Zacks Research Has Bullish Outlook for McKesson Q1 Earnings

Key Points

• Zacks Research has raised its Q1 2027 EPS estimate for McKesson to $9.47, reflecting growing confidence in the company's earnings performance.
• Several analysts have upgraded their price targets for McKesson, with JPMorgan raising it to $853.00 and Morgan Stanley to $857.00, indicating a generally bullish outlook on the stock.
• McKesson has increased its quarterly dividend from $0.71 to $0.82, showcasing a commitment to returning value to shareholders.

McKesson Corporation (NYSE:MCK - Free Report) - Research analysts at Zacks Research increased their Q1 2027 EPS estimates for McKesson in a research note issued to investors on Monday, October 6th. Zacks Research analyst Team now forecasts that the company will earn $9.47 per share for the quarter, up from their previous estimate of $9.46. The consensus estimate for McKesson's current full-year earnings is $32.77 per share. Zacks Research also issued estimates for McKesson's Q2 2027 earnings at $9.49 EPS, Q4 2027 earnings at $11.15 EPS and Q2 2028 earnings at $10.27 EPS.

McKesson (NYSE:MCK - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported $8.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $8.33 by ($0.07). The company had revenue of $97.83 billion during the quarter, compared to analyst estimates of $95.93 billion. McKesson had a net margin of 0.84% and a negative return on equity of 196.66%. The company's revenue was up 23.4% on a year-over-year basis. During the same period in the prior year, the company earned $7.88 earnings per share.

Several other analysts have also recently issued reports on MCK. Leerink Partners upped their price target on shares of McKesson from $785.00 to $850.00 and gave the company an "outperform" rating in a report on Wednesday, September 24th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of McKesson in a report on Saturday, September 27th. JPMorgan Chase & Co. upped their price target on shares of McKesson from $821.00 to $853.00 and gave the company an "overweight" rating in a report on Friday, September 26th. Evercore ISI increased their target price on shares of McKesson from $800.00 to $825.00 and gave the stock an "outperform" rating in a report on Wednesday, September 24th. Finally, Morgan Stanley increased their target price on shares of McKesson from $810.00 to $857.00 and gave the stock an "overweight" rating in a report on Wednesday, September 24th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $829.08.

McKesson Price Performance

MCK opened at $750.13 on Wednesday. The stock has a market capitalization of $93.30 billion, a PE ratio of 29.91, a P/E/G ratio of 1.34 and a beta of 0.52. The firm's fifty day moving average price is $704.07 and its 200 day moving average price is $704.37. McKesson has a 12-month low of $486.77 and a 12-month high of $776.14.

McKesson Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd were issued a $0.82 dividend. This is a boost from McKesson's previous quarterly dividend of $0.71. The ex-dividend date of this dividend was Tuesday, September 2nd. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.4%. McKesson's dividend payout ratio is 13.08%.

Insider Transactions at McKesson

In related news, CEO Brian S. Tyler sold 11,930 shares of the stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $705.63, for a total value of $8,418,165.90. Following the sale, the chief executive officer owned 4,012 shares of the company's stock, valued at $2,830,987.56. This trade represents a 74.83% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $663.67, for a total transaction of $218,347.43. Following the completion of the sale, the chief accounting officer directly owned 657 shares in the company, valued at approximately $436,031.19. This trade represents a 33.37% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 43,560 shares of company stock worth $30,438,602. Corporate insiders own 0.08% of the company's stock.

Hedge Funds Weigh In On McKesson

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Cooper Financial Group grew its position in McKesson by 1.6% in the 3rd quarter. Cooper Financial Group now owns 2,876 shares of the company's stock valued at $2,222,000 after buying an additional 44 shares in the last quarter. Montecito Bank & Trust bought a new position in McKesson in the 3rd quarter valued at about $1,479,000. Acropolis Investment Management LLC bought a new position in McKesson in the 3rd quarter valued at about $213,000. Channel Wealth LLC grew its position in McKesson by 1.8% in the 3rd quarter. Channel Wealth LLC now owns 2,213 shares of the company's stock valued at $1,710,000 after buying an additional 39 shares in the last quarter. Finally, Sanders Morris Harris LLC bought a new position in McKesson in the 3rd quarter valued at about $2,603,000. Institutional investors own 85.07% of the company's stock.

McKesson Company Profile

McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products.

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