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Will MCK's Pharma & Specialty Demand Offset Pricing Headwind in Q2?
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Key Takeaways
MCK's Q2 EPS is projected to rise 8.4% to $10.69, while revenues are expected to grow 6.8% to $110.11 billion.
McKesson's specialty and oncology growth may boost Q2 results, while lower branded drug prices pose risks.
MCK's GLP-1 demand and provider additions may aid growth, but portfolio changes pose challenges.
McKesson (MCK - Free Report) is scheduled to report second-quarter fiscal 2027 results after the market closes on Nov. 4, 2026. With a strong first-quarter performance, investors will assess whether prescription volumes, specialty distribution and oncology services can sustain earnings momentum while the company absorbs higher investments and the effects of portfolio changes.
Mckesson shares have gained 13% during the three months ended Sept. 30, 2026, outperforming the industry's 4.8% growth and the S&P 500's 1.6% rise.
Image Source: Zacks Investment Research
Earnings Surprise History
McKesson beat on earnings in each of the trailing four quarters, delivering an average surprise of 4.29%.
Last quarter's reported EPS of $9.93 beat the $9.44 estimate by 5.19%.
Image Source: Zacks Investment Research
Consensus Estimates and Revisions
The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $10.69 per share compared with $9.86 a year earlier. The consensus estimate for revenues is pinned at $110.11 billion compared with $106.16 billion in the prior-year quarter. The EPS and revenue estimates indicate a year-over-year improvement of 8.4% and 6.8%, respectively.
The EPS estimate has remained unchanged over the past seven days, indicating a stable near-term earnings outlook rather than a recent upward revision.
Quarterly Drivers and Challenges
McKesson’s first-quarter performance highlighted the strength of its core businesses. Revenues increased 8% to $105.4 billion, while adjusted EPS rose 20% to $9.93. Higher prescription volumes and continued strength in Oncology & Multispecialty supported results. This trend is likely to have continued in the second quarter.
On its first-quarter earnings call, management had indicated that North American Pharmaceutical benefited from stable utilization, specialty growth and strong generic sourcing. This trend is likely to have continued in the second quarter. The segment’s operating profit increased 19% in the first quarter. However, branded-to-generic conversions and lower branded pharmaceutical pricing following January 2026 wholesale acquisition cost decreases are likely to have weighed on revenues.
Specialty distribution and oncology services are likely to have remained important growth drivers. Oncology & Multispecialty revenues increased 33% in the first quarter, including contributions from Core Ventures. Excluding that acquisition, revenue growth was approximately 24%. Strong sales growth trend should have continued in the soon-to-be-reported quarter. Sales are also likely to have been aided by provider additions, new business wins and growth in existing provider solutions.
McKesson’s Prescription Technology Solutions sales figures should reflect growth opportunities through access and affordability services. Strong demand across GLP-1 medications and other therapeutic categories is likely to have benefited the segment’s top-line performance. However, the segment’s quarterly performance could have been affected by fluctuations in utilization, product-launch timing and program requirements.
Our proven model does not conclusively predict an earnings beat for MCK this time around. The combination of a positive Earnings ES Pand Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here, as you can see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($10.54 per share) and the Zacks Consensus Estimate, is -1.47%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Some stocks worth considering from the broader medical space are Glaukos (GKOS - Free Report) , Becton, Dickinson and Company (BDX - Free Report) and Globus Medical (GMED - Free Report) .
Glaukos, currently sporting a Zacks Rank #1, reported third-quarter 2026 earnings per share of 47 cents, which beat the Zacks Consensus Estimate by 491.67%. Revenues of $211 million surpassed the Zacks Consensus Estimate by 24.99%.
Glaukos has an estimated earnings growth rate of 268.8% for 2027. GKOS’ earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 138.6%.
Becton, Dickinson and Company, currently carrying a Zacks Rank #2, reported second-quarter 2026 adjusted EPS of $3.23, which beat the Zacks Consensus Estimate by 2.87%. Revenues of $4.98 billion surpassed the Zacks Consensus Estimate by 1.81%.
Becton, Dickinson and Company has an estimated long-term earnings growth rate of 1.1%. BDX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.94%.
Globus Medical, carrying a Zacks Rank of 2 at present, reported a second-quarter fiscal 2026 adjusted EPS of $1.34, which beat the Zacks Consensus Estimate by 19.6%. Revenues of $790 million missed the Zacks Consensus Estimate by 0.35%.
