A Business at a Glance
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MCKESSON CORP
MCK
$104.3B
Mkt Cap
$840.90
+1.99%
MCKESSON CORP (MCK) has a current P/E ratio of 24.3, compared to its historical median P/E of 24.1. The stock is currently considered Fair based on its historical valuation range.
MCKESSON CORP (MCK) has a 5-year average return on invested capital (ROIC) of 4.8%. This is below average and may indicate limited pricing power.
MCKESSON CORP (MCK) has a market capitalization of $104.3B. It is classified as a large-cap stock.
Yes, MCKESSON CORP (MCK) pays a dividend with a trailing twelve-month yield of 0.37%. The company also returns capital through share buybacks, with a buyback yield of 4.55%.
Based on historical P/E analysis, MCKESSON CORP (MCK) appears fair. The current P/E of 24.3 is 1% above its historical median of 24.1. The estimated fair value CAGR (P/E method) is 94.5%.
MCKESSON CORP (MCK) operates in the Wholesale-Drugs, Proprietaries & Druggists' Sundries industry, within the Consumer Defensive sector.
MCKESSON CORP (MCK) reported annual revenue of $403.4 billion in its most recent fiscal year, based on SEC EDGAR filings.
McKesson Corporation is a diversified healthcare services leader operating through four reportable segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs through a network of 27 distribution centers, serving retail national accounts, community pharmacies, institutional healthcare providers, and oncology and specialty practices; it generates revenue through distribution logistics, supply chain solutions, practice management services, and technology platforms such as McKesson Connect and ExpressRx Track. The RxTS segment connects patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies to address medication access, affordability, and adherence challenges through electronic prior authorization, prescription price transparency, benefit insight, and third-party logistics services. The Medical-Surgical Solutions segment distributes over 245,000 national brand medical-surgical products and proprietary products to healthcare providers including physician offices, surgery centers, nursing homes, and home health agencies through a network of U.S. distribution centers. The International segment provides distribution and services in Canada and Norway, including retail pharmacy operations and technology solutions. McKesson's business model is asset-light in distribution but capital-intensive in technology infrastructure and automation; the company earns revenue through transactional distribution margins, subscription-based technology services, and consulting fees, with significant operating leverage from scale—distributing approximately one-third of pharmaceuticals in North America. The company's competitive moat derives from its scaled distribution network, proprietary technology platforms, exclusive relationships (such as CDC Vaccines for Children program), and integrated service offerings that create switching costs for customers across the healthcare value chain.
【Strategic portfolio transformation advancing】 McKesson is executing a disciplined portfolio strategy focused on high-growth oncology and multispecialty platforms while separating its Medical-Surgical Solutions business through an anticipated initial public offering by the second half of calendar 2027, followed by a spinoff or split-off of remaining interests. The company is investing in automation and AI-driven capabilities to modernize operations and accelerate growth while creating enterprise-wide efficiencies. Management expects sustained momentum across core businesses supported by stable prescription volume growth, continued expansion in GLP-1 medications with anticipated quarter-to-quarter variability, and strong demand for access and affordability solutions particularly for complex and specialty therapies. The company maintains disciplined capital allocation, planning approximately $5 billion in share repurchases in fiscal 2027 while preserving a strong investment-grade balance sheet and targeting long-term adjusted earnings per diluted share growth of 13%-16%.
