Cencora Q3 2025 slides: U.S. segment drives 19.8% EPS growth, guidance raised

Cencora Inc. (NYSE:COR) presented its third-quarter fiscal 2025 earnings results on August 6, 2025, reporting strong year-over-year growth in revenue and earnings per share, primarily driven by its U.S. Healthcare Solutions segment. The company has updated its full-year guidance, reflecting continued confidence in its performance despite challenges in its international operations.

Quarterly Performance Highlights

Cencora reported significant growth in its third quarter of fiscal 2025, with revenue increasing 8.7% year-over-year to $80.7 billion. Adjusted diluted earnings per share rose 19.8% to $4.00, compared to $3.34 in the same quarter of the previous year. The company’s gross profit saw substantial growth of 20.6%, while adjusted operating income increased by 20.6% compared to the same period last year.

As shown in the following comprehensive financial summary from the presentation:

The company’s GAAP diluted earnings per share reached $3.52, representing a 45.5% increase compared to the prior year. Net income attributable to Cencora on a GAAP basis increased by 42.2% to $687 million, while adjusted net income rose 16.9% to $781 million.

In addition to these strong financial results, Cencora’s Board of Directors declared a quarterly cash dividend of $0.55 per common share, demonstrating the company’s commitment to returning value to shareholders.

Segment Performance Analysis

Cencora’s performance was primarily driven by its U.S. Healthcare Solutions segment, which saw revenue increase by 8.5% to $72.9 billion. More impressively, operating income in this segment surged by 29.1% to $0.9 billion. This growth was attributed to increased product sales and the positive impact of the RCA acquisition.

The following slide details the U.S. Healthcare Solutions segment performance:

In contrast, the International Healthcare Solutions segment presented a more mixed picture. While revenue increased by 10.5% to $7.8 billion (8.8% on a constant currency basis), operating income decreased by 12.9% to $156.2 million. On a constant currency basis, the decline was even more pronounced at 16.2%. This decline was primarily attributed to lower operating income in the global specialty logistics and consulting businesses.

The following slide illustrates the International Healthcare Solutions segment performance:

Updated Guidance & Outlook

Based on its strong performance through the first three quarters, Cencora has updated its fiscal year 2025 adjusted diluted EPS guidance to a range of $15.85 to $16.00. This represents a slight increase from previous guidance and reflects management’s confidence in the company’s continued strong performance.

For fiscal year 2025, Cencora expects consolidated revenue growth of approximately 9% and adjusted operating income growth of 15% to 16%. The U.S. Healthcare Solutions segment is projected to see revenue growth of 9% to 10% and operating income growth of 20% to 21%, continuing its strong performance.

The following slide provides a comprehensive overview of Cencora’s fiscal 2025 guidance:

The International Healthcare Solutions segment is expected to face continued challenges, with operating income projected to decline by approximately 6% (5% on a constant currency basis), despite revenue growth expectations of 6% to 7%.

Additional financial guidance includes:

Strategic Initiatives

Cencora continues to focus on its strategic priorities to drive long-term growth. The company’s purpose statement, "We are united in our responsibility to create healthier futures," underscores its commitment to connecting patients to pharmaceuticals through its global reach and local expertise.

The company has identified three key growth priorities: leading with market leaders, strengthening its position in specialty pharmaceuticals, and enhancing patient access to pharmaceuticals. These priorities are supported by strategic drivers including customer-centricity with data and technology, growth-oriented investments, fostering a culture for industry-leading talent, and identifying capability and process improvements.

As illustrated in the following strategic overview:

Cencora’s long-term target for adjusted diluted EPS growth remains at 8% to 12%, which the company is currently exceeding with its 19.8% year-over-year growth in the third quarter. With over 51,000 team members globally, the company continues to leverage its scale and expertise to drive growth.

The company also highlighted its corporate responsibility initiatives, focusing on building resilient and sustainable operations, investing in people and communities, and embracing a culture of transparency, ethics, and integrity.

Looking at market reaction, Cencora’s stock was trading down 0.46% in premarket at $291.00, following a 0.44% decline in the previous session. This suggests investors may be focusing on the challenges in the international segment despite the overall strong performance and raised guidance.

Cencora’s third-quarter results demonstrate the company’s ability to drive growth in its core U.S. business while navigating challenges in international markets. With updated guidance reflecting continued confidence in its performance, Cencora appears well-positioned to meet its long-term growth objectives.

Full presentation:

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