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]

McKesson Corporation Third Quarter Fiscal 2026 Earnings Call February 4, 2026 1 © 2026 McKesson Corporation. All rights reserved. Cautionary Statements Cautionary Statements In an effort to provide additional and useful information regarding the Company's financial results and other financial information as determined by generally accepted accounting principles (GAAP), certain materials in this presentation include non-GAAP information. The Company believes the presentation of non-GAAP measures provides use ...

McKesson Corporation J.P. Morgan Healthcare Conference January 13, 2026 Brian Tyler Chief Executive Officer 1 © 2026 McKesson Corporation. All rights reserved. Cautionary Statements Cautionary Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward- looking statements may be identified by their use of terminology such as "believes," "expects," "anticipates," "may," "will," ...

Core Insights - McKesson Corporation (MCK) reported strong fiscal second-quarter results, with consolidated revenues of $103 billion, reflecting a 10% year-over-year growth, and adjusted earnings per diluted share increasing by 39% to $9.86 [1][7] - The company raised its full-year adjusted EPS guidance to $38.35-$38.85, indicating a projected growth of 16-18% year over year, supported by broad-based execution and operating leverage [2][7] Short-Term Growth Drivers - Growth in the near term is expected to be driven by strength in North American Pharmaceutical distribution, accelerating specialty volumes, and rising contributions from prescription technology services [3] - The North American Pharmaceutical segment achieved an 8% revenue growth in the fiscal second quarter, bolstered by solid utilization trends and increased specialty distribution, particularly in GLP-1 medications, which generated $13.2 billion in quarterly revenues [3] - The Oncology and Multispecialty segment emerged as a significant catalyst, with revenues growing by 32% year over year and operating profit surging by 71% due to strong organic provider growth and contributions from acquisitions [4] Long-Term Growth Drivers - McKesson's long-term growth strategy focuses on scaling differentiated specialty platforms and deepening integration within the biopharma and provider ecosystem [9] - Key markets identified for growth include oncology, multispecialty care, and biopharma services, which are benefiting from rising drug complexity and increased demand for integrated solutions [9] - Investments in technology and automation are critical for long-term growth, with a focus on distribution automation, AI-enabled workflows, and cloud-based platforms to enhance efficiency and margin expansion [10][11] Competitive Landscape - Cardinal Health (CAH) is diversifying beyond core distribution and is progressing faster in transitioning to platform-based specialty services compared to McKesson, although it lacks McKesson's scale in oncology networks [13] - Cencora (COR) is pursuing higher-margin specialty solutions but is less integrated in provider services compared to McKesson [14] - CVS Health (CVS) participates in specialty distribution but operates within a more diversified payer-provider model, contrasting with McKesson's focus on specialty distribution and biopharma services [15] Conclusion - McKesson's fiscal second-quarter performance reinforces its position as a high-quality compounder in healthcare services, with strong near-term execution and rising earnings guidance providing visibility through fiscal 2026 [22] - Long-term investments in oncology, multispecialty platforms, and technology are expected to support durable growth beyond the current cycle, despite some operational complexities and regulatory uncertainties [22]

