McKesson Reports Fiscal 2027 First Quarter Results and Raises Full Year Adjusted EPS Guidance

IRVING, Texas, August 5, 2026 - McKesson Corporation (NYSE:MCK) today announced results for the first quarter ended June 30, 2026.

First Quarter Highlights:

• Consolidated revenues of $105.4 billion increased 8%.
• Earnings per diluted share of $5.15 decreased $1.10.
• Adjusted Earnings per Diluted Share of $9.93 increased 20%.
• McKesson’s Board of Directors approved a 15% increase to the quarterly dividend, to $0.94 per share. This marks the tenth consecutive year of dividend increases.
• McKesson returned $2.6 billion to shareholders, including $2.25 billion through the May 2026 accelerated share repurchase program.

    Fiscal 2027 Full Year Outlook:

• Raised Adjusted Earnings per Diluted Share guidance range to $44.20 to $45.00, from the previous range of $43.80 to $44.60.
• Fiscal 2027 Adjusted Earnings per Diluted Share guidance range indicates 13% to 15% growth compared to the prior year.
• The Company does not forecast GAAP earnings per diluted share¹.

“McKesson delivered a strong start to fiscal 2027, underscored by momentum across the enterprise and disciplined execution against our strategic priorities,” said Brian Tyler, chair and chief executive officer. “Our first quarter performance exceeded our expectations, highlighted by 20% growth in Adjusted Earnings per Diluted Share. It demonstrates the strength of our core distribution businesses, continued growth in oncology and multispecialty, and solid execution across our biopharma services platform. These results are a testament to the dedication of Team McKesson, whose commitment to excellence continues to drive our success and impact across healthcare. As we look ahead, we remain confident that our strategy and disciplined execution will continue to position McKesson for sustainable long-term growth and value creation.”

Fiscal 2027 First Quarter Result Summary

First quarter revenues were $105.4 billion, an increase of 8% from a year ago, driven by growth in the North American Pharmaceutical and Oncology & Multispecialty segments due to increased prescription volumes and distribution of specialty products, partially offset by lower contributions from branded pharmaceuticals.

First quarter earnings per diluted share was $5.15 compared to $6.25 a year ago, a decrease of $1.10, primarily due to a redemption value adjustment of $293 million related to redeemable non-controlling interests for the Medical-Surgical Solutions segment, partially offset by organic growth across the enterprise and the prior year pre-tax increase to the provision for bad debts of $189 million within the North American Pharmaceutical segment related to the Rite Aid bankruptcy.

First quarter Adjusted Earnings per Diluted Share was $9.93 compared to $8.26 a year ago, an increase of 20%, driven by strong operational growth, led by the North American Pharmaceutical and Oncology & Multispecialty segments, and a lower share count.

During the first three months of the fiscal year, McKesson used cash from operations of $220 million, and invested $152 million in capital expenditures, resulting in negative Free Cash Flow of $372 million.

Additionally, McKesson returned $2.6 billion of cash to shareholders, which included $2.5 billion of common stock repurchases and $102 million of dividend payments.

Business Highlights

• McKesson remains committed to a disciplined capital allocation framework, prioritizing investments in strategic growth pillars while returning excess capital to shareholders through its robust share repurchase and dividend programs.
  • In the quarter, McKesson completed $2.5 billion share repurchases, including $2.25 billion under the accelerated share repurchase program.
  • On July 21, 2026, the Board of Directors declared a 15% increase to its quarterly dividend from $0.82 per share to $0.94 per share, marking the tenth consecutive year of increases.
• McKesson continued to advance its planned separation of Medical-Surgical Solutions segment.
  • On June 1, 2026, McKesson sold an approximately 13% minority interest in its Medical-Surgical Solutions business to Apollo Funds for $1.25 billion.
  • On June 9, 2026, McKesson established a secured Term Loan B facility of $2.25 billion in support of the planned separation of Medical-Surgical Solutions segment.
  • On August 5, 2026, McKesson unveiled Wellverse as the name of the future standalone Medical-Surgical Solutions business, reflecting continued progress toward the planned separation.
• Effective August 1, 2026, Thomas L. Rodgers retired from his position as Executive Vice President, Chief Strategy and Business Development Officer. Ramesh Srinivasan assumed the role of Executive Vice President and Chief Strategy Officer.

