McKesson (MCK) AI Stock Analysis

• Market Cap: $109.76B
• Dividend Yield: 0.36%
• Average Volume (3M): 704.76K
• Price to Earnings (P/E): 27.7
• Beta (1Y): 0.25
• Revenue Growth: 17.23%
• EPS Growth: 66.17%
• Country: US
• Employees: 44,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): 9.86
• Shares Outstanding: 123,426,650
• 10 Day Avg. Volume: 784,188
• 30 Day Avg. Volume: 704,763
• PEG Ratio: 1.77
• Price to Book (P/B): -41.34
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 16.41
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 7.94
• Enterprise Value/Ebitda: 17.50
• 1Y Price Target: $928.73
• Price Target Upside: 5.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 38.66
• Revenue Forecast (FY): $408.17B

• Rating: 72 Outperform
• Price Target: $952.00 ▲(7.73% Upside)

McKesson's strong earnings performance and bullish technical indicators are the primary drivers of its stock score. Despite high leverage and valuation concerns, the company's robust revenue growth and strategic focus on high-growth segments provide a positive outlook. The raised earnings guidance further supports confidence in future performance.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Strategic Segment Success

Growth in high-margin segments like oncology strengthens McKesson's market position and supports sustainable profitability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling strategic investments and debt management.

Negative Factors

Profitability Margins

Pressure on profit margins can limit earnings growth and reduce competitiveness, affecting long-term financial health.

High Leverage

Significant leverage increases financial risk, potentially impacting the company's ability to invest in growth opportunities.

Medical-Surgical Segment Challenges

Stagnation in this segment may hinder overall growth, necessitating strategic adjustments to maintain market competitiveness.

McKesson Business Overview & Revenue Model

Company Description

McKesson Corporation is a leading global healthcare services and information technology company headquartered in Irving, Texas. It operates primarily in the pharmaceutical distribution and healthcare services sectors, providing a comprehensive range of products and services to healthcare providers, including hospitals, pharmacies, and pharmaceutical manufacturers. McKesson's core offerings involve the distribution of pharmaceuticals and medical supplies, healthcare management software, and various technology solutions aimed at improving patient care and operational efficiency across the healthcare continuum.

How the Company Makes Money

McKesson generates revenue primarily through its pharmaceutical distribution segment, which involves the sale of branded and generic pharmaceuticals to hospitals, pharmacies, and other healthcare providers. This segment accounts for a significant portion of the company's revenue, driven by the volume of drugs distributed and the associated service fees. Additionally, McKesson earns revenue from its medical-surgical distribution services, where it supplies medical supplies and equipment to healthcare facilities. Another key revenue stream comes from its technology solutions, which include software and services designed to streamline healthcare operations and enhance patient care delivery. The company also benefits from strategic partnerships with pharmaceutical manufacturers and healthcare providers, allowing it to optimize its supply chain, enhance service offerings, and tap into new markets. Overall, McKesson's diverse revenue model, supported by its scale and industry relationships, contributes to its financial stability and growth.

McKesson Financial Statement Overview

Summary

McKesson shows solid revenue growth and strong cash flow generation, with a free cash flow growth of 11.30%. However, profitability margins are under pressure, and there are significant leverage concerns with a high debt-to-equity ratio of -5.05. The negative stockholders' equity and low net profit margin of 0.84% indicate financial instability.

Income Statement

McKesson's income statement shows a consistent revenue growth trend, with a TTM revenue growth rate of 2.52%. However, margins have been under pressure, with a declining gross profit margin from 4.97% in 2022 to 3.33% in TTM. The net profit margin is relatively low at 0.84%, indicating thin profitability. Despite these challenges, the company has managed to maintain positive EBIT and EBITDA margins.

Balance Sheet

The balance sheet reveals significant leverage concerns, with a negative stockholders' equity leading to a high debt-to-equity ratio of -5.05 in TTM. This indicates potential financial instability. The return on equity is negative, reflecting challenges in generating returns for shareholders. The equity ratio is also negative, highlighting the company's reliance on debt financing.

Cash Flow

Cash flow analysis shows strong free cash flow growth of 11.30% in TTM, indicating robust cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting efficient conversion of earnings into cash. The free cash flow to net income ratio of 0.88 further supports the company's ability to generate cash relative to its net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	387.09B	359.05B	308.95B	276.71B	263.97B	238.23B
Gross Profit	12.96B	12.48B	12.20B	11.87B	12.65B	11.58B
EBITDA	5.88B	5.25B	4.67B	5.74B	3.11B	-3.60B
Net Income	4.03B	3.29B	3.00B	3.56B	1.11B	-4.54B
Balance Sheet
Total Assets	84.16B	75.14B	67.44B	62.32B	63.30B	65.02B
Cash, Cash Equivalents and Short-Term Investments	4.11B	5.69B	4.58B	4.68B	3.53B	6.28B
Total Debt	9.79B	7.39B	7.39B	7.29B	7.54B	9.40B
Total Liabilities	84.74B	76.83B	69.04B	63.81B	65.09B	63.57B
Stockholders Equity	-1.74B	-2.07B	-1.97B	-1.86B	-2.27B	-21.00M
Cash Flow
Free Cash Flow	6.39B	5.23B	3.63B	4.60B	3.90B	3.90B
Operating Cash Flow	6.87B	6.08B	4.31B	5.16B	4.43B	4.54B
Investing Cash Flow	-3.95B	-733.00M	-1.07B	-542.00M	-89.00M	-415.00M
Financing Cash Flow	-1.34B	-3.96B	-3.34B	-4.37B	-6.32B	-1.69B

