MCK

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should. Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like McKesson (NYSE:MCK). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Over the last three years, McKesson has grown EPS by 16% per year. That growth rate is fairly good, assuming the company can keep it up. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. While we note McKesson achieved similar EBIT margins to last year, revenue grew by a solid 12% to US$403b. That's a real positive. In the chart below, you can see how the company has grown earnings and revenue, over time. Click on the chart to see the exact numbers. Check out our latest analysis for McKesson While we live in the present moment, there's little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for McKesson? We would not expect to see insiders owning a large percentage of a US$88b company like McKesson. But thanks to their investment in the company, it's pleasing to see that there are still incentives to align their actions with the shareholders. Holding US$55m worth of stock in the company is no laughing matter and insiders will be committed in delivering the best outcomes for shareholders. That's certainl...

Earlier this month, TruBridge, Inc. TBRG reported its first-quarter 2026 results. The company delivered adjusted earnings per share (EPS) of 50 cents, up 63.9% year over year, and topped the Zacks Consensus Estimate by 15.7%. However, revenues declined 1.1% from the prior year period to $86.27 million, missing the consensus mark by 3.6%. The announcement came nearly two weeks after another major development for the company. On April 23, TruBridge announced that Inventurus Knowledge Solutions, Inc. (“IKS”), the U.S. subsidiary of Inventurus Knowledge Solutions Limited (“IKS Health”), has entered into a definitive agreement to acquire the former. With TruBridge’s expertise in serving rural and community hospitals through revenue cycle management and electronic health record (EHR) solutions, the combined company aims to strengthen local healthcare systems and enhance care delivery across the ambulatory and acute care continuum. Under the terms of the agreement, TBRG shareholders will receive $26.25 in cash for each share of common stock, valuing the company at roughly 557 million. The stock closed yesterday’s session at $25.90, implying another 1.4% upside potential to the offer price. The deal has already received approval from the boards of directors of IKS Health, IKS, and TruBridge, and is expected to close during the third calendar quarter of 2026. On May 11, TruBridge stock hit a fresh 52-week high at $26.51 intraday. So far this year, shares have gained 17.4%, outperforming the industry’s 23.7% plunge and the Medical sector’s 6.6% drop. The S&P 500 composite has returned 9.1% in the same time frame. TBRG also demonstrated impressive performance in comparison to its peers McKesson Corp. MCK and Waystar Holding Corp. WAY, whose shares have declined 6.6% and 42.6%, respectively. Image Source: Zacks Investment Research In first-quarter 2026, Patient Care revenues increased 6% year over year, fueled by revenues from new SaaS contracts, migrations to SaaS arrangements and the timing of annual licenses. Growth was partially offset by the sunsetting of the Centriq product. TruBridge discontinued support and services of the web-based acute-care EHR platform as of Dec. 31, 2024, except for a few customers who have not migrated to another EHR platform. Excluding Centric, revenues rose 8% over the prior-year period.Recurring revenues represented 87% of total segment...

Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at McKesson (NYSE:MCK) and its peers. The healthcare providers and services sector, from insurers to hospitals, benefits from consistent demand, generating stable revenue through premiums and patient services. However, it faces challenges from high operational and labor costs, reimbursement pressures that squeeze margins, and regulatory uncertainty. Looking ahead, an aging population with more chronic diseases and a shift toward value-based care create tailwinds. Digitization via telehealth, data analytics, and personalized medicine offers new revenue streams. Nonetheless, headwinds persist, including clinical labor shortages, ongoing reimbursement cuts, and regulatory scrutiny over pricing and quality. The 40 healthcare providers & services stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was in line. Thankfully, share prices of the companies have been resilient as they are up 9.6% on average since the latest earnings results. With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE:MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers. McKesson reported revenues of $96.3 billion, up 6% year on year. This print fell short of analysts’ expectations by 5.3%. Overall, it was a slower quarter for the company with a significant miss of analysts’ revenue estimates. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $756.50. Is now the time to buy McKesson? Access our full analysis of the earnings results here, it’s free. Transforming how doctors care for seniors by shifting financial incentives from volume to outcomes, agilon health (NYSE:AGL) provides a platform that helps primary care physicians transition to value-based care models for Medicare patients through long-term partnerships and global capitation arrangements. agilon health reported revenues of $1.42 billion, down 7.3% year on year, outperforming analysts’ expectations by 3.2%. The business had a stunning quarter with EBITDA guidance for next quarter exceed...

