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

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

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 MCK traded up $69.69 during midday trading on Wednesday, hitting $1,069.31. The company’s stock had a trading volume of 1,169,752 shares, compared to its average volume of 691,777. McKesson has a one year low of $723.68 and a one year high of $1,073.95. The company’s fifty day simple moving average is $931.17 and its two-hundred day simple moving average is $865.74. The stock has a market capitalization of $124.67 billion, a price-to-earnings ratio of 24.49, a price-to-earnings-growth 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. Stockholders of record on Tuesday, December 1st will be paid a $0.94 dividend. The ex-dividend date is Tuesday, December 1st. This represents a $3.76 annualized dividend and a dividend yield of 0.4%. McKesson’s dividend payout ratio (DPR) is presently 10.06%.

Trending Headlines about McKesson

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?

Wall Street Analyst Weigh In

MCK has been the subject of a number of analyst reports. Barclays boosted their price target on McKesson from $925.00 to $1,000.00 and gave the company an “overweight” rating in a research note on Wednesday, August 19th. Wells Fargo & Company increased their price objective on shares of McKesson from $812.00 to $933.00 and gave the stock an “equal weight” rating in a research note on Tuesday, August 11th. Leerink Partners raised their target price on shares of McKesson from $1,030.00 to $1,070.00 and gave the company an “outperform” rating in a report on Wednesday, October 7th. Robert W. Baird set a $1,015.00 target price on shares of McKesson in a report on Thursday, August 6th. Finally, Wall Street Zen upgraded shares of McKesson from a “hold” rating to a “buy” rating in a research report on Saturday, October 17th. Fifteen equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $997.12.

Insider Transactions at McKesson

In related news, EVP Francisco Fraga sold 800 shares of the firm’s stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $995.80, for a total value of $796,640.00. Following the sale, the executive vice president directly owned 5,423 shares of the company’s stock, valued at $5,400,223.40. This trade represents a 12.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bradley E. Lerman sold 301 shares of McKesson stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $892.33, for a total value of $268,591.33. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 1,212 shares of company stock valued at $1,164,182. Corporate insiders own 0.06% of the company’s stock.

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.