Cencora, Inc. recently released its 10-Q report for the quarter ended March 31, 2026. The company sources and distributes pharmaceutical products in the United States and abroad, with U.S. Healthcare Solutions handling generic and injectable drugs, over-the-counter products, specialty pharmaceuticals, and related services, while International Healthcare Solutions provides wholesale distribution, commercialization services, and specialty logistics. Cencora was formerly AmerisourceBergen, changed its name in August 2023, and is headquartered in Conshohocken, Pennsylvania.
In Item 2, management said the period included the February 2, 2026 acquisition of the majority of OneOncology for $7.387 billion in total fair value consideration, including $4.649 billion of cash, $1.934 billion for its previously held equity-method stake, $752.1 million of contingent consideration, and $52.0 million to settle a receivable tied to a prior commercial arrangement. Cencora said it funded the deal with new debt and cash on hand, and described the acquisition as a way to expand relationships with community oncology providers within U.S. Healthcare Solutions.
Revenue rose to $78.356 billion from $75.454 billion a year earlier, an increase of $2.902 billion, or 3.8%, in the quarter, and to $164.288 billion from $156.941 billion, up $7.347 billion, or 4.7%, for the six months. U.S. Healthcare Solutions revenue increased 2.9% to $68.765 billion in the quarter and 4.0% to $144.977 billion for six months, driven by unit-volume growth, including higher specialty product sales to health systems and physician practices and higher sales of GLP-1 products, which rose $1.9 billion, or 23.0%, in the quarter and $2.9 billion, or 16.7%, in six months. That growth was partly offset by lower manufacturer prices on certain brand drugs, lost oncology and grocery customer sales, and reduced mail-order sales tied to brand conversions.
International Healthcare Solutions revenue increased 13.0% to $7.566 billion in the quarter and 11.2% to $15.190 billion for six months, led by higher sales at the European distribution business. The “Other” category rose 5.1% to $2.056 billion in the quarter and 5.7% to $4.185 billion for six months, helped by Brazil distribution and animal health, partly offset by lower consulting services sales.
Gross profit increased to $3.588 billion from $3.060 billion, up $528.5 million, or 17.3%, in the quarter, and to $6.660 billion from $5.618 billion, up $1.043 billion, or 18.6%, for six months. U.S. Healthcare Solutions gross profit climbed 19.7% to $2.252 billion in the quarter and 24.0% to $4.136 billion for six months, while International Healthcare Solutions gross profit rose 13.7% to $814.3 million in the quarter and 8.3% to $1.604 billion for six months.
Operating expenses increased 20.9% to $2.446 billion in the quarter and 22.8% to $4.757 billion for six months. Distribution, selling and administrative expenses were $1.978 billion in the quarter, up 23.6%, and $3.773 billion for six months, up 22.8%, with the company pointing to OneOncology and RCA as the main drivers. Acquisition and divestiture-related deal and integration costs were $164.2 million in the quarter and $242.6 million for six months, while impairment of assets, including goodwill, totaled $249.5 million for the six-month period. Following these announcements, the company's shares moved -17.78%, and are now trading at a price of $251.5025. For more information, read the company's full 10-Q submission here.
