Market Context: Q4 2025 Overview
Global equity markets concluded the fourth quarter of 2025 on a positive trajectory, with European markets leading gains followed by Emerging Markets. Across most regions, large-cap stocks outperformed their small-cap counterparts. The period was marked by a prolonged trade truce between the United States and China for an additional year; however, global geopolitical concerns persisted regardless of tariff status.
Economic data showed that third-quarter GDP exceeded expectations, yet consumer caution remained high due to softening in the labor market. These factors influenced the Federal Reserve's stance on interest rate cuts. Amidst this backdrop, TimesSquare Capital Management released its "U.S. Focus Growth Strategy" fourth-quarter 2025 investor letter.
The strategy posted a gross return of -3.55% and a net return of -3.76% for the quarter, slightly outperforming the Russell Midcap Growth Index, which returned -3.70%. For the full year of 2025, the strategy achieved returns of 14.84% (gross) and 13.88% (net), compared to 8.66% for the index.
Cencora's Performance and Strategic Positioning
TimesSquare Capital specifically highlighted Cencora, Inc. (NYSE: COR) in its Q4 letter. As an American pharmaceutical sourcing and distribution company, Cencora saw its stock close at $331.74 per share on March 19, 2026. While the stock experienced a one-month return of -8.13%, it has gained 24.05% over the past 52 weeks and currently holds a market capitalization of $64.534 billion.
The firm noted that Cencora's shares rose 8% during the quarter. The company's fiscal fourth-quarter earnings surpassed consensus estimates, with strength in its U.S. operations compensating for a miss in international business. Additionally, management announced it is considering strategic alternatives for the animal health and non-core segments of its PharmaLex business.
Regarding their investment thesis, TimesSquare stated:
"Our preferred Health Care stocks are companies that provide novel therapies for unmet needs and command premium pricing, or specialized service providers. Cencora, Inc. (NYSE:COR), a pharmaceutical sourcing and distribution company, gained 8%. Fiscal fourth-quarter earnings outpaced consensus estimates, with strength in the U.S. offsetting a miss in international business. Management also announced that it is considering strategic alternatives for the animal health and non-core parts of its PharmaLex business."
Hedge Fund Activity and Future Outlook
Despite Cencora's performance, it was not included on the list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. However, hedge fund interest remains steady; according to database records, 61 hedge fund portfolios held Cencora at the end of Q4, an increase from 59 in the previous quarter.
In the first quarter of fiscal 2026, Cencora's consolidated revenue grew 5.5% year-over-year to $85.9 billion, fueled by solid growth across both reportable segments. While acknowledging Cencora's investment potential, TimesSquare noted that certain AI stocks currently offer greater upside potential with less downside risk.
Takeaway
Cencora (COR) delivered an 8% gain in Q4 2025 driven by strong U.S. earnings and strategic reviews of its PharmaLex business, though hedge fund ownership saw only a marginal increase to 61 portfolios.
Original source
Here’s Why Cencora (COR) Shares Rose 8% in Q4
Published: Mar 20, 2026
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