McKesson beats Q1 2027 estimates with EPS $9.93, revenue $105.4B, beating internal targets and raising FY27 EPS outlook to $44.20–$45.00
| Metric | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $359.05B | $308.95B | $276.71B | $263.97B | $238.23B | $231.05B | $214.32B | $208.36B |
| Cost of Revenue | $346.57B | $296.75B | $264.84B | $251.32B | $226.65B | $219.65B | $203.56B | $197.97B |
| Gross Profit | $12.48B | $12.20B | $11.87B | $12.65B | $11.58B | $11.40B | $10.76B | $10.39B |
| Gross Margin | 3.48% | 3.95% | 4.29% | 4.79% | 4.86% | 4.93% | 5.02% | 4.99% |
| Operating Expenses | $8.11B | $8.28B | $7.42B | $9.93B | $8.07B | $8.39B | $7.68B | $7.47B |
| Operating Income | $4.37B | $3.93B | $4.45B | $2.72B | $3.51B | $3.01B | $3.08B | $2.92B |
| Operating Margin | 1.22% | 1.27% | 1.61% | 1.03% | 1.47% | 1.30% | 1.44% | 1.40% |
| Net Income | $3.29B | $3.00B | $3.56B | $1.11B | $-4.54B | $900.00M | $34.00M | $67.00M |
| Net Margin | 0.92% | 0.97% | 1.29% | 0.42% | -1.91% | 0.39% | 0.02% | 0.03% |
| EPS (Basic) | $25.86 | $22.54 | $25.23 | $7.31 | $-27.02 | $4.97 | $0.17 | $0.32 |
| EBITDA | $5.25B | $4.67B | $5.74B | $3.11B | $-3.60B | $2.31B | $1.82B | $1.47B |
| Stock Option Compensation Expense | $0.00 | $0.00 | $162.00M | $161.00M | $0.00 | $0.00 | $0.00 | $69.00M |
| Price To Earnings Ratio | 26.02 | 23.80 | 14.11 | 41.85 | -6.90 | 27.20 | 686.13 | 437.33 |
| Price To Sales Ratio | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Shares Outstanding | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Market Capitalization | $85.74B | $71.46B | $50.24B | $46.62B | $31.32B | $24.48B | $23.33B | $29.30B |
| Metric | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|
| Cash & Short Term Investments | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Short Term Receivables | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Inventories | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Other Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Net Property, Plant & Equipment | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Investments and Advances | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Long-Term Note Receivable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Intangible Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Deferred Tax Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Other Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Assets | $75.14B | $67.44B | $62.32B | $63.30B | $65.02B | $61.25B | $59.67B | $60.38B |
| Short Term Debt Incl. Current Port. of LT Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Payable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax Payable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Other Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Long Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Provision for Risks Charges | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Deferred Tax Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Other Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Liabilities | $76.83B | $69.04B | $63.81B | $65.09B | $63.57B | $54.54B | $49.99B | $48.87B |
| Non-Equity Reserves | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Preferred Stock - Carrying Value | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Common Equity | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Shareholders Equity | $-2.07B | $-1.97B | $-1.86B | $-2.27B | $-21.00M | $5.09B | $8.09B | $9.80B |
| Accumulated Minority Interest | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $-2.07B | $-1.97B | $-1.86B | $-2.27B | $-21.00M | $5.09B | $8.09B | $9.80B |
| Total Liabilities & Stockholders Equity | $75.14B | $67.44B | $62.32B | $63.30B | $65.02B | $61.25B | $59.67B | $60.38B |
| Book Value Per Share | $-13.30 | $-12.00 | $-10.56 | $-11.77 | $9.00 | $37.08 | $49.31 | $55.37 |
| Tangible Book Value Per Share | $-103.45 | $-103.91 | $-97.19 | $-87.34 | $-68.03 | $-32.07 | $-17.15 | $-16.88 |
| Full-Time Employees | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price to Book Ratio | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Return on Assets | 4.39% | 4.45% | 5.71% | 1.76% | -6.98% | 1.47% | 0.06% | 0.11% |
| Return on Equity | -158.87% | -152.31% | -191.71% | -49.03% | 21614.29% | 17.67% | 0.42% | 0.68% |
| Return on Invested Capital | 23.30% | 21.22% | 22.92% | 11.46% | 13.72% | 14.80% | 5.73% | 13.50% |
| Quick Ratio | 0.53 | 0.51 | 0.51 | 0.57 | 0.59 | 0.60 | 0.58 | 0.57 |
| Current Ratio | 0.90 | 0.92 | 0.92 | 0.95 | 1.03 | 0.99 | 1.02 | 1.01 |
| Metric | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|
| Net Income | $3.29B | $3.00B | $3.56B | $1.11B | $-4.54B | $900.00M | $34.00M | $67.00M |
| Depreciation | $636.00M | $635.00M | $857.00M | $1.00B | $1.22B | $922.00M | $949.00M | $951.00M |
| Other Funds (Non Cash) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Funds from Operations | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Extraordinary Item | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Changes in Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Taxes Payable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Cash from Operating Activities | $6.08B | $4.31B | $5.16B | $4.43B | $4.54B | $4.37B | $4.04B | $4.34B |
| Capital Expenditures | $859.00M | $687.00M | $558.00M | $535.00M | $641.00M | $506.00M | $557.00M | $580.00M |
