Cencora beats quarterly earnings expectations on strong demand for specialty drugs
Special Topic: Focus on US Stocks 2025 Q4 Earnings Report
Cencora reported first-quarter earnings on Wednesday that exceeded Wall Street expectations. The pharmaceutical distributor benefited from continued strong demand for specialty drugs and GLP-1 class drugs.
Cencora is fully capitalizing on the surging demand for high-cost specialty drugs used to treat rheumatoid arthritis and cancer, which have brought the company substantial profit margins.
In November last year, Cencora announced a $1 billion investment to expand its U.S. business network. This move was in response to the Trump administration’s domestic manufacturing push policy, aimed at encouraging companies to localize operations and reduce reliance on overseas hubs.
Cencora also stated that it completed the $5 billion acquisition of OneOncology in December (acquired from private investment firm TPG), further deepening its presence in the cancer care network sector.
The company updated its fiscal 2026 performance guidance to reflect the completed acquisition of OneOncology, raising its adjusted operating profit growth forecast from the previous 8% to 10% up to 11.5% to 13.5%.
Cencora’s revenue for the quarter was $85.93 billion, slightly below analysts’ expectations of $86.03 billion. The company’s stock price fell 5% in pre-market trading.
Cencora also reiterated its full-year adjusted earnings per share forecast of $17.45 to $17.75. According to data compiled by the London Stock Exchange Group (LSEG), analysts’ average expectation was $17.61.
In the quarter ended December 31, the company’s largest revenue pillar, the U.S. Healthcare Solutions division, saw sales grow 5% year-on-year to $76.2 billion. This growth was driven by strong prescription volumes of GLP-1 class weight-loss and diabetes drugs, as well as increased specialty drug sales.
Cencora reported adjusted earnings per share of $4.08 for the quarter, slightly above analysts’ expectations of $4.04.
Editor: Guo Mingyu
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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