Core Viewpoint - McKesson Corporation is positioned as a leading healthcare services and information technology company, with strong anticipated earnings growth and revenue increase for the upcoming quarter [1][2]. Financial Performance - Analysts expect McKesson to report earnings per share (EPS) of $9.31, reflecting a 15.9% increase from the previous year [2][6]. - Revenue is projected to reach $105.54 billion, marking a 10.8% rise from the same quarter last year [2][6]. - The consensus EPS estimate has remained unchanged over the past 30 days, indicating strong analyst confidence in the company's performance [3][6]. Valuation Metrics - The price-to-earnings (P/E) ratio is 26.03, suggesting that investors are willing to pay a premium for the company's earnings [4][6]. - The price-to-sales ratio is 0.27 and the enterprise value to sales ratio is 0.29, indicating a reasonable valuation relative to sales [4]. - The enterprise value to operating cash flow ratio is 16.16, showcasing the company's cash flow generation capabilities [4]. Capital Structure and Liquidity - The earnings yield stands at 3.84%, providing insight into the return on investment [5][6]. - A negative debt-to-equity ratio of -5.63 indicates a unique capital structure that may require further analysis [5][6]. - The current ratio is 0.88, suggesting potential liquidity considerations as it is below the ideal level of 1.0 [5].

Company Overview - Cardinal Health, Inc. (NYSE:CAH) is a major player in the pharmaceutical distribution sector, supplying branded, generic, and specialty medicines, as well as providing pharmacy and specialty drug services [2] - The company also manufactures and distributes medical and surgical products and procedure kits [2] Market Performance - Cardinal Health has been recognized as a leading stock among drug distributors, with a significant increase in stock value, being described as a "monster" in the industry [2] - The stock, along with competitors like Cencora and McKesson, saw an increase of over 40% last year, highlighting the strong performance of drug distributors despite negative perceptions of the pharmaceutical middleman [2] Investment Outlook - Jim Cramer expressed a positive outlook on Cardinal Health, suggesting that the stock could reach $300, indicating strong confidence in the company's future performance [1] - The company is noted for its strategic acquisitions, such as a recent purchase in the urology sector, which may enhance its market position [1]

Core Viewpoint - Cardinal Health is a resilient player in the healthcare services and products industry, competing effectively with major firms and showing growth potential [1][2]. Group 1: Stock Performance and Ratings - Cowen & Co. maintains a "Buy" rating for Cardinal Health, raising its price target from $225 to $233, reflecting confidence in the company's future performance [2][5]. - The stock recently closed at $210.93, with a 1.25% increase, outperforming the S&P 500's 0.5% gain [2][5]. Group 2: Financial Expectations - Cardinal Health's shares have risen by 0.02% over the past month, outperforming the Medical sector's decline of 0.63% [3]. - The Zacks Consensus Estimate forecasts revenue to reach $64.33 billion, marking a 16.41% rise from the prior year [4]. - Expected EPS for the upcoming earnings release on February 5, 2026, is $2.33, representing a 20.73% increase from the previous year [3][5]. - The company's market capitalization is approximately $50.12 billion, with a trading volume of 1,076,104 shares on the NYSE [4].

