Cencora Reports Fiscal 2025 Third Quarter Results

August 6, 2025 |

20 min read

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

CONSHOHOCKEN, Pa.--(BUSINESS WIRE)--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	%

Contacts

Bennett S. Murphy
Senior Vice President, Head of Investor Relations and Treasury
bennett.murphy@cencora.com

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