarterly results. In the tables that follow, GAAP results and GAAP to non-GAAP reconciliations are presented. For more information related to non-GAAP financial measures, including adjustments made in the periods presented, please refer to the "Supplemental Information Regarding Non-GAAP Financial Measures" following the tables.

Third Quarter GAAP Results

Revenue: In the third quarter of fiscal 2025, revenue was $80.7 billion, up 8.7 percent compared to the same quarter in the previous fiscal year, due to an 8.5 percent increase in revenue within the U.S. Healthcare Solutions segment and a 10.5 percent increase in revenue within the International Healthcare Solutions segment.

Gross Profit: Gross profit in the third quarter of fiscal 2025 was $2.9 billion, a 20.6 percent increase compared to the same quarter in the previous fiscal year, primarily due to the increase in gross profit in both reportable segments and a LIFO credit in the current year quarter in comparison to LIFO expense in the prior year quarter, offset in part by lower gains from antitrust litigation settlements in the current year quarter. Gross profit as a percentage of revenue was 3.60 percent, an increase of 35 basis points from the prior year quarter due to the increase in U.S. Healthcare Solutions gross profit margin, driven primarily from the January 2025 acquisition of Retina Consultants of America (RCA).

Operating Expenses: In the third quarter of fiscal 2025, operating expenses were $2.0 billion, a 17.3 percent increase compared to the same quarter in the previous fiscal year, primarily driven by an increase in distribution, selling, and administrative expenses as a result of the January 2025 acquisition of RCA and to support our revenue growth.

Operating Income: In the third quarter of fiscal 2025, operating income was $0.9 billion, an increase of 29.0 percent compared to the same quarter in the previous fiscal year due to the increase in gross profit, offset in part by the increase in operating expenses. Operating income as a percentage of revenue was 1.08 percent in the third quarter of fiscal 2025 compared to 0.91 percent in the prior year quarter.

Interest Expense, Net: In the third quarter of fiscal 2025, net interest expense was $81.8 million, an increase of $50.5 million from the prior year quarter primarily due to an increase in interest expense as a result of our issuance of senior notes and a variable-rate term loan to finance a portion of the January 2025 acquisition of RCA, and increased revolving credit facility borrowings to cover short-term working capital needs.

Effective Tax Rate: The effective tax rate was 23.0 percent for the third quarter of fiscal 2025 compared to 22.4 percent in the prior year quarter.

Diluted Earnings Per Share: Diluted earnings per share was $3.52 in the third quarter of fiscal 2025, a 45.5 percent increase compared to $2.42 in the previous fiscal year's third quarter.

Diluted Shares Outstanding: Diluted weighted average shares outstanding for the third quarter of fiscal 2025 were 195.2 million, a decrease of 2.4 percent versus the prior year third quarter primarily due to share repurchases.

Third Quarter Adjusted (non-GAAP) Results

Revenue: No adjustments were made to the GAAP presentation of revenue. In the third quarter of fiscal 2025, revenue was $80.7 billion, up 8.7 percent compared to the same quarter in the previous fiscal year, due to an 8.5 percent increase in revenue within the U.S. Healthcare Solutions segment and a 10.5 percent increase in revenue within the International Healthcare Solutions segment.

Adjusted Gross Profit: Adjusted gross profit in the third quarter of fiscal 2025 was $2.9 billion, a 20.7 percent increase compared to the same quarter in the previous fiscal year due to the increase in gross profit in both reportable segments. Adjusted gross profit as a percentage of revenue was 3.55 percent in the fiscal 2025 third quarter, an increase of 36 basis points from the prior year quarter due to the increase in U.S. Healthcare Solutions gross profit margin, driven primarily from the January 2025 acquisition of RCA.

Adjusted Operating Expenses: In the third quarter of fiscal 2025, adjusted operating expenses were $1.8 billion, a 20.8 percent increase compared to the same quarter in the previous fiscal year, primarily driven by an increase in distribution, selling, and administrative expenses as a result of the January 2025 acquisition of RCA and to support our revenue growth.

Adjusted Operating Income: In the third quarter of fiscal 2025, adjusted operating income was $1.1 billion, a 20.6 percent increase compared to the same quarter in the prior fiscal year due to the increase in gross profit, offset in part by the increase in operating expenses. Adjusted operating income as a percentage of revenue was 1.31 percent in the fiscal 2025 third quarter, an increase of 13 basis points when compared to the prior year quarter.

Interest Expense, Net: No adjustments were made to the GAAP presentation of net interest expense. In the third quarter of fiscal 2025, net interest expense was $81.8 million, an increase of $50.5 million from the prior year quarter primarily due to an increase in interest expense as a result of our issuance of senior notes and a variable-rate term loan to finance a portion of the January 2025 acquisition of RCA, and increased revolving credit facility borrowings to cover short-term working capital needs.

Adjusted Effective Tax Rate: The adjusted effective tax rate was 20.7 percent for the third quarter of fiscal 2025 compared to 21.0 percent in the prior year quarter.

Adjusted Diluted Earnings Per Share: Adjusted diluted earnings per share was $4.00 in the third quarter of fiscal 2025, a 19.8 percent increase compared to $3.34 in the previous fiscal year's third quarter.

Diluted Shares Outstanding: No adjustments were made to the GAAP presentation of diluted shares outstanding. Diluted weighted average shares outstanding for the third quarter of fiscal 2025 were 195.2 million, a decrease of 2.4 percent versus the prior year third quarter primarily due to share repurchases.

Segment Discussion

The Company is organized geographically based upon the products and services it provides to its customers under two reportable segments: U.S. Healthcare Solutions and International Healthcare Solutions.

