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Investing.com -- McKesson Corporation (NYSE:MCK) shares fell 2.7% on Wednesday after the healthcare services company reported mixed first-quarter fiscal 2026 results and raised its full-year earnings guidance.
The pharmaceutical distributor reported adjusted earnings per share of $8.26 for the quarter, exceeding analyst expectations of $8.19. Revenue surged 23% YoY to $97.83 billion, also beating the consensus estimate of $95.82 billion.
Despite the earnings beat, investors appeared concerned about the company’s corporate expenses, which increased 294% compared to the same period last year. This increase was primarily driven by the absence of $110 million in pre-tax gains from McKesson Ventures’ equity investments that had boosted results in the first quarter of fiscal 2025.
"Our strong first-quarter performance demonstrates the resilience of our business model and our ability to execute on our strategic priorities," said a McKesson executive. "We’re seeing increased prescription volumes from retail national account customers and growth in our oncology and specialty products distribution."
McKesson raised its fiscal 2026 adjusted earnings per share guidance to a range of $37.10 to $37.90, up from its previous forecast of $36.90 to $37.70. The new outlook represents 12% to 15% growth compared to the prior year and is in line with the analyst consensus of $37.41.
The company’s U.S. Pharmaceutical (TADAWUL:2070) segment, which accounts for the bulk of revenue, saw a 25% increase in sales and a 17% rise in adjusted operating profit. The Prescription Technology Solutions segment grew revenue by 16% with a 21% increase in operating profit.
McKesson’s board approved a 15% increase to its quarterly dividend to $0.82 per share, marking the ninth consecutive year of dividend increases. The company also anticipates approximately $2.5 billion in share repurchases in fiscal 2026.
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