McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: North American Pharmaceutical, Oncology & Multispecialty, Prescription Technology Solutions, and Medical-Surgical Solutions. The company distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs and other healthcare-related products to retail pharmacies, hospitals, long-term care centers, clinics, and institutions, and offers logistics and distribution services for manufacturers. It also provides consulting, outsourcing, technology, and other services, including financial, operational, and clinical solutions for pharmacies, gene therapy through InspiroGene, vaccine distribution, and technology and research services to improve cancer and specialty care. In addition, McKesson works across the healthcare system to address medication access, affordability, and adherence challenges by connecting patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies. The company also offers technology services such as electronic prior authorization, prescription price transparency, benefit insight, dispensing support, patient enrollment, third-party logistics, and wholesale distribution support, as well as medical-surgical supplies, laboratory equipment, pharmaceutical distribution, and logistics to healthcare providers including physician offices, surgery centers, hospital reference labs, nursing homes, hospice and home health agencies, government facilities, and online marketplaces and retailers. McKesson Corporation was founded in 1833 and is headquartered in Irving, Texas.
Alluvium Global Fund Lifts McKesson Stake to 6.8% After Q2 Letter
Alluvium Asset Management raised its stake in McKesson Corporation to 6.8% of the Conventum – Alluvium Global Fund, according to the fund's second-quarter 2026 investor letter. The fund said McKesson, the Irving, Texas-based drug distributor, fell 12.6% in the quarter even though its full-year results came in perfectly in line with expectations, and management gave strong guidance for next year's earnings while reiterating 13%-16% long-term growth expectations. After feeding those numbers through its model, Alluvium said its valuation rose 18%, and with the share price trading below that level it bought a little more. McKesson closed at $899.56 per share on September 15, 2026, returning 5.37% over the past month and 29.95% over the past 52 weeks, with a market capitalization of $106.21 billion and a trading range of $687.68 to $999.00. The fund itself declined 1.4% in EUR terms, 2.2% in USD terms and 3.9% in AUD terms in the quarter, a period it described as a sharp shift from geopolitical uncertainty and oil market volatility to an equity rally led by semiconductor companies.
McKesson Raises Full-Year EPS Guidance and Plans Wellverse IPO
McKesson raised its full-year EPS guidance, projecting approximately 13%–15% growth, or 15%–17% excluding certain prior-year items. The company also outlined plans to rebrand its Medical-Surgical unit as Wellverse, with a potential IPO targeted for the second half of 2027. Alongside that, McKesson has a pending acquisition of Precision Medicine Group to expand oncology and biopharma-services capabilities, subject to regulatory approval. The combination of upgraded earnings expectations, portfolio reshaping around higher-value oncology and biopharma services, and the potential separation of Wellverse marks a meaningful shift in how McKesson positions its future business mix and profit drivers.
McKesson is moving forward with its planned $2.25 billion acquisition of Precision Medicine Group, a deal that would expand its oncology and biopharma services. The company discussed the transaction during a presentation with Wells Fargo analyst Stephen Baxter, saying it would add clinical-trial capabilities, including biomarker-focused trials, and complement its existing assets like Sarah Cannon, Ontada, and the U.S. Oncology Network. Precision Medicine Group also brings a more established contract research organization, or CRO, capability focused on oncology, rare disease, immunology, and cell and gene therapy. McKesson's CFO, Kenny Cheung, said the company expects the deal to create incremental value for biopharma partners and will provide more details on earnings accretion as the transaction progresses. In the first quarter, McKesson's Oncology and Multi-Specialty segment saw revenue grow about 33% and adjusted operating profit rise about 41%, while the company reiterated plans to return roughly $5 billion to shareholders this year.
McKesson to Acquire Precision Medicine Group for $2.25 Billion
McKesson Corporation has agreed to acquire privately held Precision Medicine Group for approximately $2.25 billion, as the healthcare company continues shifting its portfolio toward higher-growth businesses. Precision Medicine provides clinical research, laboratory testing, and commercialization services to biotechnology and pharmaceutical companies developing and launching new medicines. McKesson plans to integrate the company into its Oncology & Multispecialty segment, which generated $14.2 billion in revenue in fiscal 2026's first quarter, a 33% year-over-year increase. The acquisition represents just over 2% of McKesson's market capitalization, according to an analyst cited by Reuters, making it meaningful but not large enough to fundamentally alter the company's financial profile. The deal strengthens McKesson's exposure to clinical research, oncology, specialty care, and biopharma services, though execution risks remain in integrating the business and realizing synergies.
