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Cardinal Health Earnings: Can Perfection Get Priced In Twice?McKesson NYSE: MCK discussed its planned $2.25 billion acquisition of Precision Medicine Group, first-quarter operating trends and capital-allocation priorities during a presentation with Wells Fargo analyst Stephen Baxter.

The company said Precision Medicine Group would expand two areas it has identified as long-term growth markets: oncology and biopharma services. The acquisition is expected to become part of McKesson’s Oncology and Multi-Specialty segment, subject to regulatory review and other approvals.

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3 Healthcare Stocks With Fresh Dividend Hikes and Different Income ProfilesCompany executives said Precision Medicine Group has two principal businesses that align with McKesson’s oncology strategy and its biopharma commercialization operations. The transaction would add clinical-trial capabilities, including biomarker-focused trials, while complementing McKesson’s Sarah Cannon, Ontada and U.S. Oncology Network assets. It would also add services related to payer strategy and market access for biopharma companies.

Precision Medicine Group Adds CRO Capabilities McKesson said the deal would bring a more established contract research organization, or CRO, capability to its portfolio. The company currently has site-management operations through its Sarah Cannon joint venture and described its existing CRO-related capabilities as more limited.

MarketBeat Week in Review – 07/27- 07/31The Precision Medicine Group CRO business is focused on oncology, rare disease, immunology, and cell and gene therapy rather than the broader services offered by some larger CROs, executives said. McKesson said the focus is important because it aligns with areas where the company already has assets and investments, including its InspiroGene cell and gene operation.

Kenny Cheung, McKesson’s executive vice president and chief financial officer, said the company sees the transaction as complementary to its existing platforms and expects it to create incremental value for biopharma partners across drug innovation, clinical services, commercialization and patient access, particularly in community settings.

Cheung said McKesson would provide further information about expected earnings-per-share accretion as the transaction progresses toward closing. He said the company evaluates acquisitions based on strategic alignment, returns above its cost of capital, return on invested capital, risk and the trade-offs against other uses of capital.

McKesson said on its first-quarter earnings call that it expects to deploy roughly $5 billion to shareholders this year. That included $2.5 billion of share repurchases completed in the first quarter and a 15% increase in its dividend.

First-Quarter Growth and Investment Plans Cheung said McKesson was pleased with first-quarter performance across its North American Pharmaceutical Distribution, Oncology and Multi-Specialty, and Prescription Technology Solutions businesses.

In North American Pharmaceutical Distribution, revenue increased roughly 5% and adjusted operating profit rose about 19%, according to Cheung. He attributed the results to broad-based growth across products and channels, including brands and generics, as well as strong utilization trends in health-system products. Product launches, including new branded products and brand-to-generic conversions, also supported gross profit.

While the company’s full-year forecast implies slower growth than the first-quarter rate, Cheung said McKesson expects to make investments in business growth, automation and technology during the second half of the year. He said artificial intelligence investments in supply-chain operations are helping coordinate demand, supply and operations while producing working-capital benefits.

McKesson said customer renewals remain a routine part of its operations, with roughly one-third of its business typically up for renewal each year. The company said it seeks to build value-based relationships rather than purely transactional arrangements, pointing to capabilities such as CoverMyMeds, connections with 50,000 pharmacies, supply-chain services and data-driven tools.

Generics, IRA and Biosimilars Executives described the generic-drug environment as competitive but stable. McKesson said its ClarusONE joint venture supports generic sourcing and that its priorities include stable supply, competitive pricing and product availability. The company said loss-of-exclusivity events are reflected in its guidance, though generics are less material to its North American pharmaceutical distribution business than they were in prior decades because of the broader business’s growth.

Regarding the Inflation Reduction Act, McKesson said it has experienced a revenue headwind from drug pricing changes but generally has not seen a corresponding bottom-line impact. Cheung said approximately 95% of its contracts are structured as fee-for-service arrangements, helping preserve gross profit and operating income even when wholesale acquisition cost pressure affects revenue.

The company said it remains in discussions with manufacturers regarding future IRA-related drug cohorts and expects to manage the next wave similarly to prior pricing changes.

McKesson also expressed optimism about biosimilars, saying they can improve patient choice and healthcare affordability while typically providing more value to its model than innovator drugs. The company said biosimilars generally fall between generics and branded drugs in their value to McKesson, with Part B channels tending to be more favorable than Part D.

Segment Updates and Wellverse Separation McKesson’s Oncology and Multi-Specialty segment reported approximately 33% first-quarter revenue growth and about 41% adjusted operating profit growth, Cheung said. Excluding the impact of Core Ventures comparisons, he said adjusted operating profit grew roughly 15% year over year. The company cited volume growth in existing practices and networks, new business wins in group purchasing and distribution, and acquisition returns as key drivers.

Prescription Technology Solutions reported first-quarter revenue growth of 9% and adjusted operating profit growth of 13%, at the high end of its long-term adjusted operating profit growth target of 10% to 13%, Cheung said. GLP-1-related activity is contributing to growth, but Cheung said GLP-1s represent roughly 11% of the segment’s total revenue, while non-GLP-1 therapies also grew.

McKesson said its BRIDGE program began in July and therefore did not affect first-quarter results, though it was included in the company’s guidance. Cheung said the program has started more strongly than expected, and the company plans to provide an update with its second-quarter results.

