Mckesson Corp. (MCK)
NYSE:MCK
Top Page
McKesson
(NYSE:MCK)
Select Model
Select Model
Rating:68Neutral
Price Target:
$964.00
▲(11.37% Upside)
Action:DowngradedDate:04/06/26
The score is driven primarily by strong cash generation and solid operating performance, reinforced by a constructive earnings call with raised FY2026 guidance and continued capital returns. Offsetting these positives are balance-sheet leverage/volatility and weaker near-term technical momentum, with valuation appearing only average given the P/E and very low dividend yield.
Positive Factors
Cash Generation
Very strong and recurring free cash flow provides durable internal funding to service debt, sustain ~$2B planned buybacks, and fund technology and separation costs. Reliable cash conversion reduces dependence on external financing and underpins strategic initiatives over multiple years.
Negative Factors
Leverage & Volatile Equity
Sizable debt and historically negative equity reduce balance-sheet resilience and limit financial flexibility. Capital structure volatility can amplify stress in downturns, constrain M&A or buybacks, and heighten refinancing and covenant sensitivity over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Very strong and recurring free cash flow provides durable internal funding to service debt, sustain ~$2B planned buybacks, and fund technology and separation costs. Reliable cash conversion reduces dependence on external financing and underpins strategic initiatives over multiple years.
Read all positive factors
McKesson (MCK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$106.98B
Dividend Yield0.37%
Average Volume (3M)759.46K
Price to Earnings (P/E)21.3
Beta (1Y)0.33
Revenue Growth17.23%
EPS Growth66.17%
CountryUS
Employees44,000
SectorHealthcare
Sector Strength45
IndustryMedical - Distribution
Share Statistics
EPS (TTM)9.34
Shares Outstanding122,487,460
10 Day Avg. Volume689,237
30 Day Avg. Volume759,457
Financial Highlights & Ratios
PEG Ratio1.77
Price to Book (P/B)-41.34
Price to Sales (P/S)0.24
P/FCF Ratio16.41
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue0.28
Enterprise Value/Gross Profit8.38
Enterprise Value/Ebitda17.39
Forecast
1Y Price Target
$981.22Price Target Upside13.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)44.16
Revenue Forecast (FY)$441.23B
McKesson Business Overview & Revenue Model
Company Description
McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, International, Medical-Surgical Solutions, and Prescription Technology Solutions (RxTS). The U.S. P...
How the Company Makes Money
McKesson makes money primarily through healthcare distribution and associated services, with revenue largely tied to the volume of products it sources from manufacturers and delivers to customers (e.g., retail pharmacies, hospitals, and other prov...
McKesson Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how revenue is distributed across various business segments, indicating which areas are growing or declining and where the company is focusing its efforts.
Shows how revenue is distributed across various business segments, indicating which areas are growing or declining and where the company is focusing its efforts.
Data provided by:
The Fly
The FlyMcKesson Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive operational and financial picture: strong double-digit top-line and EPS growth, raised full-year guidance, robust segment performance (notably oncology, specialty distribution and RxTS), solid cash generation, active buybacks, and successful acquisition integrations. Challenges are relatively contained: medical-surgical profitability pressure, quarter-to-quarter variability driven by seasonality/launch timing, and some uncertainty around GLP-1 channel evolution and near-term technology investment costs. Overall, the positives (growth, margin expansion, cash flow, strategic progress) materially outweigh the noted headwinds.Positive Updates
Record Quarterly Revenue and Strong EPS
Consolidated revenues increased 11% year-over-year to $106.2 billion. Third quarter diluted EPS increased 16% to $9.34, driven by operational performance and acquisitions.
Negative Updates
Medical-Surgical Segment Pressure
Medical-surgical revenues were $3.0 billion (up 1% YoY) but operating profit declined 10% to $265 million, attributed to lower physician office volumes and a milder illness season.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Revenue and Strong EPS
Consolidated revenues increased 11% year-over-year to $106.2 billion. Third quarter diluted EPS increased 16% to $9.34, driven by operational performance and acquisitions.
