McKesson (NYSE:MCK) Issues FY 2027 Earnings Guidance

McKesson (NYSE:MCK) updated its FY 2027 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 44.200-45.000 for the period, compared to the consensus estimate of 44.270. The company issued revenue guidance of $423.6 billion-$439.7 billion, compared to the consensus revenue estimate of $431.9 billion.

McKesson Stock Down 0.5%

NYSE:MCK traded down $4.55 during trading hours on Thursday, reaching $872.68. 1,576,335 shares of the company’s stock were exchanged, compared to its average volume of 952,151. The firm has a market capitalization of $102.17 billion, a price-to-earnings ratio of 22.68, a P/E/G ratio of 1.37 and a beta of 0.30. The company has a 50-day moving average of $798.08 and a 200 day moving average of $840.76. McKesson has a 1-year low of $637.00 and a 1-year high of $999.00.

McKesson (NYSE:MCK) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $9.93 EPS for the quarter, beating analysts’ consensus estimates of $9.56 by $0.37. McKesson had a net margin of 1.18% and a negative return on equity of 345.35%. The company had revenue of $105.38 billion for the quarter, compared to analyst estimates of $103.88 billion. During the same period in the previous year, the business posted $8.26 earnings per share. McKesson’s quarterly revenue was up 7.7% on a year-over-year basis. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. Research analysts forecast that McKesson will post 44.28 EPS for the current fiscal year.

McKesson Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be paid a dividend of $0.94 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $3.76 annualized dividend and a yield of 0.4%. This is a boost from McKesson’s previous quarterly dividend of $0.82. McKesson’s dividend payout ratio (DPR) is currently 9.77%.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on MCK shares. TD Cowen lifted their target price on McKesson from $989.00 to $1,006.00 and gave the company a “buy” rating in a research note on Thursday. UBS Group lifted their price objective on shares of McKesson from $1,050.00 to $1,080.00 and gave the company a “buy” rating in a research report on Thursday. Citigroup boosted their price objective on shares of McKesson from $945.00 to $1,000.00 and gave the company a “buy” rating in a research note on Friday, July 24th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $875.00 price objective on shares of McKesson in a research report on Friday, May 8th. Finally, Barclays reduced their target price on shares of McKesson from $1,050.00 to $925.00 and set an “overweight” rating for the company in a research note on Wednesday, June 10th. Fourteen analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $968.93.

Insiders Place Their Bets

In other news, CAO Napoleon B. Rutledge, Jr. sold 133 shares of McKesson stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $764.00, for a total transaction of $101,612.00. Following the completion of the sale, the chief accounting officer directly owned 632 shares in the company, valued at approximately $482,848. This trade represents a 17.39% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brian S. Tyler sold 8,463 shares of McKesson stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $793.56, for a total transaction of $6,715,898.28. Following the transaction, the chief executive officer owned 5,919 shares of the company’s stock, valued at approximately $4,697,081.64. The trade was a 58.84% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 28,748 shares of company stock worth $22,262,035 in the last ninety days. 0.06% of the stock is owned by insiders.

Key Headlines Impacting McKesson

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: McKesson reported adjusted earnings of $9.93 per share, above the $9.56 consensus estimate, while revenue rose 7.7% year over year to $105.38 billion, exceeding expectations of $103.88 billion. Earnings also increased from $8.26 per share in the prior-year quarter. McKesson Fiscal Q1 Earnings Report
• Positive Sentiment: The company raised fiscal 2027 adjusted EPS guidance to $44.20-$45.00, broadly above the prior outlook and near or above analyst expectations. Revenue guidance was set at approximately $423.6 billion-$439.7 billion. McKesson Raises Full-Year EPS Guidance
• Positive Sentiment: Pharmaceutical profit grew 19%, led by specialty medicine demand and oncology growth. Management also highlighted disciplined spending, supporting the improved earnings outlook. MCK Q1 Earnings Call Centers on Pharma-Led Guidance Raise
• Positive Sentiment: McKesson plans to repurchase up to $5 billion of shares and reportedly raised its dividend by 15%, providing additional potential shareholder returns. McKesson Fiscal 2027 EPS and Share Repurchase Plan
• Neutral Sentiment: McKesson’s Medical-Surgical Solutions business is being rebranded as Wellverse ahead of a planned spin-off and IPO. The move could unlock value, but its financial impact and timing remain uncertain. McKesson Medical-Surgical Rebrands as Wellverse

Institutional Trading of McKesson

Several institutional investors and hedge funds have recently made changes to their positions in MCK. State Street Corp grew its position in shares of McKesson by 0.9% in the third quarter. State Street Corp now owns 5,750,519 shares of the company’s stock valued at $4,447,110,000 after purchasing an additional 51,510 shares during the period. Northern Trust Corp increased its stake in shares of McKesson by 0.4% during the 3rd quarter. Northern Trust Corp now owns 1,532,856 shares of the company’s stock valued at $1,184,193,000 after acquiring an additional 6,613 shares during the last quarter. Boston Partners lifted its holdings in shares of McKesson by 6.7% during the 3rd quarter. Boston Partners now owns 1,330,953 shares of the company’s stock worth $1,027,569,000 after acquiring an additional 83,357 shares during the period. Invesco Ltd. lifted its holdings in shares of McKesson by 9.5% during the 4th quarter. Invesco Ltd. now owns 1,052,739 shares of the company’s stock worth $863,551,000 after acquiring an additional 90,982 shares during the period. Finally, Charles Schwab Investment Management Inc. boosted its position in shares of McKesson by 1.7% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 934,164 shares of the company’s stock worth $766,285,000 after acquiring an additional 15,974 shares during the last quarter. 85.07% of the stock is currently owned by hedge funds and other institutional investors.

About McKesson

McKesson Corporation (NYSE: MCK) is a global healthcare services and distribution company that supplies pharmaceuticals, medical-surgical products and health care technology solutions. Founded in 1833 and headquartered in Irving, Texas, McKesson operates across the drug distribution and healthcare services value chain, connecting manufacturers, pharmacies, hospitals and health systems to help manage the movement of medicines and clinical supplies.

The company’s core activities include pharmaceutical wholesale distribution and logistics, specialty pharmacy services, and the provision of medical-surgical supplies to acute and non-acute care providers.