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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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Stock to Watch: McKesson (MCK - Free Report) McKesson Corporation, headquartered in Irving, TX, is one of the largest global healthcare companies and the leading pharmaceutical distributor in North America. The company operates across four business segments: U.S. Pharmaceutical, which distributes branded, generic, and specialty drugs; RxTS, which provides patient access, affordability, and third-party logistics services for biopharma manufacturers and payors; Medical-Surgical Solutions, supplying alternate-site providers such as physician offices and home health; and International, primarily focused in Canada. Specialty pharmaceuticals, oncology services, and GLP-1 medications for diabetes and obesity are key growth engines. In FY25, GLP-1 revenues alone reached nearly $41 billion.

MCK is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Medical stock. MCK has a Momentum Style Score of B, and shares are up 5.4% over the past four weeks.

For fiscal 2027, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.37 to $44.65 per share. MCK boasts an average earnings surprise of +4.3%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, MCK should be on investors' short list.

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.

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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].

McKesson (MCK.N) said on Tuesday it would buy privately held Precision Medicine Group in a deal valued at about $2.25 billion, as part of a years-long effort ​to strengthen its higher-growth businesses.

The U.S. drug distributor has been reshaping its portfolio by exiting ​non-core assets and streamlining its operations while investing in businesses such as ⁠oncology and specialty care to drive long-term growth.

"Precision Medicine Group brings complementary capabilities ​that will enhance our clinical research and commercialization services, strengthen clinical trial execution, and broaden ​our clinical service offerings," McKesson CEO Brian Tyler said in a statement.

Bethesda, Maryland-based Precision provides clinical research, laboratory testing and commercialization services that help biotechnology and pharmaceutical companies develop and launch new medicines.

Shares of ​McKesson were up 1.2% in early trading.

Leerink Partners analyst Michael Cherny said the acquisition ​fits with McKesson's current portfolio and is not a "bet-the-farm" transaction, given its value is equivalent to just ‌over ⁠2% of the company's market capitalization.

However, Cherny said investors would want more clarity on how McKesson can help scale Precision and create synergies from the deal.

McKesson said Precision will become part of its oncology and multispecialty unit after the deal closes but did not provide ​an expected timeline for ​the completion.

J.P.Morgan analyst Lisa ⁠Gill said the tuck-in deal will likely strengthen McKesson's biopharma offerings.

Revenue in the division jumped 33% to $14.2 billion in the first ​quarter of fiscal 2026, fueled by growth in services to healthcare ​providers and ⁠specialty distribution, including contributions from its acquisitions of controlling stakes in Core Ventures and PRISM Vision Holdings.

The company, which last year restructured its operations into four reporting segments, said in April it would ⁠sell ​a minority stake in its medical-surgical solutions business to ​investment firm Apollo Funds for $1.25 billion, as it pursues an initial public offering for the unit.

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%.

Beacon Pointe Advisors LLC purchased a new position in shares of McKesson Corporation (NYSE:MCK – Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 20,343 shares of the company’s stock, valued at approximately $15,371,000.

A number of other hedge funds and other institutional investors have also recently modified their holdings of MCK. University of Texas Texas AM Investment Management Co. purchased a new position in shares of McKesson during the fourth quarter valued at approximately $25,000. Swiss RE Ltd. purchased a new stake in shares of McKesson during the 4th quarter valued at $26,000. Delos Wealth Advisors LLC purchased a new stake in shares of McKesson in the 2nd quarter valued at $27,000. State of Wyoming purchased a new stake in McKesson during the 2nd quarter valued at $29,000. Finally, Kingdom Financial Group LLC. bought a new stake in McKesson in the fourth quarter valued at $33,000. Institutional investors and hedge funds own 85.07% of the company’s stock.

Insider Buying and Selling at McKesson In related 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 value of $513,953.73. Following the transaction, the executive vice president owned 2,268 shares of the company’s stock, valued at approximately $1,667,592.36. This trade represents a 23.56% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brian S. Tyler sold 8,463 shares of McKesson stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $793.56, for a total transaction of $6,715,898.28. Following the sale, the chief executive officer directly owned 5,919 shares of the company’s stock, valued at $4,697,081.64. This trade represents a 58.84% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 23,111 shares of company stock valued at $18,011,274 over the last quarter. Company insiders own 0.06% of the company’s stock.

Analyst Upgrades and Downgrades A number of brokerages have recently issued reports on MCK. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $875.00 price target on shares of McKesson in a report on Friday, May 8th. UBS Group boosted their price objective on shares of McKesson from $1,050.00 to $1,080.00 and gave the company a “buy” rating in a research report on Thursday, August 6th. Barclays raised their price target on shares of McKesson from $925.00 to $1,000.00 and gave the company an “overweight” rating in a report on Wednesday, August 19th. Weiss Ratings cut McKesson from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, July 7th. Finally, Citigroup raised their price target on shares of McKesson from $945.00 to $1,000.00 and gave the company a “buy” rating in a research report on Friday, July 24th. Fourteen investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $973.44. Check Out Our Latest Analysis on McKesson

McKesson Stock Performance Shares of McKesson stock opened at $895.59 on Friday. The firm has a fifty day moving average of $833.31 and a two-hundred day moving average of $844.13. The company has a market cap of $104.42 billion, a P/E ratio of 23.97, a PEG ratio of 1.75 and a beta of 0.30. McKesson Corporation has a one year low of $679.65 and a one year high of $999.00.

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

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

Trending Headlines about McKesson Here are the key news stories impacting McKesson this week:

Positive Sentiment: Expansion into precision medicine: McKesson agreed to acquire privately held Precision Medicine Group for approximately $2.25 billion. Precision Medicine provides clinical research, laboratory testing and commercialization services for biotechnology and pharmaceutical companies, giving McKesson greater exposure to oncology, personalized medicine and specialty care. McKesson Doubles Down on Healthcare Growth With Precision Medicine Acquisition Positive Sentiment: Higher-growth service mix: The acquisition is expected to strengthen McKesson’s clinical research and commercialization capabilities and deepen relationships with biopharmaceutical companies and oncology practices. Investors may view the transaction as a way to reduce reliance on lower-margin pharmaceutical distribution and participate in growth tied to new drug development. What Does McKesson Gain From Its Push Into Oncology And Clinical Research? Neutral Sentiment: Portfolio repositioning amid workforce changes: Coverage noted layoffs at Rx Savings while McKesson plans the Precision Medicine acquisition. The combination highlights an ongoing reallocation of resources, although the near-term effect on earnings and integration costs remains uncertain. Amid Layoffs, McKesson Plans Acquisition Negative Sentiment: Cybersecurity incident disclosed: McKesson reported discovering a cybersecurity incident on August 25 after the ShinyHunters group claimed it had stolen patient data. The company’s investigation and any resulting regulatory, remediation, privacy or reputational costs could weigh on sentiment, although the ultimate scope and financial impact were not yet clear. McKesson Discloses Breach After ShinyHunters Claims Patient Data Theft 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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Key Takeaways McKesson raised FY27 adjusted EPS guidance to $44.20-$45.00, implying 13%-15% growth.MCK's Oncology & Multispecialty revenue rose 33%, while adjusted operating profit climbed 41%.McKesson posted $15B in GLP-1 revenue, up 24%, while maintaining $4.5B-$4.9B free cash flow guidance. McKesson Corporation (MCK - Free Report) opened fiscal 2027 with an earnings beat, double-digit adjusted operating profit growth and higher full-year earnings guidance. The quarter sharpened the focus on oncology, specialty distribution and GLP-1 volumes as profit drivers.

The investor question is whether those engines can keep expanding earnings while lower branded-drug pricing, cash-flow timing and the planned Medical-Surgical separation create offsets.

McKesson's Q1 Beat Reset FY27 ExpectationsFirst-quarter adjusted earnings rose 20% to $9.93 per share, topping the Zacks Consensus Estimate of $9.44 by 5.2%. Revenues increased 8% to $105.38 billion and exceeded the consensus mark by about 1%.

Adjusted operating profit advanced 16% to $1.65 billion as growth in North American Pharmaceutical, Oncology & Multispecialty and Prescription Technology Solutions outweighed weaker Medical-Surgical profitability. That breadth supported management's higher fiscal 2027 earnings outlook.

MCK's Oncology Platform Is Scaling FastOncology & Multispecialty revenues climbed 33% to $14.22 billion, while adjusted operating profit increased 41% to $405 million. Excluding Core Ventures, revenues rose about 24% and operating profit grew about 15%, showing expansion beyond acquisitions.

The U.S. Oncology Network reached approximately 3,400 providers and treats more than 2 million patients annually. McKesson expects fiscal 2027 Oncology & Multispecialty revenue growth of 14.5%-18.5% and operating profit growth of 13.5%-17.5%.

Image Source: Zacks Investment Research

McKesson's GLP-1 Volumes Keep Distribution RelevantGLP-1 distribution revenue reached $15 billion in the quarter, up 24% year over year and 13% sequentially. North American Pharmaceutical revenues increased 5% to $86.77 billion, while adjusted segment operating profit rose 19% to $894 million.

Lower branded pharmaceutical pricing following January 2026 wholesale acquisition cost reductions restrained revenue growth, but management said the pricing decline did not materially affect operating profit. Specialty distribution and new product launches helped offset the pressure.

Cencora, Inc. (COR - Free Report) is seeing a similar industry theme. Its fiscal 2026 third-quarter U.S. Healthcare Solutions growth was supported by specialty products and GLP-1 class products. Cardinal Health, Inc. (CAH - Free Report) also distributes specialty pharmaceuticals and provides related services through its Pharmaceutical and Specialty Solutions segment.

MCK's Guidance Raise Broadens the Earnings StoryMcKesson raised fiscal 2027 adjusted earnings guidance to $44.20-$45.00 per share from $43.80-$44.60, implying 13%-15% growth. Companywide adjusted operating profit is expected to increase 9%-13%.

North American Pharmaceutical operating profit growth is now expected at the high end of the prior 5.5%-9.5% range. Specialty distribution, prescription volumes and new product launches therefore remain central to the earnings outlook.

McKesson's Cash Flow Outlook Adds a Key CheckFirst-quarter free cash flow was negative $372 million despite the stronger operating result. McKesson's working-capital needs can vary materially during the year because of inventory purchasing patterns, sales activity and timing.

Management maintained fiscal 2027 free cash flow guidance of $4.5-$4.9 billion. The company also expects about $5 billion of share repurchases for the year, making cash conversion an important checkpoint for capital returns.

MCK's Hold Signal Tempers the Earnings MomentumThe bottom line is that McKesson entered fiscal 2027 with faster profit growth and higher guidance, while oncology and GLP-1 volumes added support to the earnings mix. Cash-flow timing, pricing dynamics and portfolio execution still temper the case.

MCK currently carries a Zacks Rank #3 (Hold). It also has a Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A. Those scores indicate favorable characteristics across several investment styles, but they are designed to complement the Zacks Rank rather than override it. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Aurora Investment Counsel purchased a new stake in shares of McKesson Corporation (NYSE: MCK) in the undefined quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 2,797 shares of the company's stock, valued at approximately $2,113,000. A number of other institutional investors and hedge

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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Posted by Defense World Staff on Aug 15th, 2026

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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3 Healthcare Stocks With Fresh Dividend Hikes and Different Income ProfilesMcKesson NYSE: MCK reported fiscal first-quarter 2027 results that exceeded its expectations, citing broad-based momentum across its operating businesses and prompting the healthcare services company to raise its full-year adjusted earnings outlook.