McKesson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 883.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCK, the sentiment is Positive. The current price of 883.71 is above the 20-day moving average (MA) of 851.29, above the 50-day MA of 799.38, and above the 200-day MA of 715.40, indicating a bullish trend. The MACD of 22.29 indicates Negative momentum. The RSI at 69.35 is Neutral, neither overbought nor oversold. The STOCH value of 88.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MCK.

McKesson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COR	76 Outperform	$72.66B	47.07	144.31%	0.61%	9.31%	5.92%
MCK	72 Outperform	$109.76B	27.69	―	0.36%	17.23%	66.17%
HSIC	69 Neutral	$8.86B	23.78	11.39%	―	3.51%	29.65%
PBH	66 Neutral	$2.86B	14.78	11.29%	―	-0.02%	-1.87%
CAH	64 Neutral	$50.78B	32.26	―	1.04%	4.37%	28.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OMI	39 Underperform	$212.70M	―	-184.47%	―	-37.09%	-2639.44%

McKesson Corporate Events

McKesson’s Earnings Call Highlights Robust Growth

McKesson Corporation’s recent earnings call revealed a strong financial performance, characterized by significant growth in revenue and earnings. The sentiment during the call was overwhelmingly positive, driven by the robust performance in the oncology and multispecialty segments, as well as prescription technology solutions. Despite some challenges in the Medical-Surgical Solutions segment, the company’s decision to raise its earnings guidance reflects confidence in continued growth, with strengths significantly outweighing the challenges.

McKesson Reports Record Revenue and Raises EPS Guidance

McKesson Corporation is a diversified healthcare services leader that partners with various stakeholders to improve health outcomes by providing insights, products, and services in the healthcare sector. In its fiscal 2026 second quarter earnings report, McKesson Corporation announced record-high quarterly revenues of $103.2 billion, marking a 10% increase from the previous year, and raised its full-year adjusted EPS guidance. The company reported significant growth in its North American Pharmaceutical and Oncology & Multispecialty segments, with adjusted earnings per diluted share rising by 39% to $9.86. McKesson’s strategic focus on oncology and multispecialty services, along with disciplined execution, has driven sustainable long-term growth. The company generated $2.4 billion in cash flow from operations and returned $1.6 billion to shareholders in the first half of the fiscal year. Looking ahead, McKesson remains confident in its ability to create value for stakeholders and has raised its fiscal 2026 adjusted EPS guidance to a range of $38.35 to $38.85, reflecting anticipated growth of 16% to 18% compared to the prior year.

McKesson Unveils Fiscal 2026 Guidance at Investor Day

On September 23, 2025, McKesson Corporation hosted its Investor Day, unveiling updated Fiscal 2026 guidance and long-term financial targets. The event highlighted the company’s strategic priorities, including strengthening North American pharmaceutical distribution, expanding oncology and biopharma services, and optimizing its portfolio. McKesson also introduced a new organizational structure to accelerate growth and enhance shareholder value, raising its Fiscal 2026 Adjusted Earnings per Diluted Share guidance and updating long-term growth targets, reflecting its strong market positioning and operational momentum.

The most recent analyst rating on (MCK) stock is a Buy with a $810.00 price target. To see the full list of analyst forecasts on McKesson stock, see the MCK Stock Forecast page.

McKesson Announces New Reporting Segments Restructure

McKesson Corporation announced that starting in the second quarter of fiscal 2026, it will report financial results across four new segments: North American Pharmaceutical, Oncology & Multispecialty, Prescription Technology Solutions, and Medical-Surgical Solutions. This restructuring reflects the company’s strategic focus on innovation and efficiency, and aims to provide clearer insights into its operations for stakeholders. Additionally, McKesson plans to sell its Norwegian operations, with the transaction expected to close following regulatory approvals.

The most recent analyst rating on (MCK) stock is a Buy with a $800.00 price target. To see the full list of analyst forecasts on McKesson stock, see the MCK Stock Forecast page.

McKesson’s Earnings Call Highlights Strong Growth and Strategic Moves

McKesson Corporation’s recent earnings call painted a picture of robust financial health and strategic foresight. The company reported substantial revenue growth and successful strategic acquisitions, which contributed to a strong performance this quarter. Despite challenges such as Rite Aid’s bankruptcy and the exit from European operations, McKesson demonstrated effective operational execution and raised its full-year guidance, signaling a positive outlook for the future.

McKesson Corporation Reports Strong Q1 2026 Results

McKesson Corporation is a leading healthcare services company that partners with biopharma companies, care providers, and pharmacies to deliver products and services that enhance healthcare access and affordability. Operating in the healthcare sector, McKesson is known for its comprehensive distribution network and innovative solutions in oncology and specialty pharmaceuticals.