North American Pharmaceutical Segment

• Revenues were $86.8 billion, an increase of 5%, driven by increased prescription transaction volumes, including higher volumes from specialty products, partially offset by lower contributions from branded pharmaceuticals.
• Segment Operating Profit was $903 million. Adjusted Segment Operating Profit was $894 million, an increase of 19%, driven by growth in the distribution of specialty products to health systems and strategic accounts, and the timing of new product launches.

Oncology & Multispecialty Segment

• Revenues were $14.2 billion, an increase of 33%, driven by growth in provider solutions and specialty distribution, including contributions from acquisitions.
• Segment Operating Profit was $325 million. Adjusted Segment Operating Profit was $405 million, an increase of 41%, driven by growth in provider solutions and specialty distribution, including contributions from acquisitions.

Prescription Technology Solutions Segment

• Revenues were $1.6 billion, an increase of 9%, driven by increased prescription volumes in third-party logistics and access solutions.
• Segment Operating Profit was $226 million. Adjusted Segment Operating Profit was $303 million, an increase of 13%, driven by higher demand for access solutions.

Medical-Surgical Solutions Segment

• Revenues were $2.8 billion, an increase of 4%, driven by growth across alternate sites of care, led by higher volumes of specialty pharmaceuticals.
• Segment Operating Profit was $122 million. Adjusted Segment Operating Profit was $195 million, a decrease of 20%, driven by product mix and one-time administrative expenses, partially offset by contributions from the extended care channel.

Fiscal 2027 Outlook

McKesson does not provide forward-looking guidance on a GAAP basis as the company is unable to provide a quantitative reconciliation of forward-looking Non-GAAP measures to the most directly comparable forward-looking GAAP measure, without unreasonable effort. McKesson cannot reasonably forecast LIFO inventory-related adjustments, certain litigation loss and gain contingencies, transaction related expenses and adjustments, restructuring, impairment and related charges, and other adjustments, which are difficult to predict and estimate. These items are generally uncertain and depend on various factors, many of which are beyond the company's control, and as such, any associated estimate and its impact on GAAP performance could vary materially.

McKesson is raising its fiscal 2027 Adjusted Earnings per Diluted Share guidance to $44.20 to $45.00 from the previous range of $43.80 to $44.60.

“The raise in full year Adjusted Earnings per Diluted Share outlook reflects strong first quarter performance and sustainable operational momentum. Our confidence in the business is supported by durability across the enterprise and our commitment to disciplined capital allocation,” said Kenny Cheung, executive vice president and chief financial officer.

Additional modeling considerations will be provided in the earnings call presentation.

Conference Call Details

McKesson has scheduled a conference call for today, Wednesday, August 5, 2026, at 4:30 PM ET to discuss the company’s financial results. The audio webcast of the conference call will be available live and archived on McKesson's Investor Relations website at investor.mckesson.com.

Upcoming Investor Events

McKesson management will be participating in the following investor events:

• Wells Fargo 2026 Healthcare Conference, September 8, 2026
• Morgan Stanley Healthcare Conference, September 14, 2026
• Deutsche Bank Healthcare Summit, September 16, 2026

The audio webcasts, and a complete listing of upcoming events for the investment community, including details and updates, will be available on McKesson's Investor Relations website.

Non-GAAP Financial Measures

GAAP refers to the U.S. generally accepted accounting principles. This press release includes GAAP financial measures as well as Non-GAAP financial measures, including Adjusted Gross Profit, Adjusted Operating Expenses, Adjusted Other Income, Adjusted Interest Expense, Adjusted Income Tax Expense, Adjusted Earnings, Adjusted Earnings per Diluted Share, Adjusted Segment Operating Profit, Adjusted Segment Operating Profit Margin, Adjusted Corporate Expenses, Adjusted Operating Profit, and Free Cash Flow which are financial measures not calculated in accordance with GAAP. Refer to the “Supplemental Non-GAAP Financial Information” section of the accompanying financial statement tables for the definitions and usefulness of the company’s Non-GAAP financial measures and the attached schedules for reconciliations of the differences between the Non-GAAP financial measures and their most directly comparable GAAP financial measures.