In Medical-Surgical, first-quarter revenue rose roughly 4%, while adjusted operating profit declined about 20% due in part to one-time administrative costs. McKesson reiterated its expectation for full-year adjusted operating profit growth of 0% to 4% in the business, supported by new business wins, private-label expansion and cost initiatives. Executives said illness-season indicators have been somewhat softer than expected so far, though the season is still in its early stages.

The company also said it is progressing with the separation of its Medical-Surgical business, which has been rebranded as Wellverse. Transition service agreements are being established and beginning to wind down, while systems are being moved into a standalone environment. Cheung said McKesson is targeting the back half of the next calendar year and plans to exit its remaining shares following a customary lockup period through a split-off, spin-off or both.

About McKesson (NYSE:MCK)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.

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A prolific hacking group has taken credit for last week’s cyberattack against U.S. pharmaceutical distribution giant McKesson, leading to the latest spill of highly sensitive health data by an American healthcare company in recent months.

McKesson confirmed Friday in a statement on its website that hackers broke into several of its cloud-hosted accounts earlier in the week and exfiltrated data, and that the company expected “intermittent service degradation” related to the incident. In a separate notice to customers, the company’s chief technology officer, Francisco Fraga, said the stolen data relates to its oncology & multispecialty and medical-surgical units.

The Texas-based company is one of the largest American distributors of pharmaceuticals, medicines, medical supplies, and technology to hospitals and healthcare providers across the United States, and as such handles a large amount of patient data.

The ShinyHunters hacking group — one of the most active data-extortion crews of the past two years — told TechCrunch that it hacked the company’s cloud environment by tricking several employees into granting the hackers’ access to McKesson’s network by using phishing and social engineering tricks, which the group is known for.

The hackers said they stole a range of personal information, such as names, addresses, and Social Security numbers, as well as protected health information, including diagnoses, medications, allergies, and patient notes. The hackers say they took millions of rows of patient data from the company’s cloud-hosted Snowflake and Salesforce environments, but that they are unsure of how many individuals are ultimately affected.

The stolen data also included McKesson employees’ information, such as home addresses.

ShinyHunters shared screenshots and a sample of the stolen data with TechCrunch, and we verified a small subset of it against public records.

Bleeping Computer, which first reported the link to the ShinyHunters hacking group, said the hackers demanded a $55 million ransom from the company in exchange for not publicly releasing the stolen files.

A spokesperson for McKesson did not respond to TechCrunch’s request for comment on Monday.

McKesson is the latest healthcare company or medical device maker to be targeted in a string of cyberattacks in recent months, as hackers aim to steal large amounts of sensitive medical and health data that they can use to extort the companies into paying a ransom to keep it from being published.

Last week, medical device maker Boston Scientific was hit by a cyberattack that knocked much of the company’s network offline. The cyberattack had a similar effect to an incident earlier this year at another medical device maker Stryker, in which hackers abused a company’s internal tools to remotely wipe thousands of employee devices. Abbott Laboratories and Medtronic have also experienced cyberattacks, while electronic patient records provider CareCloud and health tech company TriZetto had breaches affecting over 3 million patients each.

The ShinyHunters hackers have also taken credit for sizable data breaches at Amazon-owned OneMedical and dental insurance company DentaQuest following cyberattacks on their systems.

Lorenzo Franceschi-Bicchierai contributed reporting.

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

Zack Whittaker is the security editor at TechCrunch. He also authors the weekly cybersecurity newsletter, this week in security.

He can be reached via encrypted message at zackwhittaker.1337 on Signal. You can also contact him by email, or to verify outreach, at [email protected].

Key Takeaways McKesson's North American Pharmaceutical revenues rose 5%, while operating profit jumped 19% to $894 million.Oncology and Multispecialty revenues surged 33% to $14.2 billion, with operating profit rising 41%.McKesson's technology unit posted 9% revenue growth as access solutions and AI supported operating leverage. McKesson’s (MCK - Free Report) prospects are being driven by robust growth in specialty distribution, oncology services and biopharma solutions. Earnings are also improving on the back of ongoing operational efficiency and capital discipline despite persistent margin pressures and volatility across certain segments.

Shares of this Zacks Rank #3 (Hold) company have gained 6.5% year to date compared with the industry's 5.9% growth and the S&P 500’s 11.4% rise.

MCK is one of the leading pharmaceutical distributors in North America, with a market capitalization of $100.14 billion. It forecasts 11.4% earnings growth over the next five fiscal years. The company’s earnings surpassed estimates in each of the trailing four quarters, the average beat being 4.29%.

Image Source: Zacks Investment Research

Factors Favoring MCK StockStrong North American Pharmaceutical Momentum: McKesson’s North American Pharmaceutical segment delivered strong momentum in the first quarter of fiscal 2027, with revenues increasing 5% and operating profit rising 19% to $894 million. Growth was driven by higher prescription transaction volumes, including specialty products, as well as the timing of new product launches and strong distribution to health systems and strategic accounts.

Lower branded pharmaceutical pricing following WAC decreases had little impact on operating profit. Management said the business continues to benefit from stable utilization trends, specialty growth and its generic sourcing program. McKesson expects continued GLP-1 growth, with distribution revenues from these medications reaching $15 billion in the quarter, up 24% year over year. Sustained prescription volumes and specialty demand could support earnings momentum despite pricing pressure.

