Cencora, Inc.
For the period ended Dec 31, 2025. Filed Feb 4, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2025 · Filed Feb 4, 2026
COR$333.56-1.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001140859-25-000122
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-12-31; filed 2026-02-04.
0001140859-26-000006
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 103 previous paragraphs and 108 current paragraphs.
24 unchanged; 60 reworded; 21 added; 17 removed; 2 previous and 3 current paragraphs rearranged.
Tables are not compared: 10 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
Recent Developments
Current report
New Reporting Structure
Current report
We undertook a strategic review of our business to ensure alignment with our growth priorities and strategic drivers. As a result of this review, beginning in the first quarter of fiscal 2026, we reorganized certain business components within our reporting structure. Our revised reporting structure is comprised of U.S. Healthcare Solutions, International Healthcare Solutions, and Other. The U.S. Healthcare Solutions reportable segment consists of U.S. Human Health (excluding legacy U.S. Consulting Services). The International Healthcare Solutions reportable segment consists of Alliance Healthcare, Innomar, World Courier, and strategic components of PharmaLex. Other, which is not considered a reportable segment, consists of businesses for which the Company has begun to explore strategic alternatives and includes MWI Animal Health, Profarma, U.S. Consulting Services, and the other components of PharmaLex. Our previously reported segment results have been revised to conform to our re-aligned reporting structure.
Current report
Acquisition
Current report
On February 2, 2026, we acquired the majority of the outstanding equity interests that we did not previously own in OneOncology, a physician-led national platform empowering independent medical specialty practices rooted in oncology for a total cash consideration of approximately $4.6 billion. OneOncology’s affiliated practices and management retained a minority interest in OneOncology. We funded the transaction through new debt financing (see Note 6 of the Consolidated Notes to Financial Statements). OneOncology’s future operating results will be consolidated as a component of the U.S. Healthcare Solutions reportable segment.
Current report
•Gross profit increased by $514.0 million, or 20.1%, from the prior year quarter primarily due to the increase in gross profit in both reportable segments and a $70.2 million increase in the LIFO credit. U.S. Healthcare Solutions’ gross profit increased by $428.8 million, or 29.5%, from the prior year quarter primarily due to the January 2025 acquisition of RCA and increased sales. International Healthcare Solutions’ gross profit increased $25.2 million, or 3.3%, from the prior year quarter primarily due to increases in gross profit at our global specialty logistics business and our European distribution business.
Current report
•Total operating expenses increased by $459.8 million, or 24.8%, from the prior year quarter primarily due to the January 2025 acquisition of RCA and an impairment of assets of our U.S. Consulting Services business that is held for sale.
Current report
Revenue in Other increased by $0.1 billion, or 6.3%, from the prior year quarter due to increased sales at our animal health business and our less-than-wholly-owned Brazil distribution business, offset in part by a decrease in sales at our consulting services businesses.
Current report
Gross profit increased by $514.0 million, or 20.1%, from the prior year quarter primarily due to the increase in gross profit in both reportable segments and a $70.2 million increase in the LIFO credit.
Current report
International Healthcare Solutions’ gross profit increased $25.2 million, or 3.3%, from the prior year quarter primarily due to increases in gross profit at our global specialty logistics business and our European distribution business.
Current report
Gross profit in Other increased by $6.8 million, or 2.1%, from the prior year quarter.
Current report
Litigation and opioid-related (credit) expenses, net in the three months ended December 31, 2025 and 2024 include legal fees in connection with opioid lawsuits and investigations. Litigation and opioid-related (credit) expenses, net in the three months ended December 31, 2025 also includes an $86.8 million credit related to a derivative lawsuit settlement (see Note 9 of the Consolidated Notes to Financial Statements).
Current report
We recorded an impairment of assets of $249.5 million, including goodwill, related to our U.S. Consulting Services business that was classified as held for sale as of December 31, 2025.
Current report
Operating income in Other decreased by $5.9 million, or 6.1%, from the prior year quarter primarily due to lower operating income at our consulting services businesses, offset in part by an increase in operating income at our animal health business.
Current report
We used $2.3 billion of cash in operations during the three months ended December 31, 2025 compared to $2.7 billion of cash used in operations during the three months ended December 31, 2024, a decrease of $0.4 billion. The timing of cash receipts and disbursements and inventory purchases can significantly impact our working capital. In the three months ended December 31, 2025, the growth of our accounts receivable, inventories, and accounts payable resulted in $3.0 billion of cash used in operations compared to $3.3 billion of cash used in the three months ended December 31, 2024.
Current report
•Net income of $0.5 billion; and
Current report
Net cash provided by financing activities of $43.2 million in the three months ended December 31, 2025 principally resulted from the $0.3 billion of net borrowings under our revolving credit facilities to cover seasonal, short-term working capital needs, offset in part by $0.1 billion in cash dividends paid on our common stock and $0.1 billion in purchases of our common stock related to employee tax withholdings related to restricted share vesting.