U.S. Healthcare Solutions

U.S. Healthcare Solutions revenue was $72.9 billion in the third quarter of fiscal 2025, an increase of 8.5 percent compared to the same quarter in the previous fiscal year due to overall market growth primarily driven by unit volume growth, including increased sales of products labeled for diabetes and/or weight loss in the GLP-1 class and specialty products to physician practices and health systems. Segment operating income of $0.9 billion in the third quarter of fiscal 2025 was up 29.1 percent compared to the same quarter in the previous fiscal year primarily due to the increase in gross profit, as a result of increased product sales and the January 2025 acquisition of RCA, offset in part by the increase in operating expenses.

International Healthcare Solutions

International Healthcare Solutions revenue was $7.8 billion in the third quarter of fiscal 2025, an increase of 10.5 percent compared to the previous fiscal year's third quarter. Segment operating income in the third quarter of fiscal 2025 was $156.2 million, a decrease of 12.9 percent, primarily due to lower operating income at our global specialty logistics business and our specialized consulting services business. On a constant currency basis, International Healthcare Solutions revenue increased by 8.8 percent in the third quarter of fiscal 2025 compared to the previous fiscal year's third quarter, while segment operating income decreased by 16.2 percent.

Recent Company Highlights & Milestones

Good Neighbor Pharmacy, Cencora's national franchise for independent pharmacies, brought together in July 2025 more than 4,000 community pharmacy owners, industry experts and partners for its 14^th annual ThoughtSpot, the flagship tradeshow and conference serving as a celebration of Good Neighbor Pharmacy and its member pharmacies.

Fiscal Year 2025 Expectations

The Company does not provide forward-looking guidance on a GAAP basis as to certain financial information, where the probable significance of the information cannot be determined, is not available or cannot be reasonably estimated. Please refer to the Supplemental Information Regarding Non-GAAP Financial Measures following the tables for additional information.

Fiscal Year 2025 Expectations on an Adjusted (non-GAAP) Basis

Cencora is now updating its fiscal year 2025 financial guidance primarily to reflect stronger earnings growth in the U.S. Healthcare Solutions segment. The Company now expects:

Revenue growth to be approximately 9 percent, from the previous range of 8 to 10 percent;
- U.S. Healthcare Solutions segment revenue growth to be in the range of 9 to 10 percent, from the previous range of 9 to 11 percent;
- International Healthcare Solutions segment revenue growth to be in the range of 6 to 7 percent, from the previous range of 3 to 4 percent;
  - On a constant currency basis, International Healthcare Solutions segment revenue growth to be in the range of 7 to 8 percent, from the previous range of 6 to 8 percent; and
Adjusted diluted EPS to be in the range of $15.85 to $16.00, from the previous range of $15.70 to $15.95.

Additional expectations now include:

Adjusted consolidated operating income growth to be in the range of 15 to 16 percent, from the previous range of 13.5 to 15.5 percent;
- U.S. Healthcare Solutions segment operating income growth to be in the range of 20 to 21 percent, from the previous range of 17.5 to 19.5 percent;
- International Healthcare Solutions segment operating income decline of approximately 6 percent, from the previous range of a decline of 1 to 4 percent;
  - On a constant currency basis, International Healthcare Solutions segment operating income decline of approximately 5 percent, from the previous range of a decline of 3 percent to flat; and
Adjusted effective tax rate to be in the range of 20.5 to 21 percent, from the prior expectation of approximately 21 percent.

All other previously communicated aspects of the Company's fiscal year 2025 consolidated financial guidance and assumptions remain the same.

Dividend Declaration

The Company's Board of Directors declared a quarterly cash dividend of $0.55 per common share, payable September 3, 2025, to stockholders of record at the close of business on August 15, 2025.

Conference Call & Slide Presentation

The Company will host a conference call to discuss its operating results at 8:30 a.m. ET on August 6, 2025. A slide presentation for investors has also been posted on the Company's website at investor.cencora.com. Participating in the conference call will be:

Robert P. Mauch, President & Chief Executive Officer
James F. Cleary, Executive Vice President & Chief Financial Officer

The dial-in number for the live call will be +1 (833) 470-1428. From outside the United States and Canada, dial +1 (404) 975-4839. The access code for the call will be 015103. The live call will also be webcast via the Company's website at investor.cencora.com. Users are encouraged to log on to the webcast approximately 10 minutes in advance of the scheduled start time of the call.

Replays of the call will be made available via telephone and webcast. A replay of the webcast will be posted on investor.cencora.com approximately one hour after the completion of the call and will remain available for one year. The telephone replay will also be available approximately one hour after the completion of the call and will remain available for seven days. To access the telephone replay from within the U.S. and Canada, dial +1 (866) 813-9403. From outside the United States, dial +1 (929) 458-6194. The access code for the replay is 676245.

Upcoming Investor Events

Cencora management will be attending the following investor events in the coming months:

Wells Fargo Healthcare Conference, September 5, 2025;
Baird Healthcare Conference, September 9, 2025;
Morgan Stanley Global Healthcare Conference, September 10, 2025; and
Nephron Healthcare Summit, September 16, 2025.

Please check the website for updates regarding the timing of the live presentation webcasts, if any, and for replay information.

