Irving, Texas-based McKesson Corporation (MCK) distributes pharmaceuticals, medical-surgical supplies and health and beauty care products principally in North America. Valued at a market cap of $114.5 billion, the company operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The company's shares have outperformed the broader market over the past year and in 2026. MCK stock has grown 55.2% over the past 52 weeks and 14 ...

McKesson Corporation (NYSE:MCK) is one of the best performing S&P 500 stocks in the last five years. BofA Remains Bullish on McKesson (MCK) Following Strong Third Quarter Performance On February 5, 2026, BofA reaffirmed its ‘Buy’ rating on McKesson Corporation (NYSE:MCK) and increased its price target from $950 to $970. Describing the third quarter as strong, the firm pointed to revenue and EPS, both of which exceeded street expectations. Citing the North American Pharmaceutical segment’s solid performan ...

Core Viewpoint - McKesson Corporation (NYSE:MCK) is highlighted as a significant player in the healthcare services sector, with strong stock performance and positive analyst outlooks, despite some market challenges [2][3]. Company Performance - McKesson's shares have increased by 59% over the past year and by 15% year-to-date [2]. - TD Cowen raised the share price target to $1,012 from $1,000 while maintaining a Buy rating, citing strong performance in the pharmaceutical and cancer businesses [2]. - Morgan Stanley also raised its price target to $966 from $916, keeping an Overweight rating, with optimism driven by the cancer business [2]. Market Context - The company is noted for its significant role in the healthcare industry, being one of the largest providers in America [2]. - Jim Cramer has recently discussed McKesson in the context of its influence and market position, even comparing its power to that of President Trump [3].

Core Insights - McKesson Corporation (MCK) reported third-quarter fiscal 2026 adjusted earnings per share (EPS) of $9.34, exceeding the Zacks Consensus Estimate of $9.31 by 0.3%, and reflecting a year-over-year improvement of 16.3% driven by strong operational growth and acquisitions in the Oncology & Multispecialty segment [1][7] Revenue Details - Revenues reached $106.16 billion, surpassing the Zacks Consensus Estimate by 0.5%, and increased by 11.4% year over year, primarily due to higher prescription volumes from retail national account customers and growth in oncology and specialty product distribution [2][7] - The North American Pharmaceutical segment generated revenues of $88.3 billion, up 9% year over year, attributed to increased prescription volumes and specialty products [5] Segmental Analysis - The Oncology & Multispecialty segment reported revenues of $13 billion, a significant increase of 37% year over year, driven by growth in provider solutions and specialty distribution, along with contributions from acquisitions [8] - The Prescription Technology Solutions segment's revenues totaled $1.5 billion, up 9% year over year, supported by increased prescription volumes in third-party logistics and technology services [9] - The Medical-Surgical Solutions segment generated revenues of $3 billion, a modest increase of 1% year over year, with adjusted operating profit down 10% due to reduced volumes in physician office settings [10] Financial Performance - Adjusted gross profit was $3.66 billion, reflecting a year-over-year increase of 9.6%, while adjusted operating income rose 13.4% to $1.81 billion, with an operating margin of 1.9%, expanding nearly 22 basis points year over year [11] - Cash and cash equivalents stood at $2.96 billion, down from $4 billion in the previous quarter, with cumulative net cash provided by operating activities amounting to $2.73 billion [12] Fiscal 2026 Guidance - McKesson raised its EPS guidance for fiscal 2026 to a range of $38.80-$39.20 from the previous $38.35-$38.85, and expects total revenue growth of 12-16%, up from the prior guidance of 11-15% [13][16] Strategic Developments - The company is progressing towards the spin-off of its Medical-Surgical Solutions business, expected to be completed by the second half of calendar 2027, and has divested its retail and distribution businesses in Norway, marking its exit from European operations [15]

