McKesson (MCK) Q3 2026 earnings summary

Executive summary

• Quarterly revenue reached $106.2 billion, up 11% year-over-year, with double-digit growth in adjusted EPS and net income, driven by Oncology, Biopharma Services, and North American distribution.

• Adjusted EPS for the quarter was $9.34, up 16% year-over-year; diluted EPS rose to $9.59 from $6.95, including a pre-tax credit from the Rite Aid bankruptcy.

• Raised fiscal 2026 adjusted EPS guidance to $38.80–$39.20, reflecting 17%–19% growth over the prior year.

• Completed the divestiture of Norwegian operations, finalizing the exit from Europe, and advanced the separation of the Medical-Surgical Solutions segment toward an IPO by the second half of 2027.

• Continued investment in technology, automation, and AI to drive operational efficiency and enhance customer and employee experiences.

Financial highlights

• Consolidated revenues increased 11% to $106.2 billion for the quarter and 15% to $307.1 billion for the first nine months.

• Gross profit rose 10% to $3.7 billion; adjusted gross profit was $3.66 billion, up 10% year-over-year.

• Net income attributable to shareholders rose 35% to $1.19 billion; adjusted net income was $1.16 billion, up 14% year-over-year.

• Free cash flow for the quarter was $1.1 billion; trailing twelve months free cash flow reached $9.6 billion.

• Returned $2.4 billion to shareholders in the first nine months, including $2.1 billion in share repurchases and $280 million in dividends.

Outlook and guidance

• Fiscal 2026 adjusted EPS guidance raised to $38.80–$39.20, indicating 17%–19% growth; revenue growth expected at 12%–16%, and operating profit growth at 13%–17%.

• Segment revenue growth outlook: North American Pharmaceutical 10%–14%, Oncology & Multispecialty 29%–33%, Prescription Technology Solutions 9%–13%, Medical-Surgical Solutions at the lower end of 2%–6%.

• Free cash flow outlook for fiscal 2026 is $4.4–$4.8 billion; planned share repurchases of $2.5 billion.

• Guidance includes $0.09 from year-to-date gains on equity investments.

• Management expects available cash, operating cash flow, and access to credit to be sufficient for short- and long-term needs.