Core Insights - Cardinal Health (CAH) is experiencing a strong turnaround driven by pharmaceutical strength and a focused strategy, while McKesson (MCK) continues to demonstrate consistent execution in oncology and biopharma services [1][2][3] Business Performance - Cardinal Health's fiscal Q2 2026 revenues grew by 19% and operating earnings increased by 38%, supported by strong pharmaceutical demand [8][9] - McKesson's fiscal Q3 2026 revenues rose by 11% and earnings per share (EPS) increased by 16%, reflecting steady demand across its services [10] Growth Outlook - Cardinal Health raised its fiscal 2026 EPS guidance to $10.15-$10.35, indicating a growth of 23-26%, bolstered by efficiency initiatives and specialty expansion [11] - McKesson's guidance suggests a more predictable EPS growth of 17-19%, supported by its established oncology and specialty distribution services [12] Valuation Appeal - Cardinal Health is positioned as an attractive valuation opportunity with a Price to Earnings Forward 12 months (P/E F12M) ratio of 18.71, above the industry average of 17.14 [13][14] - McKesson trades at a premium P/E F12M ratio of 20.16, reflecting its consistent execution but may limit near-term upside compared to Cardinal Health [15] Business Mix & Strategy - Cardinal Health is reshaping its portfolio to focus on higher-margin segments, including specialty distribution and precision health, aiming to unlock long-term value [17] - McKesson's strategy is centered on a focused portfolio in oncology and biopharma services, providing stability but limited transformational upside [18] Shareholder Returns - Cardinal Health combines reliable dividends with improving free cash flow generation, reaching $1.8 billion year to date, enhancing its investor appeal [19] - McKesson emphasizes share buybacks and capital discipline, resulting in a declining share count and strong EPS growth [20] Conclusion - Cardinal Health is viewed as a compelling "value plus turnaround" story with improving fundamentals and strong growth potential, while McKesson remains a high-quality compounder with consistent performance but more incremental growth [25][26]

Key Takeaways MCK posted strong Q3 results with growth in specialty distribution, oncology services, and biopharma solutionsMCK saw 11% revenue growth and a 37% surge in oncology and multispecialty sales from expansion and buyout.MCK faces margin pressure in core distribution and weak Medical-Surgical performance with profit down 10%.McKesson (MCK) reported strong third-quarter fiscal 2026 results, driven by robust growth in specialty distribution, oncology services and biopharma solutions. Continued operat ...

Core Insights - The article discusses three companies that may announce stock splits in 2026, highlighting the psychological appeal of stock splits to retail investors and the potential for increased accessibility to shares [2][5]. Company Summaries - **KLA Corporation**: KLA's stock has surged over 375% in the last five years and over 100% in 2025, currently trading at approximately $1,400 per share. The company recently announced a $7 billion share repurchase program and a 21% dividend increase, which may delay a stock split announcement [6][8][9]. - **Eli Lilly & Co.**: Eli Lilly's stock has increased by over 350% in the last five years, trading just under $1,000. Analysts project a 25% growth potential, supported by expected earnings growth of around 35% in the next year. The company leads the GLP-1 weight loss market and may consider a stock split depending on FDA approvals and recent dividend increases [10][11][12]. - **McKesson Corporation**: McKesson's stock has risen more than 400% in the last five years and 47% in the last 12 months, currently priced over $900. The company raised its FY2026 guidance, expecting 12% to 16% revenue growth and 17% to 19% growth in adjusted earnings per share, with analyst targets suggesting a price over $1,000 [13][14][15].

Core Insights - Joel Greenblatt is a prominent value investor known for achieving approximately 50% annualized returns from 1985 to 1994, establishing his credibility in the investment community [1]. Group 1: Company Background - Gotham Asset Management was founded by Joel Greenblatt, who has a strong academic background with a master's degree in Analytics and a bachelor's degree in Accounting [1]. Group 2: Investment Strategy - The focus on dividend investing is highlighted as a personal interest, indicating a strategy that may appeal to income-focused investors [1].

Company Overview - McKesson is a prominent player in the drug wholesaling industry, and the presentation features insights from Glen Santangelo, an analyst at Barclays covering this sector [1]. - Britt Vitalone, the Chief Financial Officer of McKesson, is set to retire in a few months, marking a significant transition for the company [2]. Market Reaction - The announcement of Britt Vitalone's retirement elicited a notable reaction in the stock market, indicating his value and impact within the company [2].

Core Viewpoint - Britt Vitalone, CFO of McKesson, announced his retirement, marking a significant transition for the company and its leadership team [1] Company Overview - McKesson's investor relations and finance team members were present at the conference, indicating ongoing engagement with stakeholders [1] - The company has a strong track record under Britt Vitalone's leadership, highlighting his contributions to McKesson's success [1]

