McKesson 0.81% Stock Slide Contrasts $97.8B Revenue Surge and Strategic Acquisitions as Trading Volume Ranks 105th

McKesson (MCK) closed 2025 August 6 at a 0.81% decline, with a trading volume of $0.92 billion, ranking 105th in market activity. The stock's performance contrasted with a robust first-quarter fiscal 2026 earnings report that highlighted strategic acquisitions and dividend growth. The company reported $97.8 billion in consolidated revenue, a 23% year-over-year increase, driven by expanded pharmaceutical distribution and oncology solutions. McKesson also completed acquisitions of 80% in PRISM Vision Holdings and 70% in Core Ventures, enhancing its presence in ophthalmology and cancer care. The board approved a 15% dividend hike to $0.82 per share, extending its nine-year growth streak.

Operational results showed a $0.75 drop in GAAP earnings per share to $6.25, attributed to a $189 million bad debt provision linked to Rite Aid’s bankruptcy. Adjusted EPS rose 5% to $8.26, reflecting strong core business growth despite a higher tax rate. Free cash flow turned negative at $1.1 billion due to $3.4 billion in acquisition-related cash outflows. The company raised its fiscal 2026 adjusted EPS guidance to $37.10–$37.90, incorporating $0.20 of accretion from the pending sale of its Norwegian operations to NorgesGruppen. The updated outlook reflects 12–15% growth expectations, excluding prior-year investment gains.

Segment performance underscored McKesson’s strategic focus: U.S. Pharmaceutical revenue surged 25%, Prescription Technology Solutions grew 16%, and Medical-Surgical Solutions saw 2% volume-driven gains. The International segment reported 1% revenue growth, partially offset by the divestiture of Canada-based retail units. The company announced a conference call and investor day event to discuss financial results and strategic direction, with materials available via its investor relations portal.

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