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Based in Irving, Texas, McKesson Corporation (MCK) is a leading healthcare distribution and services company. With a market cap of $75.6 billion, McKesson delivers pharmaceuticals, medical supplies, and technology solutions that enhance healthcare efficiency and patient outcomes, supporting pharmacies, hospitals, and healthcare providers worldwide.
Shares of McKesson have underperformed the broader market over the last year. The stock has gained 19.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 23%. However, in 2025, the stock has rallied 5.9%, compared to SPX's 4% gains on a YTD basis.
Narrowing the focus, the prescription drug distributor has outpaced the Health Care Select Sector SPDR Fund (XLV). The exchange-traded fund has gained 1.4% over the past year.
Despite weaker-than-expected Q3 2025 adjusted EPS of $8.03 and revenue of $95.3 billion, McKesson shares rose marginally on Feb. 5. The U.S. Pharmaceutical segment's 19% revenue growth, driven by specialty products and a new $32 billion strategic partnership, boosted investor confidence. Additionally, the Prescription Technology Solutions segment reported 14% revenue growth and 22% adjusted operating profit growth, fueled by demand for GLP-1 medication solutions. McKesson also raised its fiscal 2025 adjusted EPS guidance of $32.55 - $32.95, which outweighed the Q3 miss.
For the current fiscal year, ending in March 2025, analysts expect MCK’s EPS to grow 19.4% year over year to $32.77 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing on other two occasions.
Among the 16 analysts covering MCK stock, the consensus rating is a “Strong Buy.” That’s based on 13 “Strong Buy” ratings and three “Holds.”
This consensus is slightly more bullish than three months ago when the stock had 12 “Strong Buys.”
On Feb. 18, Baird analyst Eric Coldwell named McKesson a Bullish Fresh Pick, maintaining an “Outperform” rating and a $730 price target.
As of writing, MCK is trading below the mean price target of $677.73. The Street-high price target of $729 suggests an upside potential of 20.8%.
