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With a market cap of $74.3 billion, Irving, Texas-based McKesson Corporation (MCK) is a global healthcare services and information technology company. Operating through four key segments - U.S. Pharmaceutical; Prescription Technology Solutions (RxTS); Medical-Surgical Solutions; and International, it delivers comprehensive distribution, technology, and strategic solutions to enhance patient care and healthcare operations worldwide. MCK is expected to announce its fiscal Q3 earnings results after the market closes on Wednesday, Feb. 5.
Ahead of the event, analysts forecast the prescription drug distributor to post a profit of $8.28 per share, reflecting a growth of nearly 7% from $7.74 per share in the same quarter last year. The company has surpassed Wall Street's bottom-line projections in three of the past four quarters while missing on another occasion. MCK exceeded the consensus EPS estimate by a margin of 2.6% in the last reported quarter.
For fiscal 2025, analysts expect MCK to report EPS of $32.73, a 19.3% increase from $27.44 in fiscal 2024. Looking forward to fiscal 2026, its EPS is expected to grow around 12% year-over-year to $36.65.
MCK has returned 22.3% over the past 52 weeks, outperforming the broader S&P 500 Index's ($SPX) 22.1% rise and the Health Care Select Sector SPDR Fund's (XLV) marginal decline over the same period.
McKesson shares jumped 10.6% following its Q2 earnings report on Nov. 6, which outperformed analysts' expectations. The company posted an adjusted EPS of $7.07 and revenue of $93.7 billion. Key drivers of this strong performance included growth in the U.S. Pharmaceutical segment, especially in specialty products and GLP-1 medications, as well as contributions from Prescription Technology Solutions and Medical-Surgical Solutions. Furthermore, McKesson raised its fiscal 2025 adjusted EPS guidance to $32.40 to $33, reinforcing investor confidence.
Analysts' consensus rating on McKesson stock is bullish, with a "Strong Buy" rating overall. Out of 16 analysts covering the stock, opinions include 13 "Strong Buys" and three "Holds." This configuration is more bullish than three months ago, with 10 analysts suggesting a "Strong Buy."
As of writing, MCK is trading below the average analyst price target of $670.07.