| Metric | Target | Period |
|---|---|---|
| Adjusted earnings per diluted share | $43.80–$44.60 | FY2027 |
| Revenue growth | 5%-9% | FY2027 |
| Adjusted operating profit growth | 8%-12% | FY2027 |
| North American Pharmaceutical revenue growth | 4%-8% | FY2027 |
| North American Pharmaceutical operating profit growth | 5.5%-9.5% | FY2027 |
| Oncology and Multispecialty revenue growth | 14.5%-18.5% | FY2027 |
| Oncology and Multispecialty operating profit growth | 13.5%-17.5% | FY2027 |
| Prescription Technology Solutions revenue growth | 2.5%-6.5% | FY2027 |
| Prescription Technology Solutions operating profit growth | 11%-15% | FY2027 |
| Medical-Surgical Solutions revenue growth | 1%-6% | FY2027 |
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 403.4B | 403.4B | 359.1B | 309.0B | 276.7B | 264.0B |
| Net Income | 4.8B | 4.8B | 3.3B | 3.0B | 3.6B | 1.1B |
| EPS | $38.38 | $38.38 | $25.72 | $22.39 | $25.03 | $7.23 |
| Free Cash Flow | 5.7B | 5.7B | 5.5B | 3.9B | 4.8B | 4.0B |
| ROIC | 306.5% | 6.5% | 5.0% | 5.0% | 5.6% | 2.0% |
| Gross Margin | 3.6% | 3.6% | 3.7% | 4.2% | 4.5% | 5.0% |
| Debt/Equity | 0.00 | -3.59 | -3.30 | -2.88 | -3.53 | -2.94 |
| Dividends/Share | $3.07 | $3.17 | $2.75 | $2.40 | $2.09 | $1.83 |
| Operating Income | 6.2B | 6.2B | 4.4B | 3.9B | 4.4B | 2.0B |
| Operating Margin | 1.5% | 1.5% | 1.2% | 1.3% | 1.6% | 0.8% |
| ROE | 0.0% | -224.3% | -162.9% | -156.8% | -172.4% | -97.2% |
| Shares Outstanding | 124M | 124M | 128M | 134M | 142M | 154M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 179.0B | 190.9B | 198.5B | 208.4B | 214.3B | 231.1B | 238.2B | 264.0B | 276.7B | 309.0B | 359.1B | 403.4B | 403.4B |
| Gross Margin | 6.4% | 6.0% | 5.7% | 5.4% | 5.5% | 5.2% | 5.1% | 5.0% | 4.5% | 4.2% | 3.7% | 3.6% | 3.6% |
| R&D | 392M | 392M | 341M | 125M | 71M | 96M | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 7.9B | 7.4B | 7.4B | 8.1B | 8.4B | 9.2B | 8.8B | 10.5B | 7.8B | 8.7B | 8.5B | 8.1B | 8.1B |
| EBIT | 3.0B | 3.5B | 7.1B | 762M | 886M | 2.5B | -5.0B | 2.0B | 4.4B | 3.9B | 4.4B | 6.2B | 6.2B |
| Op. Margin | 1.7% | 1.9% | 3.6% | 0.4% | 0.4% | 1.1% | -2.1% | 0.8% | 1.6% | 1.3% | 1.2% | 1.5% | 1.5% |
| Net Income | 1.5B | 2.3B | 5.1B | 67M | 34M | 900M | -4.5B | 1.1B | 3.6B | 3.0B | 3.3B | 4.8B | 4.8B |
| Net Margin | 0.8% | 1.2% | 2.6% | 0.0% | 0.0% | 0.4% | -1.9% | 0.4% | 1.3% | 1.0% | 0.9% | 1.2% | 1.2% |
| Non-Recurring | 0 | 332M | 210M | 1.9B | 2.2B | 158M | 288M | 245M | 209M | 115M | 344M | 245M | 245M |
| Returns on Capital | |||||||||||||
| ROIC | 14.2% | 18.9% | 35.3% | 4.6% | 3.8% | 32.5% | -6.1% | 2.0% | 5.6% | 5.0% | 5.0% | 6.5% | N/M |
