New York, Feb 5, 2026, 19:12 (EST) — After-hours
- McKesson shares jumped 16.5% in the latest session and stayed close to those levels after hours.
- The drug distributor raised its full-year adjusted profit forecast following quarterly results that exceeded expectations.
- Attention turns to specialty drug growth, the resilience of margins, and progress on the planned medical-surgical split.
Shares of McKesson Corp jumped roughly 16.5% to $957.80 in after-hours trading, following a strong rally earlier Thursday.
This shift is significant after a volatile run for U.S. stocks and recalibrates expectations for the defensive healthcare segment: drug distribution. Investors took the earnings report as a cue to focus on firms linked to specialty medicines, where volume growth outpaces and margins tend to be higher than in generic drugs.
McKesson lifted its fiscal 2026 adjusted earnings guidance and topped Wall Street forecasts for quarterly profit and revenue, driven by gains in oncology and specialty distribution. The company now expects adjusted EPS between $38.80 and $39.20 for fiscal 2026, up from its previous $38.35 to $38.85 range. Q3 revenue came in at $106.16 billion, with adjusted EPS at $9.34. McKesson confirmed it’s on schedule to spin off its medical-surgical unit, aiming for an IPO in the latter half of 2027. “Our results highlight the strength of our core distribution businesses,” CEO Brian Tyler said. (Reuters)
McKesson reported an 11% jump in revenue and $1.2 billion in operational cash flow in its latest quarterly update. The company confirmed it finalized the sale of its Norwegian retail and distribution units on Jan. 30, a move aligned with its strategy to exit Europe. It also noted a pre-tax credit linked to the Rite Aid bankruptcy within its North American pharmaceutical segment. The “adjusted” figures exclude certain items that can cause swings in GAAP profit quarter to quarter. (McKesson)
During the earnings call, executives highlighted technology and automation as key drivers of productivity, pointing to tools designed to speed up routing and resolution of customer inquiries. They noted that recent U.S. policy shifts were already factored into guidance, despite calling the policy environment “dynamic” when it comes to drug pricing and reimbursement. (The Motley Fool)
Rival Cardinal Health raised its full-year profit outlook Thursday, fueled by robust specialty-drug demand. Its shares jumped over 9% in early trading, highlighting how investors favor distributors that grow specialty sales without eroding margins. (Reuters)
McKesson faces some pressing concerns. Will oncology and biopharma services grow quickly enough to make up for narrower margins in its main distribution business? And can the planned medical-surgical split proceed on time without pulling management focus or hurting returns?
But the setup isn’t straightforward. A sharp one-day rally could quickly reverse if buyers don’t step in again on Friday, or if investors see the guidance boost as more about mix and timing than a real jump in earnings power. Execution risks tied to the separation, plus potential changes in U.S. drug policy, remain unpredictable wild cards.
Next on the agenda: investors will seek new insights from management at upcoming events, such as the Leerink Partners Global Healthcare Conference running March 8–11. They’ll be watching closely for updates on the spinoff strategy and just how quickly specialty volumes are stacking up.
