McKesson reported strong third-quarter fiscal 2026 results with double-digit growth in revenue and adjusted EPS, driven by oncology, biopharma services, and North American distribution. The company raised its full-year EPS guidance, emphasizing the integration of Florida Cancer Specialists and Prism Vision. McKesson highlighted its commitment to advancing community oncology, hosting a conference, and advocating for policy changes to expand patient access and support community practices.

The dialogue highlights advancements in biopharma services, including digital patient enrollment and AI-driven supply chain improvements, alongside North American pharmaceutical distribution enhancements, emphasizing strategic partnerships and operational excellence.

Discussed milestones in separating medical surgical business, divestiture completion, and focus on independent operations and growth strategies.

Reported record quarterly revenue and adjusted operating profits with double-digit growth in oncology, multi-speed, and biopharma services. Completed divestiture of Norway operations, contributing $1 billion in revenue and $100 million in adjusted operating profit. Recorded $100 million pre-tax credit from Rite Aid bankruptcy. Focus on disciplined execution and long-term value creation for shareholders.

Consolidated revenues surged 11% to $106.2 billion, with significant gains in oncology, multi-specialty, and prescription technology solutions. Operating profit climbed 13% to $1.7 billion, bolstered by increased demand for access solutions and specialty distribution. Interest expense dipped 5%, and earnings per share rose 16% to $9.34, reflecting strong operational execution and strategic acquisitions.

The company reported robust corporate expenses, significant gains from equity investments, and a strong balance sheet. It achieved $156 million in corporate expenses with notable increases in technology and infrastructure investments. The firm realized pretax gains from equity investments, enhancing shareholder value. With $175 million in capital expenditures, it delivered $9.6 billion in free cash flow for the trailing 12 months, reflecting operational excellence. Shareholders benefited from $701 million in returns, including $680 million in share repurchases and $101 million in dividends. The company's financial strength supports growth initiatives and continued shareholder returns, underscoring disciplined capital allocation and strong cash generation.

The company highlights sustained momentum in its core businesses, with Q3 results and a revised full-year outlook projecting significant revenue and operating profit growth. The North American pharmaceutical, oncology & multi-specialty, and prescription technology solutions segments are anticipated to grow, supported by acquisitions, operational excellence, and technology investments. The company remains confident in its strategy and long-term growth potential.

The dialogue outlines Mckessie's strong third-quarter results, attributed to core business performance and strategic growth in oncology, multi-specialty, and biopharma services. The company anticipates revenue and operating profit growth, despite variability in illness seasons, and remains committed to a disciplined capital allocation framework. Mckessie's strategy includes accelerating growth, maximizing shareholder value, and maintaining financial strength through investment, returns, and portfolio management.

The dialogue discusses how investments in technology and automation have led to significant improvements in productivity and margin growth within the healthcare services segment. By leveraging AI, digital tools, and focusing on employee experience, the company aims to streamline operations, enhance customer service, and expand margins, particularly in areas related to biopharma support and third-party logistics services.

Discussed stable utilization trends, specialty growth, and operating efficiencies impacting 2027 guidance. Noted 24% organic revenue and 15% adjusted operating profit growth in the oncology and multi-specialty segment, with acquisitions enhancing margins.

The discussion focuses on the nonrecurring gain from last quarter and its impact on margin improvements. It explores potential drivers such as enhancing physician effectiveness and biosimilars, aiming to understand the trajectory of margin growth moving forward.

The expansion of the vision platform, addition of providers, and growth in specialty areas, particularly oncology, are positively influencing operating margins. Early automation and AI advancements are expected to enhance customer impact, with consistent revenue and profit growth anticipated from Prism and Florida cancer additions.

The dialogue discusses the acceleration of North American Pharma's growth, highlighting efficiency gains and operational excellence. It attributes strong performance to health systems growth, improving operating expenses, and investments in distribution and inventory management, without calling out specific factors beyond the overall momentum and scale of operations.

Discusses the impact of IRA Part D on drug pricing, the role of distributors, and strategies to address policy changes. Highlights strong performance and growth in specialty distribution, operational efficiency, and future investment priorities.

The company remains committed to its capital allocation strategy, prioritizing investments in business growth through internal development and strategic acquisitions. It leverages a strong balance sheet to support these initiatives, enhance market opportunities, and return capital to shareholders, maintaining a robust financial position and investment-grade credit rating.

A clear strategy, disciplined execution, and strategic acquisitions like Prism Vision and Florida have contributed to the company's accelerating core growth. Integration of these acquisitions is progressing well, with volumes stable and growing, slightly ahead of expectations. The company maintains its guidance for year-one accretion, reflecting confidence in its business and integration processes.

The discussion highlights the robust operating profit growth in the RXtS segment, attributed to a variety of factors including new loyalty scripts, hub services, access and affordability programs, and efficiency improvements. While GLP-1 related programs have shown significant growth, the market support extends across a broad product portfolio, not limited to GLP-1. The launch of oral GLP-1 drugs has seen increased cash pay channel activity, yet no notable shifts in prior authorization behavior are reported. The company anticipates continued growth and has raised its full-year outlook.

Discussion focuses on the positive outlook for annual verifications and the potential for GLP-1s to introduce new users, impacting prior authorizations. The conversation highlights early trends in oral GLP-1 launches and confidence in the category's growth, while noting the need for ongoing monitoring of market dynamics.

The dialogue discusses McKesson's ongoing conversations with manufacturing partners to maintain fair value and strong relationships, ensuring that recent branded drug price decreases align with expectations and have minimal impact on the company's economics. The focus is on the constructive dialogue and value retention strategies, highlighting the consistency of pricing changes with past trends.

The speaker expresses gratitude for participants, highlights McKesson's strong fiscal third quarter results, praises employees for their contributions, and emphasizes the company's commitment to advancing health outcomes, concluding with thanks and well wishes.