MCKESSON (MCK) Company Report

McKesson reported 10% revenue growth, 26% adjusted operating profit growth and 39% adjusted EPS growth in Q2, driving an upward revision of its full-year guidance.
The company increased its FY26 adjusted operating income contribution from Prism Vision and Florida Cancer Center to $280–320 million from $220–270 million, with Prism expected to deliver $0.20–0.30 per share accretion in year one.
McKesson is expanding its oncology and vision platforms—now servicing over 3,300 oncologists (up 119% since 2017)—integrating distribution, GPO, data and clinical trial services to capture a white-space opportunity.
The planned tax-free separation of its Medical business is on track: carve-out audits are complete, TSAs are in place, and an IPO is targeted for Q2 or H2 FY2027.

10 hours ago

Transcript

McKesson raises fiscal 2026 guidance after strong Q2 performance

MCK

Guidance Update

McKesson reported 10% revenue growth, 26% adjusted operating profit growth, and 39% adjusted EPS growth in Q2, prompting a full-year EPS guidance raise to $38.35–$38.85 (16–18% growth; ex-venture gain: 18–20% operating profit growth)
The company emphasized continued GLP-1 volume growth and its strong position in Rx Technology Solutions for prior authorization and affordability services, with capabilities ready for an oral-solid drug transition in 2026
Prism Vision, acquired in Q1, is on track for $0.20–$0.30 EPS accretion in year one and $0.65–$0.75 by year three, bolstered by the Spokane Eye Clinic addition of 27 providers
McKesson is investing in AI-powered logistics and automation to improve operational efficiency and margins across its distribution network and RxTS segment
Seasonality and tax rate updates include a weaker U.S. illness season (impacting medical supplies), a full-year tax rate of 18–19%, Q3 rate of 23–25%, and higher H2 investments in RxTS

10 hours ago

Transcript

McKesson raises FY26 guidance after strong Q2 results at Evercore HealthCONx

MCK

Guidance Update

New Projects/Investments

Revenue Acceleration/Inflection

McKesson delivered 10% Q2 revenue growth, 26% adjusted operating profit increase, and 39% adjusted EPS growth, enabling a further upward revision of its full-year guidance to $38.35–$38.85 per share.
The company reports continued robust GLP-1 prescription growth; its Rx Technology Solutions business drives prior authorization and affordability services across all major GLP-1 brands.
First-year earnings accretion from the Prism Vision acquisition is maintained at $0.20–$0.30 (targeting $0.65–$0.75 by year three), underpinning McKesson’s expansion in oncology and vision care platforms.
McKesson achieved 500 bps of year-over-year operating leverage in Q2 (totaling 1,200 bps over five years) through automation and AI investments in distribution centers, call centers, and clinical tools.
Full-year tax rate guidance was increased to 18–19% (with Q3 at 23–25%), and a weak illness season was noted as dampening trends in the medical segment.

11 hours ago

Transcript

McKesson details Pharma margin gains and platform expansion at UBS Healthcare Conference

MCK

Guidance Update

New Projects/Investments

North American Pharmaceutical margins have strengthened thanks to consistent utilization growth, demographic trends, expanded specialty mix, and technology investments driving sourcing scale and OPEX leverage.
Operational excellence initiatives, including a newly opened 90%-automated distribution center and early-stage AI deployments, have improved operating expense leverage by over 1,000 basis points in five years.
The oncology and multispecialty platform now spans 3,350 providers in 27 states with the addition of Florida Cancer Specialists, targeting a $115 billion opportunity (including $80 billion in drug distribution) and expanding clinical trial services via the Sarah Cannon Research Institute.
McKesson’s Rx Technology Solutions infrastructure—CoverMyMeds, Central Fill as a Service, and Biologics pharmacy—positions it to support any shift toward direct-to-consumer distribution or lower-priced GLP-1 launches, though impact remains uncertain.
Full-year adjusted EPS guidance of $38.35–$38.85 (16–18% growth; 18–20% excluding Ventures gains) assumes an 18–19% tax rate (Q3 at 23–25%), with H2 lapsing certain 2024 benefits in Canada and a prior strategic customer onboarding.

Nov 10, 2025, 2:30 PM

Transcript

McKesson highlights segment strategies and automation gains at UBS Healthcare Conference

MCK

Guidance Update

New Projects/Investments

M&A

North American Pharma margins bolstered by a mix shift toward specialty drugs and “fair value” pricing negotiated with manufacturers, leveraging McKesson’s scale, sourcing capabilities, and service breadth.
Operational expense leverage improved by over 1,000 basis points in five years through ongoing operational excellence programs and technology investments.
Automation and AI initiatives include a newly opened 90% automated distribution center in Ohio and a company-wide leadership push to identify further efficiency gains via AI deployment.
GLP-1 pricing reforms are not expected to materially impact McKesson, as the company earns a fixed service fee regardless of drug price and direct-to-consumer volumes remain modest.
2025 adjusted EPS guidance reaffirmed at $38.35–$38.85 (up 16–18%; 18–20% ex-Ventures gains); projected tax rate of 23–25% in Q3 and 18–19% full-year.