McKesson Raises FY27 Guidance as Oncology and GLP-1 Growth Accelerate
McKesson Corporation opened fiscal 2027 with an earnings beat, double-digit adjusted operating profit growth and higher full-year earnings guidance. First-quarter adjusted earnings rose 20% to $9.93 per share, topping the Zacks Consensus Estimate of $9.44 by 5.2%, while revenues increased 8% to $105.38 billion. Adjusted operating profit advanced 16% to $1.65 billion, driven by growth in North American Pharmaceutical, Oncology & Multispecialty and Prescription Technology Solutions. Oncology & Multispecialty revenues climbed 33% to $14.22 billion and adjusted operating profit increased 41% to $405 million, with the U.S. Oncology Network reaching approximately 3,400 providers treating more than 2 million patients annually. GLP-1 distribution revenue reached $15 billion in the quarter, up 24% year over year and 13% sequentially. McKesson raised fiscal 2027 adjusted earnings guidance to $44.20-$45.00 per share from $43.80-$44.60, implying 13%-15% growth, and maintained free cash flow guidance of $4.5-$4.9 billion with about $5 billion of share repurchases expected for the year.
McKesson reported second-quarter revenues of $105.4 billion, up 7.7% year over year and 1.2% above analyst expectations, while its stock remained flat at $868.87. Among the 39 healthcare providers and services stocks tracked, aggregate revenues beat consensus by 1.7% and next-quarter guidance came in 1.6% above estimates, yet the group's average share price fell 1.2% since earnings. CVS Health posted the best quarter with revenues of $106.1 billion, up 7.3% and 6.7% above expectations, but its stock dropped 9.1% to $94.90. AdaptHealth was the weakest performer, missing revenue estimates by 12.6% with revenues of $740.3 million and issuing significantly lower full-year revenue and EBITDA guidance, sending its stock down 46.2% to $5.83. Elevance Health reported flat revenues of $49.83 billion, beating estimates by 2.5%, but lost 469,000 customers and saw its stock fall 7.4% to $395.18, while Quest Diagnostics grew revenues 10.2% to $3.04 billion and its stock rose 12.6% to $236.32.
McKesson raises fiscal 2027 outlook after strong first quarter
McKesson raised its fiscal 2027 adjusted earnings outlook after reporting first-quarter revenue of $105.4 billion, up 8%, and adjusted diluted earnings per share of $9.93, up 20%. The company now expects full-year adjusted EPS of $44.20 to $45.00, up from prior guidance of $43.80 to $44.60, implying growth of 13% to 15%. North American Pharmaceutical revenue rose 5% to $86.8 billion, with operating profit up 19% to $894 million, while GLP-1 distribution revenue surged 24% to $15 billion. Oncology & Multispecialty and Prescription Technology Solutions both posted double-digit operating-profit growth. McKesson also advanced the planned separation of its Medical-Surgical Solutions business under the Wellverse brand and returned $2.6 billion to shareholders through buybacks and dividends, including a 15% dividend increase.
McKesson Raises Quarterly Dividend 15% to 94 Cents Per Share
McKesson Corporation has declared a regular quarterly dividend of 94 cents per share of common stock, a 15% increase from the prior quarter's 82 cents. The dividend will be payable on October 1, 2026, to shareholders of record on September 1, 2026. Chair and CEO Brian Tyler noted this marks the company's tenth consecutive year of dividend growth, reflecting business strength and disciplined capital allocation.
AI in Revenue Cycle Management Market Projected to Reach $225.87 Billion by 2035
The global AI in revenue cycle management market is projected to grow from $24.43 billion in 2025 to $225.87 billion by 2035, a compound annual growth rate of 25.06 percent, according to a new report. North America held the largest share at 49.21 percent in 2025, with the U.S. market alone valued at $10.24 billion and expected to reach $90.71 billion by 2035. The software segment accounted for 70.21 percent of the market in 2025, while integrated solutions led by type with a 67 percent share. Hospitals were the dominant end-use segment at 48.12 percent, and the claims management application held 24 percent of the market. Key players include athenahealth, Experian Information Solutions, R1 RCM, McKesson, and Oracle.
McKesson Slid in Q2 on Drug-Distributor Derating, Janus Henderson Says
McKesson Corporation was among the largest detractors in the Janus Henderson Global Sustainable Equity Fund during the second quarter of 2026, the firm said in its investor letter. The stock fell amid a wider derating of drug distributors, driven by GLP-1 cash-pay concerns, a rotation into insurers, and rising investor worries about specialty pharmacy exposure ahead of a large wave of loss-of-exclusivity events over the next five years. Janus Henderson maintained its investment thesis, viewing McKesson as a leading player in a consolidated market with defensive growth characteristics, scale advantages, and durable customer relationships. McKesson closed at $796.35 per share on July 15, 2026, with a market capitalization of $93.23 billion, and posted a one-month return of 9.60% and a 52-week gain of 15.82%.