Core Viewpoint - Concerns over growth and weak labor market data have led to significant declines in the U.S. stock market, with the S&P 500 index turning negative for the year [2][3][4]. Group 1: Market Performance - The Dow Jones Industrial Average fell nearly 600 points, a decline of approximately 1.2% [3]. - The S&P 500 index also dropped by 1.2%, marking a year-to-date downturn [3]. - The Nasdaq Composite Index decreased by 1.6%, continuing its most severe decline since April of the previous year [4]. Group 2: Sector Performance - Technology stocks and speculative bets on Wall Street experienced renewed declines, with the information technology sector of the S&P 500 falling by 1.7% [4]. - Software stocks saw significant drops, with Microsoft down 5% and Salesforce down 4.7% [4]. - The consumer discretionary sector faced severe losses, with DoorDash down 6.1% and both Lululemon and Ralph Lauren down over 4% [3]. Group 3: Individual Company Performance - Estée Lauder's stock plummeted by 19%, the largest decline among S&P 500 constituents, due to anticipated profit reductions of about $100 million related to tariffs [5]. - Cummins, an engine manufacturer, saw its stock drop by 11%, marking its largest single-day percentage decline since the onset of the COVID-19 pandemic [5]. - McKesson, a diversified healthcare services company, reported strong earnings, leading to a 17% increase in its stock price, the highest gain in the S&P 500 index [5]. Group 4: Commodity and Cryptocurrency Performance - Bitcoin fell by 13%, contributing to a 19% drop in the stock price of cryptocurrency firm Coinbase, marking its 13th consecutive day of decline [4]. - Silver prices decreased by 9.1% [4].

Market Overview - U.S. equities faced a challenging day on February 5, 2026, with significant sell-offs in technology stocks and negative job market reports impacting investor sentiment [1] - The S&P 500 fell 1.2% to close at 6,798.40, marking its sixth decline in seven trading days since reaching an all-time high [2] - The Nasdaq Composite dropped 1.6% to 22,540.59, while the Dow Jones Industrial Average decreased by 1.2% to 48,908.72 [2] - Bitcoin prices fell below $64,000, reaching their lowest level since October 2024, further exacerbating the downturn [2] Major Market Movers and Corporate News - Alphabet (GOOGL) saw a decline of 0.8% despite stronger-than-expected sales, as investors were concerned about projected capital expenditures for AI infrastructure, estimated at $175 billion to $185 billion for 2026, nearly double the $91.45 billion spent in 2025 [3] - Qualcomm (QCOM) experienced an 8.5% drop due to a disappointing outlook, citing a tightening global memory shortage affecting the smartphone market [4] - Advanced Micro Devices (AMD) fell sharply by 17.3% on a weak outlook, contributing to the semiconductor sector's struggles [4] - Uber Technologies (UBER) declined by 5.2% after missing earnings expectations, while Amgen (AMGN) surged 8.2% on positive earnings results [5] - Eli Lilly (LLY) jumped 10.3% due to strong sales of its drugs, and McKesson (MCK) soared 16.5% after exceeding profit and revenue expectations [5] - Peloton Interactive (PTON) plummeted 28% after reporting weaker-than-expected results, while Estee Lauder (EL) and Snap (SNAP) retreated by 19% and 12%, respectively [6] Job Market Developments - Amazon (AMZN) announced plans to cut approximately 16,000 corporate roles, while UPS revealed 30,000 job cuts [7] - Dow (DOW) reduced its workforce by 4,500 jobs, with Home Depot (HD) and Nike (NKE) also making cuts [7] Economic Indicators - Initial jobless claims for the week ending January 31 rose to 231,000, exceeding economists' estimates [9] - U.S. employers announced over 108,000 layoffs in January, the highest for that month since 2009, with job openings falling to 6.5 million in December, the lowest since 2020 [9] - The Consumer Price Index rose 2.7% over the year in December, indicating persistent inflation despite potential interest rate cuts by the Federal Reserve [10] Upcoming Market Events - Investors are awaiting the release of January U.S. Non-Farm Payrolls, Unemployment Rate, and Average Hourly Earnings data on February 6, which will provide further insights into the labor market [8]

Core Viewpoint - McKesson Corporation's shares have surged approximately 16 percent in morning trading, reaching $956.61, attributed to the positive impact of its recent third-quarter financial results announcement [1][2]. Group 1: Stock Performance - McKesson's shares are currently trading at $956.61, reflecting an increase of 16.27 percent or $133.76 [1]. - The stock opened at $867.97 and has peaked at $964.94 during the trading session [1]. - Over the past year, McKesson's stock has fluctuated between $570.51 and $964.94 [1]. Group 2: Financial Results - The company's third-quarter earnings rose to $1.186 billion, equating to $9.59 per share, compared to $879 million or $6.95 per share in the previous year [2].