Revenue rose 8% to $105.4 billion, while adjusted diluted earnings per share increased 20% to $9.93. Chair and CEO Brian Tyler said three reporting segments posted double-digit operating-profit growth, supported by stable utilization, volume growth and the company’s portfolio of healthcare distribution, specialty and technology services.

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MarketBeat Week in Review – 07/27- 07/31“Our first quarter performance reflects the continued momentum across the enterprise and reinforces our confidence in our strategy and the durability of our operating model,” Tyler said.

Guidance raised as North American Pharmaceutical leads growth McKesson raised its fiscal 2027 adjusted EPS outlook to a range of $44.20 to $45.00, from prior guidance of $43.80 to $44.60. The revised outlook implies adjusted EPS growth of 13% to 15%, excluding the impact of the Norway divestiture and a fiscal 2026 gain tied to the sale of an equity investment within The US Oncology Network.

McKesson's Compounding Keeps Adding UpThe company expects fiscal-year revenue growth of 5% to 9% and operating-profit growth of 9% to 13%.

North American Pharmaceutical revenue increased 5% to $86.8 billion. The segment’s operating profit rose 19% to $894 million, driven by specialty distribution growth, including health systems and strategic accounts, as well as the timing of new product launches.

Chief Financial Officer Kenny Cheung said higher prescription volumes and specialty-product volumes supported revenue growth, partly offset by lower branded-drug pricing following wholesale acquisition cost reductions in January 2026 and branded-to-generic conversions. Cheung said branded pricing declines did not have a meaningful effect on operating profit because more than 95% of McKesson’s branded-drug business is fee-for-service.

GLP-1 medication distribution revenue totaled $15 billion during the quarter, up approximately $3 billion, or 24%, from the prior year. Revenue from GLP-1 products rose 13% sequentially. Tyler said the company continues to see growth in both the cash-pay and covered segments of the GLP-1 market.

For the full year, McKesson expects North American Pharmaceutical revenue growth of 4% to 8% and operating-profit growth at the high end of its previous 5.5% to 9.5% range. The company said its forecast includes accelerated investments during the second half of fiscal 2027, focused on growth and artificial intelligence, with returns expected to begin in fiscal 2028.

Oncology and technology businesses post double-digit profit gains Oncology & Multispecialty revenue rose 33% to $14.2 billion, while operating profit climbed 41% to $405 million. Excluding contributions from the Core Ventures acquisition, completed in June 2025, segment revenue grew approximately 24% and operating profit increased about 15%.

Cheung attributed the results to expansion within existing provider solutions and specialty distribution, new business wins and the Core Ventures contribution. Tyler said Florida Cancer Specialists, which McKesson acquired through Core Ventures, has performed at the high end of the guidance range provided at the time of the acquisition.

The U.S. Oncology Network expanded to approximately 3,400 providers and treats more than 2 million patients annually, according to Tyler. McKesson also said PRISM Vision includes more than 200 providers across 97 locations. Its Sarah Cannon Research Institute joint venture participated in research contributing to 43 of the 52 adult oncology drugs approved by the FDA in 2025, the company said.

Prescription Technology Solutions revenue increased 9% to $1.6 billion, and operating profit rose 13% to $303 million. Results reflected higher prescription volumes in third-party logistics and access solutions, including prior authorization services. McKesson said it began supporting the CMS Medicare GLP-1 Bridge program in July, providing infrastructure for eligibility determination, electronic prior authorizations and pharmacy claims transactions.

The company said that once a prior authorization request is submitted to a payer, 95% receive a determination within 30 minutes.

Medical-Surgical separation advances under Wellverse brand McKesson continued preparations to separate its Medical-Surgical Solutions business. Tyler said the unit will operate under the name Wellverse, with a phased transition expected to begin in January 2027.

During the quarter, McKesson completed Apollo Funds’ previously announced minority investment in the business. Apollo now holds approximately 13% of Medical-Surgical Solutions, while McKesson retains majority ownership and continues to consolidate the unit’s results.

The company also completed a $2.25 billion senior secured Term Loan B, following a $1 billion secured Term Loan A, and established a $1 billion revolving credit facility that remained undrawn during the quarter. Cheung said these financing arrangements support the business’s separation.

Medical-Surgical Solutions revenue increased 4% to $2.8 billion, aided by alternate-site-of-care growth and higher specialty pharmaceutical volumes. Operating profit declined 20% to $195 million due to product mix and a one-time administrative expense, partly offset by extended-care channel contributions.

Capital returns and policy considerations McKesson ended the quarter with $5.2 billion in cash and cash equivalents and approximately $10 billion in total liquidity. Free cash flow was negative $372 million, including $152 million in capital expenditures, although trailing 12-month free cash flow totaled approximately $6.1 billion.

The company repurchased $2.5 billion of shares during the quarter, including $2.25 billion through an accelerated share repurchase program at an initial average price of about $755 per share. It returned $2.6 billion to shareholders through repurchases and dividends. In July, the board approved a 15% increase in the quarterly dividend, representing McKesson’s 10th consecutive annual increase.

Management expects approximately $4.5 billion to $4.9 billion in free cash flow and roughly $5 billion in share repurchases for fiscal 2027.

Tyler said McKesson is monitoring healthcare policy developments, including potential reforms to the 340B drug-pricing program and the Inflation Reduction Act’s Part B provisions. He said it would be premature to estimate financial effects from 340B proposals still under review, while noting the Part B program is not scheduled to take effect until January 2028.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Our proprietary system currently recommends McKesson (MCK - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

Here are three of the most important factors that make the stock of this prescription drug distributor a great growth pick right now.

Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for McKesson is 13%, investors should actually focus on the projected growth. The company's EPS is expected to grow 13.4% this year, crushing the industry average, which calls for EPS growth of 8%.

Impressive Asset Utilization RatioAsset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.

Right now, McKesson has an S/TA ratio of 4.85, which means that the company gets $4.85 in sales for each dollar in assets. Comparing this to the industry average of 0.74, it can be said that the company is more efficient.

