McKesson Corporation (MCK) raised its fiscal 2027 adjusted earnings outlook to $45.60 to $46.40 a share from $44.20 to $45.00 after a second quarter in which revenue held at an 8% year-over-year increase and adjusted earnings per diluted share rose 18%.

The healthcare distributor said the new range indicates 17% to 19% growth versus the prior year, after the first-quarter raise had pointed to 13% to 15%. Chief Financial Officer Kenny Cheung said the lift is underpinned by business strength and confidence in execution. The company does not forecast GAAP earnings per diluted share.

Consolidated revenues were $111.0 billion for the three months ended September 30, 2026, matching the 8% increase reported in the prior quarter. GAAP earnings per diluted share was $10.44, up $1.52 from $8.92 a year earlier, reversing a $1.10 year-over-year decline in the first quarter. Adjusted earnings per diluted share was $11.68, after 20% year-over-year growth in the prior quarter. The company attributed the adjusted increase to operational growth in North American Pharmaceutical, Oncology & Multispecialty, and Prescription Technology Solutions, and a lower share count.

North American Pharmaceutical, the largest reportable segment, posted revenues of $91.4 billion, up 6%. The company said the increase reflected higher prescription transaction volumes, including specialty products to health systems and strategic accounts, partially offset by lower contributions from branded pharmaceuticals. Adjusted segment operating profit was $1.0 billion, up 22%.

Oncology & Multispecialty revenues were $15.0 billion, up 24%, which the company attributed to growth in provider solutions and specialty distribution. Adjusted segment operating profit was $427 million, up 8%. Prescription Technology Solutions revenues were $1.5 billion, up 10%, with adjusted operating profit of $307 million, up 18%. Medical-Surgical Solutions revenues were $3.1 billion, up 5%; adjusted operating profit was $225 million, down 10%, which the company tied to lower ambulatory-care contributions from product mix, partly offset by extended-care growth.

Gross profit was $3.96 billion, up 12%, and operating income was $1.60 billion, up 14%. Diluted weighted-average shares were 116.7 million.

Cash generation reversed a first-quarter cash outflow. During the three months ended September 30, McKesson generated $3.1 billion of cash from operations and $2.9 billion of free cash flow after $123 million of capital expenditures, following negative free cash flow of $372 million in the prior quarter.

The company signed an agreement to extend its pharmaceutical distribution partnership with CVS Health through June 2032. On October 5, 2026, it signed a definitive agreement to invest about $1.4 billion for a minority interest of approximately 49% in Option Care Health, subject to customary closing conditions including stockholder and regulatory approvals. On November 2, 2026, McKesson completed the acquisition of Precision Medicine Group, a provider of clinical research and biopharma commercialization services. PRISM Vision Group added Spectrum Vision Partners, bringing its provider network to more than 350.

Chair and Chief Executive Officer Brian Tyler said the quarter reflected operational strength in core segments and disciplined execution, and that the company continued to invest strategically while maintaining financial discipline.