News

McKesson Reports Strong Q1 Results

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4.7

Andrew R. Michaud

• August 04, 2023

McKesson, the leading drug distributor, has reported better-than-expected results for its latest quarter. With revenue reaching $74.48 billion for the fiscal first quarter ended June 30, the company experienced an 11% increase compared to the year-ago period. These results surpassed analysts' expectations of $70.28 billion. Additionally, McKesson achieved adjusted earnings of $7.27 per share, surpassing the previous year's $5.83 per share. The company also recorded a net income of $958 million, higher than the $768 million in the same period last year.

Factors Driving Revenue Growth

The impressive revenue growth can be attributed to McKesson's U.S. pharmaceutical segment, which saw a rise in prescription volumes. This development indicates the growing demand for medications in the United States.

Positive Outlook

In light of the strong performance in Q1, McKesson has revised its adjusted earnings-per-share guidance for fiscal year 2024. The company now projects earnings per share between $26.55 and $27.35, compared to the previously estimated range of $26.10 to $26.90.

Confidence in Future Growth

Chief Executive Brian Tyler expressed confidence in McKesson's ability to sustain its growth trajectory, stating, "We remain confident in our ability to deliver sustainable growth."