While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And McKesson is well positioned from a sales growth perspective too. The company's sales are expected to grow 7.3% this year versus the industry average of 4%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for McKesson have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.2% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made McKesson a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions McKesson well for outperformance, so growth investors may want to bet on it.

Key Takeaways McKesson beat fiscal Q1 estimates as adjusted EPS rose 20% and revenues increased 8%.Oncology & Multispecialty revenues surged 33%, while operating profit jumped 41% on specialty growth.MCK raised fiscal 2027 adjusted EPS guidance to $44.20-$45.00, implying 13-15% growth. McKesson Corporation (MCK - Free Report) reported first-quarter fiscal 2027 adjusted earnings per share (EPS) of $9.93, up 20% year over year. The figure beat the Zacks Consensus Estimate of $9.44 by 5.2%, driven by strong operational growth in North American Pharmaceutical and Oncology & Multispecialty, along with a lower share count.

GAAP EPS was $5.15 in the first quarter of fiscal 2027, down 18% from $6.25 in the year-ago quarter. The decline primarily reflected a $293 million redemption value adjustment related to redeemable noncontrolling interests in the Medical-Surgical Solutions segment. This impact was partly offset by organic growth across the enterprise and the absence of the prior-year $189 million pre-tax bad-debt provision tied to the Rite Aid bankruptcy.

MCK's Revenue DetailsRevenues rose 8% to $105.38 billion and surpassed the consensus estimate of $104.39 billion by 1%. GLP-1 medication distribution revenues increased 24% year over year to $15 billion.

The top line benefited from higher prescription volumes in North American Pharmaceutical and continued strength in oncology and multispecialty. Growth in specialty products and provider solutions also supported the quarterly performance.

These gains were partially offset by lower branded pharmaceutical pricing following wholesale acquisition cost reductions in January 2026 and branded-to-generic conversions. Management noted that the decline in branded pricing affected revenues but did not have a meaningful impact on operating profit.

Shares of MCK gained 1.7% in after-hours trading on Aug. 5, following better-than-expected sales and EPS performance as well as raised guidance. The stock has risen 6.9% year to date compared with the industry’s 2.1% growth. The S&P 500 Index has advanced 13.2% over the same period.

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McKesson's Q1 Segmental AnalysisRevenues from the North American Pharmaceutical segment increased 5% year over year to $86.77 billion. Growth reflected higher prescription transaction volumes, including increased specialty product volumes, partly offset by lower contributions from branded pharmaceuticals.

Adjusted segment operating profit climbed 19% to $894 million. The improvement was driven by specialty product distribution to health systems and strategic accounts, as well as the timing of new product launches.

Oncology & Multispecialty revenues surged 33% to $14.22 billion, supported by growth in provider solutions and specialty distribution, including contributions from acquisition. Excluding Core Ventures, revenues increased approximately 24%.

Adjusted segment operating profit jumped 41% to $405 million. Excluding Core Ventures, operating profit grew approximately 15%, aided by higher specialty distribution volumes and organic and new business growth in provider solutions.

Prescription Technology Solutions revenues rose 9% to $1.57 billion, reflecting higher prescription volumes in third-party logistics and access solutions. Adjusted operating profit advanced 13% to $303 million on higher demand for access solutions, including prior authorization services.

Medical-Surgical Solutions revenues increased 4% to $2.82 billion, driven by growth across alternate sites of care and higher specialty pharmaceutical volumes. Adjusted operating profit declined 20% to $195 million due to product mix and one-time administrative expenses, partly offset by contributions from the extended care channel.

MCK's MarginAdjusted gross profit increased 13% year over year to $3.68 billion. The adjusted gross margin expanded approximately 15 basis points to 3.49%, reflecting growth in North American Pharmaceutical and Oncology & Multispecialty.

Adjusted operating profit rose 16% to $1.65 billion. The adjusted operating margin improved roughly 11 basis points to 1.57%, as gross profit growth outpaced the 10% increase in adjusted operating expenses.

McKesson's Financial UpdateMcKesson ended the quarter with $5.16 billion in cash and cash equivalents, up from $3.98 billion at the end of fiscal 2026. Total liquidity was approximately $10 billion.

Cumulative net cash provided by operating activities was $6.16 billion against cumulative net cash used in operating activities of $6.09 billion in the year-earlier period. The capital expenditures totaled $152 million. This resulted in negative free cash flow of $372 million, although trailing 12-month free cash flow remained approximately $6.1 billion.

The company returned $2.6 billion to shareholders, including $2.5 billion through share repurchases and $102 million in dividends. Its board also approved a 15% quarterly dividend increase to 94 cents per share.

MCK Raises Fiscal 2027 GuidanceMcKesson raised its fiscal 2027 adjusted earnings guidance to $44.20-$45.00 per share from the previous projection of $43.80-$44.60. The revised outlook implies growth of 13-15%.

The company continues to expect revenue growth of 5-9% and operating profit growth of 9-13%. North American Pharmaceutical operating profit growth is now anticipated at the high end of the prior 5.5-9.5% range.

Wrapping UpMcKesson exited the first quarter of fiscal 2027 on a strong note, with both earnings and revenues surpassing estimates. The company’s performance was broad-based, led by North American Pharmaceutical, Oncology & Multispecialty and Prescription Technology Solutions. Specialty distribution remained a key growth driver, supported by higher prescription volumes, provider-solution growth and continued demand for access services.

MCK’s oncology and multispecialty platform, along with its expanding biopharma services capabilities, continues to support operating momentum. The company completed the sale of an approximately 13% minority interest in Medical-Surgical Solutions to Apollo Funds for $1.25 billion. It also established a $2.25 billion secured term loan facility to support the planned separation.

McKesson announced Wellverse as the future standalone company’s name. The business is expected to begin operating under the new identity in January 2027 as part of a phased transition.

MCK’s Zacks Rank & Other Key PicksMcKesson currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the broader medical space are West Pharmaceutical (WST - Free Report) , The Cooper Companies (COO - Free Report) and Cardinal Health (CAH - Free Report) , each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

West Pharmaceutical reported second-quarter 2026 adjusted earnings per share (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%.

West Pharmaceutical has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.40%.

The Cooper Companies reported a second-quarter fiscal 2026 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 10.00%. Revenues of $1.08 billion beat the Zacks Consensus Estimate by 2.6%.

The Cooper Companies has an estimated long-term earnings growth rate of 8.3%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.80%.

Cardinal Health reported a third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.

Cardinal Health has an estimated long-term earnings growth rate of 17%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%.

Revenue: $105.4 billion, an increase of 8% year over year.Adjusted Earnings Per Share: $9.93, an increase of 20% year over year.Gross Profit: $3.7 billion, an i

McKesson Corporation (MCK) Q1 2027 Earnings Call Transcript

McKesson (MCK - Free Report) came out with quarterly earnings of $9.93 per share, beating the Zacks Consensus Estimate of $9.44 per share. This compares to earnings of $8.26 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +5.19%. A quarter ago, it was expected that this prescription drug distributor would post earnings of $11.56 per share when it actually produced earnings of $11.69, delivering a surprise of +1.12%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

McKesson, which belongs to the Zacks Medical - Dental Supplies industry, posted revenues of $105.38 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.95%. This compares to year-ago revenues of $97.83 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

McKesson shares have added about 1.2% since the beginning of the year versus the S&P 500's gain of 13%.

What's Next for McKesson?While McKesson has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for McKesson was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $10.63 on $110.54 billion in revenues for the coming quarter and $44.28 on $432.77 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Dental Supplies is currently in the top 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Dentsply International (XRAY - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.

This dental products manufacturer is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of -30.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Dentsply International's revenues are expected to be $883.85 million, down 5.6% from the year-ago quarter.

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Healthcare

Healthcare Stocks Have Been Forgotten. Eli Lilly, McKesson, and 9 More to Buy.

In this article

The market has fixated on a few sectors this year. It seems to have forgotten about healthcare—making many names in the sector look attractive.

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.

McKesson (MCK - Free Report) ended the recent trading session at $865.51, demonstrating a -2.59% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 1.66%. On the other hand, the Dow registered a gain of 1.19%, and the technology-centric Nasdaq increased by 2.78%.

Shares of the prescription drug distributor have appreciated by 15.69% over the course of the past month, outperforming the Medical sector's gain of 0.54%, and the S&P 500's loss of 1.49%.

Investors will be eagerly watching for the performance of McKesson in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 5, 2026. It is anticipated that the company will report an EPS of $9.44, marking a 14.29% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $104.39 billion, up 6.7% from the year-ago period.

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.

Any recent changes to analyst estimates for McKesson should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0% upward. Right now, McKesson possesses a Zacks Rank of #2 (Buy).

With respect to valuation, McKesson is currently being traded at a Forward P/E ratio of 20.07. This denotes a premium relative to the industry average Forward P/E of 17.59.

Also, we should mention that MCK has a PEG ratio of 1.46. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Medical - Dental Supplies industry had an average PEG ratio of 1.91.

The Medical - Dental Supplies industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 38% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow MCK in the coming trading sessions, be sure to utilize Zacks.com.

Posted by Defense World Staff on Jul 23rd, 2026

Dimensional Fund Advisors LP grew its stake in shares of McKesson Corporation (NYSE:MCK – Free Report) by 1.2% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 356,397 shares of the company’s stock after acquiring an additional 4,311 shares during the period. Dimensional Fund Advisors LP owned about 0.29% of McKesson worth $308,388,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of the company. Parallel Advisors LLC grew its holdings in McKesson by 3.0% in the first quarter. Parallel Advisors LLC now owns 2,878 shares of the company’s stock valued at $2,491,000 after purchasing an additional 83 shares during the last quarter. Marshall & Sterling Wealth Advisors Inc. raised its stake in shares of McKesson by 41.1% during the 1st quarter. Marshall & Sterling Wealth Advisors Inc. now owns 508 shares of the company’s stock worth $440,000 after buying an additional 148 shares during the last quarter. SEB Asset Management AB acquired a new position in shares of McKesson during the 1st quarter worth $129,760,000. Swiss National Bank boosted its position in shares of McKesson by 6.3% in the 1st quarter. Swiss National Bank now owns 362,250 shares of the company’s stock worth $313,477,000 after buying an additional 21,360 shares in the last quarter. Finally, AIA Group Ltd purchased a new stake in shares of McKesson in the 1st quarter worth about $245,000. Hedge funds and other institutional investors own 85.07% of the company’s stock.

McKesson Stock Performance Shares of MCK opened at $813.95 on Thursday. The company has a market capitalization of $95.30 billion, a price-to-earnings ratio of 21.16, a PEG ratio of 1.36 and a beta of 0.31. McKesson Corporation has a 1 year low of $637.00 and a 1 year high of $999.00. The company’s 50 day simple moving average is $776.87 and its 200 day simple moving average is $838.43.

McKesson (NYSE:MCK – Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported $11.69 earnings per share for the quarter, beating the consensus estimate of $11.56 by $0.13. McKesson had a negative return on equity of 345.35% and a net margin of 1.18%.The company had revenue of $96.30 billion during the quarter, compared to the consensus estimate of $101.35 billion. During the same period in the previous year, the firm posted $10.12 EPS. McKesson’s revenue was up 6.0% on a year-over-year basis. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. Equities analysts expect that McKesson Corporation will post 44.28 EPS for the current fiscal year.

McKesson Increases Dividend The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be paid a $0.94 dividend. This represents a $3.76 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Tuesday, September 1st. This is a positive change from McKesson’s previous quarterly dividend of $0.82. McKesson’s dividend payout ratio is 8.53%.

