McKesson Corporation posted a strong topline for QQ1 2026 with revenue of $97.827 billion, up 23.39% year over year and 7.71% quarter over quarter, reflecting continued scale and demand in its diversified healthcare platform. Despite robust revenue, reported profitability showed mixed dynamics: gross profit reached $3.279 billion for a gross margin of 3.35%, while operating income was $1.036 billion (about 1.06% operating margin) and net income was $0.784 billion (0.80% net margin). Year-over-year and quarter-over-quarter comparisons point to ongoing margin pressure versus prior periods, contributing to a subdued earnings trajectory (EPS $6.28; diluted $6.25). The quarter also featured material cash flow headwinds: operating cash flow was negative at $(0.918) billion and free cash flow was $(1.029) billion, with working capital movements and acquisitions driving cash consumption. The balance sheet shows substantial leverage and a negative book equity position despite a very large asset base, underscoring structural financing and capital allocation considerations going into the next quarters. Overall, the core business remains large and diversified across US and international distributions and RxTS enabled services, but near-term profitability and liquidity dynamics warrant close monitoring of working capital, debt levels, and cost discipline.