About Cencora

Cencora is a leading global pharmaceutical solutions organization centered on improving the lives of people and animals around the world. We partner with pharmaceutical innovators across the value chain to facilitate and optimize market access to therapies. Care providers depend on us for the secure, reliable delivery of pharmaceuticals, healthcare products, and solutions. Our 51,000+ worldwide team members contribute to positive health outcomes through the power of our purpose: We are united in our responsibility to create healthier futures. Cencora is ranked #10 on the Fortune 500 and #18 on the Global Fortune 500 with more than $290 billion in annual revenue. Learn more at investor.cencora.com

Cencora's Cautionary Note Regarding Forward-Looking Statements

Certain of the statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Securities Exchange Act"). Words such as "aim," "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "might," "on track," "opportunity," "plan," "possible," "potential," "predict," "project," "seek," "should," "strive," "sustain," "synergy," "target," "will," "would" and similar expressions are intended to identify such forward-looking statements, but the absence of these words does not mean the statement is not forward-looking. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances and speak only as of the date hereof. These statements are not guarantees of future performance and are based on assumptions and estimates that could prove incorrect or could cause actual results to vary materially from those indicated. A more detailed discussion of the risks and uncertainties that could cause our actual results to differ materially from those indicated is included (i) in the "Risk Factors" and "Management's Discussion and Analysis" sections in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2024 and elsewhere in that report and (ii) in other reports filed by the Company pursuant to the Securities Exchange Act. The Company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by the federal securities laws.


CENCORA, INC.
FINANCIAL SUMMARY
(in thousands, except per share data)
(unaudited)

	Three Months Ended June 30, 2025			% of Revenue		Three Months Ended June 30, 2024			% of Revenue		% Change
Revenue	$	80,663,532				$	74,241,353				8.7	%

Cost of goods sold		77,756,417					71,830,576				8.2	%

Gross profit ¹		2,907,115		3.60	%		2,410,777		3.25	%	20.6	%

Operating expenses:
Distribution, selling, and administrative		1,672,881		2.07	%		1,383,206		1.86	%	20.9	%
Depreciation and amortization		253,995		0.31	%		272,595		0.37	%	(6.8	)%
Litigation and opioid-related expenses		17,974					14,485
Acquisition-related deal and integration expenses ²		52,838					25,758
Restructuring and other expenses		41,773					42,257
Total operating expenses		2,039,461		2.53	%		1,738,301		2.34	%	17.3	%

Operating income		867,654		1.08	%		672,476		0.91	%	29.0	%

Other (income) loss, net ³		(110,417	)				12,814
Interest expense, net		81,794					31,328				161.1	%

Income before income taxes		896,277		1.11	%		628,334		0.85	%	42.6	%

Income tax expense		206,528					140,740

Net income		689,749		0.86	%		487,594		0.66	%	41.5	%

Net income attributable to noncontrolling interests		(2,347	)				(4,131	)

Net income attributable to Cencora, Inc.	$	687,402		0.85	%	$	483,463		0.65	%	42.2	%

Earnings per share:
Basic	$	3.55				$	2.44				45.5	%
Diluted	$	3.52				$	2.42				45.5	%

Weighted average common shares outstanding:
Basic		193,822					198,260				(2.2	)%
Diluted		195,230					200,047				(2.4	)%

_________________________
¹		Includes a $9.5 million gain from antitrust litigation settlements, a $52.1 million LIFO credit, and Turkey foreign currency remeasurement expense of $14.8 million in the three months ended June 30, 2025. Includes a $51.6 million gain from antitrust litigation settlements, a $6.8 million LIFO expense, and Turkey foreign currency remeasurement expense of $3.6 million in the three months ended June 30, 2024.
²		In connection with the acquisition of RCA, certain physicians and members of management retained equity or were granted incentive units in RCA. These equity units are subject to expense adjustments, including fair value adjustments, and as a result the Company recorded $37.5 million of expense adjustments in the three months ended June 30, 2025.
³		Includes $39.7 million for the Company's portion of an equity method investment's gain on the sale of a business, a $27.3 million gain on the remeasurement of an equity investment, and a $26.0 million currency remeasurement gain of the deferred tax assets relating to 2020 Swiss tax reform for the three months ended June 30, 2025. Includes a $13.3 million loss on the remeasurement of an equity investment in the three months ended June 30, 2024.


CENCORA, INC.
FINANCIAL SUMMARY
(in thousands, except per share data)
(unaudited)

	Nine Months Ended June 30, 2025			% of Revenue		Nine Months Ended June 30, 2024			% of Revenue		% Change
Revenue	$	237,604,265				$	214,908,493				10.6	%

Cost of goods sold		229,079,303					207,490,881				10.4	%

Gross profit ¹		8,524,962		3.59	%		7,417,612		3.45	%	14.9	%

Operating expenses:
Distribution, selling, and administrative		4,744,976		2.00	%		4,170,763		1.94	%	13.8	%
Depreciation and amortization		792,305		0.33	%		814,930		0.38	%	(2.8	)%
Litigation and opioid-related expenses, net ²		46,263					161,553
Acquisition-related deal and integration expenses ³		190,930					69,431
Restructuring and other expenses		140,390					152,325
Total operating expenses		5,914,864		2.49	%		5,369,002		2.50	%	10.2	%

Operating income		2,610,098		1.10	%		2,048,610		0.95	%	27.4	%

Other (income) loss, net ⁴		(48,997	)				33,790
Interest expense, net		213,715					136,022				57.1	%

Income before income taxes		2,445,380		1.03	%		1,878,798		0.87	%	30.2	%

Income tax expense		544,495					366,991

Net income		1,900,885		0.80	%		1,511,807		0.70	%	25.7	%

Net income attributable to noncontrolling interests		(7,012	)				(6,069	)

Net income attributable to Cencora, Inc.	$	1,893,873		0.80	%	$	1,505,738		0.70	%	25.8	%

Earnings per share:
Basic	$	9.77				$	7.56				29.2	%
Diluted	$	9.70				$	7.49				29.5	%

Weighted average common shares outstanding:
Basic		193,794					199,253				(2.7	)%
Diluted		195,172					201,025				(2.9	)%