Latitude Investment Management, an investment management firm, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The letter emphasizes a long-term, fundamentals-driven investment philosophy, arguing that while stock prices can be volatile in the short run, they ultimately follow underlying earnings growth—illustrated through the “dog and owner” analogy. The portfolio delivered strong results in 2025, with earnings growing over 15% and returns of 21%, largely driven by consistent fundamental growth rather than valuation changes. The manager highlights a diversified portfolio of high-quality, cash-generative companies with solid market positions, low investment needs, and attractive shareholder returns through dividends and buybacks. The letter notes selective portfolio shifts toward more defensive, attractively valued names while maintaining double-digit growth potential. Looking ahead, the outlook remains positive, with expectations for continued earnings growth, improving opportunities from market dispersion, and attractive valuations providing a margin of safety despite limited exposure to crowded themes like AI. In addition, please check the Fund’s top five holdings to know its best picks in 2025. In its fourth-quarter 2025 investor letter, Latitude Investment Management highlighted stocks like McKesson (NYSE:MCK). McKesson (NYSE:MCK) is a global healthcare company specializing in pharmaceutical distribution and supply chain solutions. The one-month return of McKesson (NYSE:MCK) was -11.46% while its shares traded between $637.00 and $999.00 over the last 52 weeks. On May 15, 2026, McKesson (NYSE:MCK) stock closed at approximately $760.57 per share, with a market capitalization of about $91.4 billion. Latitude Investment Management stated the following regarding McKesson (NYSE:MCK) in its Q4 2025 investor letter: Africa Studio/Shutterstock.com McKesson (NYSE:MCK) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 72 hedge fund portfolios held McKesson (NYSE:MCK) at the end of the fourth quarter, which was 73 in the previous quarter. While we acknowledge the risk and potential of McKesson (NYSE:MCK) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame....

McKesson’s first quarter results fell short of analyst revenue expectations, with management attributing the shortfall to lower branded pharmaceutical revenues, including manufacturer price declines and a sequential dip in GLP-1 medication volumes. Despite these headwinds, sales grew year over year, supported by strength in specialty pharmaceutical distribution and expanded provider networks in oncology and multispecialty. CEO Brian Tyler acknowledged the impact of the Inflation Reduction Act’s initial wave of branded price changes on revenue, but highlighted double-digit operating profit growth in core segments and the successful integration of recent acquisitions as key drivers of the quarter’s performance. Tyler emphasized ongoing efficiency improvements and the company’s ability to maintain service reliability even during disruptive winter weather. Is now the time to buy MCK? Find out in our full research report (it’s free). Revenue: $96.3 billion vs analyst estimates of $101.6 billion (6% year-on-year growth, 5.3% miss) Adjusted EPS: $11.69 vs analyst estimates of $11.57 (1.1% beat) Adjusted EBITDA: $1.92 billion vs analyst estimates of $1.89 billion (2% margin, 1.7% beat) Adjusted EPS guidance for the upcoming financial year 2027 is $44.20 at the midpoint, in line with analyst estimates Operating Margin: 2.2%, in line with the same quarter last year Market Capitalization: $88.61 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Allen Lutz (Bank of America): Asked if slower growth in Prescription Technology Solutions was due to variability in third-party logistics revenue. CFO Britt Vitalone explained that the segment’s revenue is heavily influenced by the timing of product launches, but operating profit is supported by continued demand for access and affordability programs. Lisa Gill (JPMorgan): Inquired about organic versus inorganic growth in oncology and multispecialty. Vitalone clarified that organic growth remains strong and recent acquisitions are well integrated, with weather impacts having recovered within the quarter. Erin Wilson Wright (Morgan Stanley): Questioned utilization trends in the Nort...

