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McKesson reported a strong fiscal 2026 with double-digit revenue, operating profit and EPS growth, robust cash generation and material progress on strategic initiatives (oncology expansion, biopharma scale, supply chain modernization, and Medical‑Surgical separation). The company is returning significant capital to shareholders and reaffirmed long‑term targets. Offsetting risks include branded pricing pressure (IRA effects), sequential GLP‑1 volatility, ongoing integration and corporate expense investments, and near‑term cash flow/interest impacts related to separation financing. On balance the positives (broad-based growth, margin expansion, cash returns, strategic progress) outweigh the negatives, though the business faces near-term variability and execution/approval risks tied to the Medical‑Surgical separation.
McKesson guided fiscal 2027 adjusted earnings per diluted share of $43.80–$44.60 (12%–14% y/y; excluding a $1B Norway revenue and a $51M gain implies 14%–16% growth), with consolidated revenue growth of 5%–9% and adjusted operating profit up 8%–12%. By segment the company expects North American Pharmaceutical revenue +4%–8% and operating profit +5.5%–9.5%; Oncology & Multispecialty revenue +14.5%–18.5% and operating profit +13.5%–17.5%; Prescription Technology Solutions revenue +2.5%–6.5% and operating profit +11%–15%; Medical‑Surgical Solutions revenue +1%–6% and operating profit flat to +4%. Other guidance items include corporate expenses of $580M–$640M, interest expense $380M–$420M, income attributable to noncontrolling interest $295M–$325M, an effective tax rate of 17%–19%, free cash flow of ~$4.5B–$4.9B, ~ $5B of planned share repurchases (implying 116–118M weighted average diluted shares), and reaffirmation of long‑term targets: adjusted EPS growth 13%–16% and segment operating profit growth ranges (NAP 5%–8%, Oncology 13%–16%, RxTS 10%–13%).
Consolidated fiscal 2026 revenues of $403.0 billion, up 12% year-over-year; adjusted operating profit grew 15% to $6.5 billion; adjusted earnings per diluted share increased 18% to $39.11 (20% ex-McKesson Ventures fiscal 2025 gains).
Fourth quarter revenues were $96.3 billion, up 6% year-over-year; Q4 adjusted earnings per diluted share were $11.69, up 16% year-over-year; gross profit grew 14% to $3.9 billion and operating profit increased 13% to $1.8 billion.
Operating cash flow of $6.2 billion (management commentary) and fiscal 2026 free cash flow of $5.4 billion; returned $5.1 billion to shareholders in fiscal 2026 (share repurchases and dividends), executed $2.25 billion accelerated share repurchase in Q4 and received Board approval for an additional $5.0 billion repurchase authorization (total authorization ~ $7.7 billion).
Oncology and multispecialty segment revenue increased 35% in Q4 to $12.7 billion and operating profit rose 53% to $385 million; added more than 570 providers in fiscal 2026 (largest net increase since 2010); acquisitions (PRISM and Core Ventures) materially contributed (~13% of Q4 growth and ~34% of segment operating profit growth for FY).
Delivered record annual verifications supporting a record 3.4 million patients; helped patients save ~ $10 billion on brand and specialty medicines (majority non-GLP-1), prevented ~12 million prescription abandonments and enabled access ~135 million times; each FTE supported ~120 more patients this season vs prior year.
GLP-1 distribution revenues were $14 billion in Q4 (+22% YoY) and fiscal 2026 GLP-1 revenues were $53 billion (+27% YoY); North American Pharmaceutical segment operating profit increased 11% to $980 million with modest margin expansion (+9 bps).
Launched new Montreal distribution center with advanced automation and AI-driven storage/retrieval; implemented AI-driven integrated planning system contributing to working capital savings and improved resiliency; successfully managed major winter weather event with limited customer disruption.
Completed financing steps toward separation ($1.0B Term Loan A and $1.0B revolving facility) and announced a $1.25B Apollo minority investment (~13% stake) valuing NewCo at ~$13B, positioning the business for an eventual IPO and enabling capital deployment (proceeds expected to support share repurchases).
Welcome to McKesson's Fourth Quarter Fiscal 2026 Earnings Conference Call. Please be advised that today's conference is being recorded. At this time, I would like to turn the conference over to Jeni Dominguez, VP of Investor Relations. Please go ahead.
Thank you, operator. Good afternoon, and welcome, everyone, to McKesson's Fourth Quarter Fiscal 2026 Earnings Call. Today, I'm joined by Brian Tyler, our Chief Executive Officer; and Britt Vitalone, our Chief Financial Officer. Brian will lead off followed by Britt, and then we'll move to a question-and-answer session. Today's discussion will include forward-looking statements such as forecasts about McKesson's operations and future results. Please refer to the cautionary statements in today's earnings release and presentation slides available on our website at investor.mckesson.com and the Risk Factors section of our most recent annual and periodic SEC filings. For more additional information concerning risk factors that could cause our actual results to materially differ from those in our forward-looking statements. Information about GAAP, non-GAAP financial measures that we will discuss during this webcast, including a reconciliation of those measures to GAAP results can be found in today's earnings release and presentation slides.
Presentation slides also include a summary of our results for the quarter and guidance assumptions. With that, let me turn it over to Brian.
Thank you, Jeni. Good afternoon, and thanks, everyone, for joining McKesson's fiscal fourth quarter earnings call. Earlier today, we reported a good fourth ...