Analysts Set New Price Targets MCK has been the subject of a number of research reports. 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. Citigroup lowered their price target on shares of McKesson from $975.00 to $945.00 and set a “buy” rating on the stock in a research report on Thursday, May 14th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $875.00 price objective on shares of McKesson in a research note on Friday, May 8th. TD Cowen cut their price objective on McKesson from $1,012.00 to $989.00 and set a “buy” rating for the company in a research report on Tuesday. Finally, Wells Fargo & Company reduced their target price on McKesson from $925.00 to $812.00 and set an “equal weight” rating on the stock in a research note on Tuesday, May 12th. Fourteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $959.00.

Check Out Our Latest Report on MCK

Key Stories Impacting McKesson Here are the key news stories impacting McKesson this week:

Positive Sentiment: McKesson raised its quarterly dividend by about 15% to $0.94 per share, signaling confidence in cash flow and capital returns. The increase was announced alongside a new payment schedule for shareholders of record on September 1. McKesson Corporation Raises Quarterly Dividend by 15% to $0.94 Per Share Positive Sentiment: Analysts remain constructive overall: TD Cowen lowered its price target slightly to $989 from $1,012 but kept a buy rating, implying meaningful upside from current levels. TD Cowen price target update via Benzinga Neutral Sentiment: Recent Zacks articles note that McKesson is drawing investor attention and is still viewed as a strong growth stock, but these pieces are largely commentary rather than new fundamental catalysts. Why McKesson Fell More Than Broader Market Neutral Sentiment: Other recent posts focus on stock performance over time and whether MCK is a buy now, but they do not appear to add a major new operational catalyst. Is Trending Stock McKesson Corporation (MCK) a Buy Now? Negative Sentiment: McKesson has been declining more than the broader market in recent sessions, reflecting near-term selling pressure even after strong longer-term fundamentals. Here’s Why McKesson (MCK) Fell More Than Broader Market Insiders Place Their Bets In other news, EVP Thomas L. Rodgers sold 699 shares of the stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $735.27, for a total transaction of $513,953.73. Following the transaction, the executive vice president directly owned 2,268 shares in the company, valued at $1,667,592.36. This represents a 23.56% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michele Lau sold 3,550 shares of the stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $761.09, for a total transaction of $2,701,869.50. Following the transaction, the executive vice president directly owned 3,247 shares in the company, valued at approximately $2,471,259.23. This represents a 52.23% 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 in the last quarter. Corporate insiders own 0.06% of the company’s stock.

McKesson 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.

Featured Articles Five stocks we like better than McKesson Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play Want to see what other hedge funds are holding MCK? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for McKesson Corporation (NYSE:MCK – Free Report).

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In the latest close session, McKesson (MCK - Free Report) was down 1.79% at $814.04. This change lagged the S&P 500's 0.14% loss on the day. Meanwhile, the Dow experienced a drop of 0.01%, and the technology-dominated Nasdaq saw a decrease of 0.57%.

Heading into today, shares of the prescription drug distributor had gained 8.5% over the past month, outpacing the Medical sector's gain of 5.8% and the S&P 500's gain of 0.25%.

Investors will be eagerly watching for the performance of McKesson in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 5, 2026. The company's upcoming EPS is projected at $9.59, signifying a 16.10% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $104.39 billion, up 6.7% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $44.28 per share and revenue of $432.77 billion. These totals would mark changes of +13.22% and +7.27%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for McKesson. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0% upward. Currently, McKesson is carrying a Zacks Rank of #2 (Buy).

Looking at its valuation, McKesson is holding a Forward P/E ratio of 18.72. This valuation marks a premium compared to its industry average Forward P/E of 17.11.

It's also important to note that MCK currently trades at a PEG ratio of 1.36. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. 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. This industry, currently bearing a Zacks Industry Rank of 74, finds itself in the top 31% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: McKesson (MCK - Free Report) McKesson Corporation, headquartered in Irving, TX, is one of the largest global healthcare companies and the leading pharmaceutical distributor in North America. The company operates across four business segments: U.S. Pharmaceutical, which distributes branded, generic, and specialty drugs; RxTS, which provides patient access, affordability, and third-party logistics services for biopharma manufacturers and payors; Medical-Surgical Solutions, supplying alternate-site providers such as physician offices and home health; and International, primarily focused in Canada. Specialty pharmaceuticals, oncology services, and GLP-1 medications for diabetes and obesity are key growth engines. In FY25, GLP-1 revenues alone reached nearly $41 billion.

MCK is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. MCK has a Growth Style Score of B, forecasting year-over-year earnings growth of 13.2% for the current fiscal year.

Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.01 to $44.28 per share. MCK also boasts an average earnings surprise of +3.1%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, MCK should be on investors' short list.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: McKesson (MCK - Free Report) McKesson Corporation, headquartered in Irving, TX, is one of the largest global healthcare companies and the leading pharmaceutical distributor in North America. The company operates across four business segments: U.S. Pharmaceutical, which distributes branded, generic, and specialty drugs; RxTS, which provides patient access, affordability, and third-party logistics services for biopharma manufacturers and payors; Medical-Surgical Solutions, supplying alternate-site providers such as physician offices and home health; and International, primarily focused in Canada. Specialty pharmaceuticals, oncology services, and GLP-1 medications for diabetes and obesity are key growth engines. In FY25, GLP-1 revenues alone reached nearly $41 billion.

MCK is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 18.14; value investors should take notice.

For fiscal 2027, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $44.28 per share. MCK boasts an average earnings surprise of +3.1%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, MCK should be on investors' short list.

The medical supply industry has entered the second half of 2026 from a position of strength, supported by resilient healthcare utilization, rising specialty care demand, increasing adoption of digital technologies and continued migration of patient care toward lower-cost outpatient settings.

Across major industry participants, management highlighted healthy procedure volumes, growing investment by healthcare providers, expanding specialty pharmaceutical utilization and stronger demand for technology-enabled workflow solutions. At the same time, companies continue to modernize supply chains through automation and AI while investing in value-added services that improve efficiency for providers and patients. However, the industry is not without challenges. Tariff-related cost pressures, pricing changes tied to healthcare policy, uneven demand in certain product categories and macroeconomic uncertainty continue to create operational complexity.