Current report
In connection with the Receivables Securitization Facility, AmerisourceBergen Drug Corporation and a specialty distribution subsidiary sell on a revolving basis certain accounts receivable to Amerisource Receivables Financial Corporation, a wholly-owned special purpose entity, which in turn sells a percentage ownership interest in the receivables to financial institutions and commercial paper conduits sponsored by financial institutions. AmerisourceBergen Drug Corporation is the servicer of the accounts receivable under the Receivables Securitization Facility. As sold receivables are collected, additional receivables may be sold up to the maximum amount available under the facility. We use the facility as a financing vehicle because it generally offers an attractive interest rate relative to other financing sources. We securitize our trade accounts, which are generally non-interest bearing, in transactions that are accounted for as borrowings.
Current report
In January 2026, we entered into an agreement pursuant to which we obtained a $1.5 billion delayed draw senior unsecured term loan facility (“Multi-Year Term Loan Facility”) with a syndicate of lenders consisting of a $500 million tranche (“Tranche One”) and a $1.0 billion tranche (“Tranche Two”). Tranche One and Tranche Two mature two years and three years, respectively, from February 2, 2026, the date on which it was drawn. The Multi-Year Term Loan Facility was used to finance a portion of the acquisition of OneOncology (see Note 13 of the Consolidated Notes to Financial Statements).
Current report
Interest on borrowings under the 364-Day Term Loan Facility will accrue at a rate equal to either a Term SOFR or a Daily Simple SOFR, plus an applicable margin or an alternate base rate plus an applicable margin, in each case based on our public debt ratings. We have also agreed to pay a fee that will, commencing on April 1, 2026, accrue at specified rates based on our public debt ratings, on the daily amount of unused commitments under the 364-Day Term Loan Facility. We have also agreed to pay a duration fee on the outstanding commitment amount as of May 29, 2026 under the 364-Day Term Loan Facility. We also have the right to prepay borrowings under the 364-Day Term Loan Facility at any time, in whole or in part and without premium or penalty.
Current report
Included in “Other Commitments” in the above table is $685 million to support our U.S. Healthcare Solutions reportable segment’s primary ERP system upgrade and $594 million for other digital transformation projects.
Removed paragraphs (17)
Previous report
•Gross profit increased by $496.3 million, or 20.6%, and $1,107.4 million, or 14.9%, from the prior year quarter and nine-month period, respectively. The increase in gross profit from the prior year quarter is primarily due to the increase in gross profit in both reportable segments and a last-in, first-out ("LIFO") credit in the current year quarter in comparison to LIFO expense in the prior year quarter, offset in part by lower gains from antitrust litigation settlements. The increase in gross profit from the prior year nine-month period is primarily due to the increase in gross profit in the U.S. Healthcare Solutions reportable segment and larger gains from antitrust litigation settlements, offset in part by a lower LIFO credit in the current year period and a decrease in gross profit in the International Healthcare Solutions reportable segment. U.S. Healthcare Solutions' gross profit increased by $483.9 million, or 31.3%, and $1,039.4 million, or 21.7%, from the prior year quarter and nine-month period, respectively, driven by increased sales and the January 2025 acquisition of RCA. International Healthcare Solutions' gross profit increased by $6.6 million, or 0.8%, from the prior year quarter and decreased $15.5 million, or 0.6%, from the prior year nine-month period.
Previous report
•Total operating expenses increased by $301.2 million, or 17.3%, and $545.9 million, or 10.2%, from the prior year quarter and nine-month period, respectively, primarily due to the January 2025 acquisition of RCA and the increase in acquisition-related deal and integration expenses, offset in part by a large decrease in litigation and opioid-related expenses in the current year nine-month period.
Previous report
•Our effective tax rates were 23.0% and 22.3% for the three and nine months ended June 30, 2025 respectively. Our effective tax rates were 22.4% and 19.5% for the three and nine months ended June 30, 2024, respectively. The effective tax rate for the nine months ended June 30, 2024 benefited from discrete tax benefits associated with foreign valuation allowance adjustments.
Previous report
Gross profit increased by $496.3 million, or 20.6%, and $1,107.4 million, or 14.9%, from the prior year quarter and nine-month period, respectively. The increase in gross profit from the prior year quarter is primarily due to the increase in gross profit in both reportable segments and a LIFO credit in the current year quarter in comparison to LIFO expense in the prior year quarter, offset in part by lower gains from antitrust litigation settlements. The increase in gross profit from the prior year nine-month period is primarily due to the increase in gross profit in the U.S. Healthcare Solutions reportable segment and larger gains from antitrust litigation settlements, offset in part by a lower LIFO credit and a decrease in gross profit in the International Healthcare Solutions reportable segment.
Previous report
International Healthcare Solutions' gross profit increased by $6.6 million, or 0.8%, from the prior year quarter and decreased $15.5 million, or 0.6%, from the prior year nine-month period. The increase in the current year quarter is primarily due to the increase in gross profit at our European distribution business, offset in part by a decrease in gross profit at our global specialty logistics business. The decrease in the current year nine-month period is primarily due to a decline in gross profit at our global specialty logistics business, offset in part by an increase in gross profit at our European distribution business.
Previous report
Litigation and opioid-related expenses, net in the three months ended June 30, 2025 and 2024 and in the nine months ended June 30, 2025 included legal fees in connection with opioid lawsuits and investigations. Litigation and opioid-related expenses, net in the nine months ended June 30, 2024 included a $214.0 million litigation accrual for ongoing litigation related to the distribution of prescription opioid medications and $39.7 million of legal fees in connection with opioid lawsuits and investigations, offset in part by a net $92.2 million opioid litigation settlement accrual reduction primarily as a result of our prepayment of the net present value of a future obligation as permitted under our opioid settlement agreements.
