McKesson Q2 Revenue Beats Estimates, Raises Full-Year Guidance

McKesson reported Q2 sales of $97.83 billion, a 23.4% YoY increase, exceeding analyst estimates. Non-GAAP profit was $8.26 per share, 1.4% above consensus. The company raised its full-year adjusted EPS guidance to $37.50 at the midpoint. Operating margin was 1.1%, in line with the same quarter last year. Free cash flow was -$1.11 billion compared to -$1.55 billion in the same quarter last year.

McKesson Corporation (NYSE: MCK) reported mixed but encouraging results for its Q2 2026 fiscal year, with revenue surging 23.4% year-over-year (YoY) to $97.83 billion, exceeding analyst expectations by $2.01 billion. Adjusted earnings per share (EPS) came in at $8.26, 1.4% above consensus estimates. The company raised its full-year adjusted EPS guidance to $37.50 at the midpoint, reflecting a 12% to 15% growth compared to the prior year.

Despite the positive earnings, investors were concerned about the company's corporate expenses, which increased 294% compared to the same period last year. This increase was primarily driven by the absence of $110 million in pre-tax gains from McKesson Ventures’ equity investments that had boosted results in the first quarter of fiscal 2025.

The U.S. Pharmaceutical segment, which accounts for the bulk of revenue, saw a 25% increase in sales and a 17% rise in adjusted operating profit. The Prescription Technology Solutions segment grew revenue by 16% with a 21% increase in operating profit.

McKesson's board approved a 15% increase to its quarterly dividend to $0.82 per share, marking the ninth consecutive year of dividend increases. The company also anticipates approximately $2.5 billion in share repurchases in fiscal 2026.

The operating margin of 1.1% was in line with the same quarter last year, while free cash flow was -$1.11 billion compared to -$1.55 billion in the same quarter last year.

McKesson's stock price fell 2.7% after the earnings report, with analysts pointing to concerns over corporate expenses and the potential impact of tariffs on the company's operations. However, the company's strong performance in the U.S. Pharmaceutical segment and the Prescription Technology Solutions segment provided some reassurance to investors.

References:
[1] https://www.investing.com/news/earnings/mckesson-falls-27-despite-raising-fullyear-outlook-93CH-4174759
[2] https://markets.financialcontent.com/stocks/article/stockstory-2025-8-5-mckesson-earnings-what-to-look-for-from-mck