Cencora (COR) Financials

Cencora (NYSE:COR) has experienced solid revenue growth over the past several years, increasing from approximately $60.1 billion in Q3 2022 to about $75.5 billion in Q2 2025. This steady top-line expansion suggests the company has been successful in growing its core business.

However, gross profit margins have been somewhat pressured, with gross profit as a percentage of revenue declining from around 3.4% in Q3 2022 to roughly 4.05% in Q2 2025 but with some fluctuations in interim quarters. The cost of revenue has increased nearly in line with or faster than revenue growth at times, which warrants monitoring for margin sustainability.

Operating expenses have increased notably, highlighted by significant charges such as restructuring and special charges, especially visible in Q2 2025 ($152 million restructuring charge and $11.5 million special charges). SG&A expenses have generally risen as well, which may impact future profitability.

Net income has broadly increased over the period, rising from $363 million in Q3 2022 to $717 million in Q2 2025, with earnings per share (diluted) growing from $2.35 to $3.68. This growth reflects improved profitability despite margin pressures, aided by disciplined share repurchases reducing share count slightly.

The cash flow statements reveal strong operating cash flow generation in recent quarters, reaching $3.35 billion in Q2 2025, a significant improvement compared to negative cash flow in early 2024. However, investing activities have been cash negative driven by sizeable acquisition spendings ($3.95 billion in Q2 2025), showing an aggressive growth strategy via acquisitions. Financing activities have managed to remain negative, reflecting debt repayments outweighing issuances and share repurchase programs continuing at a meaningful level.

The balance sheet shows a large base of assets growing steadily, reaching $71.2 billion in Q2 2025 from $57.2 billion in Q3 2022. Goodwill and intangible assets have increased, indicating acquisitions have materially expanded the asset base. Total liabilities have also increased but remain roughly in line with asset growth. Common equity has improved to about $1.01 billion as of Q2 2025 from a negative position in early 2023, suggesting balance sheet strengthening.

• Consistent revenue growth from $60.1B in Q3 2022 to $75.5B in Q2 2025
• Net income more than doubled from $363M to $717M over the period
• Diluted EPS increased from $2.35 to $3.68, reflecting earnings growth and share buybacks
• Strong operating cash flow in recent quarters, $3.35B in Q2 2025
• Active debt management with repayments outweighing issuances in recent quarters
• Balance sheet strengthening with positive equity of $1.01B in Q2 2025, up from negative equity earlier
• Aggressive acquisition spending driving growth but increasing goodwill and intangible assets
• SG&A and other operating expenses have risen, impacting operating income fluctuations
• Gross profit margins under pressure due to rising cost of revenue, affecting profitability
• Significant restructuring and special charges in recent quarters, possibly indicating business challenges

In summary, Cencora has demonstrated strong revenue and earnings growth over the past several years, supported by aggressive acquisitions and improving cash flows. However, investors should be cautious regarding margin pressures, rising operating expenses, and one-time charges that may impact near-term profitability. The balance sheet appears healthy, with a trend toward positive equity after a period of weakness. Overall, long-term growth prospects seem solid though cost management will be key.