Previous report
In February 2024, we experienced a cybersecurity event where data from our information systems was exfiltrated. In connection with this event, we incurred costs that were recorded in Other, net in the above table. The majority of the costs included in Other, net in the nine months ended June 30, 2024 related to this cybersecurity event.
Previous report
Interest expense, net and the respective weighted average interest rates for the three months ended June 30, 2025 and 2024 are as follows:
Previous report
Interest expense, net and the respective weighted average interest rates for the nine months ended June 30, 2025 and 2024 are as follows:
Previous report
We generated $741.7 million of cash from operations during the nine months ended June 30, 2025 compared to $2.5 billion of cash from operations during the nine months ended June 30, 2024, a decrease of $1.7 billion. The decrease in the current year nine-month period was primarily driven by changes in our working capital accounts. The timing of cash receipts and disbursements can significantly impact our working capital. The change in working capital accounts, primarily accounts receivable and accounts payable, resulted in a year-over-year use of cash of $2.2 billion primarily due to the timing of cash receipts from customers and the timing of disbursements to suppliers, offset in part by our growth, which resulted in an increase in net income, plus non-cash items of $528.2 million.
Previous report
•Net income of $1.9 billion; and
Previous report
•Net income of $1.5 billion; and
Previous report
Net cash used in financing activities in the nine months ended June 30, 2024 principally resulted from $986.4 million purchases of our common stock, the repayment of our $500 million of 3.400% senior notes that matured in May 2024, and $315.2 million in cash dividends paid on our common stock, offset in part by the issuance of our $500 million of senior notes in February 2024.
Previous report
In December 2024, we issued $500 million of 4.625% senior notes due in December 2027 (the "2027 Notes"), $600 million of 4.850% senior notes due in December 2029 (the "2029 Notes"), and $700 million of 5.150% senior notes due in February 2035 (the "2035 Notes"). The 2027 Notes were sold at 99.815% of the principal amount with an effective yield of 4.634%. The 2029 Notes were sold at 99.968% of the principal amount with an effective yield of 4.852%. The 2035 Notes were sold at 99.945% of the principal amount with an effective yield of 5.153%. Interest on the 2027 Notes and the 2029 Notes is payable semi-annually in arrears on June 15 and December 15, which began on June 15, 2025. Interest on the 2035 Notes is payable semi-annually in arrears on February 15 and August 15, which began on February 15, 2025. We used the proceeds from the 2027 Notes, the 2029 Notes, and the 2035 Notes to finance a portion of the acquisition of RCA.
Previous report
In May 2025, we issued €500 million of 2.875% senior notes due in May 2028 (the "2028 Notes") and €500 million of 3.625% senior notes due in May 2032 (the "2032 Notes"). The 2028 Notes were sold at 99.960% of the principal amount with an effective yield of 2.876%. The 2032 Notes were sold at 99.757% of the principal amount with an effective yield of 3.634%. Interest on the 2028 Notes and the 2032 Notes is payable annually in arrears beginning on May 22, 2026. We used the proceeds from the 2028 Notes and the 2032 Notes for general corporate purposes.
Previous report
In March 2025, our $500 million of 3.250% senior notes matured and was repaid.
Previous report
The 2017 Tax Act requires a one-time transition tax to be recognized on historical foreign earnings and profits. As of June 30, 2025, we expect to pay the remaining $57.9 million related to the transition tax in January 2026. The transition tax commitment is included in "Other Commitments" in the above table.
Reworded paragraphs (60)
Previous wording
•Revenue increased by $6.4 billion, or 8.7%, and $22.7 billion, or 10.6%, from the prior year quarter and nine-month period, respectively, due to growth in both reportable segments. The U.S. Healthcare Solutions segment grew its revenue by $5.7 billion, or 8.5%, and $21.5 billion, or 11.1%, from the prior year quarter and nine-month period, respectively, primarily due to overall market growth largely driven by unit volume growth, including increased sales of products labeled for diabetes and/or weight loss in the GLP-1 class of $1.4 billion, or 18.6%, and $6.8 billion, or 34.4%, from the prior year quarter and nine-month period, respectively, and increased sales of specialty products to physician practices and health systems. International Healthcare Solutions' revenue increased by $0.7 billion, or 10.5%, and $1.2 billion, or 5.5%, from the prior year quarter and nine-month period, respectively.
Current wording
•Revenue increased by $4.4 billion, or 5.5%, from the prior year quarter primarily due to growth in both reportable segments. U.S. Healthcare Solutions’ revenue increased by $3.7 billion, or 5.0%, from the prior year quarter primarily due to overall market growth largely driven by unit volume growth, including increased sales of specialty products to health systems and physician practices and products labeled for diabetes and/or weight loss in the GLP-1 class of $1.0 billion, or 10.9%, offset in part by a decrease in sales due to losses of a grocery customer and an oncology customer. International Healthcare Solutions’ revenue increased by $0.7 billion, or 9.6%, from the prior year quarter primarily due to increased sales at our European distribution business of $0.5 billion from the prior year quarter.
Previous wording
•Total segment operating income increased by $180.6 million, or 20.6%, and $402.7 million, or 14.4%, from the prior year quarter and nine-month period, respectively. U.S. Healthcare Solutions' operating income increased by $203.5 million, or 29.1%, and $464.8 million, or 20.8%, from the prior year quarter and nine-month period, respectively, in part due to the January 2025 acquisition of RCA. International Healthcare Solutions' operating income decreased by $23.2 million, or 12.9%, and $62.1 million, or 11.1%, from the prior year quarter and nine-month period, respectively.
Current wording
•Total segment operating income increased by $113.4 million, or 11.9%, from the prior year quarter. U.S. Healthcare Solutions’ operating income increased by $144.4 million, or 21.0%, from the prior year quarter due to the January 2025 acquisition of RCA and overall growth. International Healthcare Solutions’ operating income decreased by $23.0 million, or 13.9%, from the prior year quarter.
Previous wording
Our effective tax rates were 23.0% and 22.3% for the three and nine months ended June 30, 2025, respectively. Our effective tax rates were 22.4% and 19.5% for the three and nine months ended June 30, 2024, respectively. The effective tax rates for the three and nine months ended June 30, 2025 were higher than the U.S. statutory rate primarily due to U.S. state income taxes, offset in part by the benefit of income taxed at rates lower than the U.S. statutory rate and benefits associated with equity compensation. The effective tax rate for the three months ended June 30, 2024 was higher than the U.S. statutory rate primarily due to U.S. state income taxes, offset in part by the benefit of income taxed at rates lower than the U.S. statutory rate. The effective tax rate for the nine months ended June 30, 2024 was lower than the U.S. statutory rate primarily due to discrete tax benefits associated with foreign valuation allowance adjustments, the benefits of income taxed at rates lower than the U.S. statutory rate, and tax benefits associated with equity compensation, offset in part by U.S. state income taxes.
Current wording
•Our effective tax rates were 20.1% and 20.4% for the three months ended December 31, 2025 and 2024, respectively. The effective tax rates for the three months ended December 31, 2025 and 2024 were lower than the U.S. statutory rate primarily due to the benefit of income taxed at rates lower than the U.S. statutory rate and tax benefits associated with equity compensation, offset in part by U.S. state income taxes.
Previous wording
Revenue increased by $6.4 billion, or 8.7%, and $22.7 billion, or 10.6%, from the prior year quarter and nine-month period, respectively, due to growth in both reportable segments.
Current wording
Revenue increased by $4.4 billion, or 5.5%, from the prior year quarter primarily due to growth in both reportable segments.
Previous wording
The U.S. Healthcare Solutions segment grew its revenue by $5.7 billion, or 8.5%, and $21.5 billion, or 11.1%, from the prior year quarter and nine-month period, respectively, primarily due to overall market growth largely driven by unit volume growth, including increased sales of products labeled for diabetes and/or weight loss in the GLP-1 class of $1.4 billion, or 18.6%, and $6.8 billion, or 34.4%, from the prior year quarter and nine-month period, respectively, and increased sales of specialty products to physician practices and health systems. Sales, including GLP-1 products, to our two largest customers increased by $1.4 billion and $5.6 billion from the prior year quarter and nine-month period, respectively.
Current wording
U.S. Healthcare Solutions’ revenue increased by $3.7 billion, or 5.0%, from the prior year quarter primarily due to overall market growth largely driven by unit volume growth, including increased sales of specialty products to health systems and physician practices and products labeled for diabetes and/or weight loss in the GLP-1 class of $1.0 billion, or 10.9%, offset in part by a decrease in sales due to losses of a grocery customer and an oncology customer.
Previous wording
International Healthcare Solutions' revenue increased by $0.7 billion, or 10.5%, and $1.2 billion, or 5.5%, from the prior year quarter and nine-month period, respectively, primarily due to increased sales at our European distribution business of $0.6 billion and $0.9 billion from the prior year quarter and nine-month period, respectively.
Current wording
International Healthcare Solutions’ revenue increased by $0.7 billion, or 9.6%, from the prior year quarter primarily due to increased sales at our European distribution business of $0.5 billion from the prior year quarter.
Previous wording
A number of our contracts with customers, including group purchasing organizations, are typically subject to expiration each year. We may lose a key customer if an existing contract with such customer expires without being extended, renewed, or replaced. As previously disclosed, we received a notice of non-renewal from an oncology customer, and in June 2025, our sales contract with that customer was terminated. Over the next twelve months, there are no key contracts scheduled to expire. Additionally, from time to time, key contracts may be terminated in accordance with their terms or extended, renewed, or replaced prior to their expiration dates. If those contracts are extended, renewed, or replaced at less favorable terms, they may also negatively impact our revenue, results of operations, and cash flows.
Current wording
A number of our contracts with customers, including group purchasing organizations, are typically subject to expiration each year. We may lose a key customer if an existing contract with such customer expires without being extended, renewed, or replaced. Over the next twelve months, there are no key contracts scheduled to expire. Additionally, from time to time, key contracts may be terminated in accordance with their terms or extended, renewed, or replaced prior to their expiration dates. If those contracts are extended, renewed, or replaced at less favorable terms, they may also negatively impact our revenue, results of operations, and cash flows.
