Zacks Investment Research·1d ago
McKesson (MCK) Upgraded to Buy: Here's What You Should KnowMcKesson (MCK) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
McKesson's revenue grew 7.6% year over year to $111.0B in 2027Q2, outpacing Cardinal Health's 3.0% growth, which suggests sustained share gains in its distribution franchise.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue reached $111.0B with a 7.6% year-over-year increase, yet a 1.4% operating margin and 1.1% net margin suggest thin and volatile profitability that appears structurally commoditized.
McKesson Corporation has a wide moat, making it a resilient player in the healthcare distribution sector, as highlighted in its moat analysis and institutional ownership.
Top holder Vanguard Group owns 11.8% of McKesson, signaling strong institutional confidence in the company's long-term prospects.
McKesson serves as the logistical and operational backbone of the U.S. healthcare system, ensuring steady demand for its services.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Nov 4, 2026 | $11.68+9.0% vs $10.72 | $111.0B+1.0% vs $109.9B |
Q3 2026 Aug 5, 2026 | $9.93+3.9% vs $9.56 | $105.4B+1.4% vs $103.9B |
Q2 2026 May 7, 2026 | $11.69+1.1% vs $11.56 | $96.3B-5.0% vs $101.3B |
Q1 2026 Feb 4, 2026 | $9.34+1.9% vs $9.17 | $106.2B+0.3% vs $105.8B |
McKesson (MCK) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
McKesson (MCK) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
McKesson raises its fiscal 2027 earnings outlook after strong Q2 results, fueled by specialty drug demand, operating gains and higher-margin healthcare expansion.
Microsoft was the largest contributor, with its shares up 37.8% for the quarter. KLA and Applied Materials were the largest detractors, falling 35.3% and 29.2%. On a relative basis, three of the largest detractors were companies we did not own: NVIDIA, Apple, and Meta, which rose 14.3%, 15.2%, and 28.8%. We made one change to the portfolio during the quarter, purchasing Garmin and selling Verisk, and rebalanced outliers back to approximately equal weights during the same trade window.
Benchmark MCK against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for McKesson Corporation (MCK)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $1060.84 | $123.8B | 26.34 | 12.36% | 1.12% | — | 0.29% | |
| $271.72 | $63.64B | 34.82 | 14.23% | 0.71% | — | 0.76% | |
| $86.05 | $9.8B | 23.00 | 4.03% | 3.07% | 8.83% | — | |
| $83.85 | $106.99B | 9.79 | 7.85% | 2.63% | 14.1% | 3.19% | |
| $293.59 | $77.66B | 12.93 | 11.26% | 2.09% | 14.02% | 2.06% | |
| $0.20 | $15.62M | -0.01 | -74.19% | -6.72% | — | — |
McKesson Corporation (MCK) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
McKesson Corporation (MCK) SEC filings — annual & quarterly reports (10-K, 10-Q)
Nov 4, 2026·SEC
Aug 5, 2026·SEC
Jul 24, 2026·SEC
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McKesson Corporation (MCK) stock FAQ — growth, dividends, profitability & financials explained
McKesson Corporation (MCK) reported $418.79B in revenue over the trailing twelve months. Revenue was $403.43B in fiscal year 2026. That is 3031% more than the $12.89B of fiscal year 1997.
McKesson Corporation (MCK) grew revenue by 8.2% over the trailing twelve months, compared with the twelve months before.
Yes. McKesson Corporation (MCK) earned $4.70B in net income over the trailing twelve months (a 1.1% net margin).
Yes. McKesson Corporation (MCK) pays a dividend that yields 0.29% at the current price, a small yield.
McKesson Corporation (MCK) generated $6.91B in free cash flow over the trailing twelve months.