Companies with diversified business models, technology leadership, specialty exposure and disciplined capital allocation appear well positioned to capitalize on these favorable industry tailwinds through the remainder of 2026. Per a Markets and Markets report, the global medical supplies industry is expected to reach $163.5 billion by 2027, at a CAGR of 3.4% in the 2022-2027 period. Industry participants, such as McKesson (MCK - Free Report) , Cardinal Health (CAH - Free Report) , West Pharmaceutical Services (WST - Free Report) , Align Technology (ALGN - Free Report) and Henry Schein (HSIC - Free Report) , are likely to ride on the favorable macro trends amid lingering tariff risks.

Industry Description The global dental industry consists of companies that design, develop, make and market dental products, such as consumables, laboratory products and specialty items. Some of these companies also offer software and systems for practice management, patient education and office administration. Dental stocks have been drawing attention amid a recovery in sales following the weakness caused by pandemic-induced disruptions. The market has been recovering and maintaining its position.

Dental care is provided based on the advice and recommendations of the American Dental Association and the Centers for Disease Control and Prevention. Thanks to the rebound seen among companies in this space, patient volumes have been increasing steadily following the removal of COVID-19 restrictions.

Major Trends Shaping the Future of the Medical Dental Supplies Industry Specialty Care and Outpatient Healthcare Support Industry Growth: Healthcare delivery continues shifting toward specialty therapies, community-based care and non-acute treatment settings, creating sustained demand for medical distribution and support services. Specialty pharmaceuticals, oncology services, home-based care, ambulatory surgical centers and precision medicine remain among the industry's fastest-growing segments.

Companies are expanding provider networks, investing in specialty capabilities and strengthening patient access platforms to benefit from higher-acuity care migrating outside traditional hospitals. This structural transition supports long-term volume growth while increasing demand for integrated distribution, logistics and patient support solutions.

AI, Automation and Digital Innovations: Medical supply companies are increasingly leveraging AI, automation and cloud-based platforms to improve provider productivity, optimize supply chains and enhance patient engagement. Investments range from AI-enabled inventory planning and automated distribution centers to digital treatment planning, practice management software and workflow automation.

These technologies are helping providers improve efficiency, reduce administrative burdens and expand patient access while allowing distributors to enhance operational resilience and margins. As healthcare systems prioritize productivity improvements, technology-enabled service offerings are becoming an increasingly important source of competitive advantage and long-term growth.

Increasing Burden of Oral Diseases and an Aging Population: The U.S. dental equipment market is structurally supported by demographic aging and rising disease prevalence. Older cohorts account for a disproportionate share of restorative and surgical procedures, reflecting a higher incidence of caries, periodontal disease, and tooth loss. With the 65+ population expanding, demand visibility remains strong, reinforcing procedure volumes and equipment utilization across practices.

Growing Awareness and Emphasis on Preventive Care: Rising awareness of oral hygiene and preventive care is shifting demand toward early-stage interventions. Increased utilization of fluoride treatments, sealants, and prophylaxis products reflects a broader transition toward prevention-focused dentistry, supporting recurring revenue streams within consumables.

Minimally Invasive and Cosmetic Dentistry Trends: Patient preference is increasingly skewed toward minimally invasive and aesthetic procedures, including whitening and veneers. This trend is expanding demand for specialized materials and precision equipment, while also increasing procedure frequency and average spend per patient.

Expansion of Dental Clinics and Group Practices: The ongoing expansion of dental clinics, DSOs, and hospital-based practices is structurally increasing equipment demand. Higher patient throughput, standardized treatment protocols, and procurement efficiencies are driving consistent product utilization across growing care networks.

Regional Market Growth Drivers: Emerging markets, particularly in Asia-Pacific, are exhibiting above-average growth due to rising healthcare expenditure, improving access, and supportive policy frameworks. Dental tourism and expanding middle-class demand are further accelerating equipment adoption in these regions

Policy Changes and Ongoing Cost Inflation: Despite healthy demand, companies continue navigating an increasingly complex operating environment. Tariffs, healthcare policy changes, pharmaceutical pricing reforms under the Inflation Reduction Act, higher freight costs and inflationary pressures remain important headwinds.

Several companies also cited softer demand in select product categories, such as respiratory diagnostics following a mild flu season, while competitive pricing in certain technology markets continued to weigh on margins. Although management remains confident in mitigating these pressures through pricing actions, productivity initiatives and supply-chain improvements, these headwinds are likely to remain through the second half of 2026.

Zacks Industry Rank The Zacks Medical Dental Supplies industry falls within the broader Zacks Medical sector.

It carries a Zacks Industry Rank #68, which places it in the top 28% of 243 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Before we present a few dental supply stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.

Industry Performance The industry has outperformed its sector but underperformed the S&P 500 composite in the past year.

Stocks in this industry collectively gained 10.2% compared with the Zacks Medical sector’s rise of 9.6%. The S&P 500 has surged 24.2% in the same time frame.

One-Year Price Performance

Industry's Current Valuation On the basis of the forward 12-month price-to-earnings (P/E), which is commonly used for valuing medical stocks, the industry is currently trading at 16.83X compared with the S&P 500’s 21.23X and the sector’s 21.07X.

Over the past five years, the industry has traded as high as 21.75X and as low as 15.53X, with the median being 18.44X, as the charts show.

Price-to-Earnings Forward Twelve Months (F12M)

Price-to-Earnings Forward Twelve Months (F12M)

5 Key Dental Supply Picks McKessonremains one of the strongest beneficiaries of the industry's accelerating shift toward specialty care and technology-enabled healthcare services. The company continues to expand its oncology and multispecialty ecosystem through the integration of Core Ventures and PRISM Vision, broadening its presence across community oncology, retina and ophthalmology.