Company Performance - McKesson (MCK) closed at $821.84, reflecting a -2.22% change from the previous day, underperforming the S&P 500's daily loss of 2.06% [1] - Over the past month, McKesson's shares have increased by 2.7%, while the Medical sector has decreased by 0.88% and the S&P 500 has gained 1.63% [1] Upcoming Earnings - McKesson's earnings report is scheduled for February 4, 2026, with expected earnings of $9.19 per share, indicating a year-over-year growth of 14.45% [2] - The consensus estimate for revenue is $105.66 billion, representing a 10.88% increase compared to the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, the Zacks Consensus Estimates predict earnings of $38.61 per share and revenue of $408.23 billion, reflecting changes of +16.82% and +13.7% respectively from the previous year [3] Analyst Estimates - Recent modifications to analyst estimates for McKesson indicate the dynamic nature of near-term business trends, with upward revisions suggesting analysts' positive outlook on the company's operations [4] Zacks Rank - McKesson currently holds a Zacks Rank of 2 (Buy), with the Zacks Rank system showing a strong track record of success, particularly for 1 stocks which have delivered an average annual return of +25% since 1988 [6] Valuation Metrics - McKesson has a Forward P/E ratio of 21.77, which is a premium compared to the industry average Forward P/E of 18.28 [7] - The company's PEG ratio is 1.38, while the Medical - Dental Supplies industry average PEG ratio is 1.97 [7] Industry Overview - The Medical - Dental Supplies industry, part of the Medical sector, has a Zacks Industry Rank of 54, placing it in the top 23% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Company Overview - McKesson Corporation (NYSE:MCK) is a leading healthcare services and information technology company, providing pharmaceuticals and medical supplies in the United States and internationally, playing a crucial role in the healthcare supply chain [1] Stock Performance - On January 14, 2026, a new price target for McKesson was set at $968, suggesting a potential increase of about 16.16% from the current trading price of approximately $833.36 [2] - The stock's current price is $833.07, reflecting a slight increase of 1.10% or $9.09, with trading between $820.13 and $834.72 [2] Institutional Investments - GWN Securities Inc. acquired a new stake in McKesson, purchasing 3,570 shares valued at approximately $2.76 million during the third quarter, indicating growing interest in the stock [3] - Solstein Capital LLC significantly increased its position in McKesson by 171.4% in the second quarter, now holding 38 shares valued at $28,000, with other institutional investors also making new investments [4] Market Capitalization and Trading Activity - McKesson's market capitalization stands at approximately $104.13 billion, highlighting its significant presence in the healthcare sector [5] - The stock has reached a high of $895.58 and a low of $570.51 over the past year, with a trading volume of 56,584 shares on the New York Stock Exchange, indicating active investor interest [5]

Core Insights - McKesson is a diversified health care services leader serving various constituents in the health care sector, including pharmacies, providers, biopharma manufacturers, payers, and patients [4] Group 1: Company Overview - McKesson distributes 33% of pharmaceuticals across North America daily, showcasing its significant market presence [4] - The company has established connections with over 1 million providers and 50,000 pharmacies, indicating a vast operational network [4] - McKesson's USON MSO is projected to touch over 20% of all cancer patients in the U.S. this year, highlighting its impact in oncology care [4]

Summary of McKesson Conference Call Company Overview - **Company**: McKesson - **Industry**: Healthcare Services - **CEO**: Brian Tyler - **CFO**: Britt Vitalone - **Employees**: Approximately 40,000 Core Business Insights - McKesson is a diversified healthcare services leader, distributing 33% of pharmaceuticals in North America daily, with connections to over 50,000 pharmacies and 1 million providers [2][3] - The company focuses on oncology, biopharma services, and core North American distribution, emphasizing a disciplined approach to portfolio optimization and management [3][4] - McKesson's adjusted EPS CAGR over the last five years is 18%, with ROIC more than tripling [4] Financial Performance - Long-term adjusted EPS growth target is set at 13%-16% [5][17] - Adjusted operating profit is expected to grow at 12%-16% [16] - Free cash flow is projected to improve between $500 million and $1 billion [8] - Anticipated adjusted EPS for the current fiscal year is between $28.35 and $28.85 [16] Strategic Priorities - Focus on people and culture to attract and develop talent [5] - Continuous investment in business modernization and performance acceleration [5] - Portfolio optimization through acquisitions and divestitures, including exiting European markets and separating the medical business [6][39] Growth Areas Oncology - McKesson's oncology business has been expanding since 2007, with a network of 3,300 providers supporting over 1.4 million patients [9][10] - The oncology drug market is projected to grow by 60% in the next five years, with over 425 therapies currently available [12] - 41% of clinical trials are focused on oncology, indicating a robust growth opportunity [12] Biopharma Services - The RelayHealth Network connects over 50,000 pharmacies, focusing on affordability solutions [13] - In the past year, McKesson enabled over 100 million patient access instances, providing $10 billion in out-of-pocket savings [14] Prescription Technology Solutions - The business focuses on reducing friction in the prescription process, with a broad set of capabilities including prior authorization and copay assistance [36] - The segment is expected to grow as specialty pharmaceuticals remain the highest growth area within the industry [39] Market Dynamics - The independent pharmacy market remains resilient, with approximately 20,000 independent pharmacies still operational [46] - Price increases for branded drugs are consistent with previous years, while the generics market remains stable [42][43] Capital Allocation - McKesson plans to deploy approximately $2.5 billion in share repurchases by fiscal 2026, with over $6 billion in authorization as of September 2025 [16][17] - The company emphasizes disciplined capital allocation to support future growth and shareholder value [17] Future Outlook - The medical surgical business is expected to be separated, with an IPO planned for the second half of 2027 [39][40] - The company anticipates continued strong performance, with adjusted EPS growth of 16%-18% for the current fiscal year [48] Additional Considerations - The integration of Florida Cancer Specialists and Core Ventures into the US Oncology Network is progressing smoothly, with expected accretion of $0.40-$0.60 in the first year [23][21] - The impact of the IRA on WAC pricing is being managed through ongoing discussions with manufacturers [24][25] This summary encapsulates the key points from the McKesson conference call, highlighting the company's strategic focus, financial performance, growth areas, and market dynamics.