_________________________
¹		Includes a $231.0 million gain from antitrust litigation settlements, a $19.9 million LIFO credit, and Turkey foreign currency remeasurement expense of $36.4 million in the nine months ended June 30, 2025. Includes a $108.6 million gain from antitrust litigation settlements, a $64.4 million LIFO credit, and Turkey foreign currency remeasurement expense of $43.9 million in the nine months ended June 30, 2024.
²		The nine months ended June 30, 2024 includes a $214.0 million opioid litigation accrual, offset in part by a $92.2 million opioid settlement accrual reduction primarily as a result of the Company's prepayment of the net present value of a future obligation as permitted under its opioid settlement agreements.
³		In connection with the acquisition of RCA, certain physicians and members of management retained equity or were granted incentive units in RCA. These equity units are subject to expense adjustments, including fair value adjustments, and as a result the Company recorded $74.9 million of expense adjustments in the nine months ended June 30, 2025.
⁴		Includes $39.7 million for the Company's portion of an equity method investment's gain on the sale of a business, a $30.6 million gain on the remeasurement of an equity investment, a $15.7 million currency remeasurement gain on the deferred tax assets relating to 2020 Swiss tax reform, and a $35.5 million loss on the divestiture of non-core businesses in the nine months ended June 30, 2025. Includes a $24.8 million loss on the remeasurement of an equity investment in the nine months ended June 30, 2024.


CENCORA, INC.
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
(unaudited)

	Three Months Ended June 30, 2025
	Gross Profit			Operating Expenses			Operating Income			Income Before Income Taxes			Income Tax Expense			Net Income Attributable to Cencora			Diluted Earnings Per Share
GAAP	$	2,907,115		$	2,039,461		$	867,654		$	896,277		$	206,528		$	687,402		$	3.52
Gains from antitrust litigation settlements		(9,495	)		—			(9,495	)		(9,495	)		7,668			(17,163	)		(0.09	)
LIFO credit		(52,058	)		—			(52,058	)		(52,058	)		(13,377	)		(38,681	)		(0.20	)
Turkey highly inflationary impact		14,776			—			14,776			16,799			—			16,799			0.09
Acquisition-related intangibles amortization		—			(124,869	)		124,869			124,869			15,241			108,848			0.56
Litigation and opioid-related expenses		—			(17,974	)		17,974			17,974			2,868			15,106			0.08
Acquisition-related deal and integration expenses		—			(52,838	)		52,838			52,838			(944	)		53,782			0.28
Restructuring and other expenses		—			(41,773	)		41,773			41,773			5,203			36,570			0.19
Gain on equity method investment ¹		—			—			—			(39,718	)		—			(39,718	)		(0.20	)
Gain on remeasurement of equity investment		—			—			—			(27,259	)		(4,671	)		(22,588	)		(0.12	)
Other, net		—			—			—			(6,748	)		(1,962	)		(4,786	)		(0.02	)
Tax reform ²		—			—			—			(26,006	)		(11,780	)		(14,226	)		(0.07	)
Adjusted Non-GAAP	$	2,860,338		$	1,802,007		$	1,058,331		$	989,246		$	204,774		$	781,345		$	4.00	³

Adjusted Non-GAAP % change vs. prior year quarter		20.7	%		20.8	%		20.6	%		16.1	%		14.5	%		16.9	%		19.8	%


Percentages of Revenue:	GAAP	Adjusted Non-GAAP
Gross profit	3.60%	3.55%
Operating expenses	2.53%	2.23%
Operating income	1.08%	1.31%

_________________________
¹		Represents the Company's portion of an equity method investment's gain on the sale of a business.
²		Tax reform includes the foreign currency remeasurement of Swiss deferred tax assets arising from 2020 Swiss tax reform and the amortization of those deferred tax assets.
³		The sum of the components does not equal the total due to rounding.
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.


CENCORA, INC.
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
(unaudited)

	Three Months Ended June 30, 2024
	Gross Profit			Operating Expenses			Operating Income			Income Before Income Taxes			Income Tax Expense			Net Income Attributable to Cencora			Diluted Earnings Per Share
GAAP	$	2,410,777		$	1,738,301		$	672,476		$	628,334		$	140,740		$	483,463		$	2.42
Gains from antitrust litigation settlements		(51,605	)		—			(51,605	)		(51,605	)		(12,095	)		(39,510	)		(0.20	)
LIFO expense		6,839			—			6,839			6,839			2,499			4,340			0.02
Turkey highly inflationary impact		3,636			—			3,636			4,535			—			4,535			0.02
Acquisition-related intangibles amortization		—			(163,850	)		163,850			163,850			36,729			126,687			0.63
Litigation and opioid-related expenses		—			(14,485	)		14,485			14,485			4,811			9,674			0.05
Acquisition-related deal and integration expenses		—			(25,758	)		25,758			25,758			5,438			20,320			0.10
Restructuring and other expenses		—			(42,257	)		42,257			42,257			9,706			32,551			0.16
Loss on remeasurement of equity investment		—			—			—			13,321			—			13,321			0.07
Other, net		—			—			—			4,638			820			3,818			0.02
Tax reform ¹		—			—			—			(536	)		(9,753	)		9,217			0.05
Adjusted Non-GAAP	$	2,369,647		$	1,491,951		$	877,696		$	851,876		$	178,895		$	668,416		$	3.34


Percentages of Revenue:	GAAP	Adjusted Non-GAAP
Gross profit	3.25%	3.19%
Operating expenses	2.34%	2.01%
Operating income	0.91%	1.18%

_________________________
¹		Tax reform includes the foreign currency remeasurement of Swiss deferred tax assets arising from 2020 Swiss tax reform and the amortization of those deferred tax assets.
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.