| Net Assets From Acquisitions | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Sale of Fixed Assets and Businesses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Purchase or Sale of Investments | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Purchase of Investments | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Sale Or Maturity of Investments | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Other Uses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Other Sources | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Cash from Investing Activities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Cash Dividends Paid | $345.00M | $314.00M | $292.00M | $277.00M | $276.00M | $294.00M | $292.00M | $262.00M |
| Change in Capital Stock | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Repurchase of Common Pref Stock | $3.15B | $3.02B | $3.64B | $3.52B | $742.00M | $1.93B | $1.64B | $1.71B |
| Sale of Common Pref Stock | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Proceeds from Stock Options | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Issuance or Reduction of Debt, Net | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Change in Long Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Issuance of Long Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Reduction of Long Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Net Financing Active Other Cash Flow | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Other Financing Activities Uses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Cash from Financing Activities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Exchange Rate Effect | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Net Change in Cash | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Free Cash Flow | $5.23B | $3.63B | $4.60B | $3.90B | $3.90B | $3.87B | $3.48B | $3.77B |
| Preferred Dividends (Cash Flow) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price to Free Cash Flow | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Company coverage
McKesson Corporation is a prominent global provider of healthcare services, operating extensively in both the United States and international markets. Its diverse operations are strategically organized into four key business segments. The U.S. Pharmaceutical division plays a crucial role in the distribution of a comprehensive array of pharmaceutical products, encompassing branded, generic, specialty, biosimilar, and over-the-counter medications, alongside other health-related merchandise. This segment also delivers specialized support to community-based oncology and other specialty medical practices through practice management tools, technology solutions, clinical guidance, and broader business services. Furthermore, it assists pharmacies with consulting, outsourcing, and technology services, while also furnishing financial, operational, and clinical software solutions. Internationally, the company's dedicated segment provides distribution and support services to wholesale, institutional, and retail clients across 13 European nations and Canada. The Medical-Surgical Solutions unit is focused on supplying healthcare providers with essential medical-surgical products, sophisticated logistics management, and a variety of associated services. Finally, the Prescription Technology Solutions (RxTS) segment is designed to address complex medication challenges for patients. It collaborates with biopharmaceutical companies and life sciences partners to improve patient journeys, leveraging innovative solutions for medication access and adherence by connecting pharmacies, healthcare providers, payers, and biopharma entities. This segment further offers third-party logistics and wholesale distribution assistance. Founded in 1833, McKesson Corporation maintains its corporate headquarters in Irving, Texas.
Why it moved over time
McKesson Corporation raised fiscal 2027 adjusted EPS guidance after beating fiscal Q1 estimates thanks to specialty and oncology growth, improving its profit outlook and prompting investor reassessment.
Key fact: Reported fiscal Q1 adjusted EPS of $9.93 and raised full-year adjusted EPS guidance.
businesswire.com: McKesson Reports Fiscal 2027 First Quarter Results and Raises Full Year Adjusted EPS GuidanceMcKesson reported Q1 adjusted EPS of $9.93, topped estimates and raised its full-year adjusted EPS guidance after stronger oncology and specialty drug performance, an earnings-driven catalyst for the stock.
Key fact: Q1 adjusted EPS $9.93 (beat $9.44 estimate) and company raised its annual profit/adjusted EPS guidance citing specialty and oncology strength.
gurufocus.com: McKesson Corp (MCK) (Q1 2027) Earnings Call Highlights: Robust Revenue Growth and Raised Guidance Signal Strong MomentumThe likely catalyst is impending Q1 (quarter ended June 2026) results, with focus on AI-driven efficiency and specialty/oncology momentum offset by pricing dynamics that could temper revenue and guide expectations.
Key fact: Previews highlight AI-driven efficiency and specialty/oncology growth, while pricing dynamics may temper Q1 revenues versus Wall Street estimates.
zacks.com: Can AI-Driven Efficiency and Specialty Demand Boost MCK's Q1 Results?Zacks previews and Wall Street estimate coverage tie investor focus to McKesson's upcoming Q1 (June 2026) results, highlighting AI-driven efficiency, specialty and oncology momentum that could drive earnings expectations.
Key fact: Zacks cites AI-driven efficiency, specialty demand and oncology growth, while noting pricing dynamics may temper revenues ahead of McKesson's Q1 (ended June 2026) report.
zacks.com: Can AI-Driven Efficiency and Specialty Demand Boost MCK's Q1 Results?