Previous wording
U.S. Healthcare Solutions' gross profit increased by $483.9 million, or 31.3%, and $1,039.4 million, or 21.7%, from the prior year quarter and nine-month period, respectively, primarily due to increased sales and the January 2025 acquisition of RCA. As a percentage of revenue, U.S. Healthcare Solutions' gross profit margins were 2.79% and 2.71% in the current year quarter and nine-month period, respectively, and represent increases of 49 basis points and 23 basis points from the prior year quarter and nine-month period, respectively. The current year quarter increase of 49 basis points was primarily due to the January 2025 acquisition of RCA. The current year nine-month period increase of 23 basis points was primarily due to the January 2025 acquisition of RCA, offset in part by higher sales of GLP-1 products, which have lower gross profit margins, and lower sales of COVID vaccines, which have higher gross profit margins.
Current wording
U.S. Healthcare Solutions’ gross profit increased by $428.8 million, or 29.5%, from the prior year quarter primarily due to the January 2025 acquisition of RCA and increased sales. As a percentage of revenue, U.S. Healthcare Solutions’ gross profit margin of 2.47% in the current year quarter increased 46 basis points from the prior year quarter primarily due to the January 2025 acquisition of RCA, offset in part by higher sales of GLP-1 products, which have lower gross profit margins.
Previous wording
We recognized gains from antitrust litigation settlements with pharmaceutical manufacturers of $9.5 million and $51.6 million in the three months ended June 30, 2025 and 2024, respectively, and $231.0 million and $108.6 million in the nine months ended June 30, 2025 and 2024, respectively. The gains were recorded as reductions to Cost of Goods Sold (see Note 10 of the Notes to Consolidated Financial Statements).
Current wording
We recognized gains from antitrust litigation settlements with pharmaceutical manufacturers of $12.2 million and $22.9 million in the three months ended December 31, 2025 and 2024, respectively. The gains were recorded as reductions to Cost of Goods Sold (see Note 10 of the Notes to Consolidated Financial Statements).
Previous wording
Our cost of goods sold for interim periods includes a LIFO provision that is recorded ratably on a quarterly basis and is based on our estimated annual LIFO provision. The annual LIFO provision, which we estimate on a quarterly basis, is affected by manufacturer pricing practices, which may be impacted by market and other external influences, expected changes in inventory quantities, and product mix, many of which are difficult to predict. Changes to any of the above factors may have a material impact on our annual LIFO provision. Based on estimates in our current fiscal year LIFO provision, the LIFO credit in the current year nine-month period is lower than the LIFO credit in the prior year nine-month period primarily due to slightly higher brand pharmaceutical inflation, offset in part by higher generic pharmaceutical deflation.
Current wording
Our cost of goods sold for interim periods includes a LIFO provision that is recorded ratably on a quarterly basis and is based on our estimated annual LIFO provision. The annual LIFO provision, which we estimate on a quarterly basis, is affected by manufacturer pricing practices, which may be impacted by market and other external influences, expected changes in inventory quantities, and product mix, many of which are difficult to predict. Changes to any of the above factors may have a material impact on our annual LIFO provision. Based on estimates in our current fiscal year LIFO provision, the increase in the LIFO credit in the current year quarter is primarily due to a decline in manufacturer prices related to certain brand pharmaceutical products.
Previous wording
We recognized expense in Cost of Goods Sold of $14.8 million and $3.6 million in the three months ended June 30, 2025 and 2024, respectively, and $36.4 million and $43.9 million in the nine months ended June 30, 2025 and 2024, respectively, related to the impact of Turkey highly inflationary accounting driven by the continued weakening of the Turkish Lira.
Current wording
We recognized expense in Cost of Goods Sold of $10.9 million and $7.2 million in the three months ended December 31, 2025 and 2024, respectively, related to the impact of Türkiye highly inflationary accounting driven by the continued weakening of the Turkish Lira.
Previous wording
Distribution, selling, and administrative expenses increased by $289.7 million, or 20.9%, and $574.2 million, or 13.8%, compared to the prior year quarter and nine-month period, respectively, primarily due to the January 2025 acquisition of RCA and to support our revenue growth. As a percentage of revenue, distribution, selling, and administrative expenses were 2.07% and 2.00% in the current year quarter and nine-month period, respectively, and represent increases of 21 basis points and 6 basis points compared to the prior year quarter and nine-month period, respectively, primarily due to the January 2025 acquisition of RCA, offset in part by our improved operating leverage from our 8.7% and 10.6% revenue growth from the prior year quarter and nine-month period, respectively.
Current wording
Distribution, selling, and administrative expenses increased by $323.2 million, or 22.0%, compared to the prior year quarter primarily due to the January 2025 acquisition of RCA and to support our revenue growth. As a percentage of revenue, distribution, selling, and administrative expenses were 2.09% in the current year quarter and represents an increase of 28 basis points compared to the prior year quarter primarily due to the acquisition of RCA.
Previous wording
Depreciation expense increased 18.7% and 13.9% from the prior year quarter and nine-month period, respectively, and amortization expense decreased 23.6% and 13.5% from the prior year quarter and nine-month period, respectively. The decline in amortization expense is due to certain tradenames becoming fully amortized in connection with our company name change to Cencora and the gradual transition away from other tradenames used, which were acquired through prior acquisitions.
Current wording
Depreciation expense increased 19.1% from the prior year quarter. Amortization expense decreased 23.9% from the prior year quarter due to certain tradenames becoming fully amortized in connection with our company name change to Cencora and the gradual transition away from other tradenames used, which were acquired through prior acquisitions.
Previous wording
Acquisition-related deal and integration expenses in the three and nine months ended June 30, 2025 primarily included costs related to the acquisition of RCA, including expenses related to equity units retained by RCA physicians and members of management of $37.5 million and $74.9 million in the three and nine months ended June 30, 2025, respectively (see Note 2 of the Notes to Consolidated Financial Statements), and the continued integration of PharmaLex. Acquisition-related deal and integration expenses in the three and nine months ended June 30, 2024 primarily related to the integration of Alliance Healthcare and PharmaLex.
Current wording
Acquisition-related deal and integration expenses in the three months ended December 31, 2025 included expenses related to our acquisitions of RCA and OneOncology, costs associated with strategic alternatives of certain non-core businesses, and the continued integration of PharmaLex. Acquisition-related deal and integration expenses in the three months ended December 31, 2024 primarily included costs related to the acquisition of RCA and the integration of PharmaLex.
Previous wording
Restructuring and other expenses are comprised of the following:
Current wording
Restructuring and other expenses, net are comprised of the following:
Previous wording
Restructuring and employee severance costs in the three and nine months ended June 30, 2025 primarily included workforce reductions in both of our reportable segments. Restructuring and employee severance costs in the three and nine months ended June 30, 2024 primarily included expenses incurred related to facility closures in connection with our office optimization plan and workforce reductions in both of our reportable segments.
Current wording
Restructuring and employee severance costs, net in the three months ended December 31, 2025 primarily included costs associated with workforce reductions, offset in part by a gain on the sale of a facility. Restructuring and employee severance costs, net in the three months ended December 31, 2024 primarily included costs associated with workforce reductions.
Previous wording
Business transformation efforts in the three and nine months ended June 30, 2025 and 2024 included rebranding costs associated with our name change to Cencora and non-recurring expenses related to significant strategic initiatives to improve operational efficiency, including certain technology initiatives. The majority of these costs are related to services provided by third-party consultants.
Current wording
Business transformation efforts in the three months ended December 31, 2025 and 2024 included non-recurring expenses related to significant strategic initiatives to improve operational efficiency, including certain technology initiatives. Business transformation efforts in the three months ended December 31, 2024 also included rebranding costs associated with our name change to Cencora. The majority of these costs are related to services provided by third-party consultants.
Previous wording
U.S. Healthcare Solutions' operating income increased by $203.5 million, or 29.1%, and $464.8 million, or 20.8%, from the prior year quarter and nine month-period, respectively, primarily due to the increases in gross profit, as noted above, and were offset in part by the increases in operating expenses. As a percentage of revenue, U.S. Healthcare Solutions' operating income margins were 1.24% and 1.26% in the current year quarter and nine-month period, respectively, and represent increases of 20 basis points and 10 basis points from the prior year quarter and nine-month period, respectively, due to the increases gross profit margin, as described above in the Gross Profit section, offset in part by increases in the operating expense margin.
Current wording
U.S. Healthcare Solutions’ operating income increased by $144.4 million, or 21.0%, from the prior year quarter primarily due to the increase in gross profit, as noted above, and was offset in part by the increase in operating expenses. As a percentage of revenue, U.S. Healthcare Solutions’ operating income margin was 1.09% in the current year quarter and represents an increase of 14 basis points from the prior year quarter due to the increase gross profit margin, as described above in the Gross Profit section, offset in part by increase in the operating expense margin.
Previous wording
International Healthcare Solutions' operating income decreased by $23.2 million, or 12.9%, and $62.1 million, or 11.1%, from the prior year quarter and nine-month period, respectively. These decreases were primarily due to lower operating income at our global specialty logistics business and our specialized consulting services business.
Current wording
International Healthcare Solutions’ operating income decreased by $23.0 million, or 13.9%, from the prior year quarter primarily due to lower operating income at our European distribution business, offset in part by an increase in operating income at our global specialty logistics business.
Previous wording
Other (income) loss, net in the three months ended June 30, 2025 includes $39.7 million for our portion of an equity method investment’s gain on the sale of a business, a $27.3 million gain on the remeasurement of an equity investment, and a $26.0 million currency remeasurement gain on the deferred tax assets relating to 2020 Swiss tax reform. Other (income) loss, net in the three months ended June 30, 2024 includes a $13.3 million loss on the remeasurement of an equity investment.
Current wording
Other (income) loss, net in the three months ended December 31, 2025 includes a $14.4 million gain on the foreign currency remeasurement of Swiss deferred tax assets arising from 2020 Swiss tax reform and a $10.5 million gain on the remeasurement of an equity investment. Other (income) loss, net in the three months ended December 31, 2024 includes a $35.5 million loss on the divestiture of non-core businesses and a $15.2 million loss on the foreign currency remeasurement of Swiss deferred tax assets arising from 2020 Swiss tax reform.