Management also highlighted continued momentum in biopharma services, where rising demand for access and affordability programs, particularly for complex specialty therapies, is strengthening its value proposition. AI-enabled workflow tools, automation and advanced distribution capabilities are further improving physician productivity, patient access and supply-chain efficiency. Investments in AI-powered inventory planning, highly automated distribution centers and technology infrastructure are expected to support operating leverage while enhancing service reliability.

McKesson's disciplined capital allocation, robust free cash flow generation and continued investment in automation reinforce confidence in sustained earnings growth. However, the company continues to operate in a dynamic policy environment, with pharmaceutical pricing reforms, evolving utilization patterns and continued investments in technology infrastructure likely to influence near-term profitability.

The Zacks Consensus Estimate for fiscal 2027 revenues indicates an improvement of 7.3% from the year-ago reported figure, while the same for earnings implies a rise of 13.2%. MCK carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price and Consensus: MCK

Cardinal Healthhas entered the second half of 2026 with strong momentum, driven by broad-based pharmaceutical demand and rapid expansion across its higher-growth businesses. Specialty pharmaceuticals remain the primary growth engine, with specialty revenues expected to exceed $50 billion during fiscal 2026, supported by robust demand for oncology therapies, GLP-1 products and branded medicines.

Beyond pharmaceutical distribution, the company continues to benefit from accelerating growth in At-Home Solutions, Nuclear and Precision Health Solutions and OptiFreight Logistics, reflecting increasing demand for decentralized care, theranostics and healthcare supply-chain optimization. Strategic acquisitions, including Advanced Diabetes Supply, are expanding Cardinal Health's chronic care capabilities while strengthening its long-term growth platform.

Operational discipline and resilient execution have also enabled the company to navigate complex market conditions effectively. Nevertheless, tariff-related costs remain a significant headwind for the Global Medical Products and Distribution segment, while the Navista goodwill impairment underscores execution risks within certain growth initiatives. Future performance will also depend on continued success in managing supply-chain costs and evolving healthcare policy changes.

The Zacks Consensus Estimate for fiscal 2026 revenues indicates an improvement of 15.1% from the year-ago reported figure, while the same for earnings implies a rise of 30.7%. CAH carries a Zacks Rank #2 at present.

Price and Consensus: CAH

West PharmaceuticalServices remainswell positioned to benefit from long-term growth in biologics and high-value injectable therapies, supported by sustained demand for advanced drug containment and delivery solutions. Management emphasized continued strength across its High-Value Products portfolio, with increasing customer adoption of premium components and proprietary delivery technologies driving favorable product mix and margin expansion.

The company's strategy is also supported by healthy demand for biologics, expanding capacity investments and growing participation in next-generation injectable medicines. This positions West Pharma to capitalize on structural trends in pharmaceutical innovation. Operational improvements and disciplined manufacturing execution continue to strengthen profitability while reinforcing customer relationships with leading biopharma companies.

However, management acknowledged that macroeconomic uncertainty, customer inventory normalization in selected product categories and the pace of new drug commercialization could create periodic revenue variability. Despite these risks, West Pharma's innovation-led portfolio, diversified customer base and focus on high-value solutions provide a solid foundation for continued growth through the remainder of 2026.

The Zacks Consensus Estimate for 2026 revenues indicates an improvement of 8.4% from the year-ago reported figure, while the same for earnings implies a rise of 18%. WST carries a Zacks Rank of 2 at present.

Price and Consensus: WST

Align Technologyis well positioned to benefit from the continued digitization of orthodontics and the growing adoption of clear aligner therapy. The company delivered record Invisalign case shipments in the first quarter, supported by broad-based growth across adults, teens and younger patients, while international markets continued to outpace North America. Management also highlighted strong momentum in dental service organizations (DSOs), which are increasingly adopting Align Technology's integrated digital platform to improve clinical workflows and patient conversion.

The expanding installed base of iTero scanners, rising adoption of exocad software and the rollout of restorative treatment solutions further strengthen Align Technology's digital ecosystem and create opportunities beyond orthodontics. Financing programs, doctor subscription models and treatment planning services are also improving affordability, clinician confidence and utilization, supporting long-term case growth. However, softer patient traffic in parts of the U.S. retail channel, pricing pressure from lower-cost scanner offerings and uneven macroeconomic conditions across certain markets remain key challenges to monitor through the remainder of 2026.

The Zacks Consensus Estimate for 2026 revenues indicates an improvement of 3.7% from the year-ago reported figure, while the same for earnings implies a rise of 8.1%. ALGN carries a Zacks Rank #2 at present.

Price and Consensus: ALGN

Henry Scheinhas entered the second half of 2026 with improving operating momentum, supported by market share gains, expanding digital capabilities and a sharpened focus on operational excellence. Management sees healthy demand across dental markets, with continued investments by dental service organizations (DSOs) and practitioners supporting equipment, merchandise and specialty product sales.

The company's integrated portfolio — including distribution, specialty products, practice management software and value-added services — positions it to benefit from customers' increasing focus on productivity and workflow optimization. AI-enabled practice management solutions, cloud-based software adoption and ongoing value creation initiatives are expected to drive margin expansion while strengthening customer engagement. Growth in value implants, home solutions and non-acute care channels provides additional tailwinds, while restructuring initiatives and supply-chain efficiencies should further enhance profitability.

Nevertheless, Henry Schein continues to face pricing pressure in digital equipment from new market entrants, softer demand for respiratory diagnostic products following a mild flu season, and cost inflation from higher freight and merchandise prices. Effective execution of its transformation initiatives will remain critical to sustaining earnings growth through the rest of 2026.

The Zacks Consensus Estimate for 2026 revenues indicates an improvement of 4.1% from the year-ago reported figure, while the same for earnings implies a rise of 7%. HSIC carries a Zacks Rank of 2 at present.

Price and Consensus: HSIC