Cencora Announces $1B Investment In US After Q4 Numbers Beat Estimates

Pharmaceutical solutions company Cencora (COR) announced on Wednesday that it intends to invest $1 billion through 2030 in the U.S. to expand its drug distribution network.  

The company will open its second national distribution center in Ohio and expand its presence in both Alabama and California, it said.

Expansion Efforts

The 530,000 square-foot national distribution center in Harrison, Ohio, is expected to be fully operational by spring 2027. It is expected to increase Cencora’s storage capacity and throughput significantly.

The company also plans to open a 430,000-square-foot distribution center in Fontana, California, which is expected to be fully operational by fall 2026, in addition to expanding its distribution center in Dothan, Alabama, dedicated to specialty medicines.

Specialty pharmaceuticals are used to treat complex, chronic, or rare medical conditions, and growth in this category of pharmaceuticals raises demand for specialized supply chain logistics, as many require cold chain storage, the company noted.

The expansion of the Dothan facility is expected to be completed by fall 2026. It aims to increase the facility’s refrigerated storage capacity by 500% and its frozen storage capacity by 200% to support the storage of specialty medicines.

Q4 Earnings And Guidance

Cencora on Wednesday reported fourth-quarter revenue of $83.7 billion, up 5.9% year-over-year, thanks to robust growth in the U.S. healthcare solutions segment, and above an analyst estimate of $83.35 billion, according to data from Fiscal AI.

Adjusted and diluted earnings came in at $3.84 in the quarter, beating a Wall Street estimate of $3.82.

In fiscal year 2026, the company expects its overall revenue to grow by 5% to 7% and adjusted earnings per share in the range of $17.45 to $17.75, up from the $16 reported in fiscal year 2025, and in line with a $17.50 estimate.

How Did Stocktwits User React?

On Stocktwits, retail sentiment around COR stock rose from ‘bearish’ to ‘bullish’ territory over the past 24 hours, while message volume stayed at ‘normal’ levels.

COR stock is up 53% this year and approximately 47% over the past 12 months. 

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