McKesson (NYSE:MCK) Announces Earnings Results, Beats Expectations By $0.15 EPS

McKesson (NYSE:MCK) issued its quarterly earnings data on Wednesday. The company reported $9.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $9.19 by $0.15, FiscalAI reports. McKesson had a negative return on equity of 248.14% and a net margin of 1.04%.The firm had revenue of $106.16 billion during the quarter, compared to the consensus estimate of $105.98 billion. During the same quarter in the previous year, the company posted $8.03 EPS. The business’s revenue for the quarter was up 11.4% compared to the same quarter last year. McKesson updated its FY 2026 guidance to 38.800-39.200 EPS.

Here are the key takeaways from McKesson’s conference call:

• Raised FY26 guidance to $38.80–$39.20 in adjusted EPS (17%–19% growth) and tightened revenue guidance to 12%–16%, signaling management’s confidence in sustained momentum.
• Reported strong third-quarter results with revenue of $106.2B (up 11%), adjusted diluted EPS of $9.34 (up 16%), robust free cash flow (TTM $9.6B), and $680M of share repurchases in the quarter.
• Oncology, multispecialty, and biopharma services drove outsized growth — oncology revenues +37% and operating profit +57% — with Prism Vision and Core Ventures adding meaningfully and expected to be accretive to FY26 segment profit.
• GLP-1 distribution was $14B (up 26% YoY) and specialty distribution remains a growth driver for North American pharma, but management warned quarter-to-quarter variability and is monitoring IRA/Part D and other policy dynamics.
• Progress on portfolio actions: transition service agreements are in place for the medical?surgical separation with an IPO targeted in H2 2027 (market?dependent), and the Norway divestiture is complete — actions aimed at unlocking shareholder value.

McKesson Stock Performance

McKesson stock traded up $124.59 during mid-day trading on Thursday, reaching $946.59. The company’s stock had a trading volume of 1,015,939 shares, compared to its average volume of 654,486. The company has a market capitalization of $116.84 billion, a price-to-earnings ratio of 29.46, a price-to-earnings-growth ratio of 1.40 and a beta of 0.40. The business’s 50 day simple moving average is $825.54 and its 200 day simple moving average is $776.66. McKesson has a 12 month low of $570.51 and a 12 month high of $964.94.

McKesson Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Monday, March 2nd will be issued a dividend of $0.82 per share. The ex-dividend date is Monday, March 2nd. This represents a $3.28 annualized dividend and a yield of 0.3%. McKesson’s dividend payout ratio is presently 10.21%.

Insider Transactions at McKesson

In other McKesson news, EVP Thomas L. Rodgers sold 276 shares of the business’s stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $816.18, for a total transaction of $225,265.68. Following the transaction, the executive vice president owned 2,268 shares of the company’s stock, valued at $1,851,096.24. The trade was a 10.85% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the company’s stock in a transaction that occurred on Friday, November 7th. The stock was sold at an average price of $861.63, for a total value of $283,476.27. Following the sale, the chief accounting officer owned 328 shares in the company, valued at approximately $282,614.64. This represents a 50.08% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.08% of the stock is currently owned by insiders.

Hedge Funds Weigh In On McKesson

A number of institutional investors have recently added to or reduced their stakes in the company. Sunbelt Securities Inc. lifted its stake in McKesson by 3.6% in the third quarter. Sunbelt Securities Inc. now owns 494 shares of the company’s stock valued at $382,000 after acquiring an additional 17 shares during the last quarter. ICONIQ Capital LLC raised its holdings in shares of McKesson by 3.6% in the 2nd quarter. ICONIQ Capital LLC now owns 715 shares of the company’s stock valued at $524,000 after purchasing an additional 25 shares during the period. L2 Asset Management LLC lifted its stake in McKesson by 5.1% in the 3rd quarter. L2 Asset Management LLC now owns 580 shares of the company’s stock valued at $448,000 after purchasing an additional 28 shares during the last quarter. Prosperity Consulting Group LLC grew its holdings in McKesson by 6.0% during the third quarter. Prosperity Consulting Group LLC now owns 510 shares of the company’s stock worth $394,000 after purchasing an additional 29 shares during the period. Finally, Modern Wealth Management LLC increased its position in McKesson by 4.1% during the second quarter. Modern Wealth Management LLC now owns 843 shares of the company’s stock worth $618,000 after buying an additional 33 shares during the last quarter. 85.07% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

MCK has been the subject of a number of recent research reports. Wells Fargo & Company boosted their target price on McKesson from $914.00 to $925.00 and gave the stock an “equal weight” rating in a research report on Thursday. Barclays began coverage on shares of McKesson in a research note on Monday, December 8th. They issued an “overweight” rating and a $960.00 target price for the company. Zacks Research downgraded McKesson from a “strong-buy” rating to a “hold” rating in a report on Tuesday, November 25th. Morgan Stanley reaffirmed an “overweight” rating and set a $966.00 price target on shares of McKesson in a research report on Thursday, January 29th. Finally, TD Cowen reiterated a “buy” rating and issued a $1,012.00 price objective (up from $1,000.00) on shares of McKesson in a research report on Thursday. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $918.93.

McKesson News Roundup

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: Q3 results: McKesson reported EPS above consensus ($9.34) and revenue up ~11.4% year?over?year — a core trigger for the rally. McKesson Q3 results (MarketBeat)
• Positive Sentiment: Company raised full?year adjusted EPS guidance to $38.80–$39.20 (above consensus), signaling confidence in profit momentum. Business Wire: McKesson raises full?year guidance
• Positive Sentiment: Management and reporters point to strong specialty and oncology drug distribution as the growth driver behind the upgraded profit outlook. Reuters: McKesson boosts 2026 forecast
• Neutral Sentiment: Mizuho nudged its price target slightly higher to $885 but kept a “neutral” rating — a modest house view that doesn’t endorse a buy/sell shift. Benzinga: Mizuho price target update
• Neutral Sentiment: Investor resources (earnings transcript, slide deck, conference call) were posted — useful for diligence but not new fundamental news. Seeking Alpha: Earnings transcript
• Neutral Sentiment: McKesson completed its exit from the European market — a strategic move whose net impact on margins and growth is mixed and depends on redeployment of capital. HMENews: McKesson exits Europe
• Negative Sentiment: Operating cash flow weakened materially in the quarter (reported declines in cash from operations), a potential red flag for free cash flow conversion despite higher reported earnings. QuiverQuant: Weak operating cash flow
• Negative Sentiment: Recent insider selling (multiple disclosed sales) may concern some investors about near?term insider conviction. QuiverQuant: Insider transactions
• Negative Sentiment: Median analyst price target data cited in coverage sits below the current market price (some variability across firms), implying some analysts view upside as limited at current levels. QuiverQuant: Analyst targets & ratings

McKesson Company Profile

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.