Read all positive updates
Company Guidance
Management raised and narrowed fiscal 2026 guidance to adjusted EPS of $38.80–$39.20 (up 17–19% y/y), revenue growth of 12–16%, and operating profit growth of 13–17%. Segment outlooks: North American Pharmaceutical revenue +10–14% and operating profit +8–12%; Oncology & Multispecialty revenue +29–33% and operating profit +51–55% (with Prism Vision and Core Ventures expected to contribute ~30–34% of the segment’s operating profit growth); Prescription Technology Solutions revenue +9–13% and operating profit +14–18%. Corporate expenses are guided to $620–$650M (including $15M YTD pretax gains), interest expense $215–$235M, income attributable to noncontrolling interest $230–$250M, and an effective tax rate of ~19%. Cash flow and capital priorities include free cash flow of ~$4.4–$4.8B for FY26, ~ $2B of planned share repurchases, and weighted average diluted shares of ~124M; management also noted an incremental Q4 technology investment cost of about $0.05 per share versus the prior year.McKesson Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
38
Negative
Cash Flow
88
Very Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 397.96B | 359.05B | 308.95B | 276.71B | 263.97B | 238.23B |
| Gross Profit | 13.43B | 12.48B | 12.20B | 11.87B | 12.65B | 11.58B |
| EBITDA | 6.47B | 5.25B | 4.67B | 5.74B | 3.11B | -3.60B |
| Net Income | 4.34B | 3.29B | 3.00B | 3.56B | 1.11B | -4.54B |
Balance Sheet | ||||||
| Total Assets | 84.19B | 75.14B | 67.44B | 62.32B | 63.30B | 65.02B |
| Cash, Cash Equivalents and Short-Term Investments | 2.96B | 5.69B | 4.58B | 4.68B | 3.53B | 6.28B |
| Total Debt | 8.62B | 7.39B | 7.39B | 7.29B | 7.54B | 9.40B |
| Total Liabilities | 84.29B | 76.83B | 69.04B | 63.81B | 65.09B | 63.57B |
| Stockholders Equity | -1.30B | -2.07B | -1.97B | -1.86B | -2.27B | -21.00M |
Cash Flow | ||||||
| Free Cash Flow | 10.10B | 5.23B | 3.63B | 4.60B | 3.90B | 3.90B |
| Operating Cash Flow | 10.48B | 6.08B | 4.31B | 5.16B | 4.43B | 4.54B |
| Investing Cash Flow | -4.08B | -733.00M | -1.07B | -542.00M | -89.00M | -415.00M |
| Financing Cash Flow | -4.67B | -3.96B | -3.34B | -4.37B | -6.32B | -1.69B |
McKesson Technical Analysis
Negative
865.60
Price Trends
912.79
Negative
871.12
Negative
802.47
Positive
Market Momentum
-14.93
Positive
40.98
Neutral
58.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCK, the sentiment is Negative. The current price of 865.6 is below the 20-day moving average (MA) of 884.97, below the 50-day MA of 912.79, and above the 200-day MA of 802.47, indicating a neutral trend. The MACD of -14.93 indicates Positive momentum. The RSI at 40.98 is Neutral, neither overbought nor oversold. The STOCH value of 58.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MCK.
McKesson Risk Analysis
McKesson disclosed 38 risk factors in its most recent earnings report. McKesson reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
McKesson Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $2.68B | 15.81 | 11.29% | ― | -0.02% | -1.87% | |
68 Neutral | $106.98B | 21.30 | -245.27% | 0.37% | 17.23% | 66.17% | |
65 Neutral | $50.72B | 25.74 | -58.93% | 0.98% | 4.37% | 28.48% | |
65 Neutral | $8.67B | 23.11 | 11.92% | ― | 3.51% | 29.65% | |
64 Neutral | $62.41B | 29.30 | 101.43% | 0.66% | 9.31% | 5.92% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
MCK
McKesson
865.60
174.35
25.22%
COR
Cencora
320.82
38.56
13.66%
CAH
Cardinal Health
215.52
82.24
61.71%
HSIC
Henry Schein
75.34
9.73
14.83%
PBH
Prestige Consumer Healthcare
56.55
-25.57
-31.14%
McKesson Corporate Events
Business Operations and StrategyPrivate Placements and Financing
McKesson Secures New $2 Billion Senior Credit Facilities
Positive
Apr 6, 2026
On April 1, 2026, McKesson subsidiaries, including McKesson Medical-Surgical Top Holdings, entered into a new senior secured credit agreement totaling $2 billion, comprising a $750 million term loan A-1 due 2031, a $250 million term loan A-2 due 2...
Business Operations and StrategyFinancial Disclosures
McKesson Affirms Fiscal 2026 Outlook, Sets Earnings Date
Positive
Mar 6, 2026
McKesson Corporation said on March 6, 2026, that it will release its fourth quarter fiscal 2026 results after market close on May 7, 2026, followed by a webcasted earnings call led by CEO Brian Tyler and CFO Britt Vitalone. The company also reaffi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.