McKesson(US:MCK) ZACKSยท2025-08-07 13:26Core Insights - McKesson Corporation reported first-quarter fiscal 2026 adjusted EPS of $8.26, exceeding estimates and reflecting a 4.8% year-over-year growth driven by strong operational performance [2][8] - The company plans to spin off its Medical-Surgical Solutions segment to enhance strategic focus and operational efficiency [12][20] Financial Performance - GAAP EPS was $6.25, a decline of 10.7% year-over-year due to increased provisions for bad debts related to Rite Aid's bankruptcy [3] - Revenues reached $97.83 billion, surpassing estimates by 1.8% and showing a 23.4% year-over-year increase, primarily from higher prescription volumes and oncology product distribution [4][8] - Adjusted gross profit was $3.26 billion, up 6.7% year-over-year, while adjusted operating income rose 16.6% to $1.56 billion [14] Segment Analysis - U.S. Pharmaceutical segment revenues totaled $89.95 billion, a 25% increase year-over-year, driven by higher prescription volumes and specialty products [6][9] - International segment revenues were $3.74 billion, up 1% year-over-year, with growth in Canadian pharmaceutical distribution [10] - Medical-Surgical Solutions segment revenues reached $2.7 billion, a 2% increase year-over-year, supported by higher specialty pharmaceutical volumes [11] Strategic Initiatives - The company made two strategic acquisitions, PRISM Vision and Core Ventures, to expand its multi-specialty platform and enhance its provider network [18] - Investments in automation and technology services are expected to improve operational leverage and meet evolving supply-chain requirements [20][21] Future Outlook - McKesson raised its EPS guidance for fiscal 2026 to a range of $37.10-$37.90, reflecting confidence in continued growth despite not providing specific sales outlooks due to the planned spin-off [16] - The upcoming Investor Day in September is anticipated to clarify long-term capital deployment and growth priorities [21]