McKesson (NYSE:MCK) executives said the company’s first-quarter performance supported a higher full-year earnings outlook, citing broad-based growth across its North American Pharmaceutical, Oncology & Multispecialty and Prescription Technology Solutions businesses.
Speaking at the Morgan Stanley Global Healthcare Conference, Executive Vice President and Chief Financial Officer Kenny Cheung said McKesson raised its full-year earnings-per-share guidance by $0.40 to a range of $44.20 to $45.00. The revised range implies growth of roughly 13% to 15%, he said. After adjusting for the company’s Norway exit and a prior-year gain on the sale of U.S. Oncology, Cheung said the outlook represents 15% to 17% year-over-year growth.
Precision Medicine Group Deal Extends Oncology Strategy
Chief Executive Officer Brian Tyler said McKesson’s pending acquisition of Precision Medicine Group fits the company’s longstanding strategy of expanding its oncology and biopharma-services capabilities. He said the target’s clinical research operations would complement McKesson’s Sarah Cannon Research Institute, Ontada data and analytics business, and U.S. Oncology Network.
Tyler said the acquisition could help expand clinical-trial access for patients treated in community oncology settings. He noted that many oncology trials struggle to enroll patients quickly enough and said community practices could provide an important source of trial participants outside academic medical centers.
“We think that the combination of those assets is actually quite unique and a big unlock for us,” Tyler said.
McKesson has roughly 3,400 providers in its U.S. Oncology Network after expanding the network over the last eight to 10 years, Tyler said. He added that Sarah Cannon participated in the management of trials for 43 of the 52 adult oncology drugs that reached the market in 2025.
Cheung said the Precision Medicine Group transaction is expected to be accretive strategically and financially, though McKesson plans to provide additional financial details closer to the closing date. The transaction remains subject to regulatory approvals.
Segment Growth and Investments
Cheung said the Oncology & Multispecialty segment generated 33% reported revenue growth and approximately 41% adjusted operating profit growth during the first quarter. Excluding the impact of the prior-year Core Ventures acquisition, he said operating profit growth was approximately 15%, near the midpoint of McKesson’s full-year guidance range of 13.5% to 17.5%.
Growth was supported by patient traffic in the U.S. Oncology and PRISM Vision Group networks, prescription and specialty-drug utilization, and new business, according to Cheung.
Prescription Technology Solutions, or RxTS, recorded approximately 9% revenue growth and 13% adjusted operating profit growth in the first quarter, Cheung said. McKesson’s full-year adjusted operating profit outlook for the segment is 11% to 15% growth.
Cheung said the company is seeing momentum in its affordability and access programs, including its GLP-1 Medicare bid program, which began around July 1. He cautioned that the program remains in its early stages. GLP-1-related business accounts for roughly 11% of RxTS revenue, he said, while the rest of the segment also continues to grow.
Tyler said RxTS’s network of more than 50,000 pharmacies and more than 1 million providers is a competitive differentiator. He said approximately 650 brands work with CoverMyMeds or RxTS.
Contract Renewals, Policy and Medical-Surgical Separation
Tyler said McKesson’s distribution relationship with CVS has extended for more than 20 years. The current contract runs through June 2027, he said, declining to discuss specific negotiations. He added that roughly one-third of McKesson’s contracts typically come up for renewal each year.
On policy, Tyler said the company has not seen changes in customer behavior or volume flows related to current proposals involving the 340B drug-pricing program. He also discussed Inflation Reduction Act Part B drug provisions announced in 2026 that are not scheduled to take effect until 2028. Tyler said the company believes a direct-rebate model from manufacturers to CMS could help lower government spending while insulating community providers from economic harm.
In North American Pharmaceutical, Cheung said first-quarter revenue rose 5% and adjusted operating profit increased 19%. He attributed results to broad-based customer and product momentum, including specialty and health-system growth, along with timing related to branded launches and brand-to-generic conversions. McKesson expects to increase investments in business growth, automation and technology during the second half of the year.
McKesson’s Medical-Surgical business, which has been named Wellverse, reported 4% revenue growth and an approximately 20% year-over-year decline in adjusted operating profit in the first quarter. Cheung cited product mix and one-time administrative costs. The company continues to target an initial public offering exit in the second half of 2027, subject to market conditions, Tyler said.
Cheung said McKesson does not expect tariffs to have a material impact on the Wellverse business because it does not manufacture products and most of the products it purchases are sourced in the U.S. for the U.S. The company expects to continue investing in its higher-growth oncology, multispecialty and biopharma-services platforms while maintaining an investment-grade balance sheet and returning capital to shareholders.
About McKesson (NYSE:MCK)
McKesson Corporation is a healthcare services and distribution company that supplies pharmaceuticals, specialty drugs, medical products and related services to pharmacies, hospitals, health systems, physicians and other healthcare providers. Its operations support the movement of prescription medicines and medical-surgical supplies from manufacturers to healthcare organizations and patients.
The company’s businesses include pharmaceutical distribution, specialty pharmaceutical services, medical-surgical supply distribution and technology solutions for pharmacies and other healthcare providers.