CENCORA, INC.
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
(unaudited)

	Nine Months Ended June 30, 2025
	Gross Profit			Operating Expenses			Operating Income			Income Before Income Taxes			Income Tax Expense			Net Income Attributable to Cencora			Diluted Earnings Per Share
GAAP	$	8,524,962		$	5,914,864		$	2,610,098		$	2,445,380		$	544,495		$	1,893,873		$	9.70
Gains from antitrust litigation settlements		(231,011	)		—			(231,011	)		(231,011	)		(53,024	)		(177,987	)		(0.91	)
LIFO credit		(19,913	)		—			(19,913	)		(19,913	)		(4,570	)		(15,343	)		(0.08	)
Turkey highly inflationary impact		36,410			—			36,410			42,859			—			42,859			0.22
Acquisition-related intangibles amortization		—			(426,736	)		426,736			426,736			97,948			326,823			1.67
Litigation and opioid-related expenses		—			(46,263	)		46,263			46,263			10,619			35,644			0.18
Acquisition-related deal and integration expenses		—			(190,930	)		190,930			190,930			26,627			164,303			0.84
Restructuring and other expenses		—			(140,390	)		140,390			140,390			32,223			108,167			0.55
Gain on equity method investment ¹		—			—			—			(39,718	)		—			(39,718	)		(0.20	)
Gain on remeasurement of equity investment		—			—			—			(30,559	)		(4,671	)		(25,888	)		(0.13	)
Loss on divestiture of non-core businesses		—			—			—			35,539			—			35,539			0.18
Other, net		—			—			—			4,246			(87	)		4,333			0.02
Tax reform ²		—			—			—			(15,657	)		(34,822	)		19,165			0.10
Adjusted Non-GAAP	$	8,310,448		$	5,110,545		$	3,199,903		$	2,995,485		$	614,738		$	2,371,770		$	12.15	³

Adjusted Non-GAAP % change vs. prior year		14.0	%		13.8	%		14.4	%		12.6	%		10.2	%		13.2	%		16.6	%


Percentages of Revenue:	GAAP	Adjusted Non-GAAP
Gross profit	3.59%	3.50%
Operating expenses	2.49%	2.15%
Operating income	1.10%	1.35%

_________________________
¹		Represents the Company's portion of an equity method investment's gain on the sale of a business.
²		Tax reform includes the foreign currency remeasurement of Swiss deferred tax assets arising from 2020 Swiss tax reform and the amortization of those deferred tax assets.
³		The sum of the components does not equal the total due to rounding.
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.


CENCORA, INC.
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
(unaudited)

	Nine Months Ended June 30, 2024
	Gross Profit			Operating Expenses			Operating Income			Income Before Income Taxes			Income Tax Expense			Net Income Attributable to Cencora			Diluted Earnings Per Share
GAAP	$	7,417,612		$	5,369,002		$	2,048,610		$	1,878,798		$	366,991		$	1,505,738		$	7.49
Gains from antitrust litigation settlements		(108,567	)		—			(108,567	)		(108,567	)		(26,810	)		(81,757	)		(0.41	)
LIFO credit		(64,441	)		—			(64,441	)		(64,441	)		(15,914	)		(48,527	)		(0.24	)
Turkey highly inflationary impact		43,915			—			43,915			44,664			—			44,664			0.22
Acquisition-related intangibles amortization		—			(494,373	)		494,373			494,373			122,086			370,985			1.85
Litigation and opioid-related expenses, net ¹		—			(161,553	)		161,553			161,553			43,876			117,677			0.59
Acquisition-related deal and integration expenses		—			(69,431	)		69,431			69,431			17,146			52,285			0.26
Restructuring and other expenses		—			(152,325	)		152,325			152,325			33,622			118,703			0.59
Loss on remeasurement of equity investment		—			—			—			24,752			—			24,752			0.12
Other, net		—			—			—			11,010			1,627			9,383			0.05
Tax reform and discrete tax items²		—			—			—			(3,991	)		14,989			(18,980	)		(0.09	)
Adjusted Non-GAAP	$	7,288,519		$	4,491,320		$	2,797,199		$	2,659,907		$	557,613		$	2,094,923		$	10.42	³


Percentages of Revenue:	GAAP	Adjusted Non-GAAP
Gross profit	3.45%	3.39%
Operating expenses	2.50%	2.09%
Operating income	0.95%	1.30%

_________________________
¹		Includes a $214.0 million opioid litigation accrual, offset in part by a $92.2 million opioid settlement accrual reduction primarily as a result of the Company's prepayment of the net present value of a future obligation as permitted under its opioid settlement agreements.
²		Includes a tax benefit attributable to an adjustment of the Swiss valuation allowance (due to an increase in projected Swiss income and DTA utilization) and the foreign currency remeasurement of Swiss deferred tax assets arising from 2020 Swiss tax reform and the amortization of those deferred tax assets.
³		The sum of the components does not equal the total due to rounding.
Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.


CENCORA, INC.
SUMMARY SEGMENT INFORMATION
(in thousands)
(unaudited)

	Three Months Ended June 30,
Revenue		2025			2024		% Change
U.S. Healthcare Solutions	$	72,876,563		$	67,191,598		8.5	%
International Healthcare Solutions		7,790,438			7,051,876		10.5	%
Intersegment eliminations		(3,469	)		(2,121	)
Revenue	$	80,663,532		$	74,241,353		8.7	%


	Three Months Ended June 30,
Operating income		2025			2024		% Change
U.S. Healthcare Solutions	$	901,793		$	698,305		29.1	%
International Healthcare Solutions		156,222			179,391		(12.9	)%
Intersegment eliminations		316			—
Total segment operating income		1,058,331			877,696		20.6	%

Gains from antitrust litigation settlements		9,495			51,605
LIFO credit (expense)		52,058			(6,839	)
Turkey highly inflationary impact		(14,776	)		(3,636	)
Acquisition-related intangibles amortization		(124,869	)		(163,850	)
Litigation and opioid-related expenses		(17,974	)		(14,485	)
Acquisition-related deal and integration expenses		(52,838	)		(25,758	)
Restructuring and other expenses		(41,773	)		(42,257	)
Operating income	$	867,654		$	672,476		29.0	%

