Cencora's Boosts Annual Forecast On Strong Demand For Weight Loss Drugs, Specialty Products Despite Mixed Q2 Earnings

Cencora, Inc COR on Wednesday reported second-quarter 2025 sales increased 10.3% to $75.5 billion, missing the consensus of $75.68 billion, primarily due to an 11.4% increase in revenue within the U.S. Healthcare Solutions segment.

U.S. Healthcare Solutions revenue was $68.3 billion, due to overall market growth primarily driven by unit volume growth, including increased sales of products labeled for diabetes and/or weight loss in the GLP-1 class and specialty products to physician practices and health systems.

The company reported adjusted EPS of $4.42, up 16.3% year over year, beating the consensus of $4.11.

Adjusted gross profit in the second quarter of fiscal 2025 was $2.9 billion, a 15.2% year-over-year increase, due to the increase in gross profit in the U.S. Healthcare Solutions segment, offset in part by the decrease in gross profit in the International Healthcare Solutions segment.

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Adjusted gross profit margin was 3.86%, an increase of 16 basis points. Adjusted operating income was $1.2 billion, a 15.3% increase, driven by an increase in the U.S. Healthcare Solutions segment, partially offset by a decrease in the International Healthcare Solutions segment. Margin was 1.58% in the fiscal 2025 second quarter, an increase of seven basis points when compared to the prior year quarter.

Guidance: Cencora updated its fiscal year 2025 financial guidance to reflect stronger earnings growth in the U.S. Healthcare Solutions segment and a lower contribution from the International Healthcare Solutions segment.

Cencora expects adjusted diluted EPS of $15.70-$15.95, up from prior guidance of $15.30-$15.60, compared to the consensus of $15.46.

International Healthcare Solutions segment revenue growth to be in the range of 3%-4%, down from the previous range of 4%-5%.

Adjusted consolidated operating income growth to be between 13.5%-15.5%, up from the previous range of 11.5%-13.5%.

COR Price Action: Cencora stock is up 4.71% at $304.505 at publication on Wednesday.

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