McKesson (NYSE:MCK) Sets New 12-Month High on Earnings Beat

McKesson Corporation (NYSE:MCK)’s stock price reached a new 52-week high on Wednesday following a stronger than expected earnings report. The company traded as high as $1,034.11 and last traded at $1,038.0770, with a volume of 236,301 shares traded. The stock had previously closed at $999.62.

The company reported $11.68 EPS for the quarter, beating analysts’ consensus estimates of $10.72 by $0.96. The firm had revenue of $110.96 billion for the quarter, compared to analyst estimates of $109.90 billion. McKesson had a negative return on equity of 235.48% and a net margin of 1.12%. The business’s quarterly revenue was up 7.5% compared to the same quarter last year. During the same period last year, the company earned $9.86 EPS.

McKesson Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, January 4th. Investors of record on Tuesday, December 1st will be issued 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 dividend payout ratio (DPR) is currently 9.67%.

Key Headlines Impacting McKesson

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: McKesson beat fiscal Q2 2027 estimates, reporting adjusted EPS of $11.68 and revenue of about $111 billion, up roughly 7.5% year over year. The company also raised its fiscal 2027 adjusted EPS outlook to $45.60–$46.40, supported by specialty-drug demand, higher prescription volumes and operating gains. MCK Q2 Earnings Beat Estimates on Specialty Growth, Outlook Raised
• Positive Sentiment: Analyst sentiment has 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. Separately, Zacks upgraded MCK to Rank #2 (Buy), citing improving earnings prospects. Zacks upgrades McKesson to Buy
• Neutral Sentiment: EVP Francisco Fraga sold 650 shares under a pre-arranged Rule 10b5-1 plan and retained 4,414 shares. The filing does not explain the purpose of this latest sale; an earlier sale was described as covering tax withholding on vested equity awards. SEC filing
• Negative Sentiment: RBC raised its price target but kept a Sector Perform rating and set a $965 target, below the recent share price. That more cautious view may temper enthusiasm after MCK’s strong run. RBC comments on McKesson’s execution

Wall Street Analyst Weigh In

A number of research firms have issued reports on MCK. UBS Group upped their target price on shares of McKesson from $1,200.00 to $1,250.00 and gave the company a “buy” rating in a research report on Thursday. TD Cowen boosted their price target on shares of McKesson from $1,006.00 to $1,200.00 and gave the stock a “buy” rating in a research note on Thursday. Argus boosted their price target on shares of McKesson from $850.00 to $970.00 and gave the stock a “buy” rating in a research note on Thursday, September 3rd. Citigroup increased their price objective on shares of McKesson from $945.00 to $1,000.00 and gave the company a “buy” rating in a report on Friday, July 24th. Finally, Evercore reiterated an “outperform” rating and set a $950.00 target price (down from $1,000.00) on shares of McKesson in a research report on Thursday, August 6th. Fifteen analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $1,026.18.

Insider Activity at McKesson

In other McKesson news, CAO B Jr sold 111 shares of the company’s stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $891.45, for a total value of $98,950.95. Following the completion of the sale, the chief accounting officer owned 521 shares of the company’s stock, valued at approximately $464,445.45. This represents a 17.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bradley Lerman sold 301 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $892.33, for a total transaction of $268,591.33. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 2,462 shares of company stock worth $2,511,106. 0.06% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Money Concepts Capital Corp increased its stake in shares of McKesson by 20.3% in the third quarter. Money Concepts Capital Corp now owns 2,179 shares of the company’s stock valued at $1,860,000 after buying an additional 368 shares during the period. Allworth Financial LP lifted its stake in shares of McKesson by 15.7% in the third quarter. Allworth Financial LP now owns 6,359 shares of the company’s stock worth $5,429,000 after acquiring an additional 861 shares during the period. Fisher Asset Management LLC lifted its stake in shares of McKesson by 47.8% in the third quarter. Fisher Asset Management LLC now owns 3,372 shares of the company’s stock worth $2,880,000 after acquiring an additional 1,090 shares during the period. Russell Investments Group Ltd. boosted its holdings in McKesson by 7.7% in the third quarter. Russell Investments Group Ltd. now owns 243,247 shares of the company’s stock valued at $207,753,000 after acquiring an additional 17,418 shares during the last quarter. Finally, King Luther Capital Management Corp boosted its holdings in McKesson by 1.6% in the third quarter. King Luther Capital Management Corp now owns 49,889 shares of the company’s stock valued at $42,596,000 after acquiring an additional 793 shares during the last quarter. 85.07% of the stock is owned by institutional investors and hedge funds.

McKesson Trading Down 1.0%

The firm has a market cap of $123.68 billion, a price-to-earnings ratio of 27.28, a P/E/G ratio of 2.13 and a beta of 0.27. The business’s 50-day simple moving average is $934.72 and its two-hundred day simple moving average is $866.92.

About McKesson

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.