Percentages of Revenue:

U.S. Healthcare Solutions
Gross profit		2.79	%		2.30	%
Operating expenses		1.55	%		1.26	%
Operating income		1.24	%		1.04	%

International Healthcare Solutions
Gross profit		10.66	%		11.68	%
Operating expenses		8.65	%		9.14	%
Operating income		2.01	%		2.54	%

Cencora, Inc. (GAAP)
Gross profit		3.60	%		3.25	%
Operating expenses		2.53	%		2.34	%
Operating income		1.08	%		0.91	%

Cencora, Inc. (Non-GAAP)
Adjusted gross profit		3.55	%		3.19	%
Adjusted operating expenses		2.23	%		2.01	%
Adjusted operating income		1.31	%		1.18	%

Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.


CENCORA, INC.
SUMMARY SEGMENT INFORMATION
(in thousands)
(unaudited)

	Nine Months Ended June 30,
Revenue		2025			2024		% Change
U.S. Healthcare Solutions	$	215,193,522		$	193,668,297		11.1	%
International Healthcare Solutions		22,421,335			21,245,488		5.5	%
Intersegment eliminations		(10,592	)		(5,292	)
Revenue	$	237,604,265		$	214,908,493		10.6	%


	Nine Months Ended June 30,
Operating income		2025			2024		% Change
U.S. Healthcare Solutions	$	2,702,287		$	2,237,493		20.8	%
International Healthcare Solutions		497,616			559,706		(11.1	)%
Total segment operating income		3,199,903			2,797,199		14.4	%

Gains from antitrust litigation settlements		231,011			108,567
LIFO credit		19,913			64,441
Turkey highly inflationary impact		(36,410	)		(43,915	)
Acquisition-related intangibles amortization		(426,736	)		(494,373	)
Litigation and opioid-related expenses, net		(46,263	)		(161,553	)
Acquisition-related deal and integration expenses		(190,930	)		(69,431	)
Restructuring and other expenses		(140,390	)		(152,325	)
Operating income	$	2,610,098		$	2,048,610		27.4	%

Percentages of Revenue:

U.S. Healthcare Solutions
Gross profit		2.71	%		2.48	%
Operating expenses		1.46	%		1.32	%
Operating income		1.26	%		1.16	%

International Healthcare Solutions
Gross profit		11.05	%		11.73	%
Operating expenses		8.83	%		9.10	%
Operating income		2.22	%		2.63	%

Cencora, Inc. (GAAP)
Gross profit		3.59	%		3.45	%
Operating expenses		2.49	%		2.50	%
Operating income		1.10	%		0.95	%

Cencora, Inc. (Non-GAAP)
Adjusted gross profit		3.50	%		3.39	%
Adjusted operating expenses		2.15	%		2.09	%
Adjusted operating income		1.35	%		1.30	%

Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.


CENCORA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

	June 30,		September 30,
	2025		2024
ASSETS

Current assets:
Cash and cash equivalents	$	2,231,852	$	3,132,648
Accounts receivable, net		24,561,733		23,871,815
Inventories		20,137,849		18,998,833
Right to recover assets		1,431,363		1,175,871
Prepaid expenses and other		451,364		538,646
Total current assets		48,814,161		47,717,813

Property and equipment, net		2,431,376		2,181,410
Goodwill and other intangible assets		18,255,111		13,319,073
Deferred income taxes		228,287		246,348
Other long-term assets		4,227,970		3,637,023

Total assets	$	73,956,905	$	67,101,667

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable	$	51,043,874	$	50,942,162
Accrued expenses and other		2,717,373		2,758,560
Short-term debt		196,787		576,331
Total current liabilities		53,958,034		54,277,053

Long-term debt		8,043,699		3,811,745

Accrued income taxes		306,297		291,796
Deferred income taxes		1,614,723		1,643,746
Accrued litigation liability		4,284,602		4,296,902
Other long-term liabilities		3,539,659		1,993,683

Total equity		2,209,891		786,742

Total liabilities and stockholders' equity	$	73,956,905	$	67,101,667


CENCORA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

	Nine Months Ended June 30,
		2025			2024
Operating Activities:
Net income	$	1,900,885		$	1,511,807
Adjustments to reconcile net income to net cash provided by operating activities		1,036,481			897,333
Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures:
Accounts receivable		(977,608	)		(3,085,563	)
Inventories		(949,881	)		(835,633	)
Accounts payable		(61,892	)		4,112,542
Other, net		(206,282	)		(116,180	)
Net cash provided by operating activities		741,703			2,484,306

Investing Activities:
Capital expenditures		(418,169	)		(304,849	)
Cost of acquired companies, net of cash acquired		(4,004,220	)		(24,487	)
Cost of equity investments		(193,792	)		(14,981	)
Non-customer note receivable		(34,814	)		(50,000	)
Other, net		(4,358	)		18,106
Net cash used in investing activities		(4,655,353	)		(376,211	)

Financing Activities:
Net debt borrowings ¹		3,777,905			(31,921	)
Purchases of common stock		(435,471	)		(986,388	)
Exercises of stock options		22,613			31,560
Cash dividends on common stock		(329,569	)		(315,223	)
Employee tax withholdings related to restricted share vesting		(77,674	)		(60,121	)
Other, net		(24,908	)		(11,641	)
Net cash provided by (used in) financing activities		2,932,896			(1,373,734	)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(41,800	)		(10,854	)

(Decrease) increase in cash, cash equivalents, and restricted cash		(1,022,554	)		723,507

Cash, cash equivalents, and restricted cash at beginning of period ²		3,297,880			2,752,889