| ROE | 17.9% | 26.7% | 50.7% | 0.6% | 0.4% | 13.7% | -179.0% | -97.2% | -172.4% | -156.8% | -162.9% | -224.3% | 0.0% |
| ROA | 2.8% | 4.1% | 8.6% | 0.1% | 0.1% | 1.5% | -7.2% | 1.7% | 5.7% | 4.6% | 4.6% | 6.0% | 5.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 3.1B | 3.7B | 4.7B | 4.3B | 4.0B | 4.4B | 4.5B | 4.4B | 5.2B | 4.3B | 6.1B | 6.2B | 6.2B |
| Free Cash Flow | 2.7B | 3.2B | 4.3B | 3.9B | 3.6B | 4.0B | 4.1B | 4.0B | 4.8B | 3.9B | 5.5B | 5.7B | 5.7B |
| Owner Earnings | 1.5B | 2.0B | 3.1B | 2.8B | 3.6B | 3.9B | 4.0B | 4.0B | 4.7B | 3.9B | 5.6B | 5.6B | 5.6B |
| CapEx | 376M | 488M | 404M | 405M | 426M | 362M | 451M | 388M | 390M | 431M | 537M | 436M | 436M |
| Maint. CapEx | 1.4B | 1.5B | 1.5B | 1.5B | 317M | 335M | 344M | 312M | 272M | 279M | 272M | 287M | 287M |
| Growth CapEx | 0 | 0 | 0 | 0 | 109M | 27M | 107M | 76M | 118M | 152M | 265M | 149M | 149M |
| D&A | 1.4B | 1.5B | 1.5B | 1.5B | 317M | 335M | 344M | 312M | 272M | 279M | 272M | 287M | 287M |
| CapEx/OCF | 12.1% | 13.3% | 8.5% | 9.3% | 10.6% | 8.3% | 9.9% | 8.8% | 7.6% | 10.0% | 8.8% | N/A | 7.1% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 227M | 244M | 253M | 262M | 292M | 294M | 276M | 277M | 292M | 314M | 345M | 381M | 381M |
| Dividend Yield | 0.5% | 0.6% | 0.7% | 0.9% | 1.2% | 1.2% | 1.1% | 0.8% | 0.6% | 0.5% | 0.5% | N/A | 0.4% |
| Share Buybacks | 450M | 1.6B | 2.3B | 1.7B | 1.6B | 1.9B | 742M | 3.5B | 3.6B | 3.0B | 3.1B | 4.8B | 4.8B |
| Buyback Yield | 0.9% | 4.8% | 7.4% | 6.2% | 7.5% | 8.9% | 2.4% | 7.5% | 7.3% | 4.2% | 3.7% | 0.0% | 4.6% |
| Stock-Based Comp | 174M | 123M | 115M | 69M | 92M | 115M | 151M | 154M | 161M | 182M | 226M | 247M | 247M |
| Debt Repayment | 353M | 1.6B | 1.6B | 2.3B | 1.1B | 298M | 1.0B | 1.6B | 1.3B | 288M | 519M | 1.2B | 1.2B |
| Balance Sheet | |||||||||||||
| Net Debt | 6.0B | 5.7B | 6.8B | 6.3B | 4.9B | 2.4B | 12M | 2.2B | 484M | 391M | 1.2B | 3.8B | 3.8B |
| Cash & Equiv. | 5.3B | 4.0B | 2.8B | 2.7B | 3.0B | 4.0B | 6.3B | 3.5B | 4.7B | 4.6B | 5.7B | 4.0B | 4.0B |
| Long-Term Debt | 9.7B | 8.1B | 8.4B | 7.9B | 7.6B | 7.4B | 7.1B | 5.9B | 5.6B | 5.6B | 5.7B | 6.5B | 6.5B |
| Debt/Equity | 1.42 | 1.09 | 0.87 | 0.92 | 0.98 | 1.66 | -375.71 | -2.94 | -3.53 | -2.88 | -3.30 | -3.59 | 0.00 |
| Interest Coverage | 7.9 | 10.0 | 23.1 | 2.7 | 3.4 | 10.0 | -23.2 | 11.4 | 17.7 | 15.5 | 16.7 | 25.1 | 25.1 |
| Equity | 8.0B | 8.9B | 11.1B | 9.8B | 8.1B | 5.1B | -21M | -2.3B | -1.9B | -2.0B | -2.1B | -2.2B | -2.2B |
| Total Assets | 53.9B | 56.5B | 61.0B | 60.4B | 59.7B | 61.2B | 65.0B | 63.3B | 62.3B | 67.4B | 75.1B | 82.3B | 82.3B |
