Will GLP-1 Demand Drive MCK's Top Line This Earnings Season?

Core Viewpoint - McKesson Corporation is set to report its first-quarter fiscal 2026 results, with expectations of revenue growth driven by the adoption of GLP-1 weight loss drugs and demand for specialty pharmaceuticals [1][2]. Revenue Growth - Revenue growth has been significantly influenced by the rapid adoption of GLP-1 weight loss drugs and sustained demand for branded pharmaceuticals [2]. - The rising demand for specialty pharmaceuticals has also played a crucial role in revenue expansion [2]. Segment Performance - The U.S. Pharmaceutical segment is expected to continue its steady growth, driven by strong demand for specialty pharmaceuticals, particularly oncology treatments [5]. - The Prescription Technology Solutions segment is projected to see revenues of $1.31 billion, reflecting a 5.7% year-over-year improvement, supported by strong demand for technology services [12]. - The Medical Surgical Solutions segment is estimated to generate $2.74 billion, indicating a 3.9% year-over-year increase, aided by a rebound in primary care visits [14]. Earnings Estimates - The Zacks Consensus Estimate for earnings is $8.23 per share, representing a 4.4% year-over-year improvement, while revenue estimates are pegged at $96.1 billion, indicating a 21.2% year-over-year surge [4]. Challenges - The sale of European operations and divestments in Canada may negatively impact sales [8]. - Lower distribution volumes of COVID-19 vaccines and changes in formularies could weigh on segmental performance [9][10]. - Margin pressures from low-margin GLP-1 sales and increased costs may limit earnings upside [10].