Cencora (NYSE: COR) described its fiscal 2026 performance as "excellent" at the Wells Fargo 21st Annual Healthcare Conference, pointing to continued strength in specialty pharmaceuticals as the company navigated a partial Walgreens volume transition and posted robust GLP-1 revenue growth.
President and CEO Bob Mock said the company's third-quarter results demonstrated "a continued growth in our areas of focus, which really are the specialty pharmaceutical areas, both in the physician part of our business as well as in health systems." Cencora generated $2.3 billion in GLP-1 revenue during Q3, representing a 25% increase from a year earlier.
The company also announced it completed a $1 billion opportunistic share repurchase during the quarter. Mock noted that Cencora has raised its dividend for 21 consecutive years, underscoring its commitment to returning capital to shareholders.
Regarding Walgreens, Mock addressed the recent volume shift that began in July as the company entered its fiscal fourth quarter. Certain volumes outside the prime vendor agreement have moved to another distributor, though Mock characterized the change as a small portion of the overall relationship.
"That doesn't change. It's an important customer to us," Mock said. "Obviously, we're a very important partner to them, and the fact that we are servicing every one of their stores every single day over a long period of time. The relationship is strong, the relationship is important."
CFO Eva Boratto confirmed that the Walgreens volume impact was fully contemplated in the August guidance, which pointed to acceleration from Q3 performance heading into Q4. She added that the company also annualized the impact of an oncology customer loss at the end of Q3.
"In terms of revenue and underneath, while yes, there's the Walgreens loss, in Q4, we also annualized the oncology," Boratto said. "Additionally, in our guidance, in addition to the strength in the U.S., our international business is performing well also, driven by our World Courier and our 3PL businesses."
The oncology segment saw meaningful progress through OneOncology, where the provider network grew from approximately 1,700 providers to more than 2,300, management described the growth as primarily organic. Meanwhile, the independent pharmacy channel remained resilient, with Cencora citing strong attendance at a recent trade show in Orlando that drew thousands of independent pharmacy owners and staff.
On policy, Mock expressed confidence that the Inflation Reduction Act's Part B framework coming in 2029 would not reduce physician reimbursement, citing the Globe Demonstration Project as precedent. Cencora maintained its economics on IRA-selected drugs in 2026 and expects a similar outcome in 2027.
Fiscal 2027 planning is underway, with a fuller update expected on the Q4 earnings call. The MWI transaction is assumed to close around mid-year, management said.
World Courier and Cencora's third-party logistics operations showed improvement, aided by market recovery, leadership changes and revised go-to-market strategies.
