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- **Record Growth**: Q2 revenue up 10% to $103B, EPS up 39% to $9.86, driven by oncology and RxTS segments.
- **Strategic Reorganization**: New reporting structure highlights high-growth oncology and multispecialty platforms, with 2026 EPS guidance raised to $38.35-$38.85.
- **Automation Efficiency**: 75% reduction in manual processes via automation, enabling 570 bps operating expense leverage.
- **Acquisition Synergy**: PRISM and Core Ventures contribute 30%-34% of oncology segment's 2026 profit growth, ahead of initial targets.
- **Free Cash Flow Strength**: $2.2B Q2 free cash flow supports $907M in shareholder returns, with 2026 guidance for $4.4B-$4.8B free cash flow.

**【CEO Summary Section】**
- McKesson reported record second-quarter revenues of $103 billion, a 10% year-over-year increase, driven by strong performance across all segments.
- Adjusted EPS rose 39% to $9.86, reflecting operational efficiency and strategic investments.
- The company introduced a new reporting structure, separating oncology and multispecialty businesses to enhance growth visibility.
- Guidance for fiscal 2026 EPS was raised to $38.35-$38.85, up from $38.05-$38.55, citing organic growth and acquisitions.
- Investments in automation (e.g., order storage retrieval systems) reduced manual processes by 75%, improving efficiency.
- The Medical-Surgical Solutions business is expected to be spun off by mid-2027, with 2026 guidance assuming full ownership.

**【CFO Financial Commentary】**
- Gross profit increased 9% to $3.5 billion, driven by oncology and pharmaceutical distribution growth.
- Operating expenses decreased 1% to $2 billion, with a 570 basis point improvement in operating expense ratio.
- Oncology and multispecialty segment operating profit rose 71% to $397 million, with 50% growth from PRISM and Core Ventures acquisitions.
- Prescription Technology Solutions (RxTS) operating profit grew 20% to $261 million, fueled by prior authorization services for GLP-1 medications.
- Free cash flow for the quarter was $2.2 billion, supporting $907 million in shareholder returns (share buybacks and dividends).
- Full-year revenue growth guidance is 11%-15%, with oncology and RxTS segments expected to lead at 27%-31% and 9%-13% growth rates, respectively.

**【Q&A Highlights】**
- **Margin Expansion**: RxTS segment's 20% operating profit growth reflects mix shift to higher-margin technology services (e.g., prior authorization). Oncology segment's 71% profit growth includes $51 million from market decisions and equity gains.
- **Regulatory Impact**: Drug Supply Chain Security Act implementation had minimal disruption, enhancing supply chain transparency and customer stickiness.
- **Acquisition Performance**: PRISM and Core Ventures contributed 30%-34% of oncology segment's 2026 operating profit growth, slightly ahead of initial $0.40-$0.60 EPS accretion targets.
- **Risk Factors**: Medical-Surgical Solutions segment faces quarterly volatility due to illness season products (e.g., vaccines), which caused a 4% revenue headwind in Q2.

McKesson Corporation (MCK) Q2 2026 Earnings Call Transcript

- **Record Q1 Growth**: $97.8B revenue (+23% YoY), $1.4B operating profit (+9% YoY), with oncology and RxTS leading the charge.
- **Strategic Expansion**: Acquisitions of Core Ventures and PRISM Vision expand oncology network to 3,300 providers, driving 6-7% operating profit growth.
- **Automation Efficiency**: 90% automated distribution centers and cobots reduce costs, improving OpEx to Gross Profit ratio by 450+ basis points.
- **Guidance Uptick**: Full-year EPS raised to $37.10-$37.90, reflecting strong Q1 and acquisition synergies.
- **Biosimilar Momentum**: Consistent contributor to oncology growth; Eylea biosimilar launch poised to enhance retina platform.


