AI Takeaway
COR delivered solid Q1 FY2026 results with revenue of $85.9B (+5.5% YoY), gross profit surging 20.1% to $3.1B, and net income rising 14.5% to $560M, though operating cash flow remained negative and SG&A costs jumped 22%.
Revenue
$85.93B
++5.45% YoY
EPS (Basic)
$2.88
++14.29% YoY
Gross Margin
3.6%
++0.44% YoY
Operating Income
$760.45M
++7.67% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
COR generated $85.9B in revenue for Q1 FY2026, up 5.5% from $81.5B in the prior-year period, reflecting continued volume growth across its pharmaceutical distribution and healthcare services segments.
Source: 10-Q Income Statement, Q1 FY2026
Gross profit grew 20.1% YoY to $3.07B, with gross margin expanding approximately 44 basis points to 3.58%, suggesting improved pricing power or a more favorable product/service mix relative to cost of revenue growth of 5.0%.
Source: 10-Q Income Statement, Q1 FY2026
Selling, general & administrative expenses rose sharply by 22.0% YoY to $1.80B, outpacing revenue growth significantly and representing a meaningful headwind to operating leverage that management will need to address.
Source: 10-Q Income Statement, Q1 FY2026
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Upgrade to unlockCOR reported operating cash outflow of -$2.31B in Q1 FY2026, and its current ratio stands at 0.916, meaning current liabilities of $59.1B exceed current assets of $54.2B. Cash and equivalents fell 45.6% YoY to $1.75B, raising near-term liquidity management concerns.
Source: 10-Q Balance Sheet & Cash Flow Statement, Q1 FY2026
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Upgrade to unlockReported EPS of $4.08 versus the $4.08 analyst consensus — a +0.0% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $85.93B | $81.49B | +5.45% |
Cost of Revenue | $82.86B | $78.93B | +4.98% |
Gross Profit | $3.07B | $2.56B | +20.09% |
Operating Income | $760.45M | $706.25M | +7.67% |
Net Income | $559.65M | $488.6M | +14.54% |
EPS (Basic) | $2.88 | $2.52 | +14.29% |
EPS (Diluted) | $2.87 | $2.50 | +14.80% |
SG&A Expense | $1.8B | $1.47B | +21.96% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $78.36B | $69.05B | +13.48% |
Current Assets | $54.15B | $49.99B | +8.33% |
Current Liabilities | $59.13B | $54.51B | +8.48% |
Stockholders' Equity | $1.91B | $226.58M | +742.23% |
Cash & Equivalents | $1.75B | $3.22B | -45.63% |
Long-Term Debt | $7.92B | $8.15B | -2.78% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $-2.31B | $-2.72B | +15.21% |
Investing Cash Flow | $-299.31M | $-343.04M | +12.75% |
Financing Cash Flow | $43.2M | $3.21B | -98.65% |
D&A | $260.4M | $278.49M | -6.50% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 3.6% | 3.1% | +0.44% |
Operating Margin | 0.9% | 0.9% | +0.02% |
Net Margin | 0.7% | — | — |
ROE | 29.3% | — | — |
ROA | 0.7% | — | — |
Current Ratio | $0.916 | — | — |
Other companies in Health Care Distributors
COR reported Q1 FY2026 revenue of $85.9B (+5.5% YoY) and net income of $560M (+14.5% YoY), with diluted EPS of $2.87 (+14.8%). Gross profit surged 20.1% to $3.07B, though SG&A expenses rose sharply by 22%, partially offsetting the strong gross margin improvement.
The standout takeaway is that COR's gross margin expanded meaningfully to 3.58% (+44 bps YoY), driving a 20.1% jump in gross profit despite only 5.5% revenue growth. However, SG&A costs rising 22% and operating cash flow remaining negative at -$2.31B are areas investors should watch closely.
Key risks include a current ratio below 1.0 (0.916), meaning current liabilities of $59.1B exceed current assets of $54.2B, and cash falling 45.6% YoY to $1.75B. Additionally, SG&A cost escalation of 22% and $7.92B in long-term debt represent ongoing financial pressures for the company.
COR's operating cash flow was -$2.31B in Q1 FY2026, which is common for pharmaceutical distributors due to large working capital requirements — the company must finance enormous inventories and receivables. The good news is this improved 15.2% from -$2.72B in Q1 FY2025, suggesting better working capital management.
COR's gross margin improved to 3.58% in Q1 FY2026 from 3.14% in Q1 FY2025, an expansion of approximately 44 basis points. This drove gross profit up 20.1% to $3.07B, significantly outpacing the 5.5% revenue growth rate and indicating improved pricing or product mix.