olivLaw · US equity research
McKesson Corporation MCK
Wholesale-Drugs, Proprietaries & Druggists' Sundries · SIC 5122 · Vertical: Wholesale-Drugs, Proprietaries & Druggists' Sundries (SIC 5122)
McKesson Corporation (NYSE: MCK) is a diversified healthcare services leader that reported first quarter fiscal 2027 consolidated revenues of 105.4 billion USD, up 8%. Adjusted diluted EPS rose 20% to 9.93 USD, and full-year adjusted EPS guidance was raised to 44.20-45.00 USD. The company remains in transition through the planned separation of its Medical-Surgical Solutions segment.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, McKesson Corporation (MCK) stock was 1,069.44 USD (+6.98% on the day), with market capitalisation 123.5 bn USD, P/E 27.5 on diluted EPS of 38.87 USD over the last 12 months, dividend yield 0.32%, beta 0.06, 52-week range 725.17–1,069.44 USD. Latest reported quarter (Q2 2027): revenue of 111.0 bn USD (+7.6% YoY), net income of 1.2 bn USD (+9.7% YoY), diluted EPS 10.44 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 74.0
- overbought (≥ 70)
- Bollinger (20, 2)
- 926.88 – 1,053.05
- above the upper band · %B 1.13 · band width 12.7%
- SMA 50 / 200
- 930.78 / 865.44
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 26.31 / 24.82
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +16.8% | −1.1% | +17.9 pp | — |
| 3 months | +21.9% | −0.5% | +22.4 pp | — |
| 6 months | +43.8% | +4.4% | +39.4 pp | — |
| Year to date | +30.4% | +12.3% | +18.1 pp | — |
| 1 year | +27.1% | +13.5% | +13.5 pp | −4.3% |
| 3 years | +136.2% | +76.4% | +59.8 pp | −24.8% |
| 5 years | +382.4% | +63.7% | +318.7 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2027 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 | Q2 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 95.3 bn | 90.8 bn | 97.8 bn | 103.2 bn | 106.2 bn | 96.3 bn | 105.4 bn | 111.0 bn |
| Cost of revenue | 92.0 bn | 87.2 bn | 94.5 bn | 99.6 bn | 102.5 bn | 92.3 bn | 101.7 bn | 107.0 bn |
| Gross profit | 3.3 bn | 3.6 bn | 3.3 bn | 3.5 bn | 3.7 bn | 4.0 bn | 3.7 bn | 4.0 bn |
| SG&A | 2.0 bn | 2.0 bn | 2.2 bn | 2.1 bn | 2.0 bn | 1.8 bn | 2.3 bn | 2.3 bn |
| Operating income | 1.2 bn | 1.6 bn | 1.0 bn | 1.4 bn | 1.6 bn | 2.2 bn | 1.3 bn | 1.6 bn |
| Depreciation & amortisation | 153.0 m | -213.0 m | 157.0 m | 188.0 m | 188.0 m | -246.0 m | 195.0 m | 197.0 m |
| Interest expense | 67.0 m | 45.0 m | 49.0 m | 74.0 m | 63.0 m | 61.0 m | 77.0 m | 105.0 m |
| Pre-tax income | 1.2 bn | 1.5 bn | 1.1 bn | 1.4 bn | 1.6 bn | 2.1 bn | 1.3 bn | 1.6 bn |
| Income tax | 298.0 m | 209.0 m | 220.0 m | 232.0 m | 380.0 m | 270.0 m | 276.0 m | 266.0 m |
| Net income | 879.0 m | 1.3 bn | 784.0 m | 1.1 bn | 1.2 bn | 1.7 bn | 614.0 m | 1.2 bn |
| Diluted EPS | 6.95 | 10.00 ≈ | 6.25 | 8.92 | 9.59 | 13.69 ≈ | 5.15 | 10.44 |
