McKesson (NYSE:MCK) Posts Quarterly Earnings Results, Beats Estimates By $0.96 EPS

McKesson (NYSE:MCK) released its quarterly earnings results on Wednesday. The company reported $11.68 earnings per share for the quarter, topping the consensus estimate of $10.72 by $0.96, Zacks reports. McKesson had a net margin of 1.12% and a negative return on equity of 235.48%. The firm had revenue of $110.96 billion for the quarter, compared to analysts’ expectations of $109.90 billion. During the same quarter in the prior year, the firm posted $9.86 earnings per share. The business’s quarterly 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 Down 1.0%

NYSE:MCK traded down $11.21 during midday trading on Friday, hitting $1,060.79. The company had a trading volume of 809,755 shares, compared to its average volume of 919,608. The company has a market capitalization of $123.68 billion, a PE ratio of 27.28, a P/E/G ratio of 2.13 and a beta of 0.27. McKesson has a 52-week low of $723.68 and a 52-week high of $1,121.50. The stock’s fifty day moving average price is $934.72 and its 200-day moving average price is $866.92.

McKesson Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, January 4th. Investors of record on Tuesday, December 1st will be given a $0.94 dividend. The ex-dividend date is Tuesday, December 1st. This represents a $3.76 annualized dividend and a yield of 0.4%. McKesson’s payout ratio is 9.67%.

Trending Headlines about McKesson

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: Fiscal Q2 2027 adjusted EPS was $11.68, above analyst estimates of about $10.70, while revenue reached $110.96 billion, beating forecasts and rising 7.5% year over year. Specialty-drug demand and higher prescription volumes supported results. MCK Q2 Earnings Beat Estimates
• Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $45.60–$46.40, citing specialty growth, operating gains and GLP-1 momentum. McKesson also completed its $2.25 billion Precision Medicine Group acquisition. Earnings Call Highlights
• Positive Sentiment: Analyst sentiment strengthened: UBS raised its price target to $1,250 and maintained a Buy rating, while TD Cowen and Leerink Partners lifted targets to $1,200. Zacks also upgraded MCK to Rank #2 (Buy), citing improving earnings prospects. UBS Analyst Updates Zacks Upgrade
• Neutral Sentiment: EVP Francisco Fraga sold shares under a pre-arranged Rule 10b5-1 plan; one reported sale was to cover tax withholding on vested equity awards. Such planned transactions are generally less informative about management’s outlook. SEC Filing
• Negative Sentiment: RBC raised its target to $965 but kept a Sector Perform rating; that target is below the stock’s recent trading level, signaling a more cautious valuation view. RBC Commentary

Analysts Set New Price Targets

Several equities analysts recently commented on MCK shares. Weiss Ratings upgraded McKesson from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, September 4th. TD Cowen upped their target price on McKesson from $1,006.00 to $1,200.00 and gave the stock a “buy” rating in a research note on Thursday. UBS Group raised their price target on McKesson from $1,200.00 to $1,250.00 and gave the company a “buy” rating in a report on Thursday. Royal Bank Of Canada lifted their price target on McKesson from $845.00 to $965.00 and gave the company a “sector perform” rating in a research report on Thursday. Finally, Argus lifted their price target on McKesson from $850.00 to $970.00 and gave the company a “buy” rating in a research report on Thursday, September 3rd. Fifteen research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $1,026.18.

Insider Buying and Selling at McKesson

In other McKesson news, Director Bradley Lerman sold 301 shares of the firm’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $892.33, for a total transaction of $268,591.33. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Francisco Fraga sold 650 shares of McKesson stock in a transaction dated Thursday, November 5th. The stock was sold at an average price of $1,102.96, for a total value of $716,924.00. Following the sale, the executive vice president directly owned 4,414 shares of the company’s stock, valued at approximately $4,868,465.44. This trade represents a 12.84% 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 have sold 2,462 shares of company stock worth $2,511,106 over the last 90 days. Corporate insiders own 0.06% of the company’s stock.

McKesson Company Profile

McKesson Corporation is a healthcare services and information technology company that distributes pharmaceuticals and other medical products. Its customers include pharmacies, hospitals, health systems, clinics and other healthcare providers.

The company also provides medical-surgical supplies and technology and services that support pharmacy operations, prescription management and care delivery. Its offerings include specialized support for oncology and other areas of care.

Founded in 1833, McKesson serves customers primarily in the United States and Canada.