McKesson (NYSE:MCK) Issues Earnings Results, Beats Expectations By $0.96 EPS

McKesson (NYSE:MCK) released its quarterly earnings data on Wednesday. The company reported $11.68 EPS for the quarter, topping analysts’ consensus estimates of $10.72 by $0.96, Zacks reports. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The firm had revenue of $110.96 billion for the quarter, compared to the consensus estimate of $109.90 billion. During the same quarter in the previous year, the firm earned $9.86 earnings per share. The firm’s revenue was up 7.5% on a year-over-year basis.

Here are the key takeaways from McKesson’s conference call:

• McKesson reported 8% revenue growth and 18% adjusted EPS growth in fiscal Q2, with adjusted EPS of $11.68. The company raised its fiscal 2027 adjusted EPS outlook to $45.60–$46.40, citing strong first-half performance and confidence in the outlook.
• North American Pharmaceutical operating profit rose 22%, supported by higher prescription volumes and specialty distribution; GLP-1 distribution revenue increased 26% year over year to $16 billion. The company expects continued segment momentum, while noting branded-drug price declines weigh on revenue growth.
• McKesson completed its $2.25 billion acquisition of Precision Medicine Group, which it expects to add $0.10–$0.20 to fiscal 2027 adjusted EPS and $1.60–$1.80 by the end of year three. It also agreed to invest about $1.4 billion for a 49% stake in Option Care Health, though that deal is pending approvals and is not included in current guidance.
• Medical-Surgical Solutions operating profit fell 10% in Q2, reflecting weaker contributions from the ambulatory care channel due to product mix. For fiscal 2027, McKesson expects the segment’s operating profit to decline 4% to flat.

McKesson Stock Performance

McKesson stock traded up $5.94 during trading on Thursday, reaching $1,075.38. The company had a trading volume of 1,272,567 shares, compared to its average volume of 918,472. McKesson has a 12-month low of $723.68 and a 12-month high of $1,121.50. The stock’s 50 day moving average price is $931.17 and its two-hundred day moving average price is $865.74. The firm has a market capitalization of $125.38 billion, a price-to-earnings ratio of 28.78, a PEG ratio of 1.99 and a beta of 0.27.

McKesson Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, January 4th. Shareholders of record on Tuesday, December 1st will be paid a $0.94 dividend. This represents a $3.76 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend is Tuesday, December 1st. McKesson’s dividend payout ratio (DPR) is presently 9.67%.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. Mizuho increased their target price on shares of McKesson from $905.00 to $1,020.00 and gave the company a “neutral” rating in a report on Tuesday, October 20th. Leerink Partners boosted their price target on McKesson from $1,070.00 to $1,200.00 and gave the stock an “outperform” rating in a research note on Thursday. Barclays upped their price target on McKesson from $925.00 to $1,000.00 and gave the stock an “overweight” rating in a report on Wednesday, August 19th. Weiss Ratings raised McKesson from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, September 4th. Finally, TD Cowen lifted their price objective on McKesson from $1,006.00 to $1,200.00 and gave the stock a “buy” rating in a report on Thursday. Fifteen equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $1,023.24.

Insider Activity at McKesson

In other McKesson news, EVP Francisco Fraga sold 800 shares of the business’s stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $995.80, for a total transaction of $796,640.00. Following the completion of the sale, the executive vice president directly owned 5,423 shares in the company, valued at $5,400,223.40. The trade was a 12.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bradley Lerman sold 301 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $892.33, for a total transaction of $268,591.33. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 1,812 shares of company stock worth $1,794,182. 0.06% of the stock is owned by insiders.

McKesson News Roundup

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: Fiscal Q2 2027 adjusted earnings were $11.68 per share, ahead of analyst expectations, while revenue reached about $111 billion, also beating estimates and rising roughly 7.5% year over year. Q2 results and guidance
• Positive Sentiment: McKesson raised its fiscal 2027 adjusted EPS outlook to $45.60–$46.40. Management cited specialty-drug and GLP-1 distribution demand, higher prescription volumes, and operating gains as growth drivers. Earnings call highlights
• Positive Sentiment: Several analysts lifted price targets to $1,200, including Leerink Partners, TD Cowen and Evercore ISI, signaling confidence in the outlook. Leerink Partners rating TD Cowen target
• Neutral Sentiment: EVP Francisco Fraga sold 600 shares under a pre-arranged Rule 10b5-1 plan to cover tax withholding on vested equity awards. The stated purpose and planned nature of the sale may lessen its significance as a signal about his view of the company. SEC filing
• Negative Sentiment: RBC raised its target to $965 but kept a “sector perform” rating; that target remains below the share price cited in the report, reflecting a more cautious view of near-term upside. RBC rating

McKesson Company Profile

McKesson Corporation is a healthcare services and information technology company that distributes pharmaceuticals and medical products to pharmacies, hospitals, health systems, physicians and other healthcare providers. The company also provides technology, data and business solutions designed to support prescription management, pharmacy operations and patient care.

McKesson’s principal activities include pharmaceutical distribution, medical-surgical supply distribution, specialty pharmaceutical services and oncology care support.