McKesson Q1 results beat estimates, lifts FY outlook
MCK•Full-year outlook raised
McKesson raised its fiscal 2027 adjusted EPS guidance to $44.20-$45.00 from $43.80-$44.60.
The company expects fiscal 2027 adjusted EPS growth of 13%-15% versus the prior year.
Analyst view and valuation
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell".
The average consensus recommendation for the pharmaceuticals peer group is "buy".
Wall Street's median 12-month price target for McKesson Corp. is $950.00, about 14.4% above its August 4 closing price of $830.43.
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 18 three months ago.
Drivers and shareholder returns
- Growth in North American Pharmaceutical and Oncology & Multispecialty segments was driven by higher prescription volumes and specialty product distribution.
- Oncology & Multispecialty segment growth was supported by provider solutions, specialty distribution, and acquisitions.
- Adjusted EPS growth benefited from a reduced share count.
- McKesson increased its quarterly dividend by 15%.
Quarterly results beat estimates
McKesson said fiscal first-quarter revenue rose 8%, beating analyst expectations, while adjusted earnings per share increased 20% and also beat analyst estimates.
