Cencora Inc. reported fiscal 2025 fourth‑quarter revenue of $83.7 billion, up 5.9 % from $79.1 billion in Q4 2024, and full‑year revenue of $321.3 billion, a 9.3 % increase over the $295.4 billion reported in 2024. Adjusted diluted earnings per share rose to $3.84 from $3.34, a 15 % gain that exceeded the consensus estimate of $3.79 by $0.05, while GAAP diluted EPS fell to a loss of $1.75 from a $0.02 gain in the prior year. The adjusted EPS beat and revenue beat were driven by strong demand in the U.S. Healthcare Solutions segment, which grew 5.7 % to $48.2 billion, and a 7.6 % rise in International Healthcare Solutions to $35.1 billion, reflecting continued momentum in specialty drug sales and the recent acquisition of Retina Consultants of America (RCA).
The GAAP loss is largely attributable to one‑time restructuring and litigation expenses that were excluded from the adjusted metric. Goodwill impairment charges related to the PharmaLex acquisition and increased opioid‑related litigation costs pushed the GAAP EPS into negative territory, offsetting the underlying operating profitability. Adjusted gross profit margin expanded by 37 basis points to 42.1 %, a lift that can be traced to the higher mix of high‑margin specialty products and the cost efficiencies realized from integrating RCA’s management‑services organization. The margin improvement also reflects pricing power in the GLP‑1 and other refrigerated medication categories, which have seen robust demand from the U.S. market.
Cencora raised its quarterly dividend by 9 % to $0.60 per share, payable December 1, continuing a 15‑year streak of consecutive dividend increases. The dividend hike signals management’s confidence in the company’s cash‑flow generation and its commitment to returning value to shareholders. CEO Bob Mauch emphasized that the dividend increase is “a tangible way to reward our investors while maintaining the flexibility to invest in growth initiatives such as expanding our U.S. distribution network and accelerating digital transformation.”
Management also raised its long‑term guidance for fiscal 2026, projecting full‑year adjusted EPS in the range of $17.45 to $17.75, up from the prior guidance of $16.80 to $17.10. The guidance lift reflects confidence in sustained demand for specialty drugs, the ongoing integration of RCA, and the planned $1 billion investment in U.S. distribution capacity through 2030. The company reiterated its focus on cost discipline, operational leverage, and strategic acquisitions to drive future profitability.
The results and guidance were well received by investors, with a 1 % uptick in pre‑market trading reflecting the market’s positive reaction to the earnings beat and the raised guidance. Analysts noted that the company’s ability to deliver a 15 % EPS increase while maintaining a strong margin profile underscores its competitive positioning in the specialty‑drug distribution space.
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