Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
McKesson's first quarter of fiscal 2027 was defined by robust pharmaceutical distribution and specialty sales growth, but a large noncontrolling interest adjustment tied to the planned Medical-Surgical Solutions separation caused net income to decline sharply. A $293 million remeasurement charge on redeemable preferred equity from the Apollo transaction, along with other noncontrolling interest changes, pushed the total noncontrolling interest expense to $418 million compared to $47 million a year earlier. While operating income improved 27% due to higher volumes and the absence of a prior-year bad debt provision, the bottom-line contraction and increased debt from separation-related borrowings present a mixed picture.
Revenue
$105.38B
+7.72% YoY
EPS (Diluted)
$5.15
-17.60% YoY
Gross Margin
3.5%
+0.1 pts YoY
Operating Income
$1.32B
+27.32% YoY
Source: SEC XBRL
Mckesson (MCK) reported Q1 FY2027 revenue of $105.38B, up 7.7% year over year. Operating margin was 1.3%, up 0.2 points from 1.1% a year earlier. Operating cash flow was negative $220M. MCK's fiscal Q1 FY2027 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2027 | 9.93 | 9.63 | Beat +3.1% |
| Mar 2026 | 11.69 | 11.68 | Beat +0.1% |
| Dec 2025 | 9.34 | 9.31 | Beat +0.3% |
| Sep 2025 | 9.86 | 9.13 | Beat +8.0% |
4 reported segments · SEC XBRL
Segment revenue totals $105.38B, which is the $105.38B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
Net income attributable to McKesson fell 22% to $614M primarily because net income attributable to noncontrolling interests surged to $418M, which included $293M for Medical-Surgical Solutions and $81M for Core Ventures to remeasure redeemable noncontrolling interests to redemption value.
Source: 10-Q Item 2 MD&A
Apollo Funds invested $1.25B for a 13% stake via convertible preferred equity; the company recorded $68M in SDG&A charges related to the separation, and the segment's operating profit fell 45% partly due to these costs and a decline in ambulatory care.
Source: 10-Q Item 2 MD&A
Restructuring charges totaled $136M, up from $47M, as multiple multi-year initiatives were launched or continued across Corporate, Prescription Technology Solutions, and other segments to optimize operations and reduce costs.
Source: 10-Q Item 2 MD&A
Segment operating profit rose 52% to $903M, significantly helped by the absence of the prior-year $189M bad debt provision related to Rite Aid's bankruptcy.
Source: 10-Q Item 2 MD&A
Interest expense increased 57% to $77M due to higher average loan balances following the MMS Credit Agreement that provided $3.2B in new term loans.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Ongoing opioid-related claims represent a material liability, with adjustments to estimated settlement liabilities continuing; a $34M credit this quarter reflects changes in estimates, but significant exposure remains.
Source: 10-Q Item 2 MD&A
Stockholders' equity is deeply negative at -$4.24B and deteriorating, while long-term debt rose to $9.73B, heightening solvency risk and limiting financial flexibility.
Source: 10-Q Balance Sheet (XBRL)
The planned separation involves significant restructuring costs, operational disruptions, and potential value dilution, with the segment already showing declining profitability and large noncontrolling interest charges.
Source: 10-Q Item 2 MD&A
The recent Rite Aid bankruptcy resulted in a $189M bad debt provision, demonstrating vulnerability to large customer defaults that could materially impact results.
Source: 10-Q Item 2 MD&A
Multiple large-scale restructuring initiatives are underway with expected charges of $230-310M for corporate and $200-250M for Prescription Technology Solutions, increasing the risk of operational disruption and execution failure.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 105.38 $B | 97.83 $B | +7.72% |
Cost of Revenue $B | 101.70 $B | 94.55 $B | +7.56% |
Gross Profit $B | 3.69 $B | 3.28 $B | +12.38% |
Operating Income $B | 1.32 $B | 1.04 $B | +27.32% |
Net Income $M | 614.00 $M | 784.00 $M | -21.68% |
EPS (Basic) $ | 5.17 $ | 6.28 $ | -17.68% |
EPS (Diluted) $ | 5.15 $ | 6.25 $ | -17.60% |
SG&A Expense $B | 2.26 $B | 2.20 $B | +3.10% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
McKesson (MCK) delivered a strong fiscal year 2026, with revenue surging 12.4% to $403.4B and net income jumping 44.5% to $4.76B, driven by operating leverage and aggressive share buybacks that boosted EPS by 49.1% to $38.55.
MCK reported strong financial performance in Q3 FY2026, with significant increases in revenue, operating income, and net income, despite ongoing cost pressures.
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