Core Insights - McKesson Corporation reported strong adjusted earnings per share (EPS) of $9.86 for Q2 fiscal 2026, exceeding estimates by 10.5% and showing a year-over-year increase of 39.5% driven by operational growth and acquisitions [1] - Total revenues reached $103.15 billion, a 10.1% increase year-over-year, but fell short of estimates by 1.4% [3] - The company raised its fiscal 2026 EPS guidance to $38.35-$38.85, reflecting confidence in demand and growth across its segments [15] Revenue and Earnings Performance - Adjusted EPS of $9.86 beat the Zacks Consensus Estimate of $8.92, with GAAP EPS reported at $8.92 compared to $1.87 in the prior year [1][2] - Revenues of $103.15 billion increased by 10.1% year-over-year, driven by higher prescription volumes and growth in oncology and specialty products [3] - The North American Pharmaceutical segment generated $86.48 billion in revenue, up 8.1% year-over-year, attributed to increased prescription volumes [7] Segment Analysis - The Oncology & Multispecialty segment reported revenues of $12.04 billion, a significant increase of 31.5% year-over-year, with adjusted operating profit rising 71.1% to $397 million [9] - The Prescription Technology Solutions segment saw revenues of $1.38 billion, up 8.8% year-over-year, with adjusted operating profit increasing 19.7% to $261 million [10] - The Medical-Surgical Solutions segment's revenues remained flat at $2.95 billion, with adjusted operating profit up 2.5% to $249 million [11] Financial Metrics - Adjusted gross profit was $3.53 billion, an increase of 8.9% year-over-year, representing 3.4% of net revenues [12] - Adjusted operating income rose 24.9% to $1.57 billion, with an operating margin of 1.5%, expanding nearly 18 basis points year-over-year [13] - Cash and cash equivalents increased to $4 billion from $2.42 billion in the previous quarter, with cumulative net cash from operating activities at $1.5 billion [14] Strategic Initiatives - McKesson is modernizing its distribution through automation and compliance with DSCSA, enhancing its operational capabilities [18] - The company is advancing its portfolio transformation, including plans to spin off the Medical-Surgical Solutions business by the second half of calendar 2027 [18] - New capabilities in high-complexity therapies and rising demand for automated access tools are expected to drive future growth [17]

Core Insights - McKesson reported revenue of $103.15 billion for the quarter ended September 2025, reflecting a year-over-year increase of 10.1% [1] - The earnings per share (EPS) was $9.86, up from $7.07 in the same quarter last year, resulting in an EPS surprise of +10.54% compared to the consensus estimate of $8.92 [1] Revenue Performance - Prescription Technology Solutions revenue was $1.38 billion, slightly below the average estimate of $1.39 billion, with a year-over-year increase of +8.8% [4] - Medical-Surgical Solutions revenue was $2.95 billion, matching a 0% change year-over-year, but below the estimated $3.02 billion [4] - Oncology & Multispecialty revenue reached $12.04 billion, slightly exceeding the estimate of $12.02 billion [4] - Other revenue was reported at $302 million, surpassing the average estimate of $269 million [4] - North American Pharmaceutical revenue was $86.48 billion, below the estimated $88.02 billion [4] Adjusted Operating Profit - Adjusted Operating Profit for Medical-Surgical Solutions was $249 million, slightly above the estimate of $246.33 million [4] - Adjusted Operating Profit for Prescription Technology Solutions was $261 million, exceeding the estimate of $245.96 million [4] - Adjusted Operating Profit for North American Pharmaceutical was $851 million, significantly above the estimate of $772.24 million [4] - Adjusted Operating Profit for Oncology & Multispecialty was $397 million, above the estimate of $356.64 million [4] - Adjusted Operating Profit for Corporate was reported at -$151 million, better than the estimate of -$166.06 million [4] - Adjusted Operating Profit for Other was $25 million, exceeding the estimate of $13.11 million [4] Stock Performance - McKesson shares have returned +12.2% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for further outperformance in the near term [3]

Core 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]