Previous wording
Interest expense, net increased by $50.5 million, or 161.1%, from the prior year quarter due to the increase in interest expense, offset in part by an increase in interest income. The increase in interest expense was primarily due to the issuance of our $1.8 billion of senior notes in December 2024 and the $1.5 billion variable-rate term loan, which we borrowed in January 2025 to finance a portion of the RCA acquisition, and increased revolving credit facility borrowings to cover short-term working capital needs. The increase in interest income was driven by higher average investment cash balances in the current year quarter in comparison to the prior year quarter.
Current wording
Interest expense, net increased by $44.5 million, or 159.2%, from the prior year quarter due to the increase in interest expense and a decrease in interest income. The increase in interest expense was primarily due to the issuance of our $1.8 billion of senior notes in December 2024 and the $0.8 billion balance remaining on the variable-rate term loan, which we borrowed in January 2025 to finance a portion of the RCA acquisition, and the issuance of our €1.0 billion of senior notes in May 2025, offset in part by the repayment of our $500 million of senior notes that matured in March 2025. The decrease in interest income was primarily driven by lower investment interest rates in the current year quarter in comparison to the prior year quarter.
Previous wording
Our primary ongoing cash requirements will be to finance working capital, fund the repayment of debt, fund the payment of interest on debt, fund the payment of dividends, fund purchases of our common stock, finance acquisitions, and fund capital expenditures and routine growth and expansion through new business opportunities. Future cash flows from operations and borrowings are expected to be sufficient to fund our ongoing cash requirements, including the opioid litigation payments that will be made over the next 14 years (see below).
Current wording
Our primary ongoing cash requirements will be to finance working capital, fund the repayment of debt, fund the payment of interest on debt, fund the payment of dividends, fund purchases of our common stock, finance acquisitions, and fund capital expenditures and routine growth and expansion through new business opportunities. Future cash flows from operations and borrowings are expected to be sufficient to fund our ongoing cash requirements, including the opioid litigation payments that will be made over the next 13 years (see below).
Previous wording
As of June 30, 2025 and September 30, 2024, our cash and cash equivalents held by foreign subsidiaries were $1.0 billion and $851.3 million, respectively. We have the ability to repatriate the majority of our cash and cash equivalents held by our foreign subsidiaries without incurring significant additional taxes upon repatriation.
Current wording
As of December 31, 2025 and September 30, 2025, our cash and cash equivalents held by foreign subsidiaries were $864.6 million and $957.7 million, respectively. We have the ability to repatriate the majority of our cash and cash equivalents held by our foreign subsidiaries without incurring significant additional taxes upon repatriation.
Previous wording
Our cash balances in the nine months ended June 30, 2025 and 2024 were supplemented by intra-period credit facility borrowings to cover short-term working capital needs. The largest amount of intra-period borrowings under our revolving and securitization credit facilities that was outstanding at any one time during the nine months ended June 30, 2025 and 2024 was $5.1 billion and $3.2 billion, respectively. We had $86.1 billion and $56.7 billion of cumulative intra-period borrowings that were repaid under our credit facilities during the nine months ended June 30, 2025 and 2024, respectively.
Current wording
Our cash balances in the three months ended December 31, 2025 and 2024 were supplemented by intra-period credit facility borrowings to cover short-term working capital needs. The largest amount of intra-period borrowings that was outstanding at any one time under our revolving and securitization credit facilities during the three months ended December 31, 2025 and 2024 was $1.6 billion and $2.1 billion, respectively. We had $23.5 billion and $13.4 billion of cumulative intra-period borrowings that were repaid under our credit facilities during the three months ended December 31, 2025 and 2024, respectively.
Previous wording
During the nine months ended June 30, 2024, our operating activities provided cash of $2.5 billion and was principally the result of the following:
Current wording
During the three months ended December 31, 2025, our operating activities used cash of $2.3 billion and was principally the result of the following:
Previous wording
•An increase in inventories of $949.9 million to support the increase in business volume; and
Current wording
•An increase in inventories of $3.5 billion to support the increase in business volume and due to seasonal needs;
Previous wording
•An increase in accounts receivable of $3.1 billion primarily due to an increase in sales and the timing of scheduled payments from our customers; and
Current wording
•An increase in accounts receivable of $0.8 billion primarily due to an increase in sales and the timing of scheduled payments from our customers; and
Previous wording
•A decrease in accrued expenses of $316.7 million primarily due to the payment of accrual liabilities that were on our Consolidated Balance Sheet as of September 30, 2024, including $226.0 million of opioid litigation settlement payments.
Current wording
•A decrease in accrued expenses of $0.3 billion primarily due to the payment of accrued liabilities that were on our Consolidated Balance Sheet as of September 30, 2025.
Previous wording
The cash provided by the above items was offset in part by the following:
Current wording
The cash used in the above items was offset in part by the following:
Previous wording
•An increase in accounts payable of $4.1 billion primarily due to the increase in our inventory balances and the timing of scheduled payments to our suppliers;
Current wording
•An increase in accounts payable of $1.3 billion due to the increase in our inventory balances and the timing of scheduled payments to our suppliers;
Previous wording
•Positive non-cash items of $897.3 million, which is primarily comprised of amortization expense of $502.1 million and depreciation expense of $337.0 million.
