McKesson (NYSE:MCK) Releases Earnings Results, Beats Expectations By $0.37 EPS

McKesson (NYSE:MCK) posted its quarterly earnings data on Wednesday. The company reported $9.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $9.56 by $0.37, FiscalAI reports. The firm had revenue of $105.38 billion for the quarter, compared to the consensus estimate of $103.88 billion. McKesson had a net margin of 1.12% and a negative return on equity of 371.86%. The company’s revenue for the quarter was up 7.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $8.26 earnings per share. McKesson updated its FY 2027 guidance to 44.200-45.000 EPS.

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

• Strong first-quarter results: Revenue rose 8% to $105.4 billion, adjusted EPS increased 20% to $9.93, and operating profit grew 16%, with three segments delivering double-digit operating-profit growth.
• McKesson raised fiscal 2027 adjusted EPS guidance to $44.20-$45.00 from $43.80-$44.60, citing continued momentum, stable utilization, specialty growth, and confidence in execution.
• North American Pharmaceutical operating profit increased 19%, while Oncology & Multispecialty operating profit rose 41% and Prescription Technology Solutions grew 13%; GLP-1 distribution revenue also climbed 24% year over year to $15 billion.
• The company returned $2.6 billion to shareholders in the quarter, approved a 15% dividend increase, and plans approximately $5 billion of fiscal 2027 share repurchases.
• Medical-Surgical Solutions operating profit fell 20% to $195 million due to product mix and a one-time administrative expense, while the separation requires additional financing and is expected to generate $295 million-$325 million in annual noncontrolling-interest expense.

McKesson Stock Performance

Shares of McKesson stock traded up $0.34 during trading on Friday, hitting $871.72. 1,146,949 shares of the company’s stock were exchanged, compared to its average volume of 953,082. The stock has a market capitalization of $102.06 billion, a price-to-earnings ratio of 23.33, a PEG ratio of 1.44 and a beta of 0.30. The business has a 50-day simple moving average of $798.08 and a 200-day simple moving average of $840.76. McKesson has a 52-week low of $637.00 and a 52-week high of $999.00.

McKesson Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be issued a dividend of $0.94 per share. This represents a $3.76 annualized dividend and a dividend yield of 0.4%. This is a boost from McKesson’s previous quarterly dividend of $0.82. The ex-dividend date of this dividend is Tuesday, September 1st. McKesson’s dividend payout ratio is 8.53%.

Key Stories Impacting McKesson

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: McKesson reported fiscal Q1 adjusted earnings of $9.93 per share, above the roughly $9.44–$9.56 analyst estimates and up from $8.26 a year earlier. Revenue rose 7.7% to $105.38 billion, also exceeding expectations. McKesson Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: The company raised fiscal 2027 adjusted EPS guidance to $44.20–$45.00, broadly above the prior consensus forecast, supported by a 19% increase in pharmaceutical profit, continued specialty-drug demand and oncology growth. MCK Q1 Earnings Call Centers on Pharma-Led Guidance Raise
• Positive Sentiment: McKesson outlined plans for approximately $5 billion in share repurchases and announced a 15% dividend increase, providing additional support for per-share earnings and shareholder returns. McKesson Fiscal 2027 EPS and Share Repurchase Plans
• Neutral Sentiment: McKesson is rebranding its Medical-Surgical Solutions business as Wellverse ahead of a planned separation or IPO. The move could eventually highlight the unit’s value, but the transaction also introduces execution and timing uncertainty. McKesson Debuts Wellverse Name

Insider Buying and Selling

In other McKesson news, EVP Thomas L. Rodgers sold 699 shares of McKesson stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $735.27, for a total transaction of $513,953.73. Following the completion of the transaction, the executive vice president owned 2,268 shares in the company, valued at approximately $1,667,592.36. This trade represents a 23.56% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Napoleon B. Rutledge, Jr. sold 133 shares of the business’s stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $764.00, for a total value of $101,612.00. Following the completion of the transaction, the chief accounting officer directly owned 632 shares of the company’s stock, valued at approximately $482,848. This trade represents a 17.39% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 28,748 shares of company stock valued at $22,262,035 over the last quarter. 0.06% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On McKesson

Several hedge funds have recently bought and sold shares of MCK. University of Texas Texas AM Investment Management Co. purchased a new position in shares of McKesson during the 4th quarter valued at approximately $25,000. Swiss RE Ltd. acquired a new stake in McKesson during the fourth quarter valued at $26,000. State of Wyoming acquired a new stake in McKesson during the second quarter valued at $29,000. Birchwood Financial Partners Inc. purchased a new position in McKesson in the fourth quarter valued at $33,000. Finally, Kemnay Advisory Services Inc. purchased a new position in McKesson in the fourth quarter valued at $39,000. Hedge funds and other institutional investors own 85.07% of the company’s stock.

Wall Street Analyst Weigh In

MCK has been the topic of several research analyst reports. Citigroup boosted their target price on shares of McKesson from $945.00 to $1,000.00 and gave the stock a “buy” rating in a research report on Friday, July 24th. Evercore reaffirmed an “outperform” rating on shares of McKesson in a report on Thursday. Barclays lowered their price objective 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. William Blair began coverage on shares of McKesson in a report on Tuesday, April 28th. They set an “outperform” rating on the stock. Finally, Wall Street Zen downgraded McKesson from a “buy” rating to a “hold” rating in a research report on Saturday, June 27th. Fourteen equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $968.93.

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.