Oncology and Multispecialty Platform Gains Traction: McKesson’s Oncology and Multispecialty segment continues to be one of its strongest growth engines. Revenues increased 33% to $14.2 billion, while operating profit rose 41%. Even excluding Core Ventures, revenues grew about 24% and operating profit about 15%, indicating growth beyond acquisitions. Higher specialty distribution volumes, growth in existing provider solutions and new business wins are the main drivers.

The U.S. Oncology Network has expanded to approximately 3,400 providers, while McKesson supports more than 14,000 providers across community-based specialties. Management expects further growth from physician recruitment, geographic expansion, greater throughput across existing practices and AI-enabled technologies that could help providers see more patients. This creates multiple avenues for continued growth beyond acquisitions.

Technology Solutions and AI Strengthen the Growth Profile: McKesson’s Prescription Technology Solutions business continued to demonstrate strong operating leverage, with revenues increasing 9% and operating profit rising 13% to $303 million. Growth was supported by higher prescription volumes in third-party logistics and access solutions, particularly prior authorization services. McKesson also began supporting the CMS Medicare GLP-1 Bridge program, with 95% of prior authorization requests receiving a determination within 30 minutes. Management expects fiscal 2027 revenue growth of 2.5% to 6.5% and operating profit growth of 11% to 15%, reinforcing the earnings contribution from access solutions.

Demand is broadening across GLP-1 medications and other therapeutic categories. McKesson’s technology platform is helping manufacturers, providers, pharmacies and payers navigate complex access and affordability requirements. Management highlighted that AI-enabled development allowed the company to build and deploy an external data connection in a single business day versus several weeks or months historically. Greater automation and productivity could strengthen the value of these solutions while supporting long-term growth.

Factors That May Offset the Gains for MCKBranded Drug Pricing Pressure Weighs on Revenue Growth: Lower branded pharmaceutical pricing remains a top-line headwind for McKesson. Management noted that WAC decreases following January 2026 pricing changes partially offset prescription-volume growth in North American Pharmaceutical. While these declines had little impact on operating profit because more than 95% of branded drugs are under fee-for-service arrangements, they still reduce reported revenue growth.

The company expects North American Pharmaceutical revenues to grow in fiscal 2027, meaning pricing pressure could continue to limit the pace of top-line expansion even if underlying prescription demand remains healthy.

Timing-Related Benefits Could Moderate Future Performance: Some of the first-quarter strength may not be fully repeatable. Management acknowledged that McKesson benefited earlier than expected from favorable developments in the generic business, which could come at the expense of later quarters. New product launch timing also contributed to first-quarter operating profit growth.

As a result, while management remains confident in the underlying fundamentals, quarterly performance may become less consistent as product launches, generic conversions and utilization trends shift throughout the year. This could create greater variability in earnings growth even if the broader business remains healthy.

Policy Changes Create Longer-Term Uncertainty: McKesson continues to monitor changes in the healthcare policy environment, including potential reforms to the 340B program and the Inflation Reduction Act’s Part D provisions. Management emphasized that the 340B proposal remains preliminary and that it is too early to determine its financial impact.

The IRA Part D changes are not expected to take effect until January 2028, but uncertainties remain around maximum fair prices, reimbursement changes and potential biosimilar competition. Although McKesson believes its scale, technology and provider relationships position it to navigate these changes, evolving drug-pricing policies could alter industry economics and create uncertainty around future growth.

Estimate Trends for MCKMcKesson is witnessing a positive estimate revision trend for fiscal 2027. In the past 30 days, the Zacks Consensus Estimate for its earnings per share has improved 37 cents to $44.65.

The Zacks Consensus Estimate for the company’s second-quarter fiscal 2027 revenues and earnings per share is pegged at $110.14 billion and $10.57, respectively. The estimate for revenues indicates a 6.8% improvement from the year-ago quarter’s reported number, while that for earnings implies a 7.2% gain.

Stocks to ConsiderSome better-ranked stocks from the broader medical space are Veracyte (VCYT - Free Report) , Globus Medical (GMED - Free Report) and West Pharmaceutical (WST - Free Report) .

Veracyte, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of 54 cents, which surpassed the Zacks Consensus Estimate by 25.6%. Revenues of $150.3 million beat the Zacks Consensus Estimate by 4.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

VCYT has an estimated earnings growth rate of 8.4% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 41.8%.

Globus Medical, currently carrying a Zacks Rank #2 (Buy), reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.

GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.

West Pharmaceutical, carrying a Zacks Rank #2 at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.

WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%.

Key Takeaways McKesson targets 13%-15% fiscal 2027 adjusted EPS growth as specialty businesses expand.MCK trades at 18.4X forward earnings, above its five-year median of 15.7X and sub-industry's 17.6X.McKesson plans about $5B in fiscal 2027 buybacks and raised its quarterly dividend 15% to 94 cents. McKesson Corporation (MCK - Free Report) enters fiscal 2027 with double-digit earnings growth, faster expansion in specialty businesses and sizable capital returns. Those strengths support the long-term case, but the shares now trade above important historical and industry valuation benchmarks.