McKesson Still Screens as Undervalued After 338% Five-Year Run
McKesson stock has delivered a 337.6% total return over the past five years, yet the latest valuation checks suggest the shares still lean cheap rather than stretched. The stock trades at about 19.8 times earnings, a clear discount to the Healthcare sector average of roughly 24.9 times and a peer group average near 24.1 times. Simply Wall St's fair price-to-earnings model implies a multiple of 29.6 times, materially above the current level, indicating the market has not fully closed the valuation gap. On broader checks, McKesson screens as undervalued in five of six valuation tests, pointing to a stock that still looks attractively priced against several fundamental yardsticks. The discount appears tied to concerns about thin distribution margins and execution risk, leaving the key question of whether those risks justify the gap or if the stock merits a multiple closer to its healthcare peers.
McKesson CEO Sells Shares as Company Names New Strategy Chief
McKesson disclosed a significant insider sale by its CEO, executed under a pre-arranged trading plan, while also announcing the retirement of a key executive and the immediate appointment of a new Chief Strategy Officer. The company, a major healthcare services and distribution firm, updated its outlook and revised growth targets alongside these management moves. The CEO's sale and leadership transition in the strategy role provide fresh context on management alignment and long-term priorities in pharmaceuticals, medical supplies, and related services. McKesson shares trade at $805.96, about 14% below the analyst target of $942.07, and are flagged as trading roughly 65% below an estimated fair value.
McKesson's Specialty and Oncology Growth Offset by Pricing and Integration Risks
McKesson's prospects are being driven by robust growth in specialty distribution, oncology services and biopharma solutions, though persistent margin pressures and volatility across certain segments remain concerns. In the fiscal fourth quarter, the oncology and multispecialty segment delivered 35% revenue growth and 53% operating profit growth, while the North American Pharmaceutical segment's operating profit increased 11% to $980 million, supported by continued specialty drug demand and GLP-1 therapy momentum. However, management disclosed that price reductions by branded manufacturers lowered North American Pharmaceutical revenue growth by approximately 3 percentage points during the quarter, and similar headwinds are expected throughout fiscal 2027. Additionally, the Prescription Technology Solutions business, which saw 12% revenue growth and 13% operating profit growth, faces non-linear and unpredictable future performance, with fiscal 2027 revenue growth guided at only 2.5-6.5%. McKesson's acquisition-led growth strategy also increases integration risk, as acquisitions accounted for approximately 34% of operating profit growth in the oncology segment in fiscal 2026.
McKesson touted as top healthcare pick while AMN and Novavax flagged as sells
StockStory identified McKesson as a healthcare stock with impressive fundamentals, citing 14.3% annual revenue growth over two years, a dominant market position with $403.4 billion in revenue, and 17.9% annual EPS growth boosted by share buybacks. In contrast, it recommended selling AMN Healthcare Services due to declining travelers on assignment, falling EPS over five years, and diminishing returns on capital, and avoiding Novavax because of 22.6% annual sales declines over two years, a projected 50.7% sales drop, and cash-burning tendencies.
McKesson Spotlights AI-Powered Tools for Independent Pharmacies at ideaShare Conference
McKesson Corporation highlighted artificial intelligence-powered solutions for independent pharmacies at its annual ideaShare conference held from June 18 to June 21 in Denver. The event gathered nearly 5,000 independent community pharmacy professionals and focused on integrating AI into pharmacy operations, expanding patient care services, and the role of community-based care. For the first time, McKesson hosted a Product Showcase where attendees evaluated new tools and voted on those they believed would most impact their businesses and patients. Separately, on June 2, McKesson closed a deal in which Apollo invested $1.25 billion in convertible preferred equity for an approximately 13% minority stake in McKesson's Medical-Surgical Solutions business, valuing the unit at roughly $13 billion in total enterprise value.
McKesson Added to Russell Defensive Indexes, Expands TempraMed Distribution Partnership
McKesson Corporation was added to several Russell 1000 defensive-style indexes in late June 2026, while TempraMed announced an expanded North American distribution partnership with McKesson Medical-Surgical to broaden access to its temperature-controlled medication solutions. These developments highlight McKesson's role as a key healthcare distribution infrastructure provider and reinforce its positioning in indices focused on defensive characteristics. The index inclusions may modestly increase index-related flows but do not materially change near-term catalysts around specialty growth and efficiency gains, nor reduce structural risks from regulation, consolidation, and pricing pressure. The TempraMed partnership connects to McKesson's opportunity in higher value-added services and complex logistics, as broader access to temperature-controlled solutions fits with rising supply chain complexity benefiting large distributors. McKesson's narrative projects $499.3 billion revenue and $6.1 billion earnings by 2029, with a fair value estimate of $941.40 per share, representing a 25% upside to its current price.