Current wording
•Positive non-cash items of $0.5 billion, which is primarily comprised of a $0.2 billion impairment of assets, including goodwill, depreciation expense of $0.1 billion, and amortization expense of $0.1 billion.
Previous wording
During the nine months ended June 30, 2025, our operating activities provided cash of $741.7 million and was principally the result of the following:
Current wording
During the three months ended December 31, 2024, our operating activities used cash of $2.7 billion and was principally the result of the following:
Previous wording
•An increase in inventories of $835.6 million to support the increase in business volume.
Current wording
•An increase in inventories of $1.7 billion to support the increase in business volume and due to seasonal needs;
Previous wording
•An increase in accounts receivable of $977.6 million primarily due to an increase in sales and the timing of scheduled payments from our customers;
Current wording
•An increase in accounts receivable of $1.0 billion primarily due to an increase in sales and the timing of scheduled payments from our customers; and
Previous wording
The cash provided by the above items was offset in part by the following:
Current wording
The cash used in the above items was offset in part by the following:
Previous wording
•Positive non-cash items of $1.0 billion, which is primarily comprised of amortization expense of $436.8 million and depreciation expense of $367.6 million.
Current wording
•Positive non-cash items of $0.4 billion, which is primarily comprised of amortization expense of $0.2 billion and depreciation expense of $0.1 billion.
Previous wording
Our cash flows from operating activities can vary significantly from period to period based upon fluctuations in our period-end working capital account balances. Any changes to payment terms with a key customer or manufacturer supplier could have a material impact to our cash flows from operations. The addition of any new customer or the loss of an existing customer could have a material impact on our cash flows from operations.
Current wording
Our cash flows from operating activities can vary significantly from period to period based upon fluctuations in our period-end working capital account balances. Any changes to payment terms with a key customer or manufacturer supplier could have a material impact to our cash flows from operations. The addition of any new key customer or the loss of an existing key customer could have a material impact on our cash flows from operations.
Previous wording
Operating cash flows during the nine months ended June 30, 2025 included $263.1 million of interest payments and $421.4 million of income tax payments, net of refunds. Operating cash flows during the nine months ended June 30, 2024 included $197.7 million of interest payments and $408.9 million of income tax payments, net of refunds.
Current wording
Operating cash flows during the three months ended December 31, 2025 included $87.9 million of interest payments and $30.9 million of income tax payments, net of refunds. Operating cash flows during the three months ended December 31, 2024 included $48.8 million of interest payments and $29.5 million of income tax payments, net of refunds.
Previous wording
Capital expenditures in the nine months ended June 30, 2025 and 2024 were $418.2 million and $304.8 million, respectively. Significant capital expenditures in the nine months ended June 30, 2025 included investments relating to the expansion and enhancement of our distribution network and various technology initiatives. Significant capital expenditures in the nine months ended June 30, 2024 included investments in various technology initiatives, including technology investments at Alliance Healthcare.
Current wording
Capital expenditures in the three months ended December 31, 2025 and 2024 were $119.4 million and $105.9 million, respectively. Significant capital expenditures in the three months ended December 31, 2025 and 2024 included investments relating to the continued expansion and enhancement of our distribution network and various technology initiatives.
Previous wording
We currently expect to invest approximately $600 million in capital expenditures during fiscal 2025. Larger 2025 capital expenditures will include investments relating to the expansion and enhancement of our distribution network and various technology initiatives.
Current wording
We currently expect to invest approximately $900 million in capital expenditures during fiscal 2026. Larger 2026 capital expenditures will include investments relating to the continued expansion and enhancement of our distribution network and various technology initiatives.
Showing the first 40 of 60 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Our effective tax rates were 20.1% and 20.4% for the three months ended December 31, 2025 and 2024, respectively. The effective tax rates for the three months ended December 31, 2025 and 2024 were lower than the U.S. statutory rate primarily due to the benefit of income taxed at rates lower than the U.S. statutory rate and tax benefits associated with equity compensation, offset in part by U.S. state income taxes.
Current report — wording carried from elsewhere
•Net income of $0.6 billion; and
Current report — wording carried from elsewhere
•A decrease in accounts payable of $0.7 billion primarily due to the timing of scheduled payments to our suppliers.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Other (income) loss, net in the nine months ended June 30, 2025 includes $39.7 million for our portion of an equity method investment’s gain on the sale of a business, a $30.6 million gain on the remeasurement of an equity investment, a $15.7 million currency remeasurement gain on the deferred tax assets relating to 2020 Swiss tax reform, and a $35.5 million loss on the divestiture of non-core businesses. Other (income) loss, net in the nine months ended June 30, 2024 includes a $24.8 million loss on the remeasurement of an equity investment.
Previous report — wording carried elsewhere
Interest expense, net increased by $77.7 million, or 57.1%, from the prior year nine-month period due to the increase in interest expense, offset in part by an increase in interest income. The increase in interest expense was primarily due to the issuance of our $1.8 billion of senior notes in December 2024 and the $1.5 billion variable-rate term loan, which we borrowed in January 2025 to finance a portion of the RCA acquisition, and increased revolving credit facility borrowings to cover short-term working capital needs. The increase in interest income was driven by higher average investment cash balances and higher investment interest rates outside the United States in the current year nine-month period in comparison to the prior year period.