McKesson (MCK) Bank of America Global Healthcare Conference 2026 summary

Fiscal 2026 performance and outlook

• Achieved strong revenue, adjusted operating profit, and EPS growth in fiscal 2026, exceeding long-range targets.

• Three out of four segments posted double-digit adjusted operating profit growth.

• North American Pharmaceutical Distribution continues to see stable and growing utilization.

• Specialty pharmaceuticals, including GLP-1s, are driving significant revenue growth, with GLP-1s reaching $53 billion and over 20% growth in Q4.

• Fiscal 2027 guidance for adjusted operating profit is at the upper end of long-range targets.

Impact of pricing, cash flow, and working capital

• Manufacturer list price declines impact revenue but not gross or adjusted operating profit due to fixed fee-for-service model.

• Adjusted operating profit margin expanded by nine basis points in Q4, reflecting business stability.

• Free cash flow generation remains strong, with working capital efficiency supported by automation and AI.

• Cash flow variability is mainly due to timing and internal process changes, but long-term growth aligns with business profitability.

Biosimilars and specialty drug strategy

• Biosimilars present long-term margin opportunities, especially in provider channels with more services.

• Margin rates for biosimilars are generally higher than for innovator drugs.

• New biosimilar launches, such as Stimufend, aim to provide choice, affordability, and supply stability.

• Future biosimilar strategies will be evaluated based on market reception and alignment with access and affordability goals.