Cencora (ABG) AI Stock Analysis

Company Guidance

Cencora raised its fiscal 2026 adjusted EPS guidance to $17.75–$17.95 (from $17.70–$17.90) while leaving consolidated and U.S. Healthcare Solutions revenue guidance unchanged, noting full‑year U.S. revenue is expected to land in the lower half of the prior 4–6% growth range; International revenue is now expected to grow ~8% as‑reported (~7% constant currency) and Other revenue ~6%. Management also raised the bottom end of consolidated adjusted operating income growth to 13–14%, with U.S. Healthcare Solutions operating income now expected to grow 14.5–15.5%, International operating income ~9% (as‑reported and constant currency), and Other operating income ~10%. Below‑the‑line items were updated to net interest expense of ~ $490 million (vs. prior ~$485M) and diluted shares outstanding of ~194 million (Q3 diluted share count 193.9M after $1.0B of opportunistic repurchases at an average $268/share), while full‑year adjusted free cash flow guidance remains about $3.0B (YTD adj. FCF $1.1B) and cash was $2.8B at quarter end; management also noted $800M of RCA term‑loan repayment ($400M in Q3 and $400M in July). For fiscal 2027 modeling, the contemplated MWI–Covetrus merger (if it closed at mid‑year) would create an Other segment operating income headwind of ~$150M and an EPS headwind of roughly $0.35 (partially offset by transaction consideration).