McKesson Corp (NYSE:MCK) stock rose 0.63% (As on November 6, 11:24:14 AM UTC-4, Source: Google Finance) after the company raised its fiscal 2026 profit forecast, betting on strong growth in its oncology and specialty drug distribution businesses. Drug distributors in the United States are expanding their presence in the market for specialty medicines, which treat complex conditions such as rheumatoid arthritis and cancer, due to their high profit margins. The drug distributor’s U.S. pharmaceutical unit — its largest segment by revenue — recorded sales of $86.5 billion. That was 8% higher than last year, but missed the consensus estimate of $87.40 billion. In September, McKesson said it would restructure into four segments to sharpen focus on high-margin businesses, such as cancer medicines, to boost growth.

Moreover, the company has entered into a definitive agreement to sell its retail and distribution businesses in Norway. The transaction is subject to customary closing conditions, including receipt of required approvals.

MCK in the second quarter of FY26 has reported the adjusted earnings per share of $9.86, beating the analysts’ estimates for the adjusted earnings per share of $9.02. This is an increase of 39%, driven by strong operational growth across the business, including contributions from acquisitions, net gains in the Oncology & Multispecialty segment from the sale of an investment and market decisions within The US Oncology Network, and a lower tax rate. The company had reported the adjusted revenue growth of 10 percent to $103.15 billion in the second quarter of FY26, missing the analysts’ estimates for revenue of $104.13 billion. This is driven by growth in the North American Pharmaceutical segment, due to increased prescription volumes from retail national account customers, and growth in the distribution of oncology and multispecialty products including contributions from acquisitions in the Oncology & Multispecialty segment.

Additionally, during the three months ended September 30, 2025, McKesson generated cash flow from operations of $2.4 billion, and invested $196 million in capital expenditures, resulting in Free Cash Flow of $2.2 billion. During the first six months of the fiscal year, McKesson generated cash from operations of $1.5 billion, and invested $385 million in capital expenditures, resulting in Free Cash Flow of $1.1 billion. For the first six months of the fiscal year, McKesson returned $1.6 billion of cash to shareholders, which included $1.4 billion of common stock repurchases and $179 million of dividend payments

McKesson now expects adjusted earnings per share to be in the range of $38.35 to $38.85 for fiscal 2026, compared to its previous outlook of $38.05 to $38.55 per share. Analysts, on average, expect a profit of $38.33 per share, according to data compiled by LSEG. Fiscal 2026 Adjusted Earnings per Diluted Share guidance range indicates 16% to 18% growth compared to the prior year.