Nov 10, 2025, 2:30 PM

Transcript

McKesson discusses operational and strategic updates at UBS Healthcare Conference 2025

MCK

New Projects/Investments

North American Pharmaceutical margins strengthened via demographic-driven utilization, increased specialty mix and automation, with operating expense leverage improving over 1,000 bps over five years.
Automation and AI: opened a 90% automated Ohio distribution center and convening 150 leaders to accelerate AI integration across operations for additional efficiency gains.
Oncology platform expanded to 3,350 providers in 27 states; McKesson targets a $115 billion total opportunity—$80 billion in drug distribution plus clinical trial and data services.
New investment focus on high-innovation, high-spend therapeutic areas—prioritizing oncology and retina ophthalmology platforms based on pipeline analysis.
Prescription solutions (CoverMyMeds, specialty pharmacy) positioned for lower-priced GLP-1 launches with fixed service fees; expects stable or increased volume despite pricing shifts.

Nov 10, 2025, 2:30 PM

Transcript

McKesson reports Q2 2026 results

MCK

Earnings

Guidance Update

Share Buyback

Record second-quarter revenue of $103 billion (up 10% YoY) and adjusted EPS of $9.86 (up 39%).
Strong segment performance: oncology & multi-specialty revenues $12 billion (+32%) with operating profit $397 million (+71%); North American pharmaceuticals revenues $86.5 billion (+8%) with operating profit $851 million (+13%); prescription technology and medical-surgical segments also expanded margins.
Maintained full-year fiscal 2026 guidance, raising adjusted EPS to $38.35–$38.85, and forecasting free cash flow of $4.4–$4.8 billion alongside $2.5 billion of share repurchases.
Advanced strategic initiatives: implemented a new reporting structure for growth platforms , enhanced supply-chain automation and Drug Supply Chain Security Act compliance , and set a plan to spin off the medical-surgical business by H2 2027.

Nov 5, 2025, 9:30 PM

Transcript

McKesson announces Q2 FY26 earnings

MCK

Earnings

Guidance Update

Share Buyback

McKesson delivered Q2 FY26 revenue of $103.2 billion, up 10% YoY, and adjusted EPS of $9.86, up 39% YoY.
North American Pharmaceutical revenue of $86.48 billion (+8%), Oncology & Multispecialty revenue of $12.04 billion (+32%), and Prescription Technology Solutions revenue of $1.38 billion (+9%).
Q2 operating cash flow of $2.42 billion and free cash flow of $2.22 billion, increases of 109% and 233% YoY, respectively.
Raised fiscal 2026 adjusted EPS guidance to $38.35–$38.85 (16–18% growth) and plans $2.5 billion in share repurchases with $6.1 billion remaining authorization.

Nov 5, 2025, 9:30 PM

Presentation

McKesson reports Q2 2026 results

MCK

Earnings

Guidance Update

Share Buyback

McKesson delivered record quarterly revenue of $103 billion (up 10% YoY) and adjusted EPS of $9.86 (up 39% YoY).
North American Pharmaceuticals segment generated $86.5 billion in revenues (+ 8% YoY), including $13.2 billion from GLP-1 medications (+ 24% YoY); Oncology & Multi-specialty revenues rose 32% to $12 billion, with operating profit up 71% to $397 million.
Raised fiscal 2026 adjusted EPS guidance by $0.30 to $38.35–$38.85 (implying 16–18% growth), with revenue growth now expected at 11–15% and operating profit growth at 12–16%.
Ended the quarter with $4 billion in cash, generated $2.2 billion of free cash flow, and returned $907 million to shareholders via $818 million of share repurchases and $89 million in dividends.

Nov 5, 2025, 9:30 PM

Transcript

McKesson reports Q2 2026 results

MCK

Earnings

Guidance Update

Share Buyback

EPS rose 39% to $9.86, driven by core operational performance, PRISM and Core Ventures acquisitions, net gains, and a lower effective tax rate.
Revenues: North American Pharma $86.5 B (+8%); GLP-1 drugs $13.2 B (+24% YoY, +6% seq.); Oncology & Multispecialty $12 B (+32%); Rx Technology Solutions $1.4 B (+9%); Medical-Surgical Solutions $2.9 B (flat).
Operating profit: North American Pharma $851 M (+13%); Oncology & Multispecialty $397 M (+71%); Rx Technology Solutions $261 M (+20%); Medical-Surgical Solutions $249 M (+2%).
Liquidity and cash flow: $4 B cash on hand; Q2 free cash flow $2.2 B (incl. $196 M CapEx); returned $907 M via $818 M share repurchases and $89 M dividends.
FY26 guidance raised to $38.35–$38.85 EPS (16–18% growth), with revenue growth of 11–15% and operating profit growth of 12–16%.

Nov 5, 2025, 9:30 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for MCKESSON.

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