Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
COR delivered strong Q2 FY2026 results with revenue rising 3.8% YoY to $78.4B, gross profit surging 17.3% to $3.6B, and net income more than doubling (+128.6%) to $1.6B, though year-to-date operating cash flow turned negative at -$967M amid elevated capital deployment.
Revenue
$78.36B
+3.85% YoY
EPS (Diluted)
$8.40
+128.26% YoY
Gross Margin
4.6%
+0.5 pts YoY
Operating Income
$1.14B
+10.27% YoY
Source: SEC XBRL
Cencora (COR) reported Q2 FY2026 revenue of $78.36B, up 3.8% year over year. Operating margin was 1.5%, up 0.1 points from 1.4% a year earlier. COR's fiscal Q2 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 4.48 | 4.39 | Beat +2.0% |
| Mar 2026This filing | 4.75 | 4.86 | Miss -2.3% |
| Dec 2025 | 4.08 | 4.08 | Beat +0.0% |
| Sep 2025 | 3.84 | 3.82 | Beat +0.4% |
Adjusted (non-GAAP) EPS of $4.75 versus the $4.86 analyst consensus — a -2.3% miss for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $8.40.
Compiled by AI from this SEC filing
COR grew revenue 3.8% YoY to $78.4B in Q2 FY2026, reflecting continued volume expansion in its pharmaceutical distribution and healthcare services segments. The growth rate, while moderate in absolute percentage terms, represents significant dollar-volume gains given the company's massive revenue base.
Source: 10-Q Income Statement
Gross profit jumped 17.3% YoY to $3.59B, pushing gross margin from 4.06% to 4.58%. This outpaced revenue growth substantially, suggesting favorable product/service mix shifts, improved specialty pharmaceutical contributions, or better contract terms with suppliers and customers.
Source: 10-Q Income Statement
Net income surged 128.6% YoY to $1.64B, far exceeding the 10.3% growth in operating income ($1.14B). The large divergence between operating income growth and net income growth implies significant below-the-line items — such as investment gains, tax benefits, or other non-operating income — contributed materially to the bottom line.
Source: 10-Q Income Statement
SG&A expenses rose 23.6% YoY to $1.98B, significantly outpacing revenue growth of 3.8%. This elevated cost growth warrants monitoring as it could pressure operating margins if not offset by continued gross profit expansion in future quarters.
Source: 10-Q Income Statement
Long-term debt rose 57.7% YoY to $12.4B, and year-to-date operating cash flow turned negative at -$967M (vs. +$632M in the prior-year period). Financing cash inflows of $4.0B partially funded $5.2B in investing activities, indicating an aggressive investment or acquisition cycle that is temporarily pressuring free cash flow.
Source: 10-Q Balance Sheet & Cash Flow Statement
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Year-to-date operating cash flow was -$967M compared to +$632M in the prior-year period, a swing of approximately $1.6B. With a current ratio of only 0.947 (current liabilities exceeding current assets by ~$3B), near-term liquidity could be strained if operating cash generation does not recover in the second half of FY2026.
Source: 10-Q Cash Flow Statement & Balance Sheet
Long-term debt surged 57.7% YoY to $12.4B, substantially increasing COR's financial leverage. Higher debt levels raise interest expense burdens and reduce financial flexibility, particularly in a higher-for-longer interest rate environment.
Source: 10-Q Balance Sheet
SG&A expenses grew 23.6% YoY versus revenue growth of only 3.8%, creating meaningful operating leverage headwinds. If this trend persists, it could erode the operating margin gains achieved through gross profit expansion.
Source: 10-Q Income Statement
Despite the 17.3% gross profit improvement, COR's gross margin remains very thin at 4.58%, which is characteristic of pharmaceutical distribution businesses. Any pricing pressure from large customers, generic drug deflation, or supplier contract renegotiations could disproportionately impact profitability.
Source: 10-Q Income Statement
Net income of $1.64B significantly exceeded operating income of $1.14B, implying approximately $500M+ in net below-the-line income contributions. If these gains are non-recurring (e.g., investment gains or one-time tax benefits), reported EPS of $8.40 may not be sustainable, potentially misleading investors about underlying earnings power.
Source: 10-Q Income Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 78.36 $B | 75.45 $B | +3.85% |
Cost of Revenue $B | 74.77 $B | 72.39 $B | +3.28% |
Gross Profit $B | 3.59 $B | 3.06 $B | +17.27% |
Operating Income $B | 1.14 $B | 1.04 $B | +10.27% |
Net Income $B | 1.64 $B | 0.72 $B | +128.64% |
EPS (Basic) $ | 8.44 $ | 3.70 $ | +128.11% |
EPS (Diluted) $ | 8.40 $ | 3.68 $ | +128.26% |
SG&A Expense $B | 1.98 $B | 1.60 $B | +23.59% |
Answers draw on this SEC filing and the data on this page
Cencora's Q3 FY2026 results highlighted robust topline and bottom-line growth driven by the OneOncology acquisition and GLP-1 sales, yet rising costs and debt warrant attention.
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%.
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