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]

McKesson's (MCK) shares have gained 4.4% following its fourth-quarter fiscal 2025 earnings release on May 9. The post-earnings upside reflects growing investor confidence in McKesson's strategic execution and long- term positioning, underpinned by record full-year revenues of $359 billion and a 20% year-over-year increase in adjusted earnings per share (to $33.05). The market's positive response highlights the strength of McKesson's transformation into a more diversified healthcare service provider with a s ...

Core Insights - McKesson reported revenue of $90.82 billion for the quarter ended March 2025, reflecting a 19% increase year-over-year, with EPS at $10.12 compared to $6.18 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $93.7 billion by 3.08%, while the EPS exceeded the consensus estimate of $9.81 by 3.16% [1] Revenue Breakdown - U.S. Pharmaceutical revenue was $83.17 billion, a 20.9% increase year-over-year, but below the average estimate of $85.79 billion [4] - Prescription Technology Solutions revenue reached $1.34 billion, up 13.5% year-over-year, slightly below the average estimate of $1.36 billion [4] - International revenue was $3.46 billion, showing a year-over-year decline of 2.5%, compared to the average estimate of $3.55 billion [4] - Medical-Surgical Solutions revenue was $2.85 billion, a 0.6% increase year-over-year, exceeding the average estimate of $2.79 billion [4] Adjusted Operating Profit - Adjusted Operating Profit for U.S. Pharmaceutical was $1.05 billion, matching the average estimate [4] - Adjusted Operating Profit for International was $102 million, surpassing the average estimate of $96.42 million [4] - Adjusted Operating Profit for Corporate was -$165 million, slightly worse than the average estimate of -$160.18 million [4] - Adjusted Operating Profit for Prescription Technology Solutions was $285 million, exceeding the average estimate of $267.80 million [4] - Adjusted Operating Profit for Medical-Surgical Solutions was $285 million, slightly above the average estimate of $283.33 million [4] Stock Performance - McKesson's shares returned +7.5% over the past month, underperforming compared to the Zacks S&P 500 composite's +11.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]