| Total Liabilities | 45.9B | 47.6B | 49.9B | 50.6B | 51.6B | 56.2B | 65.0B | 65.6B | 64.2B | 69.4B | 77.2B | 84.5B | 84.5B |
| Intangibles | 3.4B | 3.0B | 3.7B | 4.1B | 3.7B | 3.2B | 2.9B | 2.1B | 2.3B | 2.1B | 1.5B | 4.1B | 4.1B |
| Retained Earnings | 12.7B | 8.4B | 13.2B | 13.0B | 12.4B | 13.0B | 8.2B | 9.0B | 12.3B | 15.0B | 17.9B | 22.3B | 22.3B |
| Working Capital | 3.2B | 3.4B | 1.3B | 451M | 839M | -402M | 1.3B | -2.2B | -3.7B | -4.4B | -6.2B | -9.8B | -9.8B |
| Current Assets | 36.7B | 38.4B | 36.9B | 37.1B | 38.5B | 42.2B | 45.4B | 46.2B | 44.3B | 48.0B | 55.4B | 57.2B | 57.2B |
| Current Liabilities | 33.5B | 35.1B | 35.6B | 36.7B | 37.6B | 42.6B | 44.1B | 48.5B | 48.0B | 52.4B | 61.6B | 67.0B | 67.0B |
| Per Share Data | |||||||||||||
| EPS | 6.27 | 9.70 | 22.73 | 0.32 | 0.17 | 4.95 | -28.26 | 7.23 | 25.03 | 22.39 | 25.72 | 38.38 | 38.38 |
| Owner EPS | 6.54 | 8.78 | 13.98 | 13.41 | 18.13 | 21.58 | 25.20 | 25.75 | 33.23 | 28.74 | 43.61 | 45.30 | 45.30 |
| Book Value | 33.99 | 38.34 | 49.74 | 46.83 | 40.47 | 28.01 | -0.13 | -14.75 | -13.06 | -14.70 | -16.19 | -17.51 | -17.51 |
| Cash Flow/Share | 13.22 | 15.77 | 21.27 | 20.75 | 20.18 | 24.06 | 28.28 | 28.78 | 36.27 | 32.18 | 47.50 | 49.61 | 40.69 |
| Dividends/Share | 0.96 | 1.08 | 1.12 | 1.30 | 1.51 | 1.62 | 1.67 | 1.83 | 2.09 | 2.40 | 2.75 | 3.17 | 3.07 |
| Shares Out. | 235.4M | 232.8M | 223.1M | 209.4M | 200.0M | 181.8M | 160.6M | 154.1M | 142.2M | 134.1M | 128.1M | 124.1M | 124.1M |
| Valuation | |||||||||||||
| P/E Ratio | 33.2 | 15.0 | 6.2 | 413.7 | 645.6 | 24.5 | N/A | 41.9 | 14.0 | 23.8 | 25.9 | N/A | 21.9 |
| P/FCF | 17.9 | 10.6 | 7.2 | 7.0 | 6.1 | 5.5 | 7.4 | 11.5 | 10.4 | 18.4 | 15.4 | N/A | 18.2 |
| EV/EBIT | 16.2 | 9.5 | 4.8 | 41.2 | 27.0 | 9.0 | N/A | 22.7 | 10.7 | 17.4 | 18.3 | N/A | 17.4 |
| Price/Book | 6.1 | 3.8 | 2.8 | 2.8 | 2.7 | 4.3 | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Sales | 0.2 | 0.2 | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.2 | 0.2 | 0.2 | N/A | 0.3 |
| FCF Yield | 5.6% | 9.4% | 13.9% | 14.2% | 16.4% | 18.2% | 13.5% | 8.7% | 9.6% | 5.4% | 6.5% | N/A | 5.5% |
| Market Cap | 49.0B | 33.8B | 31.2B | 27.7B | 22.0B | 22.0B | 30.3B | 46.6B | 49.8B | 71.4B | 85.3B | 0 | 104.3B |
| Avg. Price | 182.24 | 184.13 | 152.51 | 143.19 | 124.29 | 132.61 | 155.41 | 214.54 | 343.97 | 436.19 | 568.57 | 0.00 | 840.90 |
| Year-End Price | 208.36 | 145.06 | 139.86 | 132.38 | 109.76 | 121.08 | 188.87 | 302.69 | 349.85 | 532.72 | 665.98 | 0.00 | 840.90 |
MCKESSON CORP passes 4 of 9 quality checks, suggesting mixed fundamentals.
