McKesson (NYSE:MCK) Releases FY 2027 Earnings Guidance

Key Points

• McKesson issued FY 2027 guidance for adjusted earnings per share of $44.20–$45.00 and revenue of $423.6 billion–$439.7 billion, broadly in line with analyst expectations.
• The company reported quarterly results above estimates, with EPS of $9.93 versus the $9.56 consensus and revenue of $105.38 billion versus $103.88 billion expected.
• McKesson raised its quarterly dividend to $0.94 per share from $0.82, implying an annualized payout of $3.76 and a 0.4% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $962.67.

McKesson (NYSE:MCK - Get Free Report) updated its FY 2027 earnings guidance on Wednesday. The company provided earnings per share guidance of 44.200-45.000 for the period, compared to the consensus estimate of 44.270. The company issued revenue guidance of $423.6 billion-$439.7 billion, compared to the consensus revenue estimate of $431.9 billion.

McKesson Stock Performance

Shares of MCK stock traded up $43.58 during mid-day trading on Wednesday, hitting $874.01. The company's stock had a trading volume of 1,142,514 shares, compared to its average volume of 947,883. The company has a market cap of $102.33 billion, a PE ratio of 22.72, a P/E/G ratio of 1.36 and a beta of 0.30. The company's fifty day simple moving average is $793.42 and its 200-day simple moving average is $840.32. McKesson has a 52 week low of $637.00 and a 52 week 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 the consensus estimate of $9.56 by $0.37. The company had revenue of $105.38 billion for the quarter, compared to analyst estimates of $103.88 billion. McKesson had a negative return on equity of 345.35% and a net margin of 1.18%.McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. On average, equities analysts anticipate that McKesson will post 44.28 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. Investors 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%. 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 presently 8.53%.

Analysts Set New Price Targets

A number of research analysts recently weighed in on MCK shares. Citigroup upped their price target on McKesson from $945.00 to $1,000.00 and gave the stock a "buy" rating in a research note on Friday, July 24th. JPMorgan Chase & Co. decreased their price objective on McKesson from $1,107.00 to $1,015.00 and set an "overweight" rating for the company in a report on Friday, May 8th. Barclays lowered their target price on McKesson from $1,050.00 to $925.00 and set an "overweight" rating on the stock in a research report on Wednesday, June 10th. William Blair initiated coverage on shares of McKesson in a research report on Tuesday, April 28th. They issued an "outperform" rating for the company. Finally, Wells Fargo & Company decreased their price target on shares of McKesson from $925.00 to $812.00 and set an "equal weight" rating for the company in a research note on Tuesday, May 12th. Fourteen equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $962.67.

Insider Buying and Selling

In other news, CAO Napoleon B. Rutledge, Jr. sold 133 shares of the stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $764.00, for a total value of $101,612.00. Following the completion of the sale, the chief accounting officer directly owned 632 shares of the company's stock, valued at $482,848. This represents a 17.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thomas L. Rodgers sold 699 shares of the company's stock in a transaction 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 sale, the executive vice president owned 2,268 shares of the company's stock, valued at $1,667,592.36. This trade represents a 23.56% 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. Over the last quarter, insiders sold 28,748 shares of company stock valued at $22,262,035. Company insiders own 0.06% of the company's stock.

McKesson News Summary

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: Positive coverage emphasizes McKesson’s defensive healthcare exposure, resilient pharmaceutical demand, specialty-pharmacy and oncology growth opportunities, and potential for operational efficiency gains. These factors may support investor confidence in the company’s longer-term earnings outlook. Why McKesson is a top value stock for the long term
• Positive Sentiment: McKesson entered earnings season with expectations for resilient demand. Industry results from Cencora, including an earnings beat and raised fiscal-year outlook, may have reinforced the view that pharmaceutical distribution fundamentals remain supportive for MCK. What's in Store for These 4 Healthcare Companies This Earnings Season?
• Neutral Sentiment: McKesson was scheduled to report fiscal first-quarter 2027 results after the market close on August 5. The earnings event is likely to increase volatility as investors focus on revenue growth, margins, specialty pharmaceuticals, pricing dynamics and management’s outlook. McKesson Slides Ahead of Earnings as Investors Weigh Setup Into Q1 Report
• Negative Sentiment: Investors have previously shown caution over top-line momentum, pricing pressure and the possibility of profit-taking ahead of earnings. Reports that McKesson laid off dozens of employees at Rx Savings Solutions amid restructuring add a modest concern about costs and business execution, although the financial impact is not specified. McKesson lays off dozens at Rx Savings Solutions amid restructuring

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in MCK. SurgoCap Partners LP increased its stake in McKesson by 68.7% in the 3rd quarter. SurgoCap Partners LP now owns 452,261 shares of the company's stock valued at $349,390,000 after buying an additional 184,106 shares during the last quarter. Wellington Management Group LLP boosted its stake in shares of McKesson by 32.9% in the 3rd quarter. Wellington Management Group LLP now owns 618,984 shares of the company's stock worth $478,190,000 after buying an additional 153,182 shares during the last quarter. Invesco Ltd. grew its holdings in shares of McKesson by 9.5% in the fourth quarter. Invesco Ltd. now owns 1,052,739 shares of the company's stock valued at $863,551,000 after acquiring an additional 90,982 shares in the last quarter. AQR Capital Management LLC grew its holdings in shares of McKesson by 10.8% in the fourth quarter. AQR Capital Management LLC now owns 918,785 shares of the company's stock valued at $753,671,000 after acquiring an additional 89,747 shares in the last quarter. Finally, Canada Pension Plan Investment Board increased its position in shares of McKesson by 443.0% during the second quarter. Canada Pension Plan Investment Board now owns 105,613 shares of the company's stock valued at $77,391,000 after acquiring an additional 86,162 shares during the last quarter. 85.07% of the stock is owned by institutional investors.

McKesson Company Profile

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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