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. McKesson (MCK) is back in focus after reporting full year results for the period ended March 31, 2026, with sales of US$403.43b and net income of US$4.76b, along with higher earnings per share. See our latest analysis for McKesson. Despite the latest results, McKesson’s share price has had a weak patch recently. It delivered a 1-day share price return of 1.49% after a 30-day share price decline of 11.89% and a 90-day share price decline of 20.44%. However, the 5-year total shareholder return of 296.55% shows how strong the longer term has been. If earnings updates have you rethinking healthcare distributors, it can be useful to balance that view with other themes in the market, such as 35 healthcare AI stocks So with earnings holding up while the stock has pulled back and trades below analyst price targets, should you view McKesson as temporarily out of favor and potentially undervalued, or is the market already incorporating the company’s future growth into the current price? McKesson's most followed narrative pegs fair value at $990.87, well above the last close at $754.76, which puts the recent pullback into sharper context. Read the complete narrative. Curious what underpins a fair value that far above today's price? The narrative leans on steady revenue expansion, firmer margins and a future earnings profile that assumes the business looks very different to today. Result: Fair Value of $990.87 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this narrative could be tested if tighter drug pricing regulation pressures margins or if vertical integration by manufacturers and payers sidelines traditional distributors. Find out about the key risks to this McKesson narrative. The analyst narrative leans on future cash flows and assigns a fair value of $990.87, yet the market is also sending a different signal through the current P/E of 21.3x. That is slightly above peer averages at 20.4x and below a fair ratio estimate of 29.4x. In practice, that mix can feel messy. The stock screens as good value versus the broader US Healthcare industry and the fair ratio, but looks more expensive than its closest peers, which can mean less room for error if sentiment turns. Which signal matters more to...

Image source: The Motley Fool. Thursday, May 7, 2026 at 4:30 p.m. ET Chief Executive Officer — Brian Tyler Chief Financial Officer — Britt Vitalone Need a quote from a Motley Fool analyst? Email [email protected] Brian Tyler: Thank you, Jeni. Good afternoon, and thanks, everyone, for joining McKesson's fiscal fourth quarter earnings call. Earlier today, we reported a good fourth quarter that caps a year of strong performance. In our fiscal 2026, we grew adjusted earnings per diluted share by 18%, driven by momentum across our strategic growth platforms. Our operating cash flow of $6.2 billion was strong and exceeded our plans. We returned over -- we returned $5.1 billion to shareholders. Fiscal '26 was another great year of execution and disciplined portfolio actions that sharpened our focus and drove continued operating momentum. At the beginning of the year, we added Core Ventures and PRISM Vision to our oncology and our multispecialty platforms. Both businesses have been onboarded seamlessly, delivering strong growth momentum while expanding high-quality care in the community setting. One year ago, we announced the plan to separate our Medical-Surgical Solutions segment into an independent company. Since then, we've made significant progress towards that objective. We put transition service agreements in place, executed on financing transactions and signed an agreement to welcome Apollo as a minority interest investor while advancing the separation readiness of the business itself. As we continue to execute towards our planned separation, we're confident that it will unlock shareholder value and create strategic clarity for both organizations. In January, we completed our exit from Norway, continuing our disciplined approach to portfolio optimization and fulfilling our commitment to fully exit the European business. Operationally, we made moves to better align our organizational structure to our strategy. We introduced new reporting segments, allowing increased transparency to our growth areas and better aligning reporting with how we operate the business and how we allocate capital. Our execution on these strategic initiatives drove the strong results we delivered in fiscal '26 and position us well for fiscal '27. Looking ahead, we anticipate adjusted earnings per diluted share to be in the range of $43.80 to $44.60 in fiscal '27. With a strategically focused...

McKesson (MCK) reported $96.3 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 6%. EPS of $11.69 for the same period compares to $10.12 a year ago. The reported revenue represents a surprise of -5.52% over the Zacks Consensus Estimate of $101.92 billion. With the consensus EPS estimate being $11.56, the EPS surprise was +1.14%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how McKesson performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- North American Pharmaceutical: $79.12 billion versus the three-analyst average estimate of $84.12 billion. The reported number represents a year-over-year change of -4.9%. Revenue- Medical-Surgical Solutions: $2.87 billion versus the three-analyst average estimate of $2.94 billion. The reported number represents a year-over-year change of +0.5%. Revenue- Prescription Technology Solutions: $1.5 billion versus the three-analyst average estimate of $1.47 billion. The reported number represents a year-over-year change of +11.7%. Revenue- Oncology & Multispecialty: $12.71 billion versus $12.69 billion estimated by three analysts on average. Revenue- Other: $101 million versus $69.63 million estimated by two analysts on average. Adjusted Operating Profit- Oncology & Multispecialty: $385 million compared to the $392.25 million average estimate based on three analysts. Adjusted Operating Profit- Medical-Surgical Solutions: $271 million compared to the $284.53 million average estimate based on three analysts. Adjusted Operating Profit- North American Pharmaceutical: $980 million versus $991.34 million estimated by three analysts on average. Adjusted Operating Profit- Prescription Technology Solutions: $322 million compared to the $310.2 million average estimate based on three analysts. Adjusted Operating Profit- Corporate: $-209 million versus the two-analyst average estimate of $-197.04 million. Adjusted Operating Prof...

