McKesson 2026 Q1 Earnings Revenue Surges 23.4% Despite EPS Decline

McKesson (MCK) reported its fiscal 2026 Q1 earnings on August 6, 2025, with total revenue rising sharply by 23.4% year-over-year. The company raised its 2026 Adjusted EPS guidance, reflecting confidence in strong performance and strategic progress.

Revenue
McKesson’s total revenue surged to $97.83 billion in Q1 2026, a 23.4% increase from $79.28 billion in the prior-year period. The robust growth was driven primarily by higher prescription volumes from retail national account customers, as well as expansion in oncology and specialty product distribution.

Earnings/Net Income
Despite the revenue gain, earnings per share (EPS) declined 10.8% to $6.28, and net income dropped 13.4% to $831 million, compared to $7.04 and $960 million, respectively, in Q1 2025. The earnings contraction highlights pressures on profitability despite top-line momentum.

Price Action
The stock edged up 0.11% on the latest trading day, but fell 1.56% over the past week and 4.29% month-to-date.

Post Earnings Price Action Review
A strategy of purchasing MCK shares following a quarterly revenue decline on the earnings report date and holding for 30 days has yielded strong returns over the past three years. It generated a 93.78% total return, outperforming the 48.58% benchmark by 45.19%. The 25.65% CAGR and 1.11 Sharpe ratio underscore the strategy’s strong risk-adjusted performance and minimal downside.

CEO Commentary
CEO Brian Tyler credited the strong results to increased prescription volume and strategic acquisitions, including PRISM Vision and Core Ventures. He expressed confidence in the full-year outlook, citing the sale of Norwegian businesses and raised EPS guidance.

Guidance
McKesson raised its fiscal 2026 Adjusted Earnings per Diluted Share guidance to $37.10–$37.90, up from $36.90–$37.70. The update reflects expected 12%–15% growth year-over-year, or 14%–17% excluding fiscal 2025 equity investment gains. The company does not provide GAAP EPS forecasts.

Additional News
On August 7, 2025, McKesson announced a raised 2026 EPS guidance to $37.10–$37.90. The move follows strong Q1 results and the pending sale of its Norwegian businesses, which is expected to enhance focus and profitability. The company also emphasized strategic acquisitions to expand its ophthalmology and oncology offerings, further strengthening its long-term growth prospects.