That leaves investors with a tighter decision. The operating story is improving, yet the current multiple leaves less room for execution misses, policy changes or a slowdown in earnings momentum.

McKesson's Growth Case Remains StrongMcKesson raised fiscal 2027 adjusted earnings guidance to $44.20-$45.00 per share, implying 13%-15% growth. Management also continues to target long-term adjusted earnings growth of 13%-16%, supported by organic growth, operating leverage and capital allocation.

The mix is moving toward higher-growth specialty platforms. First-quarter Oncology & Multispecialty revenues increased 33% and adjusted operating profit rose 41%, while Prescription Technology Solutions operating profit advanced 13%. The U.S. Oncology Network now includes about 3,400 providers and treats more than 2 million patients annually.

Cencora, Inc. (COR - Free Report) provides a useful industry reference point. It reported 5.1% revenue growth in its fiscal 2026 third quarter and raised full-year adjusted earnings guidance, showing that pharmaceutical distribution and specialty exposure continue to support growth across the group.

MCK's Premium Valuation Limits the Margin for ErrorMcKesson trades at 18.4X forward 12-month earnings, above its five-year median of 15.7X and the Zacks sub-industry multiple of 17.6X. The current valuation remains below its five-year high of 22.8X, but it already prices in a meaningful portion of the earnings-growth story.

That premium raises the importance of consistent execution. Cardinal Health, Inc. (CAH - Free Report) , another major pharmaceutical and specialty distributor, underscores the competitive scale of the sector. Investors paying above McKesson's historical median will likely want continued specialty growth and operating leverage to justify the higher multiple.

Image Source: Zacks Investment Research

McKesson's Capital Returns Support Per-Share GrowthMcKesson repurchased $2.5 billion of stock in the first quarter, including $2.25 billion through an accelerated program. Full-year guidance anticipates about $5 billion of repurchases, reinforcing management's commitment to returning excess capital.

The board also raised the quarterly dividend 15% to 94 cents per share. McKesson expects diluted weighted-average shares of 115.5 million to 117.5 million for fiscal 2027, down from 124.1 million in fiscal 2026, which should continue to support per-share earnings growth.

MCK Still Faces Concentration and Policy RisksCustomer concentration remains a material risk. McKesson's 10 largest customers accounted for about 73% of fiscal 2026 consolidated revenues, while its largest customer represented roughly 24%. That exposure increases sensitivity to contract renewals, purchasing changes and service requirements.

Policy uncertainty adds another layer. Drug-pricing and reimbursement changes, 340B developments and manufacturer contracting behavior can affect revenue presentation, service fees and customer economics. Separation-related financing for Medical-Surgical Solutions also increases interest expense and adds execution complexity.

McKesson's Hold Signal Balances the Trade-OffThe bottom line is that McKesson's growth profile remains attractive, but the valuation offers less margin for error than it did at its historical median. The combination favors patience over chasing the shares after a strong rerating.

MCK currently carries a Zacks Rank #3 (Hold), along with a Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A. The Style Scores point to favorable characteristics across several investment approaches, but they are designed to complement the Zacks Rank. With a Hold rank, the stock may remain suitable for existing holders, while prospective buyers have reason to weigh valuation and execution risk before committing new capital. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Alamar Capital Management LLC bought a new position in McKesson Corporation (NYSE:MCK – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 1,844 shares of the company’s stock, valued at approximately $1,395,000.

A number of other large investors have also recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its holdings in McKesson by 0.6% during the fourth quarter. Vanguard Group Inc. now owns 12,104,719 shares of the company’s stock valued at $9,929,380,000 after purchasing an additional 73,109 shares during the last quarter. BlackRock Inc. bought a new position in shares of McKesson in the second quarter valued at approximately $8,156,743,000. State Street Corp lifted its stake in shares of McKesson by 0.5% in the fourth quarter. State Street Corp now owns 5,780,179 shares of the company’s stock worth $4,746,118,000 after buying an additional 29,660 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of McKesson by 0.9% in the fourth quarter. Geode Capital Management LLC now owns 2,857,344 shares of the company’s stock worth $2,333,520,000 after buying an additional 25,082 shares during the last quarter. Finally, Franklin Resources Inc. boosted its holdings in shares of McKesson by 5.4% during the 4th quarter. Franklin Resources Inc. now owns 2,825,954 shares of the company’s stock worth $2,318,102,000 after buying an additional 144,633 shares during the period. Institutional investors own 85.07% of the company’s stock.

Wall Street Analysts Forecast Growth MCK has been the topic of a number of research analyst reports. Citigroup raised their target price on shares of McKesson from $945.00 to $1,000.00 and gave the company a “buy” rating in a research note on Friday, July 24th. JPMorgan Chase & Co. cut their target price on shares of McKesson from $1,107.00 to $1,015.00 and set an “overweight” rating for the company in a research report on Friday, May 8th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $875.00 price target on shares of McKesson in a report on Friday, May 8th. TD Cowen raised their price target on McKesson from $989.00 to $1,006.00 and gave the company a “buy” rating in a research report on Thursday, August 6th. Finally, William Blair began coverage on McKesson in a research note on Tuesday, April 28th. They issued an “outperform” rating on the stock. Fourteen equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $977.00.