Globus Medical has an estimated long-term earnings growth rate of 12.4%. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 27.88%.
View the Zacks #1 Rank List
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Will MCK's Pharma & Specialty Demand Offset Pricing Headwind in Q2?
Key Takeaways
McKesson (MCK - Free Report) is scheduled to report second-quarter fiscal 2027 results after the market closes on Nov. 4, 2026. With a strong first-quarter performance, investors will assess whether prescription volumes, specialty distribution and oncology services can sustain earnings momentum while the company absorbs higher investments and the effects of portfolio changes.
Mckesson shares have gained 13% during the three months ended Sept. 30, 2026, outperforming the industry's 4.8% growth and the S&P 500's 1.6% rise.
Image Source: Zacks Investment Research
Earnings Surprise History
McKesson beat on earnings in each of the trailing four quarters, delivering an average surprise of 4.29%.
Last quarter's reported EPS of $9.93 beat the $9.44 estimate by 5.19%.
Image Source: Zacks Investment Research
Consensus Estimates and Revisions
The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $10.69 per share compared with $9.86 a year earlier. The consensus estimate for revenues is pinned at $110.11 billion compared with $106.16 billion in the prior-year quarter. The EPS and revenue estimates indicate a year-over-year improvement of 8.4% and 6.8%, respectively.
The EPS estimate has remained unchanged over the past seven days, indicating a stable near-term earnings outlook rather than a recent upward revision.
Quarterly Drivers and Challenges
McKesson’s first-quarter performance highlighted the strength of its core businesses. Revenues increased 8% to $105.4 billion, while adjusted EPS rose 20% to $9.93. Higher prescription volumes and continued strength in Oncology & Multispecialty supported results. This trend is likely to have continued in the second quarter.
On its first-quarter earnings call, management had indicated that North American Pharmaceutical benefited from stable utilization, specialty growth and strong generic sourcing. This trend is likely to have continued in the second quarter. The segment’s operating profit increased 19% in the first quarter. However, branded-to-generic conversions and lower branded pharmaceutical pricing following January 2026 wholesale acquisition cost decreases are likely to have weighed on revenues.
Specialty distribution and oncology services are likely to have remained important growth drivers. Oncology & Multispecialty revenues increased 33% in the first quarter, including contributions from Core Ventures. Excluding that acquisition, revenue growth was approximately 24%. Strong sales growth trend should have continued in the soon-to-be-reported quarter. Sales are also likely to have been aided by provider additions, new business wins and growth in existing provider solutions.
McKesson’s Prescription Technology Solutions sales figures should reflect growth opportunities through access and affordability services. Strong demand across GLP-1 medications and other therapeutic categories is likely to have benefited the segment’s top-line performance. However, the segment’s quarterly performance could have been affected by fluctuations in utilization, product-launch timing and program requirements.
McKesson Corporation Price and EPS Surprise
McKesson Corporation price-eps-surprise | McKesson Corporation Quote
What Our Model Unveils for McKesson
Our proven model does not conclusively predict an earnings beat for MCK this time around. The combination of a positive Earnings ES Pand Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here, as you can see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($10.54 per share) and the Zacks Consensus Estimate, is -1.47%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: MCK has a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Some stocks worth considering from the broader medical space are Glaukos (GKOS - Free Report) , Becton, Dickinson and Company (BDX - Free Report) and Globus Medical (GMED - Free Report) .
Glaukos, currently sporting a Zacks Rank #1, reported third-quarter 2026 earnings per share of 47 cents, which beat the Zacks Consensus Estimate by 491.67%. Revenues of $211 million surpassed the Zacks Consensus Estimate by 24.99%.
Glaukos has an estimated earnings growth rate of 268.8% for 2027. GKOS’ earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 138.6%.
Becton, Dickinson and Company, currently carrying a Zacks Rank #2, reported second-quarter 2026 adjusted EPS of $3.23, which beat the Zacks Consensus Estimate by 2.87%. Revenues of $4.98 billion surpassed the Zacks Consensus Estimate by 1.81%.
Becton, Dickinson and Company has an estimated long-term earnings growth rate of 1.1%. BDX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.94%.
Globus Medical, carrying a Zacks Rank of 2 at present, reported a second-quarter fiscal 2026 adjusted EPS of $1.34, which beat the Zacks Consensus Estimate by 19.6%. Revenues of $790 million missed the Zacks Consensus Estimate by 0.35%.
Globus Medical has an estimated long-term earnings growth rate of 12.4%. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 27.88%.