McKesson Q1 Earnings Call Highlights

McKesson raised its fiscal 2027 outlook after a stronger-than-expected first quarter, with revenue up 8% to $105.4 billion and adjusted EPS up 20% to $9.93. The company now expects adjusted EPS of $44.20 to $45.00 for the full year.

North American Pharmaceutical led results , while GLP-1 distribution revenue surged 24% year over year to $15 billion. Oncology & Multispecialty and Prescription Technology Solutions also delivered double-digit operating-profit growth.

McKesson advanced the planned separation of its Medical-Surgical Solutions business under the Wellverse brand, while returning $2.6 billion to shareholders through buybacks and dividends and raising its quarterly dividend 15%.

McKesson NYSE: MCK reported fiscal first-quarter 2027 results that exceeded its expectations, citing broad-based momentum across its operating businesses and prompting the healthcare services company to raise its full-year adjusted earnings outlook. Revenue rose 8% to $105.4 billion, while adjusted diluted earnings per share increased 20% to $9.93.

Chair and CEO Brian Tyler said three reporting segments posted double-digit operating-profit growth, supported by stable utilization, volume growth and the company’s portfolio of healthcare distribution, specialty and technology services.

“Our first quarter performance reflects the continued momentum across the enterprise and reinforces our confidence in our strategy and the durability of our operating model,” Tyler said.

McKesson raised its fiscal 2027 adjusted EPS outlook to a range of $44.20 to $45.00, from prior guidance of $43.80 to $44.60. The revised outlook implies adjusted EPS growth of 13% to 15%, excluding the impact of the Norway divestiture and a fiscal 2026 gain tied to the sale of an equity investment within The US Oncology Network.

The company expects fiscal-year revenue growth of 5% to 9% and operating-profit growth of 9% to 13%. North American Pharmaceutical revenue increased 5% to $86.8 billion. The segment’s operating profit rose 19% to $894 million, driven by specialty distribution growth, including health systems and strategic accounts, as well as the timing of new product launches.

Chief Financial Officer Kenny Cheung said higher prescription volumes and specialty-product volumes supported revenue growth, partly offset by lower branded-drug pricing following wholesale acquisition cost reductions in January 2026 and branded-to-generic conversions. Cheung said branded pricing declines did not have a meaningful effect on operating profit because more than 95% of McKesson’s branded-drug business is fee-for-service.

GLP-1 medication distribution revenue totaled $15 billion during the quarter, up approximately $3 billion, or 24%, from the prior year. Revenue from GLP-1 products rose 13% sequentially. Tyler said the company continues to see growth in both the cash-pay and covered segments of the GLP-1 market.

For the full year, McKesson expects North American Pharmaceutical revenue growth of 4% to 8% and operating-profit growth at the high end of its previous 5.5% to 9.5% range. The company said its forecast includes accelerated investments during the second half of fiscal 2027, focused on growth and artificial intelligence, with returns expected to begin in fiscal 2028.

Oncology & Multispecialty revenue rose 33% to $14.2 billion, while operating profit climbed 41% to $405 million.