| Operating cash flow | -2.4 bn ≈ | 7.7 bn | -918.0 m | 2.4 bn ≈ | 1.2 bn ≈ | 3.4 bn | -220.0 m | 3.1 bn ≈ |
| Capex | 126.0 m ≈ | 169.0 m | 111.0 m | 106.0 m ≈ | 108.0 m ≈ | 111.0 m | 112.0 m | 65.0 m ≈ |
| Dividends paid | 92.0 m ≈ | 91.0 m | 90.0 m | 89.0 m ≈ | 101.0 m ≈ | 101.0 m | 102.0 m | 96.0 m ≈ |
| Share repurchases | 827.0 m ≈ | 300.0 m | 581.0 m | 818.0 m ≈ | 680.0 m ≈ | 2.7 bn | 2.5 bn | 894.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 78 percentile of its own 36-quarter history (min 6.4, median 23.6, max 1,951.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 214.3 bn | 231.1 bn | 238.2 bn | 264.0 bn | 276.7 bn | 309.0 bn | 359.1 bn | 403.4 bn |
| Revenue YoY | +2.9% | +7.8% | +3.1% | +10.8% | +4.8% | +11.7% | +16.2% | +12.4% |
| Net income | 34.0 m | 900.0 m | -4.5 bn | 1.1 bn | 3.6 bn | 3.0 bn | 3.3 bn | 4.8 bn |
| Net income YoY | −49.3% | +2,547.1% | −604.3% | unavailable | +219.6% | −15.7% | +9.8% | +44.5% |
| Diluted EPS | 0.17 | 4.95 | -28.26 | 7.23 | 25.03 | 22.39 | 25.72 | 38.38 |
| Diluted EPS YoY | −46.9% | +2,811.8% | −670.9% | unavailable | +246.2% | −10.5% | +14.9% | +49.2% |
| net % | 0.0% | 0.4% | -1.9% | 0.4% | 1.3% | 1.0% | 0.9% | 1.2% |
| Free cash flow | 3.6 bn | 4.0 bn | 4.1 bn | 4.0 bn | 4.8 bn | 3.9 bn | 5.5 bn | 5.7 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 31 Mar 2026
- Cash
- 4.0 bn USD
- Financial debt
- 7.8 bn USD
- Net debt
- 3.8 bn USD
- Equity
- -1.8 bn USD
- Total assets
- 82.3 bn USD
- Debt / equity
- unavailable
- Current ratio
- 0.85x
- ROE
- unavailable
- ROA
- 6.0%
- FCF margin
- 1.4%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 238.2 bn | 264.0 bn | 276.7 bn | 309.0 bn | 359.1 bn | 403.4 bn | SEC (XBRL)· 08 May 2026verified |
| Cost of revenue | 226.1 bn | 250.8 bn | 264.4 bn | 296.1 bn | 345.7 bn | 388.9 bn | SEC (XBRL)· 08 May 2026verified |
| Gross profit | 12.1 bn | 13.1 bn | 12.4 bn | 12.8 bn | 13.3 bn | 14.6 bn | SEC (XBRL)· 08 May 2026verified |
| SG&A | 8.8 bn | 10.5 bn | 7.8 bn | 8.7 bn | 8.5 bn | 8.1 bn | SEC (XBRL)· 08 May 2026verified |
| Operating income | -5.0 bn | 2.0 bn | 4.4 bn | 3.9 bn | 4.4 bn | 6.2 bn | SEC (XBRL)· 08 May 2026verified |
| Depreciation & amortisation | 344.0 m | 312.0 m | 272.0 m | 279.0 m | 272.0 m | 287.0 m | SEC (XBRL)· 08 May 2026verified |
| EBITDA | -4.7 bn ≈ | 2.4 bn ≈ | 4.7 bn ≈ | 4.2 bn ≈ | 4.7 bn ≈ | 6.5 bn ≈ | SEC (XBRL)· 08 May 2026derived |
| Interest expense | 217.0 m | 178.0 m | 248.0 m | 252.0 m | 265.0 m | 247.0 m | SEC (XBRL)· 08 May 2026verified |
| Pre-tax income | -5.0 bn | 1.9 bn | 4.6 bn | 3.8 bn | 4.4 bn | 6.2 bn | SEC (XBRL)· 08 May 2026verified |
| Income tax | -695.0 m | 636.0 m | 905.0 m | 629.0 m | 878.0 m | 1.1 bn | SEC (XBRL)· 08 May 2026verified |
| Net income | -4.5 bn | 1.1 bn | 3.6 bn | 3.0 bn | 3.3 bn | 4.8 bn | SEC (XBRL)· 08 May 2026verified |