Check Out Our Latest Analysis on McKesson Insider Buying and Selling at McKesson In other McKesson news, EVP Thomas L. Rodgers sold 699 shares of the firm’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $735.27, for a total value of $513,953.73. Following the completion of the sale, 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bradley E. Lerman sold 301 shares of McKesson stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $892.33, for a total value of $268,591.33. The SEC filing for this sale provides additional information. Insiders sold 29,049 shares of company stock valued at $22,530,626 over the last quarter. Company insiders own 0.06% of the company’s stock.

McKesson Price Performance NYSE:MCK opened at $869.73 on Wednesday. The stock has a market cap of $101.40 billion, a P/E ratio of 23.27, a PEG ratio of 1.71 and a beta of 0.30. McKesson Corporation has a one year low of $667.50 and a one year high of $999.00. The company has a fifty day moving average price of $817.06 and a 200 day moving average price of $843.43.

McKesson (NYSE:MCK – Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $9.93 earnings per share for the quarter, beating analysts’ consensus estimates of $9.56 by $0.37. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The firm had revenue of $105.38 billion during the quarter, compared to the consensus estimate of $103.88 billion. During the same period in the prior year, the firm earned $8.26 EPS. The business’s revenue was up 7.7% on a year-over-year basis. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. As a group, equities research analysts anticipate that McKesson Corporation will post 44.65 EPS for the current year.

McKesson Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be paid a $0.94 dividend. The ex-dividend date is Tuesday, September 1st. This is a boost from McKesson’s previous quarterly dividend of $0.82. This represents a $3.76 annualized dividend and a dividend yield of 0.4%. McKesson’s dividend payout ratio is 8.78%.

About McKesson (Free Report)

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.

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BIP Wealth LLC purchased a new stake in McKesson Corporation (NYSE:MCK – Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The firm purchased 2,314 shares of the company’s stock, valued at approximately $1,748,000.

A number of other institutional investors have also recently modified their holdings of the business. Trifecta Capital Advisors LLC acquired a new stake in shares of McKesson in the 2nd quarter worth approximately $155,000. Summit Global Investments purchased a new stake in shares of McKesson in the 2nd quarter worth about $1,159,000. Oppenheimer Asset Management Inc. acquired a new stake in McKesson in the 2nd quarter valued at about $2,768,000. Bryn Mawr Trust Advisors LLC acquired a new stake in McKesson in the 2nd quarter valued at about $624,000. Finally, Wedge Capital Management L L P NC increased its holdings in McKesson by 22.5% during the 2nd quarter. Wedge Capital Management L L P NC now owns 38,937 shares of the company’s stock valued at $29,421,000 after acquiring an additional 7,141 shares in the last quarter. 85.07% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at McKesson In other McKesson news, EVP Michele Lau sold 3,550 shares of the business’s stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $761.09, for a total transaction of $2,701,869.50. Following the completion of the transaction, the executive vice president directly owned 3,247 shares of the company’s stock, valued at $2,471,259.23. The trade was a 52.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thomas L. Rodgers sold 2,388 shares of the company’s stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $761.09, for a total transaction of $1,817,482.92. Following the completion of the transaction, the executive vice president owned 3,090 shares of the company’s stock, valued at approximately $2,351,768.10. This trade represents a 43.59% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 29,049 shares of company stock valued at $22,530,626. Corporate insiders own 0.06% of the company’s stock.

McKesson Stock Up 1.4% Shares of NYSE MCK opened at $868.72 on Friday. The firm’s 50-day moving average price is $813.45 and its two-hundred day moving average price is $842.81. McKesson Corporation has a 52-week low of $667.50 and a 52-week high of $999.00. The stock has a market capitalization of $101.28 billion, a P/E ratio of 23.25, a P/E/G ratio of 1.68 and a beta of 0.30.

McKesson (NYSE:MCK – Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $9.93 EPS for the quarter, beating the consensus estimate of $9.56 by $0.37. The company had revenue of $105.38 billion during the quarter, compared to analyst estimates of $103.88 billion. McKesson had a negative return on equity of 253.21% and a net margin of 1.12%.The business’s revenue was up 7.7% compared to the same quarter last year. During the same period in the prior year, the company earned $8.26 earnings per share. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. As a group, equities research analysts expect that McKesson Corporation will post 44.65 earnings per share for the current year.

McKesson Increases Dividend The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders 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 positive change 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 presently 10.06%.

Wall Street Analysts Forecast Growth Several analysts have issued reports on the stock. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $875.00 price target on shares of McKesson in a report on Friday, May 8th. TD Cowen lifted their price objective on McKesson from $989.00 to $1,006.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. UBS Group upped their target price on McKesson from $1,050.00 to $1,080.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. William Blair assumed coverage on McKesson in a report on Tuesday, April 28th. They set an “outperform” rating on the stock. Finally, Evercore reissued an “outperform” rating on shares of McKesson in a research report on Thursday, August 6th. Fourteen research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $977.00.

Check Out Our Latest Analysis on McKesson

McKesson Company Profile (Free Report)

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.

