COR · 8-K · 20260805PR000032

Gross Margin Drivers

Cencora, Inc. · 2026-08-05 · Importance 61 · Surprise 66

GAAP gross profit increased 24.1% year over year to $3.6 billion in the third quarter, while gross margin expanded 66 basis points to 4.26%. The margin expansion was primarily driven by higher U.S. Healthcare Solutions gross profit margin following the February 2026 acquisition of OneOncology and a higher $94.3 million LIFO credit versus $52.1 million in the prior-year quarter. Increased sales of lower-margin GLP-1 products partially offset the improvement. Adjusted gross profit increased 23.2% to $3.5 billion, and adjusted gross margin rose 61 basis points to 4.16%.

Key facts

• Third quarter fiscal 2026 gross profit: $3.6 billion, a 24.1 percent increase year-over-year source
• In the three months ended June 30, 2026, LIFO credit included $94.3 million source
• LIFO expense (credit) is largely dependent upon the future inflation or deflation of brand and generic pharmaceuticals source
• Gross profit as a percentage of revenue in third quarter fiscal 2026: 4.26%, an increase of 66 basis points from prior year quarter source