McKesson Q2 Revenue Rises 8% to $111.0 Billion; Raises Full-Year Adjusted EPS Guide
McKesson rode higher prescription volumes and specialty distribution to another strong quarter and lifted its full-year profit outlook again.
The Irving, Texas-based health-care distributor reported consolidated revenue of $111.0 billion for the fiscal second quarter ended Sept. 30, 2026, up 8% from $103.2 billion a year earlier, according to its earnings release filed with an 8-K Wednesday. GAAP earnings per diluted share were $10.44, up from $8.92. Adjusted earnings per diluted share rose 18% to $11.68 from $9.86.
Net income attributable to McKesson was $1.22 billion, up 10% from $1.11 billion. Adjusted earnings were $1.36 billion, up 11%. Cash from operations was $3.1 billion; after $123 million of capital expenditures, free cash flow was $2.9 billion.
Guidance and capital return
McKesson raised its fiscal 2027 adjusted EPS guidance range to $45.60 to $46.40 from $44.20 to $45.00, implying 17% to 19% growth versus the prior year. The company said it does not forecast GAAP EPS.
Chair and CEO Brian Tyler credited operational strength in core segments and disciplined execution. Management said second-quarter growth was driven by the North American Pharmaceutical and Oncology & Multispecialty segments on higher prescription volumes and specialty product distribution, partly offset by lower branded-pharmaceutical contributions. Adjusted EPS growth also reflected a lower share count.
In the first six months of fiscal 2027, McKesson generated $2.9 billion of operating cash flow and $2.6 billion of free cash flow, and returned $3.6 billion to shareholders, including $3.4 billion of buybacks and $198 million of dividends. Six-month revenue was $216.3 billion, up 8%.
Why it matters
For a company whose top line is dominated by drug pass-through revenue, investors focus on adjusted EPS, free cash flow and guidance. Raising the full-year adjusted range while posting mid-teens adjusted EPS growth keeps McKesson in the compounding-distributor camp that retail investors use as a defensive health-care holding.
By the numbers
- Q2 revenue: $111.0 billion, up 8%
- GAAP diluted EPS: $10.44 (vs. $8.92)
- Adjusted EPS: $11.68, up 18%
- Free cash flow: $2.9 billion
- FY2027 adjusted EPS guide: $45.60 to $46.40 (was $44.20 to $45.00)
- Six-month buybacks: $3.4 billion
Sources
- McKesson Form 8-K with fiscal 2027 second-quarter earnings release, filed Nov. 4, 2026 (accession 0000927653-26-000279)
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