Cencora Swings to Profit in Fiscal 2026 and Sets 2027 Outlook
Cencora posted full-year fiscal 2026 net income of US$3.48b alongside US$337.40b in sales. The distributor also announced segment reorganization and forecast fiscal 2027 adjusted diluted earnings.
Cencora reported full-year fiscal 2026 revenue of US$337.40b and net income of US$3.48b, with basic earnings per share from continuing operations reaching US$18.03. For the fiscal fourth quarter, revenue reached US$88.35b, and the company transitioned from a prior quarterly loss to net income of US$519.4m, or US$2.72 per basic share from continuing operations.
Fourth-quarter performance was supported by specialty pharmaceutical growth and contributions from the OneOncology transaction completed in February. Under adjusted calculations, fourth-quarter diluted earnings per share advanced 21% to $4.66 on adjusted operating income of $1.2 billion, which was up 22%. Chief Financial Officer Eva Boratto noted that fourth-quarter adjusted gross margin expanded 57 basis points to 4.04%, largely reflecting the OneOncology transaction.
Chief Executive Officer Bob Mauch said the organization is focusing on pharmaceutical-centered care, supported by specialty biologics and community-based partnerships. Cencora is introducing a new operating structure that groups specialty distribution and provider services into a separate segment. Operating income for that segment is projected to grow 18% to 21% in fiscal 2027.
For fiscal 2027, Cencora guided adjusted diluted earnings per share to between $19.40 and $19.75, representing an increase of 8% to 10%, while revenue is expected to grow 3% to 5%. The forecast factors in an estimated $0.35 per-share impact from an assumed midyear merger of the MWI Animal Health business with Covetrus. The company also anticipates approximately $3.5 billion in adjusted free cash flow and raised its quarterly dividend 10% to US$0.66 per share.
In addition to recent performance, Cencora revealed plans to acquire American Oncology Network in a deal valued at up to US$2.4b to extend its community oncology reach. Management emphasized that recent acquisitions and management services organization platforms are central to navigating shifts in generic cycles, biosimilar launches, and high-volume product mix.