McKesson (MCK) Q1 2027 earnings summary

Executive summary

• Revenues rose 8% year-over-year to $105.4 billion, driven by growth in North American Pharmaceutical and Oncology & Multispecialty segments.

• Adjusted EPS increased 20% to $9.93, while GAAP EPS declined 18% to $5.15 due to a $293 million redemption value adjustment related to Medical-Surgical Solutions.

• Full-year adjusted EPS guidance raised to $44.20–$45.00, reflecting 13–15% growth and confidence in continued momentum.

• Significant capital returned to shareholders: $2.5 billion in share repurchases and a 15% increase in quarterly dividend to $0.94 per share.

• Advanced the planned separation of Medical-Surgical Solutions, including a 13% minority sale to Apollo Funds for $1.25 billion and rebranding as Wellverse.

Financial highlights

• Gross profit increased 13% to $3.7 billion; adjusted operating profit rose 16% to $1.65 billion.

• Net income attributable to shareholders was $614 million, down 22% year-over-year, while adjusted earnings totaled $1.18 billion, up 14%.

• Free cash flow for the quarter was negative $372 million, but trailing 12-month free cash flow remained strong at $6.1 billion.

• $2.6 billion returned to shareholders via share repurchases and dividends; quarterly dividend increased by 15%.

• Operating profit rose 16% to $1.7 billion; operating expenses increased 10% to $2.1 billion.

Outlook and guidance

• Fiscal 2027 adjusted EPS outlook raised to $44.20–$45.00, implying 13–15% growth, or 15–17% excluding certain divestitures.

• Revenue growth expected at 5–9%, operating profit growth at 9–13%.

• Segment guidance: North American Pharmaceutical revenue up 4–8%, Oncology & Multispecialty up 14.5–18.5%, Prescription Technology Solutions up 2.5–6.5%, Medical-Surgical Solutions up 1–6%.

• Free cash flow guidance for FY27 is $4.5–$4.9 billion; $5 billion in share repurchases planned.

• No GAAP EPS guidance provided due to unpredictability of certain adjustments.