McKesson’s first quarter results fell short of analyst revenue expectations, with management attributing the shortfall to lower branded pharmaceutical revenues, including manufacturer price declines and a sequential dip in GLP-1 medication volumes. Despite these headwinds, sales grew year over year, supported by strength in specialty pharmaceutical distribution and expanded provider networks in oncology and multispecialty. CEO Brian Tyler acknowledged the impact of the Inflation Reduction Act’s initial wave of branded price changes on revenue, but highlighted double-digit operating profit growth in core segments and the successful integration of recent acquisitions as key drivers of the quarter’s performance. Tyler emphasized ongoing efficiency improvements and the company’s ability to maintain service reliability even during disruptive winter weather.
Is now the time to buy MCK? Find out in our full research report (it’s free for active Edge members).
McKesson (MCK) Q1 CY2026 Highlights:
- Revenue: $96.3 billion vs analyst estimates of $101.6 billion (6% year-on-year growth, 5.3% miss)
- Adjusted EPS: $11.69 vs analyst estimates of $11.57 (1.1% beat)
- Adjusted EBITDA: $1.92 billion vs analyst estimates of $1.89 billion (2% margin, 1.7% beat)
- Adjusted EPS guidance for the upcoming financial year 2027 is $44.20 at the midpoint, in line with analyst estimates
- Operating Margin: 2.2%, in line with the same quarter last year
- Market Capitalization: $88.61 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From McKesson’s Q1 Earnings Call
- Allen Lutz (Bank of America): Asked if slower growth in Prescription Technology Solutions was due to variability in third-party logistics revenue. CFO Britt Vitalone explained that the segment’s revenue is heavily influenced by the timing of product launches, but operating profit is supported by continued demand for access and affordability programs.
- Lisa Gill (JPMorgan): Inquired about organic versus inorganic growth in oncology and multispecialty. Vitalone clarified that organic growth remains strong and recent acquisitions are well integrated, with weather impacts having recovered within the quarter.
- Erin Wilson Wright (Morgan Stanley): Questioned utilization trends in the North American Pharmaceutical segment. Vitalone indicated that prescription utilization has remained stable over multiple quarters, with specialty products driving segment growth.
- Elizabeth Anderson (Evercore ISI): Asked about the impact of biosimilar transitions and how they are factored into guidance. Vitalone highlighted that biosimilars offer lower costs and more options for providers and patients, with McKesson positioned to support both Part B and Part D channels.
- Daniel Grosslight (Citi): Queried the decline in free cash flow guidance and capital deployment priorities. Vitalone attributed the change to working capital timing and reaffirmed that capital deployment would prioritize both growth initiatives and continued share repurchases.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will focus on (1) the pace of provider network expansion, particularly in oncology and multispecialty platforms; (2) progress toward the separation and independent operation of Medical-Surgical Solutions; and (3) the impact of biosimilar launches and branded drug pricing changes on both revenue and margins. Continued adoption of automation and AI-driven technologies will also be closely monitored as potential catalysts for efficiency gains.
McKesson currently trades at $734.54, down from $754.76 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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