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20:30
Aug 05 ◎

MCK FY2027 Q1 Watch

McKesson Corporation (MCK) FY2027 Q1 Earnings Call

APO PFE COR MCK ▾

Brian Tyler

Apollo is providing capital (13% stake) and operational expertise for the MedSurg/Wellverse separation, de-risking the spin and providing liquidity for McKesson's buyback.

"we completed the previously announced strategic minority investment from Apollo Funds, bringing on an important partner with financial resources and experience in complex separations."

APO WATCH

Brian Tyler

This collaboration with McKesson's SCRI JV will streamline trial operations and potentially accelerate Pfizer's oncology pipeline, deepening their partnership.

"Recently SCRI announced a strategic oncology research collaboration with Pfizer to help accelerate clinical trials."

PFE WATCH

Brian Tyler

McKesson's GLP-1 distribution volumes indicate strong market growth in this key category, in which Cencora also competes for share.

"Revenues from GLP-1 medications distribution were $15 billion in the quarter, an increase of approximately $3 billion, or 24%, versus the prior year."

COR WATCH

Kenny Chung

Management raised full-year EPS guidance on the back of strong Q1 performance and raised NAP operating profit growth expectations, signaling confidence in sustained momentum for the rest of the year.

"We are raising our fiscal 27 adjusted earnings per share outlook to $44.20 to $45. The increase in the full-year outlook is supported by the strength and momentum of the business."

MCK WATCH

HIGH

20:30
May 07 ◎

MCK FY2026 Q4 Watch

McKesson Corporation (MCK) FY2026 Q4 Earnings Call

APO MCK LLY NVO ▾

Brian Tyler

Apollo is acquiring a 13% stake in McKesson's medical-surgical business at a $13B EV, a key step in the spin-off.

"we signed an agreement to welcome Apollo as a minority interest investor while advancing the separation readiness"

APO WATCH

Brian Tyler

Guidance for FY27 EPS growth of 12-14% (14-16% ex-Norway divestiture and one-time gains) is at the upper end of the long-term target, driven by continued momentum in oncology, specialty distribution, and biopharma services, along with ongoing share repurchases.

"We enter fiscal 2027 from a position of strength with clear momentum across the business."

MCK WATCH

Britt Vitilone

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.

"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."

LLY WATCH NVO WATCH

HIGH

21:30
Feb 04 ◎

MCK FY2026 Q3 Watch

McKesson Corporation (MCK) FY2026 Q3 Earnings Call

RADIQ MCK LLY NVO CNC ▾

Britt Vitilone

The Rite Aid bankruptcy resulted in a one-time credit for McKesson, likely due to a settlement or claim recovery, which is not expected to recur as an ongoing business signal though the customer loss is already factored in.

"we recorded a gap-only pre-tax credit of $160 million, or $118 million after tax, within the North American pharmaceutical segment related to the bankruptcy of Rite Aid."

RADIQ WATCH

Brian Tyler

Management is confident in sustained double-digit growth, driven by oncology/biopharma momentum, stable utilization, and a favorable manufacturing pricing environment, leading to an upward revision in full-year EPS guidance.

"The consistency of this performance gives us the confidence to raise full-year EPS guidance to a range of $38.80 to $39.20, which reflects 17% to 19% year-over-year growth."

MCK WATCH

Britt Vitilone

GLP-1 distribution revenue of $14 billion in the quarter grew 26% year-over-year but only 7% sequentially, indicating a rapid deceleration from the high double-digit sequential growth rates seen in prior quarters. — The deceleration in GLP-1 growth suggests the distribution boost from injectables is plateauing, and while oral GLP-1s are a new opportunity, they are not yet compensating for the pace of injectable growth.

"GLP-1 distribution revenues were $14 billion in the quarter, up $3 billion, or 26%, when compared to the prior year. GLP-1 sequential revenue growth was 7%."

LLY WATCH NVO WATCH

Brian Tyler

Management described the U.S. Oncology Network as having approximately 3,400 providers, and Prism Vision over 200 providers, but the 'Advancing Community Oncology' report and the Accelerate conference signal a competitive push into community-based care. — This expansion of community oncology and biopharma services strengthens McKesson's moat against payer-centric models and reinforces the shift of cancer care out of hospital systems.

"The report highlights our role in helping community providers navigate a dynamic policy environment."

CNC WATCH MOH WATCH

Britt Vitilone

The health of sale accounting for Norway contributed $0.05 to adjusted EPS this quarter, and the full-year guidance includes a $70 million operating profit contribution from the divested business, which is a low-margin drag that will be removed from FY2027. — Pro forma for the exit, distribution margins and growth rates will appear cleaner in the next fiscal year, potentially making the core business look stronger vs. peers like Cardinal Health and AmerisourceBergen.

"In the third quarter, held for sale accounting from Norway contributed $0.05 to adjusted earnings per diluted share."

CAH WATCH ABC WATCH

Brian Tyler

The 50 new programs added across 43 unique brands in the biopharma services segment, and the digitization of enrollment for more than 1,600 specialty drugs, points to a structural volume ramp in the prior authorization space. — This positions McKesson's PTS segment as the 'plumbing' for prior authorizations, having scale advantages that are hard to replicate, and is a volume story independent of specific drug class (e.g., oral GLP-1s).

"we're digitizing enrollment for more than 1,600 specialty medications"

EW WATCH

HIGH

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