McKesson Corporation

(New York Stock Exchange)
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Bullish +75

McKesson stock gains after Q2 growth and higher fiscal EPS view

Earnings report Guidance raised AI-generated analysis

πŸ“ˆ McKesson reported fiscal Q2 revenue growth of 8% to $111.0 billion, driven by performance in North American Pharmaceutical, Oncology, and Prescription Technology Solutions.

πŸ’° Adjusted earnings per diluted share increased 18% year-over-year to $11.68, supported by strong operating momentum and a lower share count.

πŸš€ Management raised fiscal 2027 adjusted EPS guidance to a range of $45.60 to $46.40, implying 17% to 19% growth from the prior fiscal year.

πŸ“Š The company forecasts fiscal 2027 revenue growth of 6% to 10% and operating profit growth of 12% to 16%, with North American Pharmaceutical projected for 14% to 18% profit growth.

🏦 Morgan Stanley raised its price target to $1,260 and maintained an Overweight rating following the strong quarterly results and guidance hike.

πŸ“‰ Operating momentum and a lower share count were cited as key drivers supporting the significant increase in adjusted earnings per diluted share.

Bullish Signals
  • McKesson reported fiscal Q2 revenue growth of 8% to $111.0 billion, driven by strong performance across North American Pharmaceutical, Oncology, and Prescription Technology Solutions.
  • Adjusted earnings per diluted share surged 18% year-over-year to $11.68, supported by robust operating momentum and a lower share count.
  • Management raised fiscal 2027 adjusted EPS guidance to a range of $45.60 to $46.40, implying 17% to 19% growth from the prior fiscal year.
  • The company forecasts fiscal 2027 revenue growth of 6% to 10% and operating profit growth of 12% to 16%, with North American Pharmaceutical projected for 14% to 18% profit growth.
  • Morgan Stanley raised its price target to $1,260 and maintained an Overweight rating following the strong quarterly results and guidance hike.
Full Analysis
McKesson reported robust fiscal second-quarter results, driving a notable increase in its stock price. Consolidated revenue surged by 8 percent year over year to reach $111.0 billion, while adjusted earnings per diluted share climbed 18 percent to $11.68. This strong performance was fueled by growth across key segments including North American Pharmaceutical, Oncology and Multispecialty, and Prescription Technology Solutions. Following the quarterly update, management raised its full-year fiscal 2027 adjusted EPS guidance range from $44.20 to $45.00 to a new range of $45.60 to $46.40. This upward revision implies an expected growth rate of 17 percent to 19 percent for the full year, excluding specific divestiture impacts and prior gains from The US Oncology Network. Management projects fiscal 2027 revenue growth between 6 percent and 10 percent, with operating profit anticipated to rise by 12 percent to 16 percent. Analyst sentiment remains positive following the earnings release. Morgan Stanley increased its price target for McKesson to $1,260 from $1,207 while maintaining an Overweight rating. The firm cited the quarterly update as a catalyst for the adjustment, providing investors with a fresh reference point for the second half of the fiscal year. North American Pharmaceutical remains a primary operating focus, with full-year operating profit growth projected between 14 percent and 18 percent.