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For the quarter ended June 2026, McKesson (MCK - Free Report) reported revenue of $105.38 billion, up 7.7% over the same period last year. EPS came in at $9.93, compared to $8.26 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $104.39 billion, representing a surprise of +0.95%. The company delivered an EPS surprise of +5.19%, with the consensus EPS estimate being $9.44.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how McKesson performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Revenue- North American Pharmaceutical: $86.77 billion versus the two-analyst average estimate of $86.53 billion. The reported number represents a year-over-year change of -3.5%.Revenue- Prescription Technology Solutions: $1.57 billion versus $1.5 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +9.2% change.Revenue- Oncology & Multispecialty: $14.22 billion versus the two-analyst average estimate of $12.71 billion.Revenue- Medical-Surgical Solutions: $2.82 billion versus $2.79 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +4.4% change.Adjusted Operating Profit- North American Pharmaceutical: $894 million compared to the $806.45 million average estimate based on two analysts.Adjusted Operating Profit- Medical-Surgical Solutions: $195 million versus $241.06 million estimated by two analysts on average.Adjusted Operating Profit- Corporate: $-144 million compared to the $-142.83 million average estimate based on two analysts.Adjusted Operating Profit- Oncology & Multispecialty: $405 million versus $367.82 million estimated by two analysts on average.Adjusted Operating Profit- Prescription Technology Solutions: $303 million compared to the $302.62 million average estimate based on two analysts.View all Key Company Metrics for McKesson here>>>

Shares of McKesson have returned +2.9% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

Key Takeaways McKesson is expected to post Q1 sales growth of 6.6% and EPS growth of 14.5%.MCK's specialty pharmaceuticals, oncology and biopharma solutions are expected to drive earnings.MCK may see AI gains offset by IRA pricing, biosimilar shifts and GLP-1 demand variability. McKesson Corporation (MCK - Free Report) is scheduled to report first-quarter fiscal 2027 results on Aug 5, after market close.

The Zacks Consensus Estimate for sales is pegged at $104.25 billion, implying 6.6% year-over-year growth. The bottom line estimate is pinned at $9.46, suggesting growth of 14.5%.

The EPS estimates have remained stable over the past seven days.

The company delivered an earnings surprise of 1.12% in the last reported quarter. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 3.09%.

What the Zacks Model UnveilsOur proven model does not conclusively predict an earnings beat for McKesson this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($9.34 per share) and the Zacks Consensus Estimate is -1.26% for MCK. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Have Driven MCK’s Q1 PerformanceMcKesson is expected to report solid earnings growth for the first quarter of fiscal 2027, supported by continued momentum in specialty pharmaceuticals, oncology services and biopharma solutions, although revenue growth may have been tempered by pharmaceutical pricing dynamics. Management had previously guided fiscal 2027 adjusted EPS growth of 12-14%, supported by sustained operating leverage, expanding specialty volumes and disciplined capital deployment.

The fiscal first quarter is likely to have benefited from resilient prescription demand, continued GLP-1 adoption and productivity gains from automation and AI investments across the distribution network. However, branded pharmaceutical price reductions under the Inflation Reduction Act (IRA), ongoing biosimilar transitions and normal quarter-to-quarter variability in GLP-1 demand may have moderated revenue growth.

The North American Pharmaceutical segment is likely to have remained the primary growth driver, supported by specialty distribution, stable prescription utilization and expanding health-system demand. While GLP-1 volumes are expected to have continued growing year over year, management has cautioned that quarterly fluctuations are likely, and branded drug price declines may have weighed on sales without materially affecting profitability.

The Oncology and Multispecialty segment should have delivered another strong performance during the fiscal first quarter. The growth is likely to have been driven by the addition of new providers, higher specialty distribution volumes and continued benefits from the integration of PRISM Vision and Core Ventures acquisitions. Expansion of the U.S. Oncology Network, growing retina operations and technology initiatives such as Ambient Scribe are also expected to have supported its performance.

The Prescription Technology Solutions segment is likely to have benefited from healthy demand for access, affordability and prior-authorization services, particularly for specialty therapies.  However, third-party logistics revenues might have remained uneven due to launch timing and program mix.

The Medical-Surgical Solutions segment is likely to post modest growth, with management continuing to focus on operational readiness ahead of the planned separation while balancing investments in technology and efficiency.

MCK’s operating margins are expected to have remained healthy, aided by productivity initiatives, AI-enabled supply-chain efficiencies and disciplined expense management. Strong cash generation and continued share repurchases are also likely to have supported earnings growth despite higher interest expense related to financing activities associated with the Medical-Surgical separation.

MCK Share Price PerformanceIn the year-to-date period, MCK shares have gained 4.3%, outperforming its industry’s rise of 1.7% over the same period, underscoring strong investor confidence in the company's specialty momentum and expansion in oncology segment.

MCK has also delivered mixed returns when compared to its MedTech peers. While Cencora (COR - Free Report) has decreased 7.8% year to date, Cardinal Health (CAH - Free Report) has increased 11.9%. While the stock has outperformed the broader Zacks Medical sector’s 0.1% decline, it has underperformed S&P 500 Index’s 9.5% gain.

Image Source: Zacks Investment Research

MCK’s Key Valuation MetricFrom a valuation standpoint, McKesson is trading at a forward 12-month price-to-sales (P/S) multiple of 0.23, reflecting a premium valuation relative to its MedTech peers.

The elevated multiple suggests that investors are assigning a higher valuation to the company's long-term growth prospects, particularly its specialty expansion and productivity gains from automation and AI investments.

