McKesson's Q1 2026: Unraveling Contradictions on Rite Aid, Tariffs, and Market Dynamics

Impact of Rite Aid's bankruptcy, tariff impact on fiscal 2026, GLP-1 market demand and growth, biosimilar impact on revenue, and impact of Medicare prescription drug policy changes are the key contradictions discussed in McKesson's latest 2026Q1 earnings call.



Strong Financial Performance:
- McKesson Corporation reported record consolidated revenues of $97.8 billion for Q1 Fiscal 2026, an increase of 23% over the prior year.
- The growth was driven by a 9% increase in adjusted operating profit to $1.4 billion, with three segments delivering double-digit growth.

Oncology and Specialty Solutions Expansion:
- The company completed the acquisition of a controlling interest in Core Ventures, expanding the U.S. Oncology Network to approximately 3,300 providers across 30 states.
- This strategic acquisition broadened the footprint and enhanced patient care access, driving growth across the oncology platform.

Pharmaceutical Distribution and 3PL Services:
- The U.S. Pharmaceutical segment experienced revenue growth of 25%, with strong contributions from the distribution of oncology and specialty products.
- Increased prescription volumes from retail national account customers and the addition of a strategic account customer also contributed to the segment's performance.

Prescription Technology Solutions Growth:
- The Prescription Technology Solutions segment reported a 16% increase in revenues and a 21% increase in operating profit.
- This was driven by increased demand for access solutions, including prior authorization services for GLP-1 medications.