McKesson Expands TempraMed Partnership Across North America for Full Portfolio Distribution
McKesson Medical-Surgical has expanded its partnership with TempraMed Technologies to distribute TempraMed's full portfolio of temperature-controlled medication solutions across North America. The agreement aims to strengthen McKesson's business-to-business offering to healthcare providers by addressing medication storage, handling, and compliance needs. The move supports TempraMed's shift toward a more diversified revenue model while leveraging McKesson's established medical-surgical distribution network. For McKesson, the expanded partnership reinforces its position as a one-stop supplier of clinical supplies and equipment, and aligns with its push into specialized logistics and value-added services around the drug supply chain.
McKesson Corporation Bullish Thesis Highlights 18% to 70% Upside After Recent Selloff
A bullish thesis on McKesson Corporation argues the stock's decline from nearly $1,000 to around $740 creates an attractive opportunity, with intrinsic value estimated between $885 and $1,275 per share. The selloff followed a fiscal 2026 fourth-quarter revenue miss, but the core investment thesis remains intact due to McKesson's dominant position in the U.S. pharmaceutical distribution oligopoly alongside Cencora and Cardinal Health. The company generated $5.4 billion in free cash flow in fiscal 2026 and has reduced its share count by more than 60% over two decades through aggressive buybacks, including a newly authorized $5 billion repurchase program. McKesson is also shifting toward higher-margin businesses, with its Oncology and Multi-Specialty segment delivering 31% revenue growth and 53% operating profit growth in fiscal 2026. The thesis was shared on r/ValueInvesting by OnTheStreetwithLou.
McKesson’s Scale, Revenue and EPS Growth Make It a Compelling Pick
McKesson’s shares have fallen 8.1% over the past six months to $763.33, underperforming the S&P 500’s 6.8% gain, but the company’s fundamentals remain strong. Revenue grew at an 11.1% compound annual rate over five years, slightly above the healthcare sector average, while EPS expanded at 17.9% annually, signaling improving profitability. With $403.4 billion in trailing 12-month revenue, McKesson’s massive scale provides negotiating leverage with suppliers in the low-margin pharmaceutical distribution business. The stock now trades at 17.2 times forward earnings.
McKesson selects Moore, Oklahoma for a state-of-the-art regional distribution center
McKesson Corporation has selected Moore, Oklahoma as the location for a highly automated regional distribution facility at the North Moore Industrial Park. The 330,000-square-foot facility represents a $179 million total capital investment and will create over 200 direct jobs, with 633 total jobs expected by 2029. The project will replace an existing distribution center, expanding capacity and modernizing capabilities to support the efficient distribution of pharmaceuticals and medical products across a multi-state region. The decision followed a rigorous evaluation of competing markets across the central United States and underscores McKesson's commitment to strengthening its digitally connected distribution network.
McKesson ideaShare 2026 Convenes Independent Pharmacies in Denver
McKesson Corporation hosted its annual McKesson ideaShare 2026 event for independent community pharmacies last week in Denver, Colorado. The conference focused on education, networking, and collaboration to help independent pharmacies innovate and thrive, with sessions on emerging technologies including artificial intelligence and hands-on AI-powered solutions. Advocacy efforts were also highlighted, with McKesson continuing its support for state pharmacy associations through dedicated funding via McKesson Amplify, and applications for 2027 funding now open. Mace's Pharmacy of Barbour County, West Virginia, was awarded the 2026 Health Mart Pharmacy of the Year, chosen by a live onsite vote from attendees. Additional awards included the Trailblazer Award presented to Shahida Choudhry of Palms Pharmacy and the Going the Distance Award to CHCC Outpatient Pharmacy in Saipan. The event also featured a Product Showcase where attendees voted on solutions with the greatest potential impact, and McKesson ideaShare 2027 is scheduled for June 24-27, 2027, at Mandalay Bay in Las Vegas, Nevada.
Cencora Shares Down 18% Year to Date Despite Raised Earnings Guidance
Cencora shares have fallen 18% year to date after gaining nearly 50% in 2025, underperforming peers McKesson and Cardinal Health. The decline follows a reduced fiscal 2026 revenue growth outlook from 7-9% to 4-6%, but management raised adjusted earnings per share guidance to $17.70-$17.90, reflecting stronger margins. The company continues to expand in specialty pharmaceuticals, digital healthcare, and oncology services, with the OneOncology acquisition boosting gross profit margin by 45 basis points in the second quarter. Cencora currently trades at a forward price-to-earnings ratio of 14.49, below the industry average of 15.15, and holds a Zacks Rank #2.
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