**【CEO Summary Section】**
- **Record Q1 Results**: Delivered $97.8 billion in revenue (23% YoY growth) and $1.4 billion in adjusted operating profit (9% YoY growth). Raised full-year EPS guidance to $37.10-$37.90.
- **Strategic Acquisitions**: Completed acquisitions of Core Ventures (Florida Cancer Specialists) and PRISM Vision, expanding oncology and ophthalmology platforms to ~3,300 providers across 700 sites.
- **Growth Pillars**: Oncology and biopharma services drove double-digit growth, with Prescription Technology Solutions (RxTS) revenue up 16% and operating profit up 21%.
- **Community Impact**: Supported employees through hardships with $700+ grants; highlighted Health Mart's top ranking in J.D. Power pharmacy study.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income $420M; Non-GAAP EPS $8.26 (5% YoY growth). Operating expenses decreased 1% due to cost optimization and automation.
- **Segment Performance**: U.S. Pharmaceutical segment revenue +25% (GLP-1 meds $12.1B, +38% YoY); RxTS operating profit +21% driven by prior auth services.
- **Automation Investments**: 90% automated distribution centers and cobots in specialty facilities improve efficiency and safety.
- **Full-Year Guidance**: Revenue +11-15%, operating profit +9-13%; U.S. Pharmaceutical segment growth expected at high end of 12-16% range.

**【Q&A Key Highlights】**
- **RxTS Growth**: Q1 operating profit up 21% due to GLP-1 prior auth; 2026 outlook for 9-13% growth driven by program maturation and new launches.
- **Specialty Pharma**: 10%+ YoY growth in cold chain lines; automation investments support long-term resiliency.
- **Norway Sale**: Expected $0.20 EPS impact from held-for-sale accounting; final European exit on track.
- **Biosimilars**: Steady contributor to oncology growth; Eylea biosimilar launch expected to benefit retina platform post-PRISM integration.
- **Market Risks**: Tariffs and coverage changes (e.g., Medicaid cuts) seen as long-term, non-material threats to demand.


McKesson Corporation (MCK) Q1 2026 Earnings Call Transcript

- **Revenue & EPS Beat**: FY25 revenue up 16% to $359B, EPS of $33.05 (+20% YoY), exceeding guidance.
- **Strategic Acquisitions**: $2.49B Core Ventures deal adds 530 oncology providers; PRISM Vision to boost ophthalmology care.
- **Free Cash Flow Strength**: $5.2B in FY25, with $4.4B-$4.8B guided for FY26, enabling $2.5B buybacks.
- **GLP-1 Momentum**: Q4 GLP-1 sales $10.9B (+46% YoY), driving 15% growth in prior auth volumes.
- **Medical Surgical Spin-Off**: Separation to unlock value, focusing capital on high-growth oncology and biopharma segments.


**【CEO Summary Section】**
- **Record Revenue Growth**: Full-year consolidated revenues reached $359 billion, up 16% YoY, driven by double-digit growth in U.S. pharmaceutical and prescription tech segments.
- **Strategic Acquisitions**: Completed acquisition of PRISM Vision (80% ownership) and pending acquisition of Core Ventures (70% ownership), adding 530 oncology providers and enhancing specialty care capabilities.
- **Operational Excellence**: Generated $5.2 billion in free cash flow, returning $3.5 billion to shareholders through buybacks and dividends.
- **2026 Outlook**: Guided for 11-15% revenue growth and $36.75-$37.55 EPS, with oncology and biopharma services as key growth drivers.

**【CFO Financial Commentary】**
- **Q4 Financials**: GAAP EPS of $10.12 (20% YoY growth), driven by 19% revenue increase to $90.8 billion and 24% operating profit growth to $1.6 billion.
- **Segment Performance**: U.S. pharmaceutical segment grew 21% to $83.2 billion, fueled by GLP-1 drug sales ($10.9 billion Q4, +46% YoY). Prescription tech segment operating profit rose 34% to $285 million.
- **Cost Optimization**: Achieved $100 million in cost savings in medical surgical segment, supporting 15% operating profit growth.
- **Free Cash Flow**: $7.5 billion in Q4, with $4.4-$4.8 billion guided for FY26, supporting $2.5 billion in share buybacks.