McKesson (MCK) came out with quarterly earnings of $11.69 per share, beating the Zacks Consensus Estimate of $11.56 per share. This compares to earnings of $10.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.14%. A quarter ago, it was expected that this prescription drug distributor would post earnings of $9.31 per share when it actually produced earnings of $9.34, delivering a surprise of +0.32%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. McKesson, which belongs to the Zacks Medical - Dental Supplies industry, posted revenues of $96.3 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 5.52%. This compares to year-ago revenues of $90.82 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. McKesson shares have lost about 9.3% since the beginning of the year versus the S&P 500's gain of 7.6%. While McKesson has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for McKesson was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong...

McKesson Corporation MCK reported fourth-quarter fiscal 2026 adjusted earnings per share (EPS) of $11.69, which beat the Zacks Consensus Estimate of $11.56 by 1.1%. The bottom line improved 15.5% on a year-over-year basis. The EPS growth was driven by strong operational improvement across the business, including contributions from acquisitions in the Oncology & Multispecialty segment. GAAP EPS was $13.71 compared with $10.01 in the year-ago quarter. The significant improvement in EPS was due to a pre-tax credit within the North American Pharmaceutical segment related to the Rite Aid bankruptcy. For fiscal 2026, adjusted EPS was up 18.3% to $39.11 while GAAP EPS gained 49.2% to $38.38. Revenues of $96.3 billion missed the Zacks Consensus Estimate by 5.5%. The top line gained 6% year over year, primarily driven by increased prescription volumes from retail national account customers and growth in the distribution of oncology and specialty products, including contributions from the Oncology & Multispecialty segment. These were partially offset by lower contributions from branded pharmaceuticals. Higher contributions from the Prescription Technology Solutions segment also aided the top line. For fiscal 2026, revenues amounted to $403.43 billion, gaining 12.4% year over year. Shares of MCK were down 0.4% in the after-hours trading on May 7, following mixed results. The company’s shares have lost 9.7% so far this year compared with the industry’s 10.4% decline. The S&P 500 Index has increased 8.6% in the same time frame. Image Source: Zacks Investment Research The company started reporting under new reportable segments and organizational structure, effective from the second quarter of fiscal 2026. The current reporting segments are North American Pharmaceutical, Oncology & Multispecialty, Prescription Technology Solutions and Medical-Surgical Solutions. Revenues from the North American Pharmaceutical segment totaled $79.12 billion, up 3% year over year. Per management, the upside was primarily driven by increased prescription volumes, including higher volumes from specialty products, partially offset by lower contributions from branded pharmaceuticals. The U.S. Pharmaceutical and Specialty Solutions segment reported an adjusted operating profit of $980 million, up 11% from the prior-year quarter’s level. This was due to growth in the distribution of specialty prod...

McKesson's (MCK) fiscal 2027 guidance is "encouraging," and its commentary on biosimilars should hel

McKesson Corporation MCK is scheduled to report fourth-quarter fiscal 2026 results on May 7, after market close. The Zacks Consensus Estimate for sales is pegged at $101.92 billion, implying 12.2% year-over-year growth. The bottom line estimate is pinned at $11.56, suggesting growth of 14.2%. The EPS estimates have remained stable over the past seven days. The company delivered an earnings surprise of 0.32% in the last reported quarter. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 3.60%. McKesson Corporation price-eps-surprise | McKesson Corporation Quote Our proven model does not conclusively predict an earnings beat for McKesson this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below. Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate is -0.07% for MCK. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Zacks Rank: The company carries a Zacks Rank #3 at present. McKesson is expected to have delivered another solid quarterly performance in the fiscal fourth quarter, supported by continued momentum across its oncology and multispecialty platform, strength in biopharma services, and resilient pharmaceutical distribution trends. Management highlighted broad-based demand across specialty distribution and stable utilization trends in the prior quarter, while raising full-year adjusted EPS guidance to $38.80-$39.20, implying confidence in sustained operational execution. The North American Pharmaceutical segment likely remained the primary growth engine, benefiting from higher prescription volumes, specialty product distribution strength, and continued GLP-1 demand. GLP-1 distribution revenues rose 26% year over year in the prior quarter to $14 billion, and management suggested that the category continues to expand despite variability in quarterly trends. Specialty distribution growth from health systems and retail national accounts is also expected to have supported segment profitability. Operational efficiency initiatives, including AI-enabled workflow automation and improved inventory management, likely aided margins. However, brand...