McKesson (NYSE:MCK – Get Free Report) issued an update on its FY 2027 earnings guidance on Thursday morning. The company provided EPS guidance of 44.200-45.000 for the period, compared to the consensus EPS estimate of 44.650. The company issued revenue guidance of -.
Analyst Upgrades and Downgrades
MCK has been the topic of a number of analyst reports. Citigroup increased their price target on shares of McKesson from $945.00 to $1,000.00 and gave the company a “buy” rating in a research report on Friday, July 24th. Weiss Ratings upgraded McKesson from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, September 4th. TD Cowen increased their price target on McKesson from $989.00 to $1,006.00 and gave the stock a “buy” rating in a report on Thursday, August 6th. Evercore restated an “outperform” rating on shares of McKesson in a report on Thursday, August 6th. Finally, Wall Street Zen cut McKesson from a “buy” rating to a “hold” rating in a research report on Saturday, June 27th. Fourteen equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $973.44.
McKesson Stock Up 0.5%
McKesson (NYSE:MCK – Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $9.93 EPS for the quarter, beating analysts’ consensus estimates of $9.56 by $0.37. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The company had revenue of $105.38 billion during the quarter, compared to the consensus estimate of $103.88 billion. During the same quarter last year, the firm posted $8.26 EPS. The company’s quarterly revenue was up 7.7% on a year-over-year basis. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. On average, sell-side analysts expect that McKesson will post 44.64 EPS for the current year.
McKesson Increases Dividend
The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Tuesday, September 1st were issued a dividend of $0.94 per share. This represents a $3.76 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend was Tuesday, September 1st. This is a boost from McKesson’s previous quarterly dividend of $0.82. McKesson’s payout ratio is presently 10.06%.
Insider Buying and Selling at McKesson
In other news, CEO Brian Tyler sold 8,463 shares of the firm’s stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $793.56, for a total transaction of $6,715,898.28. Following the completion of the sale, the chief executive officer owned 5,919 shares in the company, valued at approximately $4,697,081.64. This trade represents a 58.84% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO B Jr sold 111 shares of McKesson stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $891.45, for a total value of $98,950.95. Following the sale, the chief accounting officer directly owned 521 shares of the company’s stock, valued at approximately $464,445.45. The trade was a 17.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 8,875 shares of company stock valued at $7,083,441 in the last quarter. 0.06% of the stock is currently owned by insiders.
Trending Headlines about McKesson
Here are the key news stories impacting McKesson this week:
- Positive Sentiment: CVS partnership extended through June 2032: McKesson reached an agreement to continue distributing pharmaceuticals for CVS’s mail-order, specialty and retail pharmacies, as well as distribution centers. The multiyear extension provides greater revenue visibility and reinforces a strategically important customer relationship. McKesson Corporation Extends Pharmaceutical Distribution Agreement with CVS Health
- Positive Sentiment: Fiscal 2027 guidance reaffirmed: McKesson maintained adjusted EPS guidance of $44.20 to $45.00, broadly consistent with the $44.65 analyst consensus. The lack of a guidance reduction helped support investor confidence in operating momentum. McKesson Extends CVS Health Pact to 2032
- Positive Sentiment: Strong recent results and growth initiatives: Investors may also be carrying forward confidence from McKesson’s latest quarter, which included $105.4 billion in revenue and adjusted EPS of $9.93, up 20% year over year. The planned $2.25 billion acquisition of Precision Medicine Group further expands the company’s oncology and clinical research capabilities.
- Neutral Sentiment: Industry backdrop remains constructive: McKesson was included among medical and dental supply stocks viewed as having potential as industry prospects improve. The company is scheduled to report fiscal second-quarter results after the market close on November 4, creating a possible near-term catalyst.
- Negative Sentiment: Insider selling is a risk signal: Reported insider activity over the past six months consisted of 11 sales and no open-market purchases, including sales by CEO Brian Tyler. This may temper enthusiasm, although the transactions did not appear to outweigh the positive CVS announcement.
About McKesson
McKesson Corporation (NYSE:MCK) is a healthcare services and information technology company that distributes pharmaceuticals, specialty drugs, medical supplies and other healthcare products. The company serves pharmacies, hospitals, health systems, physician practices, biopharma manufacturers and other healthcare providers, helping move products from manufacturers to patients and care settings.
McKesson’s principal operations include pharmaceutical distribution, medical-surgical supply distribution and technology-enabled services for pharmacies and providers.
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