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Valued at a market cap of $80.4 billion, McKesson Corporation (MCK) is a leading healthcare services and information technology company. The Irving, Texas-based company operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and McKesson fits this criterion perfectly. It provides pharmaceutical distribution, medical-surgical supply logistics, and technology-driven solutions to healthcare providers, pharmacies, and biopharma companies.
However, the prescription drug distributor is down 9.6% from its 52-week high of $653.92. Shares of MCK have gained 8% over the past three months, outperforming the 4.6% decline seen in the broader Dow Jones Industrials Average ($DOWI) during the same period.
Longer term, MCK is up 14.4% on a YTD basis, outpacing DOWI's marginal gain. Moreover, shares of MCK have risen 23.3% over the past 52 weeks, compared to DOWI’s 9.8% return over the same time frame.
MCK has shown a bullish pattern, trading above both its 50-day and 200-day moving averages since November last year.
Shares of McKesson fell 1.2% following its Q3 2025 earnings release on Feb. 5 due to a weaker-than-expected adjusted EPS of $8.03 and revenue of $95.3 billion. The Medical-Surgical Solutions segment saw a 3% decline in revenue to $2.9 billion, driven by lower seasonal vaccine and testing activity, raising concerns about segment-specific weakness. Additionally, McKesson reported a negative free cash flow of $2.2 billion, signaling potential cash management challenges amid investments and $1.4 billion in share repurchases.
The stock's rival, Cencora, Inc. (COR), has underperformed MCK with a 7.1% increase over the past 52 weeks and a gain of 13.3%on a YTD basis.
Due to its strong price action over the past year, MCK has a consensus “Strong Buy” rating from the 16 analysts covering the stock. As of writing, MCK is trading below the mean price target of $677.80.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
