Company Reports

McKesson and Cardinal Health announced an agreement to extend their partnership with CVS through June 2032. McKesson serves CVS mail-order and specialty pharmacies, and Cardinal serves CVS retail pharmacies. Shares for both firms are up a mid-single-digit percentage.

McKesson delivered 8% revenue and 20% adjusted earnings per share growth during the first fiscal quarter. Both figures landed a low-single-digit percentage ahead of FactSet consensus. The EPS outlook was raised 1% at the midpoint. Shares are trading up 2% after hours on Aug 5.

McKesson is one of three leading domestic wholesalers of branded, generic, and specialty pharmaceutical products. With over $300 billion in sales, the firm supplies roughly a third of the domestic drug distribution market. Together with Cardinal Health and Cencora, the three operate as a pharmaceutical wholesale and distribution oligopoly, supplying over 90% of the US market.

McKesson is one of three leading domestic wholesalers of branded, generic, and specialty pharmaceutical products. With over $300 billion in sales, the firm supplies roughly a third of the domestic drug distribution market. Together with Cardinal Health and Cencora, the three operate as a pharmaceutical wholesale and distribution oligopoly, supplying over 90% of the US market.

McKesson is one of three leading domestic wholesalers of branded, generic, and specialty pharmaceutical products. With over $300 billion in sales, the firm supplies roughly a third of the domestic drug distribution market. Together with Cardinal Health and Cencora, the three operate as a pharmaceutical wholesale and distribution oligopoly, supplying over 90% of the US market.

McKesson delivered 6% and 16% revenue and adjusted earnings per share growth, respectively, during the fourth fiscal quarter. Fiscal 2027 guidance includes 7% sales growth and 14% EPS growth. Shares are trading down after hours.

McKesson is one of three leading domestic wholesalers of branded, generic, and specialty pharmaceutical products. With over $300 billion in sales, the firm supplies roughly a third of the domestic drug distribution market. Together with Cardinal Health and Cencora, the three operate as a pharmaceutical wholesale and distribution oligopoly, supplying over 90% of the US market.

McKesson delivered 11% and 16% revenue and adjusted EPS growth, respectively, during the third fiscal quarter. Both figures landed slightly ahead of FactSet estimates. Full-year guidance for revenue and EPS was raised about 100 basis points at the midpoint. Shares moved up mildly afterhours.

McKesson is one of three leading domestic wholesalers of branded, generic, and specialty pharmaceutical products. With over $300 billion in sales, the firm supplies roughly a third of the domestic drug distribution market. Together with Cardinal Health and Cencora, the three operate as a pharmaceutical wholesale and distribution oligopoly, supplying over 90% of the US market.

McKesson is one of three leading domestic wholesalers of branded, generic, and specialty pharmaceutical products. With over $300 billion in sales, the firm supplies roughly a third of the domestic drug distribution market. Together with Cardinal Health and Cencora, the three operate as a pharmaceutical wholesale and distribution oligopoly, supplying over 90% of the US market.

McKesson delivered 10.1% year-over-year revenue growth and $9.86 adjusted earnings per share during the second fiscal quarter.

At McKesson's investor day, it discussed momentum in pharmaceutical distribution, its strategic focus on oncology, and investment behind high-margin businesses. The firm raised both fiscal 2026 and long-term EPS guidance by a low-single-digit percentage at midpoint.

McKesson is one of three leading domestic wholesalers of branded, generic, and specialty pharmaceutical products. With over $300 billion in sales, the firm supplies roughly a third of the domestic drug distribution market. Together with Cardinal Health and Cencora, the three operate as a pharmaceutical wholesale and distribution oligopoly, supplying over 90% of the US market.

McKesson is one of three leading domestic wholesalers of branded, generic, and specialty pharmaceutical products. With over $300 billion in sales, the firm supplies roughly a third of the domestic drug distribution market. Together with Cardinal Health and Cencora, the three operate as a pharmaceutical wholesale and distribution oligopoly, supplying over 90% of the US market.

McKesson reported fiscal first-quarter earnings with revenue and adjusted earnings per share up 23% and 5%, respectively. Both figures were ahead of FactSet consensus estimates by a low single digit.

Narrow-moat McKesson reported solid fourth quarter-earnings to end the year just as strongly as it started. Total revenue of $90.8 billion was up 18.9% year over year as favorable utilization trend, healthy prescription demand, and new customers all provided nice tailwinds during the three months. GLP-1 drugs (diabetes and weight-loss) contributed $10.9 billion during the quarter and now make up more than 13% of the firm’s distribution sales. This contribution was up $3.5 billion against last year, or nearly 50%, and made up about one quarter of distribution segment growth. We think this growth could slow in the first half of fiscal 2026 as it is lapping a period when key manufacturers had resolved their capacity and supply issues. But we still expect GLP-1s to be an important driver of growth for the US distribution industry both in the near and midterm. After incorporating strong 2026 guidance and adjusting upward our midcycle revenue growth assumptions, we raise our fair value estimate to $610 per share from $550.

McKesson is one of three leading domestic wholesalers of branded, generic, and specialty pharmaceutical products. With over $300 billion in sales, the firm supplies roughly one third of the domestic drug distribution market. Together with Cardinal Health and Cencora, the three operate as a pharmaceutical wholesale and distribution oligopoly, supplying over 90% of the US market.

Narrow-moat McKesson reported third-quarter results that were largely in line with our expectations. Total sales grew 18% year over year to $95.3 billion, driven by strong momentum in the US pharmaceutical segment, which posted a 19% revenue increase. This growth was propelled by higher prescription volumes, expanded distribution of specialty products—particularly in oncology and specialty care settings—and surging demand for GLP-1 (weight-loss) products. GLP-1 sales reached $10.9 billion this quarter, up 45% year over year, and we expect this strong growth trajectory to continue. The prescription technology segment also performed well, with revenue up 14%, supported by increased demand for the firm's third-party logistics and services business. With strong execution across most of its core businesses, McKesson raised revenue and margin guidance for the pharmaceutical and technology segments as well as adjusted EPS guidance to $32.55-$32.95. After updating our model and accounting for the time value of money, we lift our fair value estimate to $550 per share from $530.

McKesson is one of three leading domestic wholesalers of branded, generic, and specialty pharmaceutical products. With over $300 billion in sales from its US pharmaceutical segment, the company supplies roughly one third of the domestic drug distribution market. Its two close competitors are Cencora and Cardinal Health. Together, the three operate as a pharmaceutical wholesale and distribution oligopoly, supplying over 90% of the US market.

Narrow-moat McKesson announced its agreement to acquire a controlling 80% interest in PRISM Vision for approximately $850 million. PRISM is an administrative services organization on the US East Coast that supports ophthalmology and retina practices and comprises seven ambulatory surgery centers and over 90 office locations. We have not made any changes to our model and maintain our $530 per share fair value estimate, but management has noted that the acquisition is expected to add $0.20-$0.30 in adjusted EPS in the first 12 months of closing.