Core Insights - McKesson reported $97.83 billion in revenue for the quarter ended June 2025, a year-over-year increase of 23.4% [1] - The EPS for the same period was $8.26, compared to $7.88 a year ago, with a surprise of +0.36% over the consensus estimate [1] Revenue Breakdown - U.S. Pharmaceutical revenue was $89.95 billion, exceeding the average estimate of $87.36 billion, with a year-over-year change of +25.4% [4] - Prescription Technology Solutions revenue reached $1.43 billion, surpassing the $1.35 billion estimate, reflecting a +15.6% year-over-year change [4] - International revenue was $3.74 billion, slightly above the $3.67 billion estimate, representing a +1.3% change year-over-year [4] - Medical-Surgical Solutions revenue was $2.7 billion, matching the estimate, with a +2.5% year-over-year change [4] Adjusted Operating Profit - Adjusted Operating Profit for U.S. Pharmaceutical was $950 million, below the average estimate of $965.96 million [4] - Adjusted Operating Profit for International was $99 million, slightly below the $100.22 million estimate [4] - Adjusted Operating Profit for Medical-Surgical Solutions was $244 million, exceeding the estimate of $215.97 million [4] - Adjusted Operating Profit for Prescription Technology Solutions was $269 million, above the $249.95 million estimate [4] - Adjusted Operating Profit for Corporate was -$138 million, worse than the average estimate of -$108.6 million [4] Stock Performance - McKesson shares returned -2% over the past month, while the Zacks S&P 500 composite increased by +0.5% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential outperformance in the near term [3]

Financial Performance - Revenues reached $97.8 billion, a 23% increase year-over-year[11] - Adjusted Earnings per Diluted Share increased by 5% to $8.26[11] - The company is raising its Fiscal 2026 Adjusted Earnings per Diluted Share outlook to a range of $37.10 to $37.90[11] Segment Results - U.S Pharmaceutical revenues increased by 25% to $89.954 billion, with adjusted segment operating profit up by 17% to $950 million[15] - Prescription Technology Solutions revenues grew by 16% to $1.434 billion, and adjusted segment operating profit increased by 21% to $269 million[16] - Medical-Surgical Solutions revenues increased by 2% to $2.701 billion, with adjusted segment operating profit up by 22% to $244 million[17] Capital Allocation - The Board of Directors approved a 15% increase in the quarterly dividend[11] - Approximately $2.5 billion is anticipated for share repurchases in Fiscal Year 2026[27]

Core Insights - McKesson's shares increased by 4.4% following its Q4 fiscal 2025 earnings release, reflecting investor confidence in its strategic execution and long-term positioning, supported by record revenues of $359 billion and a 20% year-over-year increase in adjusted earnings per share to $33.05 [1][2][10] - The company's transformation into a diversified healthcare service provider focusing on high-growth, high-margin segments has led to its shares outperforming the industry and broader Medical sector [1][10] Financial Performance - McKesson reported full-year revenues of $359 billion, with a 20% increase in adjusted earnings per share to $33.05 [1] - Since the earnings release, McKesson's shares have outperformed the industry growth of 3.8% and the broader Medical sector's growth of 1% [1] Strategic Growth Initiatives - McKesson's growth strategy is anchored by four pillars: Oncology, Biopharma services, Specialty distribution, and AI-enabled solutions, which are designed to capture market opportunities and enhance shareholder value [5] - The expansion of the U.S. Oncology Network now includes over 2,700 providers at 645 sites across 31 states, with a focus on value-based care [6] - The Prescription Technology Solutions segment has automated processes to prevent prescription abandonments and improve medication access, positioning it as a high-margin engine [7] Market Position and Competitive Landscape - McKesson's specialty distribution expertise provides resilience against macroeconomic fluctuations, with a focus on new therapies in oncology, immunology, and gene therapy [8] - The company faces competition from Cencora and Cardinal Health, which are expanding their specialty operations and enhancing their service offerings [12] Technological Advancements - McKesson is integrating AI into customer interactions and supply chain operations, which is expected to improve operational efficiency and reduce costs [9] - The use of AI has automated over 20% of patient-support chats, maintaining satisfaction levels comparable to human agents [9] Stock Performance and Outlook - McKesson's stock is trading above key support levels, indicating sustained investor confidence and bullish market sentiment [10] - The share price is currently 0.6% below its all-time high of $728.32, with strong fundamentals suggesting potential for further gains [15] - Despite a higher valuation compared to its industry, McKesson's Zacks Value and Growth scores of 'A' indicate an attractive entry point for investors [16]