Can Cencora’s (COR) Dividend Hike Offset Investor Concerns Over Goodwill Impairment Charges?

• Cencora, Inc. recently announced its full-year results for the period ended September 30, 2025, reporting US$321.33 billion in sales and net income of US$1.55 billion, but also disclosed a fourth-quarter net loss of US$339.7 million mainly due to very large goodwill impairment charges related to PharmaLex.
• Despite the quarterly loss, the company raised its quarterly dividend by 9% to US$0.60 per share, signaling confidence in its long-term financial outlook.
• To understand Cencora’s future prospects, we will explore how the outsized goodwill impairment impacts the company’s investment narrative and risk profile.

Find companies with promising cash flow potential yet trading below their fair value.

Cencora Investment Narrative Recap

To be a Cencora shareholder, you need to believe in its ability to grow earnings through specialty drug distribution and digital healthcare infrastructure, despite thin margins in generics and biosimilars. The recent goodwill impairment deepened Q4 losses but does not materially change the key short-term catalysts, such as specialty drug momentum, or the biggest risk, which is further margin pressures from low-fee products and increased competition.

Among the latest developments, the 9% dividend increase to US$0.60 per share is the most relevant, as it underscores Cencora’s continued commitment to returning capital to shareholders despite recent one-off losses and impairment charges. This move may also reflect the Board’s confidence in the underlying cash flow and resilience of the business, tying directly into the main investment catalysts around growth in higher-margin services and disciplined capital allocation.

In contrast, investors should also be aware that rising competition among specialty distributors and ongoing margin headwinds from generics could impact Cencora’s long-term profitability if...

Read the full narrative on Cencora (it's free!)

Cencora's narrative projects $385.4 billion in revenue and $3.3 billion in earnings by 2028. This requires 6.8% yearly revenue growth and a $1.4 billion increase in earnings from $1.9 billion today.

Uncover how Cencora's forecasts yield a $338.29 fair value, a 6% downside to its current price.

Exploring Other Perspectives

Fair value targets from four Simply Wall St Community members range from US$298.46 to US$716.90, reflecting sharply different outlooks. While opinions diverge, many participants are weighing margin risks from generics and increased competition as key watchpoints for Cencora’s performance.

Explore 4 other fair value estimates on Cencora - why the stock might be worth as much as 99% more than the current price!

Build Your Own Cencora Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Cencora research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Cencora research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cencora's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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