Mckesson lifts annual profit forecast on robust demand for specialty drugs

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(Reuters) -U.S. drug distributor McKesson raised its annual profit forecast and beat Wall Street earnings estimates on Wednesday, banking on robust demand for specialty medicines.

High profit margins for specialty medicines, which treat complex conditions such as rheumatoid arthritis and cancer, have encouraged companies to expand in the market.

Texas-headquartered Mckesson expects per-share profit in the range of $37.10 to $37.90 for fiscal 2026, compared to its previous expectation of $36.90 to $37.70. Analysts on average expect a profit of $37.41 per share, according to data compiled by LSEG.

Earlier in the day, peer Cencora also raised its annual profit forecast and posted quarterly earnings that topped Wall Street estimates.

Mckesson reported first-quarter revenue of $97.83 billion, beating analysts’ average estimate of $96.08 billion.

The company said it benefited from increased prescription volumes from retail national account customers, growth in the distribution of specialty products and contributions from acquisitions.

On an adjusted basis, McKesson earned $8.26 per share, compared with estimates of $8.15.

The drug distributor’s U.S. pharmaceutical unit — its largest segment by revenue — recorded sales of $89.95 billion. That was 25% higher than the year earlier and beat analysts’ estimate of $89.52 billion.

Last quarter, Mckesson said it would spin off its medical-surgical solutions unit into an independent company to focus on its core drug distribution business.

(Reporting by Christy Santhosh in Bengaluru; Editing by Sriraj Kalluvila and Leroy Leo)