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

McKesson (NYSE:MCK) released 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. The company had revenue of $110.96 billion for 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%. McKesson’s revenue for the quarter was up 7.5% on a year-over-year basis. During the same quarter last year, the business 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 Price Performance

Shares of McKesson stock traded up $69.69 during 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 52 week low of $723.68 and a 52 week high of $1,073.95. The stock has a market cap 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. The stock has a 50-day moving average price of $931.17 and a two-hundred day moving average price of $865.74.

McKesson Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, January 4th. Investors of record on Tuesday, December 1st will be paid a $0.94 dividend. The ex-dividend date of this dividend is Tuesday, December 1st. This represents a $3.76 annualized dividend and a dividend yield of 0.4%. McKesson’s payout ratio is currently 10.06%.

McKesson News Summary

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 at McKesson

In other McKesson news, Director Bradley E. Lerman sold 301 shares of McKesson 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 sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, EVP Francisco Fraga sold 800 shares of McKesson 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 transaction, 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,212 shares of company stock worth $1,164,182 over the last three months. Company insiders own 0.06% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on MCK shares. Wells Fargo & Company upped their target price on McKesson from $812.00 to $933.00 and gave the stock an “equal weight” rating in a report on Tuesday, August 11th. Morgan Stanley set a $977.00 price target on McKesson in a research note on Tuesday, October 6th. Argus boosted their price target on McKesson from $850.00 to $970.00 and gave the stock a “buy” rating in a report on Thursday, September 3rd. Wall Street Zen upgraded McKesson from a “hold” rating to a “buy” rating in a report on Saturday, October 17th. Finally, Leerink Partners upped their price objective on McKesson from $1,030.00 to $1,070.00 and gave the company an “outperform” rating in a research note on Wednesday, October 7th. Fifteen equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $997.12.

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.