What factors drove the changes in McKesson's revenue and profit?

What is McKesson's gross profit margin?

Did McKesson beat or miss consensus estimates last quarter?

What is the market's earnings forecast for McKesson next quarter?

What does McKesson do and what are its main business segments?

What were the key takeaways from McKesson's earnings call?

What were the key takeaways from McKesson’s earnings call?

What guidance did McKesson's management provide for the next earnings period?

- **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.

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