COR · 10-Q · 2026Q2 · Full report
Gross Margin Drivers
Cencora, Inc. · 2026-08-05 · Importance 61 · Surprise 66 · In source text
Gross profit increased 24.1% year over year to $3.6 billion in the June 2026 quarter and 20.4% to $10.3 billion for the nine-month period. U.S. Healthcare Solutions gross profit rose 31.2% to $2.4 billion in the quarter and 26.5% to $6.5 billion year to date, primarily from the OneOncology acquisition, the RCA acquisition, and higher pharmaceutical sales. U.S. Healthcare Solutions’ gross margin increased 63 basis points to 3.17% in the quarter and 52 basis points to 2.96% year to date, although higher-margin pressure from lower-margin GLP-1 sales partly offset the improvement. LIFO credits increased to $94.3 million in the quarter and $381.9 million year to date, primarily because of declining manufacturer prices for certain branded pharmaceuticals, while antitrust settlement gains fell to $34.2 million year to date from $231.0 million.
Key facts
- LIFO credit was $94.3 million for the three months ended June 30, 2026 and $52.1 million for the three months ended June 30, 2025; LIFO credit was $381.9 million for the nine months ended June 30, 2026 and $19.9 million for the nine months ended June 30, 2025. source
- Gains from antitrust litigation settlements were $5.5 million and $9.5 million in the three months ended June 30, 2026 and 2025, respectively, and $34.2 million and $231.0 million in the nine months ended June 30, 2026 and 2025, respectively. source
- U.S. Healthcare Solutions’ gross profit increased by $565.4 million, or 31.2%, from the prior year quarter and $1,365.1 million, or 26.5%, from the prior year nine-month period. source
- Gross profit increased by $700.1 million, or 24.1%, from the prior year quarter and $1,742.7 million, or 20.4%, from the prior year nine-month period. source
- International Healthcare Solutions’ gross profit increased by $86.5 million, or 11.8%, from the prior year quarter and by $209.7 million, or 9.5%, from the prior year nine-month period. source
- U.S. Healthcare Solutions’ gross profit margin was 3.17% in the current year quarter, an increase of 63 basis points from the prior year quarter. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +2.1% | Gross profit increased by $700.1 million, or 24.1%, from the prior year quarter and $1,742.7 million, or 20.4%, from the prior year… |
| operating_income | positive | realized | +1.6% | U.S. Healthcare Solutions’ gross profit increased by $565.4 million, or 31.2%, from the prior year quarter and $1,365.1 million, or 26.5%,… |
| operating_income | positive | realized | +0.8% | Gross profit increased by $700.1 million, or 24.1%, from the prior year quarter and $1,742.7 million, or 20.4%, from the prior year… |
| operating_income | positive | realized | +0.7% | U.S. Healthcare Solutions’ gross profit increased by $565.4 million, or 31.2%, from the prior year quarter and $1,365.1 million, or 26.5%,… |
| operating_income | positive | realized | +0.5% | LIFO credit was $94.3 million for the three months ended June 30, 2026 and $52.1 million for the three months ended June 30, 2025; LIFO… |
| operating_income | positive | realized | +0.1% | LIFO credit was $94.3 million for the three months ended June 30, 2026 and $52.1 million for the three months ended June 30, 2025; LIFO… |
| net_income | positive | realized | +0.0% | Gains from antitrust litigation settlements were $5.5 million and $9.5 million in the three months ended June 30, 2026 and 2025,… |
| net_income | positive | realized | +0.0% | Gains from antitrust litigation settlements were $5.5 million and $9.5 million in the three months ended June 30, 2026 and 2025,… |