**【Q&A Key Takeaways】**
- **MFN Policy Risk**: CEO emphasized community-based oncology's cost-effectiveness and advocacy for fair reimbursement, while CFO noted no material impact on FY26 guidance.
- **Tariff Impact**: Diversified sourcing strategies mitigate risks, with no expected material impact on FY26 results.
- **Medical Surgical Separation**: Plans to spin off medical segment into independent company to focus capital on high-growth oncology and biopharma platforms.
- **GLP-1 Growth**: Access solutions drove 15% YoY increase in prior auth volumes, with PRISM and Core Ventures expected to add $0.20-$0.60 to FY26 EPS.


McKesson Corporation (MCK) Q4 2025 Earnings Call Transcript

- **Record Q3 Growth**: $95.3B revenue (+18% YoY), $1.5B adj. op. profit (+16%), driven by specialty drugs and Rx tech solutions.
- **Strategic Expansion**: $850M PRISM Vision acquisition to build leading retinal care platform, with $0.65-$0.75 EPS accretion by year 3.
- **Segment Strength**: U.S. pharmaceutical up 19%, GLP-1 revenue +45%; Rx tech solutions op. profit +22%; medical surgical cost savings on track for $100M FY25.
- **2026 Vision**: 12%-14% EPS growth fueled by oncology network (2,750+ providers), specialty drug pipeline, and integrated retinal care platform.
- **Risks**: Public policy changes, formulary shifts (e.g., $320M impact), and quarterly GLP-1 volatility, but diversified portfolio provides resilience.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue reached $95.3 billion, up 18% YoY, driven by U.S. pharmaceutical and prescription tech solutions. Adjusted operating profit rose 16% to $1.5 billion.
- **Strategic Acquisitions**: Signed agreement to acquire 80% stake in PRISM Vision for $850M, expected to be $0.20-$0.30 EPS accretive in first 12 months and $0.65-$0.75 by year 3. This expands specialty services in retina and ophthalmology.
- **Segment Performance**: U.S. pharmaceutical segment grew 19%, led by specialty drugs (e.g., GLP-1 meds up 45%). Prescription tech solutions saw 14% revenue growth. Medical surgical faced softer-than-expected illness season, but cost optimization initiatives on track to deliver $100M savings.
- **Guidance Update**: Narrowed FY25 EPS guidance to $32.55-$32.95 (19%-20% growth), reflecting confidence in oncology, biopharma services, and core distribution.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income $420M, Non-GAAP EPS $8.03 (up 4% YoY). Operating expenses rose 2% to $1.9B, but operating profit margin improved 250bps due to cost controls and automation.
- **Segment Insights**: U.S. pharmaceutical segment saw $3.4B GLP-1 revenue growth. Prescription tech solutions operating profit up 22%. Medical surgical operating profit +4% despite revenue decline, driven by cost savings.
- **Cash Flow**: Generated $1.1B cash, returned $919M to shareholders (shares repurchased at $537 avg price). FY25 free cash flow expected $4.8B-$5.2B.

**【Q&A Key Themes】**
- **2026 Outlook**: Affirmed 12%-14% long-term EPS growth, citing oncology network expansion (2,750+ providers), specialty drug pipeline, and Rx tech solutions. PRISM acquisition aligns with proven oncology platform strategy.
- **MedSurg Challenges**: Soft illness season (IQVIA severity at 62% of 5-year avg) and primary care weakness. Cost optimization initiatives to better align with alternate-site demand.
- **PRISM Synergies**: Leveraging existing GPO, practice management, and clinical research capabilities to create integrated retinal care platform. Similar to oncology strategy, focusing on distribution, services, and data/analytics.
- **Risks**: Public policy uncertainty, formulary changes (e.g., $320M impact from one PBM formulary shift), and quarterly GLP-1 volatility. However, diversified portfolio mitigates risk.


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