Cencora, Inc.

Cencora is anchored in the United States, where most of its revenue is generated through the U.S. Healthcare Solutions segment and where its distribution network is most extensive. The company also operates in select global markets, with International Healthcare Solutions focused on Europe and Canada and additional exposure to other non-U.S. markets. Management disclosed that revenue from foreign operations was approximately 9% of consolidated revenue in fiscal 2025, which indicates that international business is meaningful but still secondary to the U.S. base. The company’s foreign currency exposure is concentrated in the U.K. pound sterling, euro, Turkish lira, Brazilian real and Canadian dollar, showing that international operations create both translation and transaction risk.

Cencora’s business is exposed to customer concentration and contract renewal risk because a loss of a key customer or group purchasing organization can quickly affect revenue and cash flow. The company also depends on a complex supply chain and third-party partners, so cyber incidents at suppliers, subcontractors or logistics partners could disrupt distribution and service delivery. Regulatory, legal and reputational risks are elevated in pharmaceutical distribution because the company operates in a heavily scrutinized channel and has faced opioid-related litigation and tax uncertainty. More generally, margin pressure, pricing competition, product mix shifts and foreign exchange volatility can affect results because the business combines low-margin distribution with service businesses that must scale efficiently.