MCK Q3 Earnings & Sales Top Estimates, 2026 View Up

Core Insights - McKesson Corporation (MCK) reported third-quarter fiscal 2026 adjusted earnings per share (EPS) of $9.34, exceeding the Zacks Consensus Estimate of $9.31 by 0.3%, and reflecting a year-over-year improvement of 16.3% driven by strong operational growth and acquisitions in the Oncology & Multispecialty segment [1][7] Revenue Details - Revenues reached $106.16 billion, surpassing the Zacks Consensus Estimate by 0.5%, and increased by 11.4% year over year, primarily due to higher prescription volumes from retail national account customers and growth in oncology and specialty product distribution [2][7] - The North American Pharmaceutical segment generated revenues of $88.3 billion, up 9% year over year, attributed to increased prescription volumes and specialty products [5] Segmental Analysis - The Oncology & Multispecialty segment reported revenues of $13 billion, a significant increase of 37% year over year, driven by growth in provider solutions and specialty distribution, along with contributions from acquisitions [8] - The Prescription Technology Solutions segment's revenues totaled $1.5 billion, up 9% year over year, supported by increased prescription volumes in third-party logistics and technology services [9] - The Medical-Surgical Solutions segment generated revenues of $3 billion, a modest increase of 1% year over year, with adjusted operating profit down 10% due to reduced volumes in physician office settings [10] Financial Performance - Adjusted gross profit was $3.66 billion, reflecting a year-over-year increase of 9.6%, while adjusted operating income rose 13.4% to $1.81 billion, with an operating margin of 1.9%, expanding nearly 22 basis points year over year [11] - Cash and cash equivalents stood at $2.96 billion, down from $4 billion in the previous quarter, with cumulative net cash provided by operating activities amounting to $2.73 billion [12] Fiscal 2026 Guidance - McKesson raised its EPS guidance for fiscal 2026 to a range of $38.80-$39.20 from the previous $38.35-$38.85, and expects total revenue growth of 12-16%, up from the prior guidance of 11-15% [13][16] Strategic Developments - The company is progressing towards the spin-off of its Medical-Surgical Solutions business, expected to be completed by the second half of calendar 2027, and has divested its retail and distribution businesses in Norway, marking its exit from European operations [15]