MCK currently trades well above Cencora, which carries a forward 12-month P/S multiple of 0.17, and Cardinal Health, which is valued at 0.19X sales.

Image Source: Zacks Investment Research

MCK’s Long-Term Investment VisibilityMcKesson’s long-term investment thesis is supported by its growing presence in higher-margin specialty healthcare services and its continued evolution beyond traditional pharmaceutical distribution. Management is expanding three strategic growth platforms — Oncology and Multispecialty, Prescription Technology Solutions, and Biopharma Services.

The company is also strengthening its core North American Pharmaceutical business through automation, AI-enabled supply-chain capabilities and operational discipline. Continued expansion of the U.S. Oncology Network, integration of the PRISM Vision and Core Ventures acquisitions, and increasing provider participation are expected to enhance specialty distribution volumes and deepen McKesson’s presence in community-based care. At the same time, the planned separation of the Medical-Surgical Solutions business should sharpen strategic focus and improve capital allocation flexibility, allowing the company to concentrate resources on faster-growing, higher-return businesses.

Technology, data analytics and AI remain key long-term differentiators for McKesson. The company continues to invest in AI-driven inventory planning, automated distribution centers, and digital workflow solutions, such as Ambient Scribe, to improve operational efficiency and enhance physician productivity.

Meanwhile, its Prescription Technology Solutions platform is benefiting from rising demand for access, affordability and prior-authorization services as specialty therapies become increasingly complex. Through Ontada’s expanding real-world data capabilities and technology-enabled biopharma services, McKesson is strengthening relationships with manufacturers and healthcare providers while creating additional recurring revenue opportunities.

Combined with sustained specialty pharmaceutical growth, disciplined capital deployment and continued investments in automation and innovation, these initiatives provide strong long-term earnings visibility and position McKesson to deliver durable growth and expanding shareholder value over the coming years.

In the latest close session, McKesson (MCK - Free Report) was down 1.1% at $803.37. This move lagged the S&P 500's daily gain of 0.38%. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq gained 0.9%.

Heading into today, shares of the prescription drug distributor had gained 4.17% over the past month, lagging the Medical sector's gain of 4.34% and outpacing the S&P 500's gain of 1.27%.

The investment community will be closely monitoring the performance of McKesson in its forthcoming earnings report. The company is scheduled to release its earnings on August 5, 2026. In that report, analysts expect McKesson to post earnings of $9.59 per share. This would mark year-over-year growth of 16.1%. Alongside, our most recent consensus estimate is anticipating revenue of $104.39 billion, indicating a 6.7% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $44.28 per share and a revenue of $432.77 billion, demonstrating changes of +13.22% and +7.27%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for McKesson. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0% higher. Currently, McKesson is carrying a Zacks Rank of #2 (Buy).

Looking at its valuation, McKesson is holding a Forward P/E ratio of 18.34. This valuation marks a premium compared to its industry average Forward P/E of 17.08.

It's also important to note that MCK currently trades at a PEG ratio of 1.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MCK's industry had an average PEG ratio of 1.86 as of yesterday's close.

The Medical - Dental Supplies industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 64, positioning it in the top 27% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Key Takeaways McKesson posted 35% oncology revenue growth and 53% operating profit growth in fiscal Q4 2026.MCK's pharma segment profit rose 11% as specialty drug demand and GLP-1 distribution stayed strong.RxTS revenues grew 12%, though IRA pricing pressure and acquisition risks may challenge future growth. McKesson’s (MCK - Free Report) prospects are being driven by robust growth in specialty distribution, oncology services and biopharma solutions. Earnings are also improving on the back of ongoing operational efficiency and capital discipline despite persistent margin pressures and volatility across certain segments.

Shares of this Zacks Rank #3 (Hold) company have lost 6.4% so far this year compared with the industry's 2.7% decline. The S&P 500 has increased 9.7% in the said time frame.

MCK is one of the leading pharmaceutical distributors in North America, with a market capitalization of $88.46 billion. It forecasts 13.7% earnings growth over the next five fiscal years. The company’s earnings surpassed estimates in each of the trailing four quarters, the average beat being 3.09%.

Image Source: Zacks Investment Research

Factors Favoring MCK StockOncology and Multispecialty Platform Drives Long-Term Growth: McKesson's oncology and multispecialty segment is increasingly emerging as one of its most durable long-term growth drivers.This segment delivered 35% revenue growth and 53% operating profit growth in fourth quarter of fiscal 2026.

Even after adjusting for acquisition benefits from PRISM Vision and Core Ventures, organic operating profit expanded 13%, indicating strong underlying demand. The U.S. Oncology Network added more than 570 providers in fiscal 2026, marking the largest annual provider addition since 2010.

Beyond distribution, McKesson is increasingly embedding technology solutions such as Ambient Scribe AI and Ontada analytics to improve physician productivity and deepen relationships with providers. The expanding community-care ecosystem supports recurring specialty revenue growth while positioning the company to benefit from shift of specialty care from hospital settings towards community settings over the long term.

Strong Specialty Pharmaceutical Momentum: McKesson’s North American Pharmaceutical segment remains highly resilient despite pricing pressure from branded drug deflation. Segment operating profit increased 11% to $980 million, supported by continued specialty drug demand, health-system growth and operating efficiency gains. Particularly notable was continued momentum in GLP-1 therapies, where quarterly distribution revenues reached $14 billion, growing 22% year over year.

