McKesson Corporation

(New York Stock Exchange)
Back to all articles
Bullish +75

McKesson stock in focus after higher fiscal 2027 EPS outlook

Earnings report Guidance raised AI-generated analysis

📈 McKesson reported fiscal second-quarter revenue growth of 8% year over year, reaching $111.0 billion for the quarter ended September 30.

💰 Adjusted diluted earnings per share surged 18% to $11.68, while GAAP diluted earnings per share rose to $10.44 from $8.92.

💵 The company generated $3.1 billion in operating cash flow and $2.9 billion in free cash flow during the quarter.

🚀 Management raised fiscal 2027 adjusted earnings guidance to a range of $45.60 to $46.40 per diluted share.

📊 The new guidance implies adjusted earnings growth of 17% to 19%, surpassing the long-term target range of 13% to 16%.

🏥 Growth was driven by North American Pharmaceutical, Oncology, Multispecialty, and Prescription Technology Solutions segments.

📉 Lower contributions from branded pharmaceuticals partially offset gains but did not hinder overall revenue expansion.

🇳🇴 The updated outlook includes effects from the Norway divestiture and net gains within The US Oncology Network in fiscal 2026.

🔮 Management expects fiscal 2027 revenue growth of 6% to 10% and adjusted operating profit growth of 12% to 16%.

📈 McKesson stock traded at 982.40 euros on Lang & Schwarz as of November 12, 2026.

Bullish Signals
  • McKesson reported a significant 8% year-over-year increase in fiscal second-quarter revenue, reaching $111.0 billion.
  • Adjusted diluted earnings per share rose 18% to $11.68, demonstrating strong profitability growth.
  • The company generated substantial cash flow with $3.1 billion in operating cash flow and $2.9 billion in free cash flow.
  • Management raised fiscal 2027 adjusted earnings guidance to $45.60-$46.40, expanding the previous range of $44.20-$45.00.
  • The updated guidance implies adjusted earnings growth of 17% to 19%, exceeding the long-term target range of 13% to 16%.
  • Growth was supported by higher prescription volumes and strong performance in Oncology, Multispecialty, and Prescription Technology Solutions segments.
Full Analysis
McKesson reported robust fiscal second-quarter results, with consolidated revenue rising 8% year over year to $111.0 billion for the quarter ended September 30. Adjusted diluted earnings per share increased significantly by 18% to $11.68, while GAAP diluted earnings per share climbed to $10.44 from $8.92 in the prior year. The healthcare distributor generated strong cash flow metrics, producing $3.1 billion in operating cash flow and $2.9 billion in free cash flow during the period. Management attributed this operational progress to growth within North American Pharmaceutical, Oncology, Multispecialty, and Prescription Technology Solutions segments, supported by higher prescription volumes and specialty-product distribution. Following these results, McKesson raised its fiscal 2027 adjusted earnings per diluted share guidance to a range of $45.60 to $46.40, up from the previous range of $44.20 to $45.00. This updated outlook implies adjusted earnings growth of 17% to 19% compared with the prior year, exceeding the company's long-term target range of 13% to 16% when excluding specific divestiture and network gain effects.