McKesson Corporation J.P. Morgan Healthcare Conference January 13, 2026 Brian Tyler Chief Executive Officer 1 © 2026 McKesson Corporation. All rights reserved. Cautionary Statements Cautionary Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward- looking statements may be identified by their use of terminology such as "believes," "expects," "anticipates," "may," "will," ...

Group 1 - Cardinal Health, Inc. (NYSE:CAH) is recognized as a leading player among U.S. drug distributors, with a significant performance increase of over 40% last year [1][2] - The company benefits from rising demand for complex specialty and biologic therapies, expanding its value-added service offerings [2] - Cardinal Health is involved in adjacent markets such as third-party logistics and nuclear medicine, indicating diversification in its business model [2] Group 2 - The medical distribution business of Cardinal Health is undergoing a turnaround, with new management making progress in improving service gaps and margins [2] - Despite the positive outlook for Cardinal Health, some analysts suggest that certain AI stocks may present greater upside potential and lower downside risk [2]

Core Insights - McKesson Corporation (MCK) reported strong fiscal second-quarter results, with consolidated revenues of $103 billion, reflecting a 10% year-over-year growth, and adjusted earnings per diluted share increasing by 39% to $9.86 [1][7] - The company raised its full-year adjusted EPS guidance to $38.35-$38.85, indicating a projected growth of 16-18% year over year, supported by broad-based execution and operating leverage [2][7] Short-Term Growth Drivers - Growth in the near term is expected to be driven by strength in North American Pharmaceutical distribution, accelerating specialty volumes, and rising contributions from prescription technology services [3] - The North American Pharmaceutical segment achieved an 8% revenue growth in the fiscal second quarter, bolstered by solid utilization trends and increased specialty distribution, particularly in GLP-1 medications, which generated $13.2 billion in quarterly revenues [3] - The Oncology and Multispecialty segment emerged as a significant catalyst, with revenues growing by 32% year over year and operating profit surging by 71% due to strong organic provider growth and contributions from acquisitions [4] Long-Term Growth Drivers - McKesson's long-term growth strategy focuses on scaling differentiated specialty platforms and deepening integration within the biopharma and provider ecosystem [9] - Key markets identified for growth include oncology, multispecialty care, and biopharma services, which are benefiting from rising drug complexity and increased demand for integrated solutions [9] - Investments in technology and automation are critical for long-term growth, with a focus on distribution automation, AI-enabled workflows, and cloud-based platforms to enhance efficiency and margin expansion [10][11] Competitive Landscape - Cardinal Health (CAH) is diversifying beyond core distribution and is progressing faster in transitioning to platform-based specialty services compared to McKesson, although it lacks McKesson's scale in oncology networks [13] - Cencora (COR) is pursuing higher-margin specialty solutions but is less integrated in provider services compared to McKesson [14] - CVS Health (CVS) participates in specialty distribution but operates within a more diversified payer-provider model, contrasting with McKesson's focus on specialty distribution and biopharma services [15] Conclusion - McKesson's fiscal second-quarter performance reinforces its position as a high-quality compounder in healthcare services, with strong near-term execution and rising earnings guidance providing visibility through fiscal 2026 [22] - Long-term investments in oncology, multispecialty platforms, and technology are expected to support durable growth beyond the current cycle, despite some operational complexities and regulatory uncertainties [22]