McKesson Corporation's Revenue Surges 23% in Q1 Fiscal 2026

McKesson Corporation (NYSE:MCK) reported a robust start to its fiscal year, with first-quarter revenues reaching $97.8 billion, marking a significant 23% increase compared to the previous year's $79.283 billion. Despite the strong revenue growth, net income attributable to McKesson Corporation for the quarter stood at $784 million, a 14% decrease from $915 million in the prior year. This decline was primarily attributed to a $189 million pre-tax increase in the provision for bad debts within the U.S. Pharmaceutical segment, related to the Rite Aid bankruptcy. Adjusted Earnings per Diluted Share, however, saw a 5% increase, rising to $8.26 from $7.88 year-over-year, exceeding the analyst estimate of $8.23.

Key Business Drivers

The company's substantial revenue growth was largely propelled by the U.S. Pharmaceutical segment, which saw a 25% increase in revenues to $90.0 billion. This surge was driven by heightened prescription volumes from retail national account customers and an expansion in the distribution of oncology and specialty products, including contributions from recent acquisitions. The Prescription Technology Solutions segment also contributed positively, with revenues increasing 16% to $1.4 billion, primarily due to increased prescription volumes in third-party logistics and technology services. Its Adjusted Segment Operating Profit grew 21%, driven by higher demand for access solutions.

Strategic Acquisitions and Operational Highlights

McKesson continued to execute its strategic initiatives, completing two significant acquisitions during the quarter. On April 1, 2025, the company acquired an 80% controlling interest in PRISM Vision Holdings, LLC, a prominent provider in ophthalmology and retina management services. Subsequently, on June 2, 2025, McKesson completed the acquisition of a 70% controlling interest in Core Ventures, which led to Florida Cancer Specialists & Research Institute, LLC (FCS) joining The US Oncology Network, expanding its provider base to approximately 3,300. Furthermore, McKesson's Board of Directors approved a 15% increase in the quarterly dividend to $0.82 per share, marking the ninth consecutive year of dividend increases.

Management Outlook

Based on the strong first-quarter performance and confidence in the remainder of the fiscal year, McKesson has raised its fiscal 2026 Adjusted Earnings per Diluted Share guidance to a range of $37.10 to $37.90, up from the previous range of $36.90 to $37.70. This updated guidance reflects an anticipated $0.20 of Adjusted Earnings per Diluted Share accretion from the announced sale of its retail and distribution businesses in Norway to NorgesGruppen. The company's leadership expressed gratitude to employees for their dedication, emphasizing their instrumental role in driving performance and creating sustainable value for stakeholders.