McKesson Corporation
MCK
$827.14
-3.39%
McKesson Corporation is a leading healthcare services and information technology company, primarily engaged in the wholesale distribution of pharmaceutical products and medical-surgical supplies across the United States and Canada. As one of the 'Big Three' pharmaceutical wholesalers, McKesson, alongside Cencora and Cardinal Health, controls over 90% of the U.S. pharmaceutical distribution market, giving it significant scale and competitive moat. The current investor narrative centers on McKesson's strategic pivot toward higher-margin oncology and specialty services, its Prescription Technology Solutions segment, and its ability to sustain growth amid a challenging operating environment characterized by drug pricing pressures and evolving pharmacy models. Recent quarterly results showed robust revenue growth and improved profitability, reinforcing confidence in the company's transformation strategy.…
MCK
McKesson Corporation
$827.14
MCK 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on McKesson Corporation's 12-month outlook, with a consensus price target around $947.13 and implied upside of +14.5% versus the current price.
Average Target
$947.13
0 analysts
Implied Upside
+14.5%
vs. current price
Analyst Count
—
covering this stock
Price Range
$812 - $1065
Analyst target range
The target price range spans from $812.00 (low) to $1,065.00 (high), representing a wide spread of 31.2% from the low to the high. The high target of $1,065 implies a 24.4% upside from the current price, suggesting that some analysts see significant potential from McKesson's oncology and specialty expansion, as well as potential multiple expansion. The low target of $812.00 implies a downside of 5.2%, which may reflect concerns about drug pricing pressures or competitive threats. The wide range indicates elevated uncertainty about the pace of growth and margin expansion, but the overall consensus remains positive, with recent ratings actions showing no downgrades and several reaffirmations of Overweight/Buy stances.
MCK Technical Analysis
McKesson's stock has demonstrated a strong long-term uptrend, with a 1-year price change of +23.45%, significantly outperforming the S&P 500's +18.19% over the same period. The current price of $856.19 sits at approximately 85.7% of the 52-week range (between $637.00 low and $999.00 high), indicating the stock is trading closer to its highs but has pulled back from the peak. This positioning suggests the market retains a generally bullish bias, though the recent pullback from the $999 high may signal profit-taking or consolidation after a strong run.
Beta
0.31
0.31x market volatility
Max Drawdown
-27.2%
Largest decline past year
52-Week Range
$637-$999
Price range past year
Annual Return
+18.4%
Cumulative gain past year
| Period | MCK Return | S&P 500 |
|---|---|---|
| 1m | +5.2% | +1.7% |
| 3m | +3.3% | +4.7% |
| 6m | +0.6% | +10.4% |
| 1y | +18.4% | +21.9% |
| ytd | +0.4% | +11.1% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
MCK Fundamental Analysis
McKesson's revenue trajectory remains robust, with the most recent quarter (Q4 FY2026, ended March 31, 2026) reporting $96.3 billion in revenue, a 6.02% year-over-year increase. This growth is consistent with the prior quarter's $106.2 billion (Q3 FY2026) and reflects continued strength in the North American Pharmaceutical segment, which generated $161.8 billion in annual revenue, and the Oncology and Multispecialty segment at $23.4 billion. However, growth has been slightly decelerating from the 10.6% YoY growth seen in Q1 FY2026, suggesting a normalization after a period of elevated demand. The company's diversified segments, including Medical-Surgical Solutions ($2.9 billion) and Prescription Technology Solutions ($2.9 billion), provide additional growth avenues, though they remain smaller contributors.
Quarterly Revenue
$96.3B
2026-03
Revenue YoY Growth
+6.0%
YoY Comparison
Gross Margin
4.2%
Latest Quarter
Free Cash Flow
$5.9B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
Open an Account, get $2 TSLA now!
Valuation Analysis: Is MCK Overvalued?
Given McKesson's positive net income, the price-to-earnings (PE) ratio is the most appropriate valuation metric. The trailing PE stands at 22.45x, while the forward PE is 16.99x, implying the market expects significant earnings growth (approximately 32% increase) over the next year. This gap is consistent with the company's PEG ratio of 0.46, which suggests the stock is attractively priced relative to its growth rate. Compared to the industry average PE of 18.5x (based on available data), McKesson trades at a 21% premium on a trailing basis, but the forward PE of 16.99x is at a discount, indicating that the market is pricing in future earnings improvements. Historically, McKesson's PE has ranged from 12.16x to 66.10x over the past five years, with the current trailing PE of 22.45x sitting near the lower end of that range, suggesting the stock is not overvalued relative to its own history.
PE
22.4x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 12x~31x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
15.5x
Enterprise Value Multiple