McKesson (NYSE:MCK) Misses Q1 Revenue Estimates

Anthony Lee

Thu, May 8, 2025, 2:43 PM 5 min read

Healthcare distributor and services institution McKesson (NYSE:MCK) fell abbreviated of the market’s gross expectations successful Q1 CY2025, but income roseate 18.9% twelvemonth connected twelvemonth to $90.82 billion. Its non-GAAP nett of $10.12 per stock was 3% supra analysts’ statement estimates.

Is present the clip to bargain McKesson? Find retired successful our afloat probe report.

• Revenue: $90.82 cardinal vs expert estimates of $94.74 cardinal (18.9% year-on-year growth, 4.1% miss)

• Adjusted EPS: $10.12 vs expert estimates of $9.83 (3% beat)

• Adjusted EPS guidance for the upcoming fiscal twelvemonth 2026 is $37.15 astatine the midpoint, beating expert estimates by 0.9%

• Operating Margin: 1.8%, successful enactment with the aforesaid 4th past year

• Free Cash Flow Margin: 8.2%, up from 5.1% successful the aforesaid 4th past year

• Market Capitalization: $90.53 billion

With roots dating backmost to 1833, making it 1 of America's oldest continuously operating businesses, McKesson (NYSE:MCK) is simply a healthcare services institution that distributes pharmaceuticals, aesculapian supplies, and provides exertion solutions to pharmacies, hospitals, and healthcare providers.

A company’s semipermanent income show is 1 awesome of its wide quality. Any concern tin enactment up a bully 4th oregon two, but galore enduring ones turn for years. Over the past 5 years, McKesson grew its income astatine a decent 9.2% compounded yearly maturation rate. Its maturation was somewhat supra the mean healthcare institution and shows its offerings resonate with customers.

Long-term maturation is the astir important, but wrong healthcare, a half-decade humanities presumption whitethorn miss caller innovations oregon request cycles. McKesson’s annualized gross maturation of 13.9% implicit the past 2 years is supra its five-year trend, suggesting its request precocious accelerated.

We tin excavation further into the company’s gross dynamics by analyzing its astir important segment, U.S. Pharmaceutical . Over the past 2 years, McKesson’s U.S. Pharmaceutical gross averaged 16.7% year-on-year growth.

This quarter, McKesson’s gross grew by 18.9% twelvemonth connected twelvemonth to $90.82 cardinal but fell abbreviated of Wall Street’s estimates.

Looking ahead, sell-side analysts expect gross to turn 12.2% implicit the adjacent 12 months, a flimsy deceleration versus the past 2 years. We inactive deliberation its maturation trajectory is charismatic fixed its standard and indicates the marketplace is baking successful occurrence for its products and services.

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