Cencora Stock: Legal Peril Versus Operational Strength

Pharmaceutical distributor Cencora, formerly known as AmerisourceBergen, presents investors with a stark dichotomy. The company's shares are caught between a resurgent multi-billion dollar lawsuit and a set of remarkably strong quarterly results, creating a classic conflict between robust fundamentals and existential legal risk.

Defying the surrounding legal turmoil, Cencora's core business operations demonstrated significant strength in the third quarter of 2025. The company reported impressive financial metrics that surpassed expectations:

• Revenue climbed 9% to $80.7 billion
• Adjusted operating profit surged 21%
• Adjusted earnings per share increased by 20%

This robust performance was primarily fueled by the company's domestic operations in the United States. In contrast, its international segment faced headwinds, recording a 13% decline in profit. Despite this mixed geographic performance, management expressed sufficient confidence to raise its full-year 2025 earnings guidance to a range of $15.85 to $16.00 per share.

A Multi-Billion Dollar Legal Threat Resurfaces

While the business operations thrive, a legal nightmare from the past has reemerged with renewed force. In late October 2025, a federal appeals court reinstated a massive $2.5 billion lawsuit against the company. The litigation alleges that Cencora, along with fellow distributors McKesson and Cardinal Health, contributed to the opioid crisis in West Virginia.

Should investors sell immediately? Or is it worth buying AmerisourceBergen?

This ruling overturns a previous legal victory for the wholesalers, who had been absolved of liability by a lower court in 2022. The companies must now once again confront the possibility of being held financially responsible for addiction treatment and prevention programs.

The appellate court's case centers on specific accusations that Cencora supplied tens of thousands of suspicious orders over a five-year period to a single pharmacy in West Virginia, while reporting only a fraction of these orders to the U.S. Drug Enforcement Administration (DEA). The body of evidence presented appears substantial.

The Investor's Dilemma

The central question for the market is whether Cencora's strong operational foundation can withstand the potential financial hurricane of the lawsuit. The stock now faces a critical test, pulled in opposite directions by its profitable core business on one side and the threat of crippling financial penalties on the other. For shareholders, the situation has become a matter of conviction: should they trust in the company's demonstrated operational strength, or retreat from the unquantifiable risks posed by the litigation?