Cash, cash equivalents, and restricted cash at end of period ²	$	2,275,326		$	3,476,396

_________________________
¹		Includes the issuance of $1.8 billion of senior notes and a $1.5 billion term loan to finance a portion of the January 2, 2025 acquisition of Retina Consultants of America and the issuance of $1.1 billion of senior notes, offset in part by the repayment of $500 million of senior notes and a $200 million repayment of the term loan.
²		The following represents a reconciliation of cash and cash equivalents in the Condensed Consolidated Balance Sheets to cash, cash equivalents, and restricted cash in the Condensed Consolidated Statements of Cash Flows:


	June 30, 2025		September 30, 2024		June 30, 2024		September 30, 2023
Cash and cash equivalents	$	2,231,852	$	3,132,648	$	3,306,200	$	2,592,051
Restricted cash (included in Prepaid Expenses and Other)		43,474		98,596		104,463		97,722
Restricted cash (included in Other Long-Term Assets)		—		66,636		65,733		63,116
Cash, cash equivalents, and restricted cash	$	2,275,326	$	3,297,880	$	3,476,396	$	2,752,889

SUPPLEMENTAL INFORMATION REGARDING

NON-GAAP FINANCIAL MEASURES

To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses the non-GAAP financial measures described below. The non-GAAP financial measures should be viewed in addition to, and not in lieu of, financial measures calculated in accordance with GAAP. These supplemental measures may vary from, and may not be comparable to, similarly titled measures by other companies.

The non-GAAP financial measures are presented because management uses non-GAAP financial measures to evaluate the Company's operating performance, to perform financial planning, and to determine incentive compensation. Therefore, the Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors. The presented non-GAAP financial measures exclude items that management does not believe reflect the Company's core operating performance because such items are outside the control of the Company or are inherently unusual, non-operating, unpredictable, non-recurring, or non-cash. We have included the following non-GAAP earnings-related financial measures in this release:

Adjusted gross profit and adjusted gross profit margin: Adjusted gross profit is a non-GAAP financial measure that excludes gains from antitrust litigation settlements, LIFO expense (credit), and Turkey highly inflationary impact. Adjusted gross profit margin is the ratio of adjusted gross profit to total revenue. Management believes that these non-GAAP financial measures are useful to investors as a supplemental measure of the Company's ongoing operating performance. Gains from antitrust litigation settlements, LIFO expense (credit), and Turkey highly inflationary impact are excluded because the Company cannot control the amounts recognized or timing of these items. Gains from antitrust litigation settlements relate to the settlement of lawsuits that have been filed against brand pharmaceutical manufacturers alleging that the manufacturer, by itself or in concert with others, took improper actions to delay or prevent generic drugs from entering the market. LIFO expense (credit) is affected by changes in inventory quantities, product mix, and manufacturer pricing practices, which may be impacted by market and other external influences.

Adjusted operating expenses and adjusted operating expense margin: Adjusted operating expenses is a non-GAAP financial measure that excludes acquisition-related intangibles amortization; litigation and opioid-related expenses, net; acquisition-related deal and integration expenses; and restructuring and other expenses. Adjusted operating expense margin is the ratio of adjusted operating expenses to total revenue. Acquisition-related intangibles amortization is excluded because it is a non-cash item and does not reflect the operating performance of the acquired companies. We exclude acquisition-related deal and integration expenses and restructuring and other expenses that relate to unpredictable and/or non-recurring business activities. We exclude the amount of litigation and opioid-related expenses, net that is unusual, non-operating, unpredictable, non-recurring or non-cash in nature because we believe these exclusions facilitate the analysis of our ongoing operational performance.

Adjusted operating income and adjusted operating income margin: Adjusted operating income is a non-GAAP financial measure that excludes the same items that are described above and excluded from adjusted gross profit and adjusted operating expenses. Adjusted operating income margin is the ratio of adjusted operating income to total revenue. Management believes that these non-GAAP financial measures are useful to investors as a supplemental way to evaluate the Company's performance because the adjustments are unusual, non-operating, unpredictable, non-recurring or non-cash in nature.

Adjusted income before income taxes: Adjusted income before income taxes is a non-GAAP financial measure that excludes the same items that are described above and excluded from adjusted operating income. In addition, the gain (loss) on remeasurement of an equity investment, the loss on the divestiture of non-core businesses, the Company's portion of an equity method investment's gain on the sale of a business, and the gain (loss) on the currency remeasurement of the deferred tax asset relating to 2020 Swiss tax reform are excluded from adjusted income before income taxes because these amounts are unusual, non-operating, and non-recurring. Management believes that this non-GAAP financial measure is useful to investors because it facilitates the calculation of the Company's adjusted effective tax rate.

Adjusted income tax expense: Adjusted income tax expense is a non-GAAP financial measure that excludes the income tax expense associated with the same items that are described above and excluded from adjusted income before income taxes. Certain discrete tax expense (benefits) are also excluded from adjusted income tax expense. Further, the amortization of deferred tax assets relating to 2020 Swiss tax reform is excluded from adjusted income tax expense. Management believes that this non-GAAP financial measure is useful to investors as a supplemental way to evaluate the Company's performance because the adjustments are unusual, non-operating, unpredictable, non-recurring or non-cash in nature.

Adjusted effective tax rate: Adjusted effective tax rate is a non-GAAP financial measure that is determined by dividing adjusted income tax expense by adjusted income before income taxes. Management believes that this non-GAAP financial measure is useful to investors because it presents an effective tax rate that does not reflect unusual, non-operating, unpredictable, non-recurring, or non-cash amounts or items that are outside the control of the Company.

