McKesson reported a strong Q4 FY2026, with EPS up 16% and revenue up 6% to $96.3B. The company issued FY27 guidance that implies growth at the upper end of its long-term range, driven by continued momentum in oncology, specialty distribution, and biopharma services. Key strategic moves, including the spinning off of the medical-surgical business with Apollo taking a minority stake, are on track. FY26 EPS grew 18% to $39.11, with revenues up 12% to $403B.
Buzzberg readFiscal 2027 EPS guidance implies 14-16% growth excluding one-time itemsMcKesson reported a strong Q4 FY2026, with EPS up 16% and revenue up 6% to $96.3B. The company issued FY27 guidance that implies growth at the upper end of its long-term range, driven by continued momentum in oncology, specialty distribution, and biopharma services. Key strategic moves, including the spinning off of the medical-surgical business with Apollo taking a minority stake, are on track. FY26 EPS grew 18% to $39.11, with revenues up 12% to $403B.Read full analysisCollapse analysis
McKesson reported a strong Q4 FY2026, with EPS up 16% and revenue up 6% to $96.3B. The company issued FY27 guidance that implies growth at the upper end of its long-term range, driven by continued momentum in oncology, specialty distribution, and biopharma services. Key strategic moves, including the spinning off of the medical-surgical business with Apollo taking a minority stake, are on track. FY26 EPS grew 18% to $39.11, with revenues up 12% to $403B.
GLP-1 distribution revenue declined 4% sequentially in Q4, but remained up 22% YoY.
The IRA's branded price changes reduced revenue growth by 3% in Q4 but had no impact on operating profit.
FY27 EPS guidance is $43.80-$44.60, implying 12-14% growth (14-16% ex-divestiture).
Apollo invests $1.25B at $13B enterprise value for medical surgical
FY26 EPS grew 18% to $39.11, with revenues up 12% to $403B.
03
Growth
US Oncology Network added over 570 providers in fiscal 2026
GLP-1 distribution revenue declined 4% sequentially in Q4, but remained up 22% YoY.
04
Demand
GLP-1 distribution revenue grew 27% but declined 4% sequentially
Management highlighted strong fiscal 2026 results, reiterated long-term growth targets, and expressed confidence in the separation of the medical surgical business and future growth.
AI, capex & demand read
AI
Platform & monetization
Management discussed using automation and AI to improve workflows and efficiency across oncology, distribution, and biopharma services, including ambient scribe technology used by over 1,900 providers and AI-driven inventory planning that contributed to working capital savings.
Demand
Bookings & conversion
GLP-1 distribution revenue grew 27% but declined 4% sequentially. Management highlighted strong fiscal 2026 results, reiterated long-term growth targets, and expressed confidence in the separation of the medical surgical business and future growth.
Capex
Investment and capacity
Capital expenditures in fiscal 2026 were $745 million, centered on distribution technology and infrastructure, and the company continues to invest in technology innovation and efficiency, as reflected in corporate expense guidance.
Tone · Confident
Management highlighted strong fiscal 2026 results, reiterated long-term growth targets, and expressed confidence in the separation of the medical surgical business and future growth.
Supply-chain alpha
A1
GLP-1 distribution revenues declined 4% sequentially in Q4, though still up 22% YoY, indicating a potential plateau in the rapid growth phase.
“GLP-1 distribution revenues reached $14 billion in the quarter, an increase of $2 billion or 22% compared to the prior year. However, revenues declined 4% sequentially.”
Branded pharmaceutical price declines from the Inflation Reduction Act reduced McKesson's revenue growth by 3% in Q4 but had zero impact on operating profit, showing robust underlying profitability.
“This growth was partially offset by lower branded pharmaceutical revenue, reflecting declines in manufacture prices on certain products, which reduced year-over-year revenue growth by approximately 3% in the quarter.”
McKesson successfully navigated the first wave of IRA branded price changes, managing the impact on revenue while sustaining double-digit profit growth, suggesting the distribution model is adapting well to policy changes.
“In the past quarter, we successfully navigated the first wave of branded pharmaceutical price changes related to the Inflation Reduction Act.”
GLP-1 distribution revenues declined 4% sequentially in Q4, though still up 22% YoY, indicating a potential plateau in the rapid growth phase. — A sequential decline in GLP-1 volumes could signal maturation in the weight-loss drug market, potentially impacting the revenue growth outlook for manufacturers and suppliers.
… 12, beginning with North American Pharmaceutical, where revenues were $79.1 billion, an increase of 3% year-over-year, driven by higher prescription volumes, including continued strength in specialty products. This growth was partially offset by lower branded pharmaceutical revenue, reflecting declines in manufacture prices on certain products, which reduced year-over-year revenue growth by approximately 3% in the quarter. GLP-1 distribution revenues reached $14 billion in the quarter, an increase of $2 billion or 22% compared to the prior year. However, revenues declined 4% sequentially. Importantly, the impact of branded pricing declines and the sequential decline in GLP-1 volumes had no impact on operating profit in the quarter. Segment operating profit increased 11% to $980 million. with operating margins expanding nine basis points year-over-year. Performance was primarily driven by specialty product distribution growth, including the health system, and ongoing operating efficiency. Turning to the oncology and multispecialty segment, revenues increased 35% to $12.7 billion, fueled by strong provider growth and expanded specialty distribution and contributions from …
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