Adjusted operating profit increased 9% to $1.4 billion, with three of four segments delivering double-digit growth in adjusted operating profit.
Corporate expenses decreased 4% excluding McKesson Ventures gains, driven by lower opioid-related expenses and technology costs.
First quarter earnings per diluted share increased 5% to $8.26, or 14% excluding gains from McKesson Ventures equity investments.
Free cash flow was negative $1.1 billion, impacted by $3.4 billion cash used for acquisitions and $189 million in capital expenditures.
International segment revenues increased 1% to $3.7 billion, with operating profit down 3% due to divestitures; excluding divested businesses, revenues grew 5% and operating profit was flat.
McKesson reported record consolidated revenues of $97.8 billion for Q1 fiscal 2026, a 23% increase year-over-year.
Medical-Surgical Solutions segment revenues increased 2% to $2.7 billion, with operating profit up 22% due to operational efficiencies and cost optimization.
Prescription Technology Solutions segment revenues increased 16% to $1.4 billion, with operating profit up 21%, driven by higher demand for access solutions including prior authorization services for GLP-1 medications.
U.S. Pharmaceutical segment revenues rose 25% to $90 billion, driven by increased prescription volumes, growth in oncology and specialty products, and new strategic customer onboarding.
Strategic Asset Sale and Focused Business Model for BioReference Health
OPKO is streamlining BioReference Health by preparing to sell its oncology and related clinical testing assets to Labcorp for $225 million, with $192.5 million payable at closing and an earn-out of up to $32.5 million based on performance.
The sale aims to monetize assets, sharpen focus on core testing operations, and improve financial profile.
Post-transaction, BioReference will retain core clinical testing in NY and NJ, including proprietary tests like 4Kscore, and expand into direct-to-consumer and employer-based testing.
Management emphasizes that this strategic move is expected to enhance margins and position BioReference for profitability.
Diagnostics revenue grew 3% year-over-year to $19.2 million, while Sample Management Solutions revenue declined 22% due to a large consumer genetics customer.
Ended Q2 with zero debt and $235 million in cash and equivalents.
Excluding the consumer genetics customer, Sample Management revenue grew year-over-year, resulting in an overall 5% core revenue growth.
GAAP gross margin was 42.1% and non-GAAP gross margin was 43.2%, both better than expectations.
GAAP operating loss was $18 million and non-GAAP operating loss was $13.2 million.
Operating cash flow was negative $10 million, consistent with investments in innovation and clinical trials.
Total revenue for Q2 2025 was $31.2 million, with core revenue at $30.8 million, above the midpoint of guidance.
Dafinchi