May 7 (Reuters) – McKesson forecast 2027 profit slightly above Wall Street expectations after beating first-quarter profit estimates on Thursday, as the U.S. drug distributor banks on strength in its oncology and specialty drug businesses.
McKesson and peers, including Cardinal Health and Cencora, are capitalizing on surging demand for high-cost specialty drugs used to treat rheumatoid arthritis and cancer, helping generate strong margins.
On an adjusted basis, the company expects fiscal 2027 profit per share of $43.80 to $44.60, with the midpoint of $44.20 slightly above analysts’ estimate of $44.10, according to data compiled by LSEG.
J.P. Morgan analysts described McKesson’s fiscal 2027 guidance as ‘better than feared’, noting that despite softer U.S. distribution trends at peers Cardinal Health and Cencora during the quarter, the outlook appears reasonable and consistent with the company’s long-term growth expectations.
The Texas-based company reported fourth-quarter revenue of $96.3 billion, compared with expectations of $101.35 billion.
On an adjusted basis, the largest pharmaceutical distributor in the U.S. earned $11.69 per share for the quarter, beating analysts’ estimates of $11.59.
McKesson’s U.S. pharmaceutical unit, its largest segment by revenue, recorded sales of $79.1 billion, an increase of 3%, driven by higher volumes of specialty products.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Jonathan Ananda)
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