EarningsQ1 2027 Earnings Report
MX:MCK Q1 2027 EPS Results
Actual EPS$178.79
Consensus EPS$172.14
Beat/MissBeat by +$6.64
One Year Ago EPS$148.72
MX:MCK Q1 2027 Revenue Results
Actual Revenue$1.90T
Expected Revenue$1.87T
Beat/MissBeat by +$27.10B
YoY Revenue Growth+7.72%
Earnings Announcement Details
QuarterQ1 2027
Date08/05/2026
TimeAfter Close
Conference CallWednesday, August 5, 2026
MX:MCK Upcoming Earnings
McKesson's next earnings date is estimated for November 4, 2026, based on past reporting schedules.
Q1 2027 Earnings Call Audio
MX:MCK Q1 2027 Earnings Call
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Q1 2027 Earnings Slide Deck
Q1 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call communicated strong operational momentum: double-digit EPS growth, an 8% revenue increase to $105.4B, broad-based segment strength (notably Oncology & Multispecialty and North American Pharmaceuticals), improved gross profit and operating leverage, a raised full-year EPS guide, active capital returns (large buyback and dividend increase), and continued strategic progress on the MedSurg separation and tech/AI initiatives. Lowlights included a quarterly negative free cash flow readout (seasonal but improved vs prior year), a 20% decline in MedSurg operating profit, financing-related interest expense and GAAP remeasurement charges, and macro/regulatory uncertainties (WAC reductions, branded-to-generic conversions, 340B/IRA policy risks). Overall, the positive operational and financial beats and raised guidance materially outweigh the noted one-offs, financing costs, and policy risks.Company Guidance
Top-Line and EPS Outperformance
Revenues increased 8% year-over-year to $105.4 billion and adjusted EPS rose 20% to $9.93, both results exceeded expectations. Management raised full-year adjusted EPS guidance to $44.20–$45.00 (implying ~13–15% adjusted EPS growth).
Strong Gross Profit and Operating Profit
Gross profit grew 13% to $3.7 billion. Operating profit for the quarter was $1.7 billion, with three reporting segments delivering double-digit operating profit growth.
North America Pharmaceuticals Momentum
North American Pharmaceuticals revenues were $86.8 billion, up 5% year-over-year. Segment operating profit increased 19% to $894 million. GLP-1 medication distribution revenues were ~$15 billion, up ~$3 billion (approx. +24% YoY) and +13% sequentially.
Oncology & Multispecialty Rapid Growth
Oncology & Multispecialty revenues rose 33% to $14.2 billion; excluding the Core Ventures acquisition the growth was ~24%. Segment operating profit increased 41% to $405 million (ex-Core Ventures operating profit growth ~15%).
Prescription Technology Solutions Expansion
Prescription Technology Solutions revenues increased 9% to $1.6 billion and operating profit grew 13% to $303 million, driven by higher prescription volumes and demand for access/prior authorization services.
Balance Sheet, Liquidity and Capital Returns
Ended the quarter with $5.2 billion in cash and ~$10 billion total liquidity. Returned $2.6 billion to shareholders in the quarter (including $2.5 billion of repurchases). Repurchased $2.5 billion of shares (including $2.25 billion ASR at an average price ≈ $755). Board approved a 15% increase to the quarterly dividend (10th consecutive annual increase).
Free Cash Flow Trailing 12 Months and FCF Guidance
Trailing 12-month free cash flow remained strong at approximately $6.1 billion. Management reiterated FY27 free cash flow guidance of ~$4.5–$4.9 billion.
Progress on Strategic Initiatives and Investments
Advanced portfolio separation of Medical Surgical Solutions (MedSurg), completed Apollo minority investment and $2.25B term loan B to support stand-alone capital structure. Broke ground on a new regional distribution center in Moore, OK (expected +75% throughput vs prior facility). Hosted enterprise AI training and delivered a production-ready external data connection in 1 business day, highlighting tech/AI execution.
Positive Segment Guidance
Raised / maintained FY27 segment outlooks: consolidated revenue growth 5–9%, operating profit growth 9–13%. Specific segment outlooks include NAP revenue +4–8%, Oncology & Multispecialty revenue +14.5–18.5%, RxTS revenue +2.5–6.5%.
MX:MCK Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed