McKesson Earnings Gain Gets Support From Oncology and GLP-1 Demand

McKesson’s first-quarter fiscal 2027 earnings rose as growth in oncology, pharmaceutical distribution and technology services helped offset pressure in other areas. Zacks Equity Research highlighted those businesses as sources of momentum, while noting risks from drug pricing and weaker Medical-Surgical results.

Revenue increased 8% to $105.4 billion, and adjusted earnings per share climbed 20% to $9.93. North American Pharmaceutical, Oncology & Multispecialty and Prescription Technology Solutions each posted double-digit operating-profit growth, according to the article.

McKesson raised its fiscal 2027 adjusted EPS outlook to $44.20-$45.00, which the company said implies 15-17% growth at the midpoint. Management described June as the quarter’s strongest month.

Oncology & Multispecialty revenue rose 33% to $14.2 billion, with operating profit up 41%. The segment’s revenue grew about 24% excluding the Core Ventures acquisition. Management expects 14.5-18.5% revenue growth for the segment in fiscal 2027.

GLP-1 distribution revenue reached $15 billion in the quarter, more than 14% of total revenue. Sales rose about 24% from a year earlier, though management expects quarterly variability as volumes continue to grow.

Some areas remain under pressure. Medical-Surgical Solutions revenue increased 4% to $2.8 billion, but operating profit fell 20% to $195 million. Zacks also cited branded drug price declines, generic conversions and uncertainty around healthcare policy changes.

McKesson shares were up 0.11% at $857.20 as of 19:15 UTC Tuesday, since the previous close. The article said the stock had gained 4.4% year to date, compared with a 12.7% rise in the S&P 500.