MCKESSON CORP trades at 24.3x trailing earnings, compared to its 15-year median P/E of 24.1x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 10.3x vs a median of 7.4x. The company's 5-year average ROIC is 4.8% with a gross margin of 4.2%. Total shareholder yield (dividends + buybacks) is 4.9%. At current prices, the estimated annualized return to fair value is +11.6%.
MCKESSON CORP (MCK) has a net profit margin of 1.2%. This is a modest margin.
MCKESSON CORP (MCK) generated $5.7 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
MCKESSON CORP (MCK) reported earnings per share (EPS) of $38.38 in its most recent fiscal year.
MCKESSON CORP (MCK) has a return on equity (ROE) of -224.3%. A negative ROE may indicate losses or negative equity.
MCKESSON CORP (MCK) has a 5-year average gross margin of 4.2%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 19 years of financial data for MCKESSON CORP (MCK), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
MCKESSON CORP (MCK) has a book value per share of $-17.51, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, McKesson is executing a disciplined portfolio strategy focused on high-growth oncology and multispecialty platforms while separating its Medical-Surgical Solutions business through an anticipated initial public offering by the second half of calendar 2027, followed by a spinoff or split-off of remaining interests. The company is investing in automation and AI-driven capabilities to modernize operations and accelerate growth while creating enterprise-wide efficiencies. Management expects sustained momentum across core businesses supported by stable prescription volume growth, continued expansion in GLP-1 medications with anticipated quarter-to-quarter variability, and strong demand for access and affordability solutions particularly for complex and specialty therapies. The company maintains disciplined capital allocation, planning approximately $5 billion in share repurchases in fiscal 2027 while preserving a strong investment-grade balance sheet and targeting long-term adjusted earnings per diluted share growth of 13%-16%.
Based on recent SEC filings and earnings calls, MCKESSON CORP (MCK) has provided the following forward guidance: Adjusted earnings per diluted share: $43.80–$44.60 (FY2027); Revenue growth: 5%-9% (FY2027); Adjusted operating profit growth: 8%-12% (FY2027); North American Pharmaceutical revenue growth: 4%-8% (FY2027); North American Pharmaceutical operating profit growth: 5.5%-9.5% (FY2027), plus 9 additional metrics.
| Medical-Surgical Solutions operating profit growth | flat to 4% | FY2027 |
| Free cash flow | $4.5 billion–$4.9 billion | FY2027 |
| Interest expense | $380 million–$420 million | FY2027 |
| Effective tax rate | 17%-19% | FY2027 |
Adjusted earnings per diluted share (FY2027): “Looking ahead, we anticipate adjusted earnings per diluted share to be in the range of $43.80- $44.60 in fiscal 2027.”
Revenue growth (FY2027): “Wrapping up fiscal 2027 guidance, we anticipate revenue growth of 5%-9%”
Adjusted operating profit growth (FY2027): “and adjusted operating profit growth of 8%-12%.”
North American Pharmaceutical revenue growth (FY2027): “In the North American Pharmaceutical segment, we anticipate revenue to increase 4%-8%”
North American Pharmaceutical operating profit growth (FY2027): “and operating profit to increase 5.5%-9.5%.”
Oncology and Multispecialty revenue growth (FY2027): “In the Oncology and Multispecialty segment, we anticipate revenue growth of 14.5%-18.5%”
Oncology and Multispecialty operating profit growth (FY2027): “and operating profit growth of 13.5%-17.5%.”
Prescription Technology Solutions revenue growth (FY2027): “In the Prescription Technology Solutions segment, we anticipate revenue growth of 2.5%-6.5%”
No recent press releases.