McKesson (MCK) Q1 2027 earnings summary

Executive summary

• Revenue for Q1 FY27 rose 8% to $105.4B, driven by North American Pharmaceutical and Oncology & Multispecialty growth, while adjusted EPS increased 20% to $9.93 and GAAP EPS declined 18% to $5.15 due to a $293M charge related to Medical-Surgical Solutions.

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

• Board approved a 15% dividend increase to $0.94 per share, marking the tenth consecutive annual increase.

• $2.6B was returned to shareholders, including $2.5B in share repurchases and $102M in dividends.

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

Financial highlights

• Gross profit rose 13% to $3.7B; operating profit up 16% to $1.7B.

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

• Operating expenses increased 10% to $2.1B; adjusted operating margin was 1.57%.

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

• Diluted weighted-average shares outstanding decreased 5% year-over-year.

Outlook and guidance

• FY27 adjusted EPS guidance raised to $44.20–$45.00, up from $43.80–$44.60, representing 13–15% growth.

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

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

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

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