MCK Stock Gains as Q2 Earnings & Sales Top Estimates, '25 EPS View Up

Core Insights - McKesson Corporation reported strong second-quarter fiscal 2025 results, with adjusted earnings per share (EPS) of $7.07, exceeding the Zacks Consensus Estimate of$6.89 by 2.6% and showing a year-over-year improvement of 13.5% [1] - Revenues reached $93.65 billion, surpassing the Zacks Consensus Estimate by 4.7$85.7 billion, up 23% year over year, primarily due to increased prescription volumes from specialty products and GLP-1 medications [4] - The International segment reported revenues of $3.7 billion, a 7$2.9 billion, up 4% year over year, driven by higher volumes of specialty pharmaceuticals [7] - The Prescription Technology Solutions segment achieved revenues of $1.3 billion, an 11$3.25 billion, a 5.8% increase year over year, representing 3.5% of net revenues, down nearly 50 basis points from the previous year [9] - Operating income was reported at $578 million, down 39.2$2.51 billion, up from $2.3 billion a year ago, with cumulative net cash provided by operating activities amounting to$720 million compared to a net cash used of $87 million in the prior year [10] Fiscal 2025 Guidance - McKesson raised its adjusted EPS guidance for fiscal 2025 to a range of$32.40-$33.00, reflecting an 18-20% growth from the prior year, with revenues expected to grow 15-17% [11] Market Performance - McKesson's shares rose 4.7% in after-hours trading following the earnings report, with an 18.8% increase year to date, outperforming the industry growth of 2.9% and the S&P 500 Index's gain of 24.7% [3]