Cencora (COR) investor relations material

Financial performance and guidance

• Fiscal 2025 EPS guidance raised five times since November, now implying 14–15% growth, with adjusted operating income guidance at 15–16%.

• U.S. segment operating income expected to grow 20–21% for the year, driven by strong utilization trends and specialty product sales.

• RCA acquisition provides a tailwind for 2026, while loss of an oncology customer is a headwind.

• Long-term guidance remains at 5–8% organic operating income growth, plus 3–4% from capital deployment, targeting 8–12% EPS growth.

• Outperformance levels may moderate due to scale, but confidence in long-term targets remains high.

Business drivers and market trends

• Specialty business is a key growth area, with investments in RCA MSO and One Oncology MSO enhancing market leadership.

• Fee-for-service contracts account for over 95% of brand buy-side profit dollars, supporting margin stability.

• Biosimilars continue to be a tailwind, especially in oncology and retina specialties.

• Animal health segment outperforms the market, with companion animal business growing faster than production animal.

• Drug pricing dynamics remain stable, with generic deflation moderating and branded pricing in line with expectations.

Strategic initiatives and capital deployment

• Capital deployment focuses on balanced investments: CapEx, strategic acquisitions, share repurchases, and dividend growth.

• Digital transformation is a strategic priority, aiming to shift finance team focus from reporting to business partnership and leveraging AI in internal audits.

• Ongoing evaluation of business portfolio to prioritize growth-oriented investments and potential deemphasis of underperforming areas.

• Put-call structure in place to potentially acquire full ownership of One Oncology between June 2026 and June 2028.