McKesson lifts annual profit forecast on plans to focus on high-margin businesses

By Mrinalika Roy and Kamal Choudhury

(Reuters) -McKesson on Tuesday raised its profit forecast, as the U.S. drug distributor aims to focus on high-margin businesses such as cancer medicines to boost growth.

The Texas-based firm now expects adjusted earnings to range between $38.05 and $38.55 per share for fiscal 2026, up from its previous forecast of $37.10 to $37.90.

It also lifted its long-term adjusted earnings growth target to 13% to 16%, from a prior range of 12% to 14%.

McKesson’s shares rose about 3% following the announcement.

The company’s strong operational track record and disciplined execution would deliver “meaningful impact across the healthcare ecosystem,” CEO Brian Tyler said.

McKesson last week announced a reorganization of its business, including a newly defined oncology and multispecialty unit.

The segment, which includes cancer care, retina services and specialty drug distribution, is expected to grow 13% to 16% annually, the fastest among the company’s divisions.

Its prescription technology solutions segment, which helps biopharma companies with patient access and adherence tools, is targeting 10% to 13% annual growth.

The North American pharmaceutical segment, which includes traditional drug distribution, is expected to grow 5% to 8%.

Analysts called the update a positive signal ahead of McKesson’s investor day due later on Tuesday.

“Overall, we see this as a positive indicator for the company’s future growth compounding capabilities,” Leerink Partners analysts said in a note.

McKesson has been expanding its presence in oncology through acquisitions and partnerships, including the roughly $2.49 billion acquisition of a controlling stake in Core Ventures, a business services firm linked to Florida Cancer Specialists.

“This morning’s announcement comes as a positive vs expectations,” said Evercore ISI analyst Elizabeth Anderson.

She added that the current operating environment would be in focus during the investor day, given some recent investor worries regarding drug pricing.

McKesson said it also plans to update investors on the planned separation of its medical-surgical solutions unit.

(Reporting by Mrinalika Roy and Kamal Choudhury in Bengaluru; Editing by Shreya Biswas)