McKesson Q3 revenue rises 11%, slightly beats estimates

Overview

• Healthcare services company's fiscal Q3 revenue rose 11%, slightly beating analysts' expectations

• Adjusted EPS beat analysts' expectations, driven by strong operational growth

• Company completed sale of Norwegian businesses, exiting European operations

Outlook

• McKesson raises and narrows full-year adjusted EPS guidance to $38.80-$39.20

• Company expects 17% to 19% growth in adjusted EPS for fiscal 2026

• McKesson does not provide GAAP EPS forecast due to adjustment complexities

Result Drivers

• NORTH AMERICAN PHARMACEUTICAL GROWTH - Revenue growth driven by increased prescription volumes and specialty product distribution

• ONCOLOGY & MULTISPECIALTY EXPANSION - Segment revenue increased 37% due to provider solutions growth and acquisitions

• RITE AID BANKRUPTCY CREDIT - EPS increase includes pre-tax credit from Rite Aid bankruptcy

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for McKesson Corp is $965.50, about 13.4% above its February 3 closing price of $851.12

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.