Cencora Reports Fiscal 2025 Fourth Quarter and Fiscal Year End Results

Revenue of $83.7 Billion for the Fourth Quarter, a 5.9 Percent Year-Over-Year Increase

Fourth Quarter GAAP Diluted EPS of $(1.75) and Adjusted Diluted EPS of $3.84

Revenue of $321.3 Billion for Fiscal Year 2025, a 9.3 Percent Year-Over-Year Increase

Fiscal Year 2025 GAAP Diluted EPS of $7.96 and Adjusted Diluted EPS of $16.00

Company increases its quarterly dividend by 9 percent

Company raises its long-term guidance expectations

Cencora, Inc. (NYSE:COR) today reported that in its fiscal year 2025 fourth quarter ended September 30, 2025, revenue increased 5.9 percent to $83.7 billion. Revenue increased 9.3 percent to $321.3 billion for fiscal year 2025. On the basis of U.S. generally accepted accounting principles (GAAP), diluted earnings per share (EPS) was $(1.75) for the September quarter of fiscal 2025, compared to $0.02 in the prior year quarter. Adjusted diluted EPS, which is a non-GAAP measure that excludes items described below, increased 15.0 percent to $3.84 in the fiscal fourth quarter. For fiscal year 2025, diluted GAAP EPS increased 5.7 percent to $7.96. For fiscal year 2025, adjusted diluted EPS increased 16.3 percent to $16.00.

"Cencora furthered key initiatives in fiscal 2025 to fortify our leading position in healthcare, most notably by enhancing our position in specialty through our acquisition of RCA as well as the decision to strategically refocus our existing business portfolio," said Bob Mauch, President and Chief Executive Officer of Cencora. "Our strategic drivers of prioritizing growth-oriented investments, accelerating digital transformation, cultivating a best-in-class team member culture, and enabling productivity position Cencora to drive value for our stakeholders."

"As we move into fiscal 2026, we are catalyzing growth and innovation, with our purpose at the core of all we do," Mr. Mauch continued. "Our increased long-term guidance reflects our confidence that Cencora's foundation in pharmaceutical distribution and leading capabilities, coupled with our focused execution will continue driving growth well into the future."

Fourth Quarter Fiscal Year 2025 Summary Results

Below, Cencora presents descriptive summaries of the Company's GAAP and adjusted (non-GAAP) quarterly and fiscal year 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.

Fourth Quarter GAAP Results

• Revenue: In the fourth quarter of fiscal 2025, revenue was $83.7 billion, up 5.9 percent compared to the same quarter in the previous fiscal year, reflecting a 5.7 percent increase in revenue within U.S. Healthcare Solutions and a 7.6 percent increase in revenue within International Healthcare Solutions.
• Gross Profit: Gross profit in the fourth quarter of fiscal 2025 was $3.0 billion, an 18.5 percent increase compared to the same period in the previous fiscal year, primarily due to an increase in gross profit in the U.S. Healthcare Solutions segment and a LIFO credit in the current year quarter compared to a 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 3.53 percent, an increase of 38 basis points from the prior year quarter due to the increase in U.S. Healthcare Solutions gross profit margin, driven primarily by the January 2025 acquisition of Retina Consultants of America ("RCA").
• Operating Expenses: In the fourth quarter of fiscal 2025, operating expenses were $2.9 billion, up 24.1 percent from the same period in the previous fiscal year, primarily due to: (i) a $723.9 million goodwill impairment charge related to PharmaLex in the current year period compared to a similar $418.0 million charge in the prior year period; (ii) an increase in distribution, selling, and administrative expenses as a result of the January 2025 acquisition of RCA and to support our revenue growth; and (iii) an increase in acquisition-related deal and integration expenses primarily due to the acquisition of RCA. The growth in expenses was offset in part by a decrease in litigation and opioid-related expenses compared to the prior year quarter. Operating expenses as a percentage of revenue in the fiscal 2025 fourth quarter was 3.51 percent compared to 2.99 percent for the same period in the previous fiscal year.
• Operating Income: In the fourth quarter of fiscal 2025, operating income was $18.5 million, an 85.4 percent decrease compared to the same period in the previous fiscal year, primarily due to the increase in operating expenses, offset in part by the increase in gross profit. Operating income as a percentage of revenue was 0.02 percent in the fourth quarter of fiscal 2025 compared to 0.16 percent for the same period in the previous fiscal year.
• Interest Expense, Net: In the fourth quarter of fiscal 2025, net interest expense was $77.8 million, an increase of $56.9 million versus the prior year quarter 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.
• Income Tax Expense: Income tax expense was $146.0 million and $117.7 million in the fourth quarter of fiscal 2025 and 2024, respectively, and did not benefit from the PharmaLex goodwill impairments, which were largely not deductible for income tax purposes.
• Diluted Earnings Per Share: Diluted earnings per share was $(1.75) in the fourth quarter of fiscal 2025, a decrease of $1.77 compared to the previous fiscal year's fourth quarter.
• Diluted Shares Outstanding: Diluted weighted average shares outstanding for the fourth quarter of fiscal 2025 were 193.9 million, a decrease of 2.1 percent versus the prior fiscal year fourth quarter primarily due to share repurchases.

