McKesson Corporation Experiences Mixed Performance Amid Market Challenges
With a market capitalization of $80.4 billion, McKesson Corporation (MCK) stands as a prominent player in healthcare services and information technology. Based in Irving, Texas, McKesson operates across four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International.
Large-cap stocks are typically valued at $10 billion or more, and McKesson meets this key investment criterion. The company specializes in pharmaceutical distribution, medical-surgical supply logistics, and comprehensive healthcare technology solutions tailored for providers, pharmacies, and biopharma companies.
Despite its stature, McKesson has seen a 9.6% decline from its 52-week high of $653.92. However, in recent months, shares of MCK have increased by 8%, outperforming a 4.6% drop in the broader Dow Jones Industrials Average ($DOWI) during the same timeframe.
Looking at a longer-term perspective, McKesson shares are up 14.4% year-to-date, surpassing the DOWI’s relatively modest gain. Furthermore, MCK has risen by 23.3% over the past 52 weeks, compared to the DOWI’s 9.8% return in the same period. The company has demonstrated a solid bullish trend, consistently trading above both its 50-day and 200-day moving averages since November of last year.
Following its Q3 2025 earnings announcement on February 5, shares of McKesson fell by 1.2%. The adjusted EPS came in at $8.03, alongside revenue of $95.3 billion, both disappointing investors. The Medical-Surgical Solutions segment reported a 3% drop in revenue to $2.9 billion due to lower seasonal vaccine and testing activity, sparking concerns regarding potential weaknesses within that segment. Additionally, McKesson reported negative free cash flow of $2.2 billion, raising flags about cash management amidst investments and $1.4 billion allocated for share repurchases.
In contrast, McKesson’s rival, Cencora, Inc. (COR), has struggled, with only a 7.1% increase over the past 52 weeks and a YTD gain of 13.3%.
Given its robust price movements over the past year, McKesson holds a consensus “Strong Buy” rating from 16 analysts monitoring the stock. Currently, MCK is trading below the average price target of $677.80.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy
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