| Diluted EPS | -28.26 | 7.23 | 25.03 | 22.39 | 25.72 | 38.38 | SEC (XBRL)· 08 May 2026verified |
| Weighted average diluted shares | 160.6 m | 154.1 m | 142.2 m | 134.1 m | 128.1 m | 124.1 m | SEC (XBRL)· 08 May 2026verified |
| Dividend per share | 1.67 | 1.83 | 2.09 | 2.40 | 2.75 | 3.17 | SEC (XBRL)· 08 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 6.3 bn | 3.5 bn | 4.7 bn | 4.6 bn | 5.7 bn | 4.0 bn | SEC (XBRL)· 08 May 2026verified |
| Inventories | 19.2 bn | 18.7 bn | 19.7 bn | 21.1 bn | 23.0 bn | 24.2 bn | SEC (XBRL)· 08 May 2026verified |
| Current assets | 45.4 bn | 46.2 bn | 44.3 bn | 48.0 bn | 55.4 bn | 57.2 bn | SEC (XBRL)· 08 May 2026verified |
| Property, plant & equipment, net | 2.6 bn | 2.1 bn | 2.2 bn | 2.3 bn | 2.5 bn | 2.7 bn | SEC (XBRL)· 08 May 2026verified |
| Goodwill | 9.5 bn | 9.5 bn | 9.9 bn | 10.1 bn | 10.0 bn | 11.3 bn | SEC (XBRL)· 08 May 2026verified |
| Intangibles (excl. goodwill) | 2.9 bn | 2.1 bn | 2.3 bn | 2.1 bn | 1.5 bn | 4.1 bn | SEC (XBRL)· 08 May 2026verified |
| Total assets | 65.0 bn | 63.3 bn | 62.3 bn | 67.4 bn | 75.1 bn | 82.3 bn | SEC (XBRL)· 08 May 2026verified |
| Accounts payable | 39.0 bn | 38.1 bn | 42.5 bn | 47.1 bn | 55.3 bn | 60.0 bn | SEC (XBRL)· 08 May 2026verified |
| Short-term debt | 0 | 0 | 0 | 0 | 1.2 bn | 1.3 bn | SEC (XBRL)· 08 May 2026verified |
| Long-term debt | 6.4 bn | 5.9 bn | 5.6 bn | 5.6 bn | 5.7 bn | 6.5 bn | SEC (XBRL)· 08 May 2026verified |
| Current liabilities | 44.1 bn | 48.5 bn | 48.0 bn | 52.4 bn | 61.6 bn | 67.0 bn | SEC (XBRL)· 08 May 2026verified |
| Equity | 175.0 m | -1.8 bn | -1.5 bn | -1.6 bn | -1.7 bn | -1.8 bn | SEC (XBRL)· 08 May 2026verified |
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 4.5 bn | 4.4 bn | 5.2 bn | 4.3 bn | 6.1 bn | 6.2 bn | SEC (XBRL)· 08 May 2026verified |
| Capex | 451.0 m | 388.0 m | 390.0 m | 431.0 m | 537.0 m | 436.0 m | SEC (XBRL)· 08 May 2026verified |
| Free cash flow | 4.1 bn ≈ | 4.0 bn ≈ | 4.8 bn ≈ | 3.9 bn ≈ | 5.5 bn ≈ | 5.7 bn ≈ | SEC (XBRL)· 08 May 2026derived |
| Investing cash flow | -415.0 m | -89.0 m | -542.0 m | -1.1 bn | -733.0 m | -3.4 bn | SEC (XBRL)· 08 May 2026verified |
| Financing cash flow | -1.7 bn | -6.3 bn | -4.4 bn | -3.3 bn | -4.0 bn | -4.6 bn | SEC (XBRL)· 08 May 2026verified |
| Dividends paid | 276.0 m | 277.0 m | 292.0 m | 314.0 m | 345.0 m | 381.0 m | SEC (XBRL)· 08 May 2026verified |
| Share repurchases | 742.0 m | 3.5 bn | 3.6 bn | 3.0 bn | 3.1 bn | 4.8 bn | SEC (XBRL)· 08 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 69 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 123.5 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation25
- Balance sheet82
- Quality94
- Growth100
- Returns90
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 353.59 – 1,618.78 USD.
Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)1,027.31 – 1,618.78 (Mid 1,254.93)WACC 9.0% · starting FCFF 7.4 bn USD · terminal value share of EV 75%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 6.3%
- Peers: EV/EBITDA353.59 – 996.03 (Mid 669.02)4 companies used · median multiple 11.5x · quartiles 6.3x – 16.9xCAH, COR, HLF, NUS
- Peers: P/E687.29 – 1,214.77 (Mid 1,021.41)3 companies used · median multiple 26.3x · quartiles 17.7x – 31.3xCAH, COR, HLF
- Dividend discount (DDM)outside the aggregate41.66 – 56.02 (Mid 47.78)a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 69/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 1.1% | 88 (vs peers) | 7% |
| FCF conversion · Quality | 151.2% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 13.4% | 100 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | 15.3% | 100 (on a fixed band) | 9% |
| Net debt / EBITDA · Balance sheet | 0.5x | 100 (on a fixed band) | 12% |
| Interest coverage · Balance sheet | 21.9x | 100 (on a fixed band) | 7% |
| Current ratio · Balance sheet | 0.9x | 8 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 27.5x | 11 (on a fixed band) | 12% |
| EV/EBITDA · Valuation | 18.1x | 0 (on a fixed band) | 12% |
| FCF yield · Valuation | 5.8% | 72 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 5.8% | 83 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | 5.6% | 100 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet82/100 · 3/3 factors with a value
- Growth100/100 · 2/2 factors with a value
- Quality94/100 · 2/3 factors with a value
- Returns90/100 · 2/2 factors with a value
- Valuation25/100 · 3/3 factors with a value
Memo
McKESSON CORPORATION (MCK). Latest full fiscal year: 2026; data up to 2026-09-30.
Figures computed from the financial statements: revenue 403.4 bn USD in 2026; YoY growth 12.4%; net margin 1.1%; net debt/EBITDA 0.5x.
The estimated value range is 687.29–1,214.77 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 1,021.41 USD, the price of 1,069.44 USD leaves a potential of -4.5% (value / price − 1) and a margin of safety of -4.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 69/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 1.1%
- FCF conversion: 151.2%
- Revenue CAGR 3Y: 13.4%
- EPS CAGR 3Y: 15.3%
- Net debt / EBITDA: 0.5x
- Interest coverage: 21.9x
- FCF yield: 5.8%
- Shareholder yield (distributions): 5.8%
- Payout ratio (FCF): 5.6%
What contradicts it
- Current ratio: 0.9x
- P/E (TTM): 27.5x
- EV/EBITDA: 18.1x
Not assessed (insufficient data or a ratio without meaning): ROIC.
Versus the vertical median
Wholesale-Drugs, Proprietaries & Druggists' Sundries (SIC 5122) · same industry (4-digit SIC) · compared with 8 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| MCKMcKESSON CORPORATION | 123.5 bn | 27.5 | — | 1.1% | +12.4% | +27% / +136% |
| CORCencora, Inc. | 67.6 bn | 26.3 | 104.3% | 0.8% | +9.3% | −4% / +74% |
| CAHCardinal Health, Inc. | 60.9 bn | 36.2 | — | 0.7% | +14.2% | +23% / +145% |
| HLFHerbalife Ltd. | 1.6 bn | 9.1 | — | 3.4% | +0.9% | +20% / +19% |
| NUSNu Skin Enterprises, Inc. | 242.9 m | — | -32.5% | -15.7% | −14.3% | −50% / −71% |
| COSMCosmos Health Inc. | 33.0 m | — | -104.0% | -33.1% | +19.9% | −49% / −69% |
| HKPDCellyan Biotechnology Co., Ltd | 30.2 m | — | -0.6% | -0.1% | +21.7% | +87% / unavailable |
| ESYNHwh International Inc. | 11.6 m | — | -88.9% | -680.0% | −30.8% | −4% / −97% |
| MEDSDataMeds AI, Inc. | 4.6 m | — | — | -1,100.3% | +28.7% | −95% / unavailable |
1- and 3-year price returns: for MCK from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 721.21 Total return -32% · Per year -32% | 1,270.05 Total return 19% · Per year 19% | 1,906.19 Total return 79% · Per year 79% |
| 3 years | 830.64 Total return -21% · Per year -8% | 1,632.98 Total return 54% · Per year 15% | 2,671.83 Total return 151% · Per year 36% |
| 5 years | 956.66 Total return -9% · Per year -2% | 2,099.62 Total return 99% · Per year 15% | 3,744.98 Total return 253% · Per year 29% |
- Exit P/E± 408.24
- Net margin± 285.77
- Annual revenue growth± 216.16
- Annual dilution± 24.01
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (04 Nov 2026 · results).
