WS Investor
08 May 2026, 09:42
McKesson Barely Moves After Hours Despite Record Year as Strong Results Were Already Expected
Irving, May 7, 2026 — Shares in McKesson Corporation edged down a negligible 0.12% in after-hours trading yesterday after the healthcare distribution giant reported a fiscal fourth quarter and full year that delivered record revenue and earnings, reaffirmed its long-term growth targets, and issued fiscal 2027 guidance largely in line with what Wall Street had anticipated. The near-flat reaction is itself the story — McKesson has become such a reliable compounder that beating expectations is simply what investors expect.
Full year revenues reached $403.4 billion, up 12%, while adjusted EPS grew 18% to $39.11 — exceeding the company's own long-range targets of 13% to 16%. Fourth quarter adjusted EPS of $11.69 rose 16% year-over-year, driven by strength in oncology distribution, a lower share count, and a favorable tax rate. Free cash flow for the full year came in at $5.4 billion, and McKesson returned $5.1 billion to shareholders through buybacks and dividends.
The Oncology and Multispecialty segment was the standout, with full-year revenue surging 31% to $48.4 billion and adjusted operating profit up 53%. The US Oncology Network continued to expand, adding Cancer Care Northwest in April, and the PRISM Vision Group ophthalmology network also grew its footprint. These specialty provider businesses represent the highest-margin, highest-growth portion of McKesson's portfolio and are the primary reason the company commands a premium valuation.
Fiscal 2027 adjusted EPS guidance of $43.80 to $44.60, implying 12% to 14% growth, landed close to consensus and provided no upside surprise. The Medical-Surgical Solutions segment, which is being separated as a standalone business with Apollo Global acquiring a minority stake, continues to be a drag — adjusted operating profit there fell 5% in the quarter.
With a $7.7 billion share repurchase authorization in place and long-term EPS growth targets reaffirmed at 13% to 16%, McKesson offers exactly what its investors buy it for: predictable, compounding returns. The muted after-hours move reflects a market that got precisely what it paid for.
Irving, May 7, 2026 — Shares in McKesson Corporation edged down a negligible 0.12% in after-hours trading yesterday after the healthcare distribution giant reported a fiscal fourth quarter and full year that delivered record revenue and earnings, reaffirmed its long-term growth targets, and issued fiscal 2027 guidance largely in line with what Wall Street had anticipated. The near-flat reaction is itself the story — McKesson has become such a reliable compounder that beating expectations is simply what investors expect.
Full year revenues reached $403.4 billion, up 12%, while adjusted EPS grew 18% to $39.11 — exceeding the company's own long-range targets of 13% to 16%. Fourth quarter adjusted EPS of $11.69 rose 16% year-over-year, driven by strength in oncology distribution, a lower share count, and a favorable tax rate. Free cash flow for the full year came in at $5.4 billion, and McKesson returned $5.1 billion to shareholders through buybacks and dividends.
The Oncology and Multispecialty segment was the standout, with full-year revenue surging 31% to $48.4 billion and adjusted operating profit up 53%. The US Oncology Network continued to expand, adding Cancer Care Northwest in April, and the PRISM Vision Group ophthalmology network also grew its footprint. These specialty provider businesses represent the highest-margin, highest-growth portion of McKesson's portfolio and are the primary reason the company commands a premium valuation.
Fiscal 2027 adjusted EPS guidance of $43.80 to $44.60, implying 12% to 14% growth, landed close to consensus and provided no upside surprise. The Medical-Surgical Solutions segment, which is being separated as a standalone business with Apollo Global acquiring a minority stake, continues to be a drag — adjusted operating profit there fell 5% in the quarter.
With a $7.7 billion share repurchase authorization in place and long-term EPS growth targets reaffirmed at 13% to 16%, McKesson offers exactly what its investors buy it for: predictable, compounding returns. The muted after-hours move reflects a market that got precisely what it paid for.