Management highlighted that lower branded drug prices and softer sequential GLP-1 volumes had zero impact on operating profit, underscoring the strength of McKesson’s fee-based distribution economics.

With specialty pharmaceuticals remaining the fastest-growing healthcare category and biosimilars adoption increasing steadily, McKesson appears well positioned to sustain above-market earnings growth while leveraging its massive pharmaceutical distribution network.

Prescription Technology Solutions Support Margins: McKesson’s Prescription Technology Solutions (RxTS) business is becoming an increasingly valuable earnings contributor as healthcare reimbursement complexity rises. In the fiscal fourth quarter, segment revenues grew 12%, while operating profit increased 13%, supported by strong demand for access, affordability and prior authorization services.

During the annual verification season, McKesson supported a record 3.4 million patients, while technology investments improved productivity, allowing each employee to serve 120 additional patients versus last year.

Management also introduced an integrated specialty access platform that combines benefits verification, prior authorization and affordability support into a single workflow. As specialty therapies, GLP-1 adoption and high-cost drugs continue to see rising demand, McKesson’s technology-enabled service ecosystem creates a competitive moat with structurally stronger margins than traditional pharmaceutical distribution businesses.

Factors That May Offset the Gains for MCKIRA-Driven Drug Pricing Pressure Creates Top-Line Headwinds: One of McKesson’s biggest structural challenges remains pricing pressure created by pharmaceutical policy changes, particularly the Inflation Reduction Act (IRA). Management disclosed that price reductions by branded manufacturer lowered North American Pharmaceutical revenue growth by approximately 3 percentage points during the fiscal fourth quarter. The company continues to expect similar pricing headwinds throughout fiscal 2027.

While McKesson’s fee-based contracts largely protect profitability, lower drug prices directly suppress reported revenue growth and may weaken investor perception of underlying business momentum. This issue becomes increasingly important because specialty pharmaceuticals account for a growing portion of McKesson’s business. Continued government intervention in drug pricing could create a structural environment where strong demand and prescription growth fail to translate proportionally into top-line expansion, potentially compressing valuation multiples over time.

Technology Solutions Growth Remains Uncertain: Although RxTS remains a high-margin growth business, management explicitly warned that future revenues and operating profit growth will be increasingly non-linear and unpredictable.

Approximately 55% of segment revenues comes from the 3PL business, which depends heavily on factors such as new drug launch timing, program launches, payer utilization trends, product maturity cycles, formulary changes and supply dynamics. Management guided fiscal 2027 revenue growth of only 2.5-6.5%, significantly slower than historical performance despite continued strong demand for access services.

As pharmaceutical manufacturers continuously adjust commercialization strategies, program support requirements may fluctuate materially, resulting in an uncertain quarterly performance. This is likely to reduce earnings visibility in one of McKesson’s most attractive technology-driven segments.

Acquisition-Led Growth Strategy Increases Integration Risk: McKesson’s accelerating expansion strategy depends on acquisitions and inorganic growth initiatives. In fiscal 2026, acquisitions including PRISM Vision and Core Ventures accounted for approximately 34% of operating profit growth in the oncology segment. This highlights growing dependence on purchased growth rather than purely organic expansion.

Management also indicated an active pipeline of additional oncology provider acquisitions, suggesting M&A will remain a central part of the growth algorithm. While integration has progressed smoothly so far, acquisition-heavy growth strategies introduce valuation risk, execution complexity and integration uncertainty.

McKesson is simultaneously funding acquisitions, executing large share repurchases and managing the Medical-Surgical separation, creating capital allocation complexity. If acquired assets underperform or future deals become expensive, sustaining double-digit EPS growth may become increasingly challenging.

Estimate Trends for MCKMcKesson is witnessing a positive estimate revision trend for 2026. In the past 30 days, the Zacks Consensus Estimate for its earnings per share has improved 1 cent to $44.28.

The Zacks Consensus Estimate for the company’s first-quarter fiscal 2027 revenues and earnings per share is pegged at $104.39 billion and $9.63, respectively. The estimate for revenues indicates a 6.7% improvement from the year-ago quarter’s reported number, while that for earnings implies a 16.6% gain.

MCK’s Zacks Rank & Key PicksCurrently, McKesson has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are BrightSpring Health (BTSG - Free Report) , Globus Medical (GMED - Free Report) and West Pharmaceutical (WST - Free Report) .

BrightSpring Health, currently sporting a Zacks Rank #1 (Strong Buy), reported first-quarter 2026 adjusted earnings per share (EPS) of 39 cents, which beat the Zacks Consensus Estimate by 34.5%. Revenues of $3.61 billion surpassed the Zacks Consensus Estimate by 8.35%. You can see the complete list of today’s Zacks #1 Rank stocks here.

BrightSpring Health has an estimated long-term earnings growth rate of 46.5%. BTSG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 14.6%.

Globus Medical, currently carrying a Zacks Rank #2 (Buy), reported a first-quarter 2026 adjusted EPS of $1.12, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%.

GMED has an estimated long-term earnings growth rate of 10.2%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.

West Pharmaceutical, carrying a Zacks Rank #2 at present, reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.

West Pharmaceutical has an estimated long-term earnings growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.