McKesson Extends CVS Health Distribution Deal Through 2032, Reaffirms FY27 Earnings Guidance

McKesson Corporation signed an agreement in principle on Thursday to extend its pharmaceutical distribution partnership with CVS Health through June 2032, covering supply to CVS mail order, specialty and retail pharmacies, as well as distribution centers. The two companies have maintained this relationship for more than 25 years, and CVS accounted for approximately 24% of McKesson's total consolidated revenues in fiscal 2026, making it the company's single largest customer.

Alongside the deal announcement, McKesson reaffirmed its fiscal year 2027 adjusted earnings per share guidance, a signal that the renewal carries no material financial disruption for the near term. McKesson shares rose 4.4% on the news Thursday.

Cardinal Health also announced a separate but parallel extension of its own pharmaceutical distribution agreements with CVS Health through June 2032, framing the arrangement as a binding letter of intent. Cardinal Health simultaneously reaffirmed its fiscal year 2027 non-GAAP EPS guidance range of $12.40 to $12.60 and its long-term non-GAAP EPS growth range of 12% to 14%, suggesting both major distributors secured renewals on terms consistent with existing financial plans. Shares of both McKesson and Cardinal Health traded higher following the announcements.