Core Insights - McKesson reported consolidated revenue of $106.2 billion, reflecting an 11% year-over-year growth, attributed to strong performance across various segments, including higher prescription volumes and contributions from recent acquisitions [1][3]. Financial Performance - The company achieved record quarterly revenue and adjusted operating profit, with double-digit growth in adjusted operating profit in Oncology, Multispecialty, and Biopharma Services [2][3]. - For fiscal 2026, McKesson raised its earnings per diluted share guidance to $38.80 to $39.20, indicating a year-over-year growth of 17% to 19% [2][3]. - Gross profit increased by 10% to $3.7 billion, while operating expenses rose by 7% to $2.1 billion, resulting in a 138 basis point improvement in operating expenses as a percentage of gross profit [6][7]. Segment Performance - Oncology and Multispecialty revenue surged by 37% to $13 billion, driven by provider growth and expanded specialty distribution [5][9]. - North American Pharmaceutical revenue reached $88.3 billion, up 9%, supported by higher prescription volumes [8]. - GLP-1 distribution revenue was $14 billion, marking a 26% increase year-over-year [5][8]. Cash Flow and Capital Deployment - McKesson generated $1.1 billion in free cash flow for the quarter and $9.6 billion for the trailing twelve months, attributed to strong operational performance [4][18]. - The company returned $781 million to shareholders during the quarter, including $680 million in share repurchases [4][19]. Strategic Initiatives - McKesson is progressing towards an IPO of its Medical-Surgical business by the second half of 2027 [4][13]. - The company completed the divestiture of its retail and distribution businesses in Norway, marking its exit from Europe [14]. - Investments in automation and AI-driven capabilities are enhancing operational efficiency and productivity [6][16]. Regulatory Environment - The company is actively managing the implications of the Inflation Reduction Act's Medicare Part D price changes, viewing the policy landscape as manageable [17].

Core Insights - McKesson reported revenue of $106.16 billion for the quarter ended December 2025, reflecting an 11.4% increase year-over-year and surpassing the Zacks Consensus Estimate of $105.66 billion by 0.47% [1] - The company's EPS for the quarter was $9.34, up from $8.03 in the same quarter last year, also exceeding the consensus EPS estimate of $9.31 by 0.35% [1] Revenue Performance - Medical-Surgical Solutions revenue was $2.99 billion, slightly below the average estimate of $3.05 billion, with a year-over-year increase of 1.4% [4] - Prescription Technology Solutions revenue matched the average estimate at $1.5 billion, showing a year-over-year growth of 9.4% [4] - Other revenue reached $335 million, exceeding the estimated $297.61 million [4] - North American Pharmaceutical revenue was $88.32 billion, slightly below the average estimate of $88.6 billion, with a year-over-year increase of 1.4% [4] - Oncology & Multispecialty revenue was $13.01 billion, surpassing the average estimate of $12.48 billion [4] Adjusted Operating Profit - Adjusted Operating Profit for Medical-Surgical Solutions was $265 million, below the estimate of $278.29 million [4] - Adjusted Operating Profit for Prescription Technology Solutions was $277 million, exceeding the average estimate of $264.4 million [4] - Adjusted Operating Profit for Oncology & Multispecialty was $366 million, above the average estimate of $353.98 million [4] - Adjusted Operating Profit for Corporate was -$156 million, better than the estimate of -$180.91 million [4] - Adjusted Operating Profit for North American Pharmaceutical was $872 million, exceeding the average estimate of $855.24 million [4] - Adjusted Operating Profit for Other was $28 million, surpassing the average estimate of $14.6 million [4] Stock Performance - McKesson's shares have returned 3% over the past month, outperforming the Zacks S&P 500 composite's return of 0.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - McKesson Corporation has raised its fiscal 2026 profit forecast, driven by anticipated strong growth in its oncology and specialty drug distribution sectors [1] Company Summary - McKesson Corporation is focusing on expanding its oncology and specialty drug distribution businesses, which are expected to contribute significantly to its profit growth in fiscal 2026 [1]