McKesson Corporation

Strong Q1 results; raised full-year EPS guidance - Revenues rose 8% to $105.4B; adjusted EPS grew 20% to $9.93, both ahead of expectations. - 3 segments delivered double-digit operating profit growth (notably North American Pharma and Oncology/Multi-specialty). - Management raised FY27 adjusted EPS guidance to $44.20–$45.00 (from $43.80–$44.60).

FY27 outlook: growth and profitability targets - Revenue growth expected: 5%–9%; operating profit growth: 9%–13%. - Guidance implies 13%–15% adjusted EPS growth excluding impacts from Norway divestiture and a gain on sale of an equity investment (US oncology network) (vs prior-year implied growth of 15%–17%). - Segment outlook highlights: - North American Pharma: revenue +4% to +8%, operating profit growth at the high end of prior range (~5.5%–9.5%); expects ongoing GLP-1 growth with quarter-to-quarter variability. - Oncology & Multi-specialty: revenue +14.5% to +18.5%, operating profit +13.5% to +17.5%. - Prescription Technology Solutions: revenue +2.5% to +6.5%, operating profit +11% to +15% (nonlinear performance; sensitive to utilization/product launch/support evolution). - MedSurg: revenue +1% to +6%, operating profit flat to +4%.

Capital returns + liquidity/cash flow: shareholder-friendly, but free cash flow was temporarily pressured - Returned $2.6B to shareholders in Q1 via buybacks and dividends. - Q1 buybacks: $2.5B total (including $2.25B accelerated share repurchase). - Dividend: board approved +15% quarterly dividend increase (10th consecutive annual increase). - Cash & liquidity: $5.2B cash; ~$10B total liquidity. - Free cash flow was negative $372M in Q1, including $152M capex, but management emphasized improved working capital execution; trailing 12-month FCF ~ $6.1B. - FY27 FCF outlook: ~$4.5B–$4.9B; planned buybacks ~$5B for the year (with $2.5B already done in Q1).