| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 62 | 23.5x | 17.8x | Around median | |
Growth | 72 | 8.8% | 7.1% | Top tier | |
Quality | 62 | 59.4% | 4.5% | Around median | |
Safety | 72 | 1.1x | 2.6x | Top tier | |
Capital Return | 60 | 0.37% | 2.12% | Around median | |
Momentum | 63 | 26.2% | 2.9% | Around median | |
Sentiment | 64 | 11 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
McKesson Corporation operates in large-scale pharmaceutical distribution and healthcare services, generating revenue through the distribution of branded, generic, and specialty pharmaceutical products, alongside oncology services, practice management, group purchasing organizations, and prescription-related technologies. The oncology and multispecialty platform serves more than 14 thousand providers, while the U.S. Oncology network includes approximately 3.4 thousand providers treating more than 2 million patients annually, and Biologics supports the commercialization and access of more than 200 treatments for cancer and rare diseases. In branded pharmaceuticals, more than 95% of products are covered by fee-for-service contracts, making operating profit less sensitive than revenue to changes in wholesale prices.
In Q1 of fiscal 2027, revenue increased 8% to $105.4 billion, and gross profit reached $3.7 billion, equivalent to a gross margin of approximately 3.5%. Net income according to EDGAR filings was approximately $614 million, and earnings per share were $5.15, while adjusted earnings per share increased 20% to $9.93. Adjusted operating profit reached $1.7 billion, while operating expenses as a percentage of gross profit improved by approximately 150 basis points year over year despite expenses rising 10% to $2.1 billion.
The North American Pharmaceutical segment accounted for approximately 82.4% of Q1 fiscal 2027 revenue, with revenue of $86.8 billion and operating profit of $894 million. The Oncology and Multispecialty segment recorded $14.2 billion, Prescription Technology Solutions $1.6 billion, and Medical-Surgical Solutions $2.8 billion, equivalent to approximately 13.5%, 1.5%, and 2.7% of revenue, respectively. This mix reflects significant reliance on pharmaceutical distribution, with faster growth and rising operating profitability in Oncology and Multispecialty and Prescription Technology Solutions.
The average analyst price target is $971.63 with a “Buy” consensus, and this target is approximately 2.7% below the 52-week range high of $999, compared with a low of $677.28. The target range is between $845 and $1085, a difference of $240; this dispersion reflects differing estimates regarding the sustainability of oncology and GLP-1 growth versus the slowdown of some Q1 gains, pressure on Medical-Surgical Solutions, and regulatory uncertainty.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
McKesson's Q1 fiscal 2027 revenue increased 8% to $105.4 billion, and adjusted earnings per share rose 20% to $9.93. Growth came from higher prescription volumes in North American pharmaceuticals, strength in specialty products, and expansion in Oncology and Multispecialty. Adjusted operating profit increased to $1.7 billion, while operating expenses as a percentage of gross profit improved by approximately 150 basis points. According to EDGAR filings, net income was $614 million and earnings per share were $5.15.
GLP-1 drug distribution revenue reached approximately $15 billion in Q1 fiscal 2027, up 24% year over year and 13% sequentially. McKesson benefits from them in distribution and prescription technology, including CoverMyMeds and prior authorization solutions. In July 2026, the company began supporting the CMS Medicare GLP-1 Bridge program, under which decisions are issued within 30 minutes for 95% of authorization requests submitted to the payer. Management expects the category to continue growing during fiscal 2027, with performance varying between quarters.
Segment revenue grew 33% to $14.2 billion in Q1 fiscal 2027, and operating profit increased 41% to $405 million. After excluding Core Ventures, revenue growth remained approximately 24% and operating profit growth approximately 15%. U.S. Oncology includes approximately 3.4 thousand providers and treats more than 2 million patients annually, while Prism Vision includes more than 200 providers across 97 locations. For fiscal 2027, McKesson expects segment revenue growth of between 14.5% and 18.5% and operating profit growth of between 13.5% and 17.5%.
Automated analysis for informational purposes only — not investment advice.
McKesson expects adjusted earnings per share of between $44.20 and $45.00 in fiscal 2027, after raising the previous range of $43.80–$44.60. It also expects revenue growth of between 5% and 9% and operating profit growth of between 9% and 13%, with free cash flow of between $4.5 billion and $4.9 billion. The company plans to repurchase approximately $5 billion of shares and completed $2.5 billion in Q1 fiscal 2027. The board increased the quarterly dividend by 15% in July 2026, making it the tenth consecutive annual increase.
On August 25, 2026, McKesson agreed to acquire Precision Medicine Group from Blackstone for approximately $2.25 billion. The announced transaction is intended to expand the company's capabilities in clinical research, biopharmaceutical commercialization, and life sciences services. Separately, McKesson is continuing the planned separation of the Medical-Surgical Solutions business, after Apollo Funds acquired a minority stake of approximately 13% and completed a $2.25 billion secured loan to support the independent business structure. The business is scheduled to begin formally operating under the Well-verse name in January 2027 as part of a phased transition.