In brief
McKesson Corporation (NYSE: MCK) is a diversified healthcare services leader that reported first quarter fiscal 2027 consolidated revenues of 105.4 billion USD, up 8% 3. Adjusted diluted EPS rose 20% to 9.93 USD, and full-year adjusted EPS guidance was raised to 44.20-45.00 USD 3. The company remains in transition through the planned separation of its Medical-Surgical Solutions segment 23.
SWOT
Strengths
- The company has a broad base of distribution operations, with multiple centers across the United States and networks of partner pharmacies 1. Diversification across four segments offers a balanced structure among distribution, oncology, technology and medical products 1.
- Growth in adjusted profit and the raised guidance for fiscal 2027 point to solid operational execution 3. The company has access to financing through new credit facilities, which supports its plans 2.
- Activity in the oncology segment is supported by clinical networks and integrated acquisitions, which could strengthen its position in specialty services 13.
Weaknesses
- Free cash flow was negative in the first quarter of fiscal 2027, pointing to sensitivity in working capital 3. The decline in diluted EPS in the same quarter was influenced by adjustments tied to the Medical-Surgical Solutions segment 3.
- Adjusted profit in the Medical-Surgical Solutions segment fell, as product mix and one-time costs pressured margins 3. Reliance on a few large segments can make results vulnerable to changes in those areas 1.
- The company faces numerous legal proceedings and exposures, some of which may generate costs not covered by insurance 1.
Opportunities
- The separation of Medical-Surgical Solutions could create an independent entity with its own growth strategy, if the transaction and approvals are completed 12.
- Growth in specialty drug volumes and access services could expand revenues in the oncology and technology segments 3.
- Buyback and dividend programs could support shareholder value if cash flows return to normal levels 23.
Threats
- Changes in distribution and reimbursement regulation could create extra costs or operating restrictions 12.
- Outcomes of opioid-related and other litigation could carry significant financial and reputational impact 1.
- Bankruptcies among pharmacy customers can generate receivable losses, as happened in the prior-year quarter 3.
Risks
- Litigation and opioid exposurehigh
The company is a defendant in cases involving the distribution of controlled substances, and outcomes may include damages, fines and obligations to change operations 1. Even with a favorable resolution, costs and management attention can be significant 1.
- Regulation and compliancehigh
The sector is subject to frequently changing rules on healthcare fraud, privacy and controlled substances 1. Violations could lead to sanctions, loss of licenses or restrictions on participation in government programs 1.
- Asset impairmentmedium
The company could record impairment of goodwill and long-lived assets if performance or economic conditions deteriorate 1. Such impairment could have a significant effect on reported results 1.
- Separation of Medical-Surgical Solutionsmedium
The separation depends on regulatory approvals and closing conditions, and the redefinition of the segment may change reported results 12. Adjustments tied to noncontrolling interests have already affected quarterly profit 3.
- Cybersecurity and data risksmedium
Cybersecurity incidents or misuse of artificial intelligence tools could compromise confidential data and create liability 1. Compliance costs for privacy laws are rising, and breaches can lead to fines 1.
Investment thesis
What would need to be true (bull case)
- Growth in revenue and adjusted profit in the first quarter of fiscal 2027, together with the raised guidance, could indicate that the operating base is solid and that growth momentum may continue 3.
- The oncology and specialty services segment shows rapid growth, and integrating acquisitions could produce more stable long-term revenues 13.
- The buyback and dividend policy, if cash flows remain sufficient, could support long-term shareholder interest 23.
What would break the thesis
- Negative free cash flow in the first quarter and separation-related costs could limit the ability to fund growth and shareholder returns at the same time 3.
- Opioid-related litigation and shifting regulation could generate unpredictable costs and reputational pressure 12.
- Dependence on prescription volumes and a few large customers could expose the company to sudden declines if those volumes shift 13.
What to watch
- Completion of the Medical-Surgical Solutions separation and regulatory approvals2027
- Trend in free cash flow and working capitalQ2 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (04 Nov 2026 · results).
