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    McKesson (MCK) Is Up 12.1% After Strong Q3 EPS And Capital Moves Has The Bull Case Changed?

    Simply Wall St·02/09/2026 08:22:14
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    • McKesson Corporation recently reported past third-quarter and nine‑month results to December 31, 2025, with sales of US$106.16 billion and net income of US$1.19 billion for the quarter, and also affirmed a regular dividend of US$0.82 per share payable on April 1, 2026.
    • The company has also substantially completed a long-running share repurchase program, retiring around 64 million shares for about US$18.43 billion, and filed an omnibus shelf registration that expands its flexibility to issue a wide range of securities.
    • We’ll now examine how McKesson’s stronger quarterly earnings performance, including higher earnings per share, shapes the company’s broader investment narrative.

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    What Is McKesson's Investment Narrative?

    To own McKesson, you need to be comfortable with a very large, low‑margin distributor that depends on consistent execution, disciplined capital allocation and a resilient healthcare demand base. The latest quarter reinforced that story: higher earnings and earnings per share, helped by a long-running buyback that has now retired about 64 million shares, support the case for per‑share value creation, while the regular US$0.82 dividend points to ongoing cash generation. Near term, the key catalysts still sit around volume trends in core distribution and execution in higher‑margin oncology and data businesses; the stronger quarterly numbers incrementally help sentiment but do not radically change those drivers. On the risk side, McKesson’s high debt load and thin net margins leave little room for error if pricing, reimbursement or customer contracts come under pressure.

    McKesson's shares have been on the rise but are still potentially undervalued by 36%. Find out what it's worth.

    Exploring Other Perspectives

    MCK 1-Year Stock Price Chart
    MCK 1-Year Stock Price Chart

    Five Simply Wall St Community fair value estimates span roughly US$665 to about US$1,475, with some members seeing very large upside. Against that backdrop, the recent step up in earnings and completed buyback underline why different investors may weigh McKesson’s thin margins and sizeable debt very differently, making it worth comparing several viewpoints before reaching your own conclusion.

    Explore 5 other fair value estimates on McKesson - why the stock might be worth as much as 55% more than the current price!

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.