McKesson Corporation
MCK
$808.62 -0.68%
Exchange: NYSE | Sector: Healthcare | Industry: Medical Distribution
Q1 2026
Published: Aug 6, 2025

Earnings Highlights

  • Revenue of $97.83B up 23.4% year-over-year
  • EPS of $6.25 decreased by 10.9% from previous year
  • Gross margin of 3.4%
  • Net income of 784.00M
  • "We delivered record consolidated revenues of $97.8 billion, an increase of 23% over the prior year. Adjusted operating profit increased 9% to $1.4 billion. Three of our segments delivered double-digit growth in adjusted operating profit." - Brian S. Tyler
MCK
McKesson Corporation

Executive Summary

McKesson reported a robust start to fiscal 2026, delivering record consolidated revenues of $97.8 billion, up 23% year over year, and adjusted operating profit of $1.4 billion, up 9%. Three of its four segments posted double-digit adjusted operating profit growth, underpinning management’s decision to raise full-year EPS guidance to $37.10-$37.90. The quarter featured strong growth in U.S. Pharmaceutical, led by GLP-1 prescriptions and the onboarding of a strategic customer, along with meaningful contributions from the acquisitions of PRISM Vision and Core Ventures in the oncology and multispecialty platforms. Pharmacy technology services (RxTS) also posted double-digit revenue and profit gains, aided by higher third-party logistics volumes and prior authorization programs.

Management framed the quarter as a foundation for durable, long-range growth, supported by strategic portfolio actions (PRISM Vision and Core Ventures) and a disciplined capital deployment program (debt issuance, share repurchases, and a dividend increase). The company also signaled ongoing portfolio optimization, including the planned separation of the Medical-Surgical segment and the exit of the Norway operation (held-for-sale accounting), which is expected to contribute modestly to EPS in fiscal 2026 while preserving long-term value creation. Near-term execution remains focused on automation, scale efficiencies, and expanding high-growth platforms (oncology, biopharma services, and RxTS) to drive operating leverage and cash flow.

Overall, the quarter demonstrates McKesson’s resilience and strategic repositioning to accelerate growth in high-value healthcare services while managing portfolio changes and policy dynamics. Investors should monitor: (1) the trajectory of RxTS volumes and GLP-1 programs, (2) integration progress and revenue/operating profit contribution from PRISM Vision and Core Ventures, (3) the held-for-sale impact from Norway, (4) the evolving regulatory/policy landscape (e.g., MSN discussions) and (5) the company’s ongoing capital return and alignment with free cash flow targets.

Key Performance Indicators

Revenue
Increasing
97.83B
QoQ: 7.71% | YoY: 23.39%
Gross Profit
Increasing
3.28B
3.35% margin
QoQ: -9.89% | YoY: 10.93%
Operating Income
Decreasing
1.04B
QoQ: -34.88% | YoY: -2.36%
Net Income
Decreasing
784.00M
QoQ: -37.78% | YoY: -14.32%
EPS
Decreasing
6.28
QoQ: -37.57% | YoY: -10.92%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2026 97,827.00 6.25 +23.4% View
Q4 2025 90,823.00 10.01 +19.0% View
Q3 2025 95,294.00 6.94 +17.8% View
Q2 2025 93,651.00 1.86 +21.3% View
Q1 2025 79,283.00 7.00 +6.4% View