The business
The Oncology & Multispecialty segment includes specialty drug distribution, group purchasing, infusion services and the U.S. Oncology Network, along with controlling interests in PRISM Vision and Sarah Cannon Research Institute and the Ontada technology platform 1. Prescription Technology Solutions connects patients, pharmacies, providers and payers around medication access, through services such as electronic prior authorization and price transparency 1. Medical-Surgical Solutions supplies medical and laboratory products to non-acute providers, and the company has announced its intention to separate it as an independent business 12.
Segments
Medical-Surgical Solutions
Segment revenues were 2.8 billion USD in the first quarter of fiscal 2027, up 4% 3. Adjusted segment operating profit fell 20%, reflecting product mix and one-time administrative expenses, and the planned separation is partly financed by the Apollo investment and new secured loans 23.
Market context
The pharmaceutical and medical distribution market, as described in the sources we work with, is tightly regulated and depends on prescription volumes and government policy 12. Revenue growth in the North American segment, which reached 86.8 billion USD in the first quarter of fiscal 2027, shows the scale of this market 3.
The oncology and specialty services market is one in which providers compete through clinic networks, technology and access to complex therapies 1. A 33% revenue increase in this segment points to strong demand, though its trajectory depends on reimbursement conditions and the integration of acquisitions 13.
Trends
- Government policy and regulationheadwind
The company states that its sector is subject to intense and rapidly changing regulation, which can alter reimbursement policies and compliance costs 2. The effect of such changes cannot be predicted with certainty, but they could weigh on margins if new obligations emerge 2
- Growth in prescription volumes and specialty productstailwind
First quarter fiscal 2027 revenues rose on higher prescription volumes and distribution of specialty products to health systems and strategic partners 3. If this trend holds, it could support demand for distribution and related services 3.
- Capital allocation disciplinemixed
The company returned 2.6 billion USD to shareholders in the first quarter of fiscal 2027 and raised its quarterly dividend to 0.94 USD per share, indicating a sustained buyback and dividend policy 3. If cash flows remain sufficient, the policy could continue, although free cash flow was negative in the quarter 3.
- Litigation and opioid exposureheadwind
The company is a defendant in numerous cases involving the distribution of controlled substances, and the outcomes are hard to predict 1. An unfavorable result could affect reputation and finances, which is why this remains a persistent factor 1.
Competitive position
The sources we analyze do not describe direct competitors in detail, but they note that pharmaceutical distribution and related services are a competitive sector in which contracts and volumes are decisive 1. The prescription technology and oncology segments compete with other providers of access solutions and services for medical practices 1.
The company's competitive position is supported by the scale of its distribution network and its integration with pharmacies, medical practices and biopharma 1. If these advantages persist, the company could keep its market position, though the sources offer no quantitative comparison with rivals 1.
- Pharmaceutical distribution peers, not named in the source
The sources do not name direct competitors; the company operates in a distribution sector with several participants, and a comparison cannot be made from the available text.
- Providers of medication access and pharmacy technology solutions
Competition in the Prescription Technology Solutions segment comes from platforms connecting patients, pharmacies and payers, which are not identified in the analyzed sources.
- Operators of oncology networks and specialty practice services
The Oncology & Multispecialty segment competes with other networks and practice groups offering similar services to specialist physicians.
- Suppliers of medical and laboratory products to non-acute care
Medical-Surgical Solutions competes in the market for products and distribution to clinics and extended care, with no competitors named in our sources.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- McKesson Corporation (MCK) Doubles Down on Healthcare Growth With Precision Medicine AcquisitionYahoo Finance — News · 29 Aug 2026 · EN
The latest news item in our archive is from 29 Aug 2026; the newest SEC filing is from 04 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report04 Nov 2026
- Current report04 Nov 2026Results of operations · Financial statements and exhibits
- Current report06 Oct 2026Regulation FD disclosure · Financial statements and exhibits
- Current report28 Aug 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report05 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Current report24 Jul 2026Shareholder vote
- Current report01 Jul 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Proxy statement12 Jun 2026
- Current report12 Jun 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-03-31 · SEC / McKesson Corporation · 08 May 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / McKesson Corporation · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / McKesson Corporation · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.