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

McKesson (NYSE:MCK) announced its quarterly earnings data on Wednesday. The company reported $11.68 earnings per share for the quarter, beating the consensus estimate of $10.72 by $0.96, Zacks reports. McKesson had a negative return on equity of 253.21% and a net margin of 1.12%. The business had revenue of $110.96 billion during the quarter, compared to analyst estimates of $109.90 billion. During the same quarter in the prior year, the firm posted $9.86 earnings per share. The company’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 Up 7.0%

Shares of NYSE:MCK traded up $69.69 during trading on Wednesday, reaching $1,069.31. 1,169,752 shares of the company traded hands, compared to its average volume of 691,777. The firm has a market cap of $124.67 billion, a P/E ratio of 24.49, a price-to-earnings-growth ratio of 1.99 and a beta of 0.27. McKesson has a 1-year low of $723.68 and a 1-year high of $1,073.95. The firm has a fifty day simple moving average of $931.17 and a 200 day simple moving average of $865.74.

McKesson Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, January 4th. Shareholders of record on Tuesday, December 1st will be paid a dividend of $0.94 per share. The ex-dividend date of this dividend is Tuesday, December 1st. This represents a $3.76 dividend on an annualized basis and a dividend yield of 0.4%. McKesson’s dividend payout ratio (DPR) is 10.06%.

McKesson News Roundup

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: McKesson earned $11.68 per share, above the roughly $10.72 consensus, and revenue was $110.96 billion versus estimates of $109.90 billion. EPS rose from $9.86 a year earlier, while revenue increased 7.5% year over year—evidence of stronger-than-expected quarterly performance. McKesson quarterly earnings results
• Positive Sentiment: Shares also benefited from positive sentiment around peer Cencora’s earnings, according to coverage of McKesson’s move. McKesson gains after rival Cencora files earnings
• Neutral Sentiment: The board affirmed McKesson’s regular quarterly dividend of $0.94 per share, payable January 4, 2027. The reaffirmation supports continuity in shareholder returns but does not signal a dividend increase. Why McKesson is back in the spotlight
• Neutral Sentiment: Before the report, analysts flagged branded-drug pricing pressure as a potential counterweight to prescription-volume, specialty-distribution and oncology growth. The provided results coverage does not clarify how those pressures may affect future performance. Will pharma and specialty demand offset pricing headwinds?

Insider Activity

In related news, CAO B Jr sold 111 shares of the business’s stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $891.45, for a total value of $98,950.95. Following the completion of the sale, the chief accounting officer owned 521 shares of the company’s stock, valued at approximately $464,445.45. The trade was a 17.56% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Francisco Fraga sold 800 shares of the business’s stock in a transaction that occurred on Thursday, October 15th. The stock was 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 of the company’s stock, valued at $5,400,223.40. This represents a 12.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,212 shares of company stock worth $1,164,182 in the last three months. 0.06% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

MCK has been the topic of several research reports. Barclays boosted their price target on shares of McKesson from $925.00 to $1,000.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 19th. Wells Fargo & Company raised their price objective on shares of McKesson from $812.00 to $933.00 and gave the company an “equal weight” rating in a research report on Tuesday, August 11th. Weiss Ratings upgraded shares of McKesson from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, September 4th. Mizuho boosted their target price on shares of McKesson from $905.00 to $1,020.00 and gave the stock a “neutral” rating in a report on Tuesday, October 20th. Finally, Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $845.00 target price on shares of McKesson in a report on Monday, September 14th. Fifteen equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $997.12.

About McKesson

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.