McKesson Q2 revenue slightly beats estimates, helped by increased prescription volumes

Overview

• US healthcare distributor's fiscal Q2 revenue rose 8%, slightly beating analyst expectations

• Adjusted EPS for fiscal Q2 rose 18%, beating analyst expectations

• Company raised full-year adjusted EPS guidance, citing operational strength and strategic investments

Outlook

• McKesson raises fiscal 2027 adj EPS guidance to $45.60-$46.40 from $44.20-$45.00

• Company expects fiscal 2027 adj EPS growth of 17% to 19% over prior year

Result Drivers

• SEGMENT GROWTH - Co said revenue growth was driven by increased prescription volumes and specialty product distribution in North American Pharmaceutical and Oncology & Multispecialty segments

• OPERATIONAL PERFORMANCE - Adjusted EPS growth attributed to strong operational growth across North American Pharmaceutical, Oncology & Multispecialty, and Prescription Technology Solutions segments, and a lower share count

• SPECIALTY PRODUCTS - Growth in distribution of specialty products to health systems and strategic accounts contributed to higher segment operating profit

Company press release: Full Story

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for McKesson Corp is $1,018.50, about 1.9% above its November 3 closing price of $999.62

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 18 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)