McKesson Corporation (MCK) AI Stock Analysis

McKesson Corporation provides healthcare services across four primary operating segments. The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceuticals while providing practice management and clinical support services to community oncology and specialty healthcare providers. The International segment operates across 13 European countries and Canada, delivering wholesale distribution and services to institutional, retail, and wholesale customers. The Medical-Surgical Solutions segment supplies medical-surgical logistics, equipment, and products to healthcare providers. Additionally, the Prescription Technology Solutions (RxTS) segment links pharmacies, providers, payers, and biopharma partners to improve medication access and adherence solutions alongside third-party logistics support.

McKesson grew annual revenue from $263.97B in FY2022 to $403.43B in FY2026, delivering an 11.1% 5-year revenue CAGR from FY2021 to FY2026. Net income expanded from $1.11B in FY2022 to $4.76B in FY2026, raising diluted earnings per share from $23.69 to $39.15. Across these periods, net margin ranged from 0.4% in FY2022 to 1.2% in FY2026, while gross margin tightened from 4.8% to 3.6%. Free cash flow reached $5.41B in FY2026, up from $3.90B in FY2022. For the latest quarter ended June 30, 2026, quarterly revenue grew 7.7% year-over-year, while quarterly earnings declined 17.6%.

As of June 30, 2026, McKesson held $5.16B in cash and short-term investments against $11.70B in total debt, leaving net debt at $6.54B. Total assets stood at $88.33B and the current ratio was 0.89. Shareholders' equity was negative at -$4.24B. In FY2026, the company generated $6.16B in operating cash flow, directing $745.0M toward capital expenditures, $381.0M toward dividends paid, and $4.75B toward share buybacks, which helped reduce share count by 21.4% over five years.

At a last close of $1004.84, McKesson has a market cap of $117.15B and an enterprise value of $101.89B. It trades at a forward P/E of 19.7x, which sits above the 16.5x median of its S&P 500 Healthcare peers. Its trailing P/E of 26.9x is lower than the peer median of 28.9x, while its EV/EBITDA of 19.6x exceeds the peer median of 15.0x. McKesson trades at 0.3x price-to-sales versus the peer median of 3.4x. Over the past year, the stock returned 30.1% compared to 16.8% for the S&P 500 (SPY).

McKesson pays a quarterly dividend with an annualized forward payout of $3.76 per share, yielding 0.37%. The payout ratio is 8.3%, and the company has paid dividends for 37 consecutive years. Over the past five years, the annualized dividend growth rate was 13.0%. The most recent ex-dividend date was September 1, 2026.

Wall Street coverage includes 10 Strong Buy, 3 Buy, and 3 Hold recommendations, with zero Sell or Strong Sell ratings. The mean price target is $1001.43, representing a 0.3% discount to the last close of $1004.84. Consensus estimates project FY2027 revenue of $431.85B and EPS of $44.66, followed by FY2028 revenue of $461.42B and EPS of $50.63. McKesson beat earnings estimates in all 4 of its last 4 quarters, and its next earnings report is scheduled for November 4, 2026.

This page is an AI-written research summary of McKesson Corporation (MCK). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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