Fourth Quarter Adjusted (non-GAAP) Results

• Revenue: No adjustments were made to the GAAP presentation of revenue. In the fourth quarter of fiscal 2025, revenue was $83.7 billion, up 5.9 percent compared to the same quarter in the previous fiscal year, reflecting a 5.7 percent increase in revenue within U.S. Healthcare Solutions and a 7.6 percent increase in revenue within International Healthcare Solutions.
• Adjusted Gross Profit: Adjusted gross profit in the fourth quarter of fiscal 2025 was $2.9 billion, an 18.4 percent increase compared to the same period in the previous fiscal year, primarily due to an increase in gross profit in the U.S. Healthcare Solutions segment. Adjusted gross profit as a percentage of revenue was 3.47 percent in the fiscal 2025 fourth quarter, an increase of 37 basis points when compared to the prior year quarter due to the increase in U.S. Healthcare Solutions gross profit margin primarily due to the January 2025 acquisition of RCA.
• Adjusted Operating Expenses: In the fourth quarter of fiscal 2025, adjusted operating expenses were $1.9 billion, a 17.5 percent increase compared to the same period in the previous fiscal year, primarily due to 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 expenses as a percentage of revenue in the fiscal 2025 fourth quarter was 2.25 percent, an increase of 22 basis points when compared to the prior year quarter.
• Adjusted Operating Income: In the fourth quarter of fiscal 2025, adjusted operating income was $1.0 billion, a 20.2 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 1.22 percent in the fiscal 2025 fourth quarter, an increase of 14 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 fourth quarter of fiscal 2025, net interest expense was $77.8 million, an increase of $56.9 million versus the prior year quarter 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 20.6 percent for the fourth quarter of fiscal 2025 compared to 20.3 percent in the prior year quarter.
• Adjusted Diluted Earnings Per Share: Adjusted diluted earnings per share was $3.84 in the fourth quarter of fiscal 2025, a 15.0 percent increase compared to $3.34 in the previous fiscal year's fourth quarter.
• Adjusted Diluted Shares Outstanding: Adjusted diluted weighted average shares outstanding for the fourth quarter of fiscal 2025 were 195.3 million, a decrease of 1.4 percent versus the prior fiscal year fourth 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 Segment

U.S. Healthcare Solutions revenue was $75.8 billion in the fourth quarter of fiscal 2025, an increase of 5.7 percent compared to the same quarter in the previous fiscal year primarily due to overall market growth primarily driven by unit volume growth, including increased sales of specialty products to health systems and physician practices and products labeled for diabetes and/or weight loss in the GLP-1 class. Segment operating income of $872.4 million in the fourth quarter of fiscal 2025 was up 25.1 percent compared to the same period in the previous fiscal year due to an increase in gross profit, as a result of increased product sales and the January 2025 acquisition of RCA, offset in part by an increase in operating expenses.

International Healthcare Solutions Segment

International Healthcare Solutions revenue was $7.9 billion in the fourth quarter of fiscal 2025, an increase of 7.6 percent compared to the same period in the prior fiscal year. Segment operating income in the fourth quarter of fiscal 2025 was $150.7 million, a decrease of 2.0 percent, primarily due to lower operating income at our specialized consulting services business, offset in part by increases in operating income for all other business units in the segment. On a constant currency basis, International Healthcare Solutions revenue increased by 5.7 percent and operating income decreased by 6.0 percent.

