Is Wall Street Bullish or Bearish on McKesson Stock?

Core Viewpoint - McKesson Corporation has shown strong financial performance and stock growth, outperforming both the broader market and sector-specific indices, indicating a positive outlook for the company. Group 1: Company Overview - McKesson Corporation, based in Irving, Texas, distributes pharmaceuticals, medical-surgical supplies, and health and beauty care products primarily in North America, with a market capitalization of $114.5 billion [1]. - The company operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International [1]. Group 2: Stock Performance - McKesson's shares have outperformed the broader market over the past year, with a growth of 55.2% over the past 52 weeks and 14% year-to-date, compared to the S&P 500 Index's return of 11.8% [2]. - The stock has also outperformed the State Street Healthcare Select Sector SPDR ETF (XLV), which rose by 7.7% over the past 52 weeks [3]. Group 3: Earnings Performance - On February 5, McKesson's shares surged by 16.5% following the release of better-than-expected Q3 2026 earnings, with revenue increasing by 11.4% year-over-year to $106.2 billion, aligning with market expectations [3]. - The adjusted EPS for the quarter was $9.34, surpassing Wall Street estimates, and the company anticipates full-year earnings in the range of $38.80 to $39.20 per share [3]. Group 4: Analyst Expectations - For the current fiscal year ending in March 2026, analysts expect McKesson's EPS to grow by 18.1% year-over-year to $39.03 on a diluted basis, with a strong earnings surprise history [4]. - Among 17 analysts covering McKesson stock, the consensus rating is a "Strong Buy," supported by 13 "Strong Buy" ratings and four "Holds" [4]. Group 5: Price Target and Analyst Ratings - JP Morgan analyst Lisa Gill maintained an "Overweight" rating on McKesson, raising the price target from $983 to $1,107, indicating an 18.4% potential upside from the current price levels [5]. - The mean price target of $965.56 suggests a 3.3% premium to McKesson's current price [5].