Summary of McKesson Conference Call Company Overview - **Company**: McKesson Corporation - **Industry**: Healthcare and Pharmaceuticals Key Points and Arguments Leadership Transition - Britt Vitalone, CFO of McKesson, announced his retirement after eight years in the role, with a long tenure at the company [9][10] Financial Performance - McKesson has a strong track record of consistent performance over 190 years, focusing on capital allocation and building a differentiated asset portfolio [9][10] - Specialty revenues in FY25 were approximately $180 billion, with a compound annual growth rate of 18% over the last five years for specialty revenues [12][13] Specialty Business Insights - The growth in specialty products is driven by high innovation in drug research, particularly in oncology and multi-specialty areas [12][13] - McKesson serves over 14,000 providers across various specialties, enhancing their service offerings [13] CoverMyMeds and Access Solutions - CoverMyMeds has significantly outperformed due to the rise of GLP-1s, contributing around 11% to the revenue segment [15][18] - The company is expanding its capabilities to cover drugs under both pharmacy and medical benefits, enhancing access and affordability solutions [14][18] Negotiations and Market Changes - McKesson has successfully negotiated with manufacturers to maintain fair value for logistics and supply chain services, even amid changes like IRA negotiated drugs [21][22] - The company emphasizes its role as a financial intermediary, managing inventory and receivables for manufacturers [26][27] Impact of Geopolitical Events - McKesson has strategies in place to manage the impact of geopolitical events on commodity pricing, ensuring low-cost, high-quality drug supply [28][29] Biosimilars Strategy - Biosimilars are seen as a way to enhance access and provide lower-cost alternatives for patients and providers [30][31] - McKesson aims to partner with manufacturers to introduce biosimilars into their network [30][31] ClarusONE and Sourcing Capabilities - ClarusONE has been a successful venture for McKesson, improving sourcing capabilities and negotiating with manufacturers [36][39] - The company is partnering with domestic firms to enhance supply chain reliability for antibiotics [39] Independent Pharmacy Support - McKesson continues to support independent pharmacies through various services, addressing their unique needs and challenges [40][41] - The company provides reimbursement services to help independent pharmacies manage costs [42] Technology Integration and AI - RelayHealth serves as a backbone for pharmacy operations, integrating various components of McKesson's technology platform [44][45] - AI is being implemented across multiple areas, improving efficiency and case handling in customer service [45][46] Ontada and Clinical Research - Ontada serves as a central platform for US Oncology, managing EHR and providing insights for clinical purposes [47][49] - The partnership with Sarah Cannon Research Institute has expanded clinical trial capabilities within US Oncology [50] MedSurg Business Preparation - McKesson is preparing its MedSurg business for independence, focusing on leadership, capital structure, and operational performance [51][52] - The company is identifying growth opportunities in various channels, particularly in physician-affiliated health systems [59][60] MSO Acquisitions Integration - Integration of recent MSO acquisitions is progressing well, with a focus on leveraging McKesson's scale and solutions to enhance growth [61][64] Internal AI Priorities - McKesson is prioritizing internal AI investments to drive operational efficiencies and improve working capital management [69][70] Additional Important Insights - The company has made significant investments in technology and operational improvements, resulting in a notable reduction in operating expenses as a percentage of gross profit [70][71] - McKesson's focus on providing access and affordability remains central to its strategy, particularly in community care settings [40][41]

Core Viewpoint - McKesson Corporation (NYSE:MCK) is recognized as a promising investment opportunity, particularly due to its recent developments in the biosimilar market and the potential for significant growth in this sector [2][3]. Group 1: Investment Recommendations - Bank of America has raised its price target for McKesson Corporation from $970 to $1,040, maintaining a Buy rating on the shares [2]. - The firm believes that the market may be underestimating the potential of several large biosimilars expected to launch in the coming years, with seven anticipated, four of which McKesson could directly address [3]. Group 2: Company Overview - McKesson Corporation is a diversified healthcare services company focused on improving health outcomes for patients, distributing a wide range of pharmaceutical products across the United States [4].

Core Insights - Senator Markwayne Mullin has resumed stock purchases in 2026, following earlier acquisitions in January [1] - Mullin supports U.S. military actions in Iran, which may positively impact his investments in oil and defense companies [2] Stock Transactions - Recent stock transactions include purchases of Adobe, Amkor Technology, APi Group, Citigroup, Carpenter Technology, FirstCash Holdings, Stride, McKesson, Monolithic Power Systems, and VSE [4][6] - Specific transaction details indicate purchases ranging from $15,001 to $50,000 for multiple companies, while also selling shares in Applied Industrial Technologies, Coherent Corp, Credo Technology, Dell Technologies, Goldman Sachs, and MasTech [6] Market Capitalization - Several stocks purchased by Mullin, such as FirstCash, Stride, and VSE, have small market capitalizations, each valued under $10 billion [5] - VSE has secured significant government contracts, including a $565 million deal with the Air Force in 2023, highlighting its potential for growth [7]

Leadership Changes - Delta Air Lines CFO Dan Janki will transition to the role of Chief Operating Officer, with Erik Snell succeeding him as CFO [2] - L3Harris Technologies appointed Ken Sharp as CFO, effective March 16, replacing Ken Bedingfield, who will remain president of the Missile Solutions segment [3] - McKesson has named Kenny Cheung as its new CFO, effective May 29, replacing Britt Vitalone, who is retiring after 20 years [4] - Sysco appointed Brandon Sewell as interim CFO to replace Kenny Cheung, effective March 6 [5] - Thomson Reuters has selected Gary Bischoping as its new CFO, effective May 8, succeeding Mike Eastwood, who is retiring [6] Background of New CFOs - Dan Janki joined Delta Air Lines in July 2021 after a 29-year career at GE [2] - Ken Sharp previously served as CFO at Peraton and has held CFO roles at DXC Technology and Northrop Grumman [3] - Kenny Cheung was CFO at Sysco for three years before joining McKesson and has prior experience at Hertz [4] - Brandon Sewell has been with Sysco since 2014, serving as senior vice president and CFO of its U.S. business [5] - Gary Bischoping was a partner at Hellman & Friedman and has held CFO positions at Finastra and Varian Medical Systems [6] Strategic Implications - The Department of Defense has made a $1 billion anchor investment to support the spin-off of L3Harris's Missile Solutions segment, indicating significant strategic moves in the defense sector [3] - McKesson is planning a separation of its Medical Surgical Solutions, with the outgoing CFO transitioning to a strategic adviser role [4] - Thomson Reuters will see Mike Eastwood transition to chairman of the board of the Thomson Reuters Foundation, indicating a shift in leadership focus [6]