Fiscal Year 2025 Summary Results

Summary Fiscal Year GAAP Results

In fiscal year 2025, GAAP diluted EPS was $7.96 compared to $7.53 in the prior fiscal year. Revenue increased 9.3 percent from the prior fiscal year to $321.3 billion. Gross profit increased 15.8 percent to $11.5 billion primarily due to an increase in gross profit in the U.S. Healthcare Solutions segment and larger gains from antitrust litigation settlements. Operating expenses increased 14.4 percent largely due to: (i) increased distribution, selling, and administrative expenses, primarily due to the January 2025 acquisition of RCA and to support our revenue growth; (ii) a larger goodwill impairment related to PharmaLex; and (iii) an increase in acquisition-related deal and integration expenses primarily due to the acquisition of RCA. Operating income increased 20.8 percent due to the increase in gross profit, offset in part by the increase in operating expenses. Operating income margin increased by 8 basis points to 0.82 percent. Diluted weighted average shares outstanding in fiscal 2025 were 195.2 million, down 2.5 percent from the prior fiscal year primarily due to share repurchases.

Summary Fiscal Year Adjusted (non-GAAP) Results

In fiscal year 2025, adjusted diluted EPS was $16.00 compared to $13.76 in the prior fiscal year. Revenue increased 9.3 percent to $321.3 billion. Adjusted gross profit increased 15.1 percent to $11.2 billion primarily due to the increase in gross profit in the U.S. Healthcare Solutions segment. Adjusted operating expenses increased 14.8 percent to $7.0 billion largely driven by an increase in distribution, selling, and administrative expenses, primarily due to the January 2025 acquisition of RCA and to support our revenue growth. Adjusted operating income increased 15.8 percent to $4.2 billion due to the increase in gross profit, offset in part by the increase in operating expenses. Adjusted operating income margin increased by 7 basis points to 1.31 percent, primarily due to the January 2025 acquisition of RCA. Diluted weighted average shares outstanding in fiscal 2025 were 195.2 million, down 2.5 percent from the prior fiscal year primarily due to share repurchases.

Recent Company Highlights

Cencora announced $1 billion in investments through 2030 to strengthen its U.S. distribution network, expand capacity and increase resilience. The planned investments include opening a second national distribution center, expanding multiple distribution center facilities and increasing cold chain storage capacity to support the growth of specialty pharmaceuticals.

Dividend Declaration

On November 4, 2025, the Company's Board of Directors declared a quarterly dividend of $0.60 per common share, a 9 percent increase in its quarterly dividend rate from $0.55 per common share. The quarterly dividend of $0.60 per common share is payable December 1, 2025, to stockholders of record at the close of business on November 14, 2025.

Reportable Segments (revised as of October 1, 2025)

Recently, Cencora undertook a strategic review of its business to ensure alignment with its growth priorities and strategic drivers. As a result of this review, the Company has reorganized certain business components within its reporting structure. Beginning in the first quarter of fiscal 2026, the Company's reporting structure will be comprised of U.S. Healthcare Solutions, International Healthcare Solutions, and Other. The U.S. Healthcare Solutions reportable segment will consist of U.S. Human Health (excluding legacy U.S. Consulting Services). The International Healthcare Solutions reportable segment will consist of Alliance Healthcare, Innomar, World Courier, and strategic components of PharmaLex. Other, which is not considered a reportable segment, will consist of businesses for which the Company has begun to explore strategic alternatives and includes MWI Animal Health, Profarma, U.S. Consulting Services and the other components of PharmaLex.

Fiscal Year 2026 Expectations

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

Fiscal Year 2026 Expectations on an Adjusted (non-GAAP) Basis

Long-Term Guidance

To reflect the strength in the Company's businesses and continued execution, the Company is raising its long-term guidance for adjusted diluted EPS and adjusted operating income.

Conference Call & Slide Presentation

The Company will host a conference call to discuss the results at 8:30 a.m. ET on November 5, 2025. A slide presentation for investors has also been posted on the Company's website at investor.cencora.com. The dial-in number for the live call will be (833) 470-1428. From outside the United States and Canada, dial +1 (646) 844-6383. The access code for the call will be 837725. 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 U.S. and Canada, dial +1 (929) 458-6194. The access code for the replay is 457149.

Upcoming Investor Events

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

• Citi Global Healthcare Conference, December 2, 2025;
• Evercore Healthcare Conference, December 2, 2025; and
• J.P. Morgan Healthcare Conference, January 12-15, 2026.

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 $300 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.