McKesson Corporation 8-K
PositiveEarningsGuidance raised
Higher prescription volumes and specialty distribution fuel North American Pharmaceutical and Oncology & Multispecialty growth, lifting the adjusted EPS outlook.
Filed 2026-08-05 16:06 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q1 FY2027 results with a raised FY2027 adjusted EPS outlook. Revenue grew 8%, while GAAP diluted EPS declined 18%; adjusted diluted EPS rose 20% on operational growth and a lower share count. McKesson raised its full-year adjusted EPS range, citing strong Q1 performance and operational momentum.
Key Figures
| Metric | Q1 FY27 | Q1 FY26 | Y/Y |
|---|---|---|---|
| Revenue | $105B | $97.8B | 8% |
| Operating income | $1.32B | $1.04B | 27% |
| Net income attributable to McKesson Corporation | $614M | $784M | -22% |
| Adjusted Earnings (non-GAAP) | $1.18B | $1.04B | 14% |
| Diluted EPS attributable to McKesson Corporation | $5.15 | $6.25 | -18% |
| Adjusted diluted EPS (non-GAAP) | $9.93 | $8.26 | 20% |
| Operating cash flow | $(220)M | $(918)M | n/m |
| Free cash flow (non-GAAP) | $(372)M | $(1.11)B | n/m |
- Revenue growth was driven by North American Pharmaceutical and Oncology & Multispecialty, including higher prescription volumes and specialty distribution. GAAP EPS included a $293M redemption-value adjustment for redeemable noncontrolling interests; adjusted EPS growth reflected operational gains in those segments and a lower share count.
- Shareholder returns totaled $2.6B, including $2.53B in repurchases ($2.25B through an accelerated repurchase) and $102M in dividends. Diluted weighted-average shares fell 5%, to 119.2M from 125.5M. The quarterly dividend increased 15%, from $0.82 to $0.94 per share.
- McKesson sold Apollo Funds an approximately 13% minority interest in Medical-Surgical Solutions for $1.25B and established a $2.25B secured Term Loan B facility to support the planned separation; the future standalone business was named Wellverse. Quarter-end cash was $5.16B, and total debt carrying value was $9.73B, up from $6.53B at 3/31/2026.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Adjusted diluted EPS (non-GAAP) | FY2027 | $44.20-$45.00; 13%-15% Y/Y growth | $43.80-$44.60 | Raised |
The raise reflects strong Q1 performance and sustainable operational momentum. McKesson does not provide forward-looking GAAP EPS guidance.
Investor Takeaways
- FY2027 adjusted diluted EPS relative to the raised $44.20-$45.00 range will test whether the Q1 momentum continues.
- Watch progress toward the planned Medical-Surgical Solutions separation, which remains subject to conditions and may not close on the contemplated timeline or at all.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3