McKesson Corp (NYSE:MCK) stock rose 0.89% (As on May 9, 11:27:46 AM UTC-4, Source: Google Finance) after the company reported better-than-expected fourth-quarter earnings and announced plans to separate its Medical-Surgical Solutions segment. The separation would advance McKesson and NewCo’s ability to create value for customers, partners, patients, and shareholders with increased investment and dedicated capital allocation. The separation would result in two well-capitalized, world-class companies, well-positioned to pursue their respective strategic growth priorities. The Expansion of the Oncology and Other Specialty platforms anticipated to close the acquisition of a controlling interest of Florida Cancer Specialists & Research Institute, LLC’s Core Ventures on June 2, 2025, subject to customary closing conditions. The company announced the completion of the acquisition for an 80% controlling interest of PRISM Vision Holdings, LLC on April 2, 2025. The company continued to advance the biopharma platform. In the past year, McKesson’s biopharma services platform which helped patients save more than $10 billion on brand and specialty medications, helped to prevent 12 million prescriptions from being abandoned due to affordability challenges and helped patients access their medicine 100 million+ times.

Moreover, U.S. Pharmaceutical Q4 revenue growth driven by increased prescription volumes from retail national customers and growth in the distribution of specialty products, including higher volumes in oncology. Prescription Technology Solutions Q4 revenue growth driven by increased prescription volumes in the third-party logistics and technology services businesses. Medical-Surgical Solutions Q4 revenue increase driven by higher volumes of specialty pharmaceuticals, partially offset by lower volumes, customer mix, and product demand shifts across the primary care channel. International Q4 revenue decrease driven by the divestiture of the Canada-based Rexall and Well.ca retail businesses, partially offset by higher pharmaceutical distribution volumes in the Canadian business.

MCK in the fourth quarter of FY25 has reported the adjusted earnings per share of $10.12, beating the analysts’ estimates for the adjusted earnings per share of $9.81. The company had reported the adjusted revenue growth of 19 percent to $90.82 billion in the fourth quarter of FY25, missing the analysts’ estimates for revenue of $93.48 billion. Cash flow from operations of $6.1 billion and Free Cash Flow of $5.2 billion.

The company provided fiscal 2026 adjusted EPS guidance of $36.75 to $37.55, indicating 11% to 14% growth compared to fiscal 2025. The midpoint of $37.15 is slightly above the analyst consensus of $36.83. McKesson also updated its long-term adjusted segment operating profit growth target for U.S. Pharmaceutical from 5-7% to 6-8%, reflecting confidence in its core business.