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Earnings Analysis

Healthcare

Summary

Cencora reported Q2 results with 3.8% revenue growth and a 129% EPS increase, but shares fell sharply, apparently due to a revenue miss.

Despite a forward P/E of ~14 and manageable debt, COR faces thin margins, client concentration risks, and headwinds from biosimilars and drug price reductions.

Management remains confident, targeting $3B in free cash flow and $1B in share repurchases for 2026, with ongoing M&A to expand specialty services.

I view the recent sell-off as an overreaction, presenting a 'buy the dip' opportunity given COR's robust fundamentals and undervaluation.

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Investment Overview

Cencora, Inc.…