McKesson’s Price Target Raised to $970 After Q3 Beats; FY26 EPS Upgraded
Bank of America raised its McKesson price target by $20 to $970 and reaffirmed its Buy rating after Q3 revenue and adjusted EPS exceeded estimates. McKesson reported $106.16 billion revenue versus $105.86 billion forecast, $9.34 adjusted EPS versus $9.22 estimate, and lifted its FY26 EPS outlook to $38.80–$39.20.
1. Bank of America Rating and Target Change
Bank of America reiterated a Buy rating on McKesson and increased its price target by $20 to $970, reflecting confidence in the company’s third-quarter momentum and segment strength.
2. Q3 Results and Segment Performance
McKesson delivered Q3 revenue of $106.16 billion, beating the $105.86 billion estimate, and reported adjusted EPS of $9.34 compared to the $9.22 forecast, driven by robust specialty drug demand and prescription volume growth.
3. Updated FY26 EPS Guidance
Following the quarterly beat, McKesson raised its fiscal 2026 adjusted EPS outlook to a range of $38.80–$39.20 from $38.35–$38.85 and lifted FY27 projections based on ongoing North American Pharmaceutical and Oncology & Multispecialty segment strength.