Cautionary Statements

This earnings release 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,” “should,” “seeks,” “approximately,” “intends,” “projects,” “plans,” “estimates,” “targets,” or the negative of these words or other comparable terminology. Any discussion of our intent to separate our Medical-Surgical Solutions segment into an independent company, other anticipated or completed transactions, including the anticipated closings thereof, or synergies expected therefrom, litigation outcomes, financial outlook, guidance, trends, strategy, plans, assumptions, expectations, commitments, and intentions may also include forward-looking statements. Forward-looking statements are not representations of historical or current facts or circumstances and they involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, or implied. Readers should not place undue reliance on forward-looking statements, such as financial performance forecasts, which speak only as of the date they are first made. Except to the extent required by federal securities laws, we undertake no obligation to publicly release the result of any revisions to any forward-looking statements to reflect events or circumstances after the date the statements are made, or to reflect the occurrence of unanticipated events. Although it is not possible to predict or identify all such risks and uncertainties, we encourage investors to read the risk factors described in our publicly available filings with the Securities and Exchange Commission and news releases.

These risk factors include, but are not limited to: our planned separation of Medical-Surgical Solutions is contingent upon the satisfaction of certain conditions, may not be completed on the currently contemplated terms or timeline, or at all, and, if completed, may not achieve the intended financial and strategic benefits; we experience costly and disruptive legal disputes and settlements, including regarding our role in distributing controlled substances such as opioids; we experience losses not covered by insurance or indemnification; we are subject to frequently changing, extensive, complex, and challenging healthcare and other laws and policies; we from time to time record significant charges from impairment to goodwill, intangibles, and other long-lived assets; we experience cybersecurity incidents that might significantly compromise our technology systems or might result in material data breaches; we experience significant problems with information systems or networks; the adoption and use of artificial intelligence in our business operations exposes us to risks and uncertainties; we may be unsuccessful in achieving our strategic growth objectives; we may be unsuccessful in our efforts to implement initiatives to reduce or optimize our costs; we might be unable to successfully complete or integrate acquisitions or other strategic transactions, especially in the timeframes noted; we may not receive anticipated benefits from acquisitions or other strategic transactions; we might be adversely impacted by delays or other difficulties with divestitures; we are impacted by customer purchase reductions, contract non-renewals, payment defaults, and bankruptcies; our contracts with government entities involve future funding, payment, and compliance risks; we might be harmed by changes in our relationships or contracts with suppliers; our use of third-party data is subject to risks and limitations that could impede the growth of our data services business; we might be unable to successfully recruit and retain qualified employees; we might be adversely impacted by healthcare reform such as changes in pricing and reimbursement models; we might be adversely impacted by competition and industry consolidation; we are adversely impacted by changes or disruptions in product supply and have difficulties in sourcing or selling products due to a variety of causes; we are adversely impacted as a result of our distribution of generic pharmaceuticals; we are adversely impacted by changes in the economic environments in which we operate; changes affecting capital and credit markets might impede access to credit, increase borrowing costs, and disrupt banking services for us and our customers and suppliers and might impair the financial soundness of our customers and suppliers; we might be adversely impacted by changes in tax legislation or challenges to our tax positions; and we might be adversely impacted by conditions and events outside of our control, such as widespread public health issues, natural disasters, and geopolitical factors.

About McKesson Corporation

McKesson Corporation is a diversified healthcare services leader dedicated to advancing health outcomes for patients everywhere. Our teams partner with biopharma companies, care providers, pharmacies, manufacturers, governments, and others to deliver insights, products and services to help make quality care more accessible and affordable. Learn more about how McKesson is impacting virtually every aspect of healthcare at McKesson.com and read Stories & Insights.

We routinely use our website, investor.mckesson.com, to post information that may be material to investors, such as business developments, earnings, and financial performance, as well as presentation materials and details for upcoming and past events.  

Tables and full text of earnings release also available for viewing and download in PDF format: McKesson Corporation Reports Fiscal 2027 First Quarter Results (PDF, 324 KB).