Adjusted net income attributable to Cencora: Adjusted net income attributable to the Company is a non-GAAP financial measure that excludes the same items that are described above. Management believes that this non-GAAP financial measure is useful to investors as a supplemental way to evaluate the Company's performance because the adjustments are unusual, non-operating, unpredictable, non-recurring or non-cash in nature.

Adjusted diluted earnings per share: Adjusted diluted earnings per share excludes the per share impact of adjustments including gains from antitrust litigation settlements; LIFO expense (credit); Turkey highly inflationary impact; acquisition-related intangibles amortization; litigation and opioid-related expenses, net; acquisition-related deal and integration expenses; restructuring and other expenses; the gain (loss) on remeasurement of an equity investment; the loss on the divestiture of non-core businesses; the Company's portion of an equity method investment's gain on the sale of a business; and the gain (loss) on the currency remeasurement related to 2020 Swiss tax reform, in each case net of the tax effect calculated using the applicable effective tax rate for those items. In addition, the per share impact of certain discrete tax items and the per share impact of the amortization of deferred tax assets relating to 2020 Swiss tax reform are also excluded from adjusted diluted earnings per share. Management believes that this non-GAAP financial measure is useful to investors because it eliminates the per share impact of the items that are outside the control of the Company or that we consider to not be indicative of our ongoing operating performance due to their inherent unusual, non-operating, unpredictable, non-recurring, or non-cash nature.

Adjusted Free Cash Flow: Adjusted free cash flow is a non-GAAP financial measure defined as net cash provided by operating activities, excluding significant unpredictable or non-recurring cash payments or receipts relating to legal settlements, minus capital expenditures. Adjusted free cash flow is used internally by management for measuring operating cash flow generation and setting performance targets and has historically been used as one of the means of providing guidance on possible future cash flows. For the nine months ended June 30, 2025, adjusted free cash flow of $92.5 million consisted of net cash provided by operating activities of $741.7 million, minus capital expenditures of $418.2 million and gains from antitrust litigation settlements of $231.0 million. The Company does not provide forward looking guidance on a GAAP basis for free cash flow because the timing and amount of favorable and unfavorable settlements excluded from this metric, the probable significance of which cannot be determined, are unavailable and cannot be reasonably estimated.

The Company also presents certain information related to current period operating results in "constant currency," which is a non-GAAP financial measure. These amounts are calculated by translating current period results at the foreign currency exchange rates used in the comparable period in the prior year. The Company presents such constant currency financial information because it has significant operations outside of the United States reporting in currencies other than the U.S. dollar and this presentation provides a framework to assess how its business performed excluding the impact of foreign currency exchange rate fluctuations. For the third quarter of fiscal 2025, (i) revenue of $80.7 billion was positively impacted by foreign currency translation of $116.3 million, resulting in revenue on a constant currency basis of $80.5 billion, and (ii) adjusted operating income of $1,058.3 million was positively impacted by foreign currency translation of $5.9 million, resulting in adjusted operating income on a constant currency basis of $1,052.5 million. For the third quarter of fiscal 2025 in the International Healthcare Solutions segment, (i) revenue of $7.8 billion was positively impacted by foreign currency translation of $116.3 million, resulting in revenue on a constant currency basis of $7.7 billion, and (ii) operating income of $156.2 million was positively impacted by foreign currency translation of $5.9 million, resulting in operating income on a constant currency basis of $150.4 million. For the nine months ended June 30, 2025 (i) revenue of $237.6 billion was negatively impacted by foreign currency translation of $458.1 million, resulting in revenue on a constant currency basis of $238.1 billion, and (ii) adjusted operating income of $3,199.9 million was negatively impacted by foreign currency translation of $12.5 million, resulting in operating income on a constant currency basis of $3,212.4 million. For the nine months ended June 30, 2025, in the International Healthcare Solutions segment, (i) revenue of $22.4 billion was negatively impacted by foreign currency translation of $458.1 million, resulting in revenue on a constant currency basis of $22.9 billion, and (ii) operating income of $497.6 million was negatively impacted by foreign currency translation of $12.5 million, resulting in operating income on a constant currency basis of $510.1 million.

In addition, the Company has provided non-GAAP fiscal year 2025 guidance for diluted earnings per share, operating income, effective income tax rate, and free cash flow that excludes the same or similar items as those that are excluded from the historical non-GAAP financial measures, as well as significant items that are outside the control of the Company or inherently unusual, non-operating, unpredictable, non-recurring or non-cash in nature. The Company does not provide forward looking guidance on a GAAP basis for such metrics because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. For example, LIFO expense (credit) is largely dependent upon the future inflation or deflation of brand and generic pharmaceuticals, which is out of the Company's control, and acquisition-related intangibles amortization depends on the timing and amount of future acquisitions, which cannot be reasonably estimated. Similarly, the timing and amount of favorable and unfavorable settlements, the probable significance of which cannot be determined, are unavailable and cannot be reasonably estimated.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250806247886/en/

Bennett S. Murphy

Senior Vice President, Head of Investor Relations and Treasury

[email protected]

Get the next $COR alert in real time by email

Date	Price Target	Rating	Analyst
6/3/2025	$337.00	Equal Weight → Overweight	Wells Fargo
12/4/2024	$280.00	Outperform	Mizuho
9/18/2024	$275.00 → $245.00	Buy → Neutral	BofA Securities
2/26/2024	$261.00	Outperform	Leerink Partners
1/3/2024	$242.00	Overweight	Barclays
12/14/2023	$213.00	Equal Weight	Wells Fargo
12/14/2021	$162.00 → $170.00	Buy → Neutral	Citigroup
11/26/2021	$136.00 → $170.00	Sector Perform	RBC Capital

Cencora Reports Fiscal 2025 Third Quarter Results

Crush Q3 2025 with the Best AI Superconnector

Recent Analyst Ratings for
$COR

$COR
Press Releases