Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
McKesson (MCK) delivered a strong fiscal year 2026, with revenue surging 12.4% to $403.4B and net income jumping 44.5% to $4.76B, driven by operating leverage and aggressive share buybacks that boosted EPS by 49.1% to $38.55.
Revenue
$403.43B
+12.36% YoY
EPS (Diluted)
$38.38
+49.22% YoY
Gross Margin
3.6%
-0.1 pts YoY
Operating Income
$6.21B
+40.48% YoY
Source: SEC XBRL
Mckesson (MCK) reported FY2026 revenue of $403.43B, up 12.4% year over year. Operating margin was 1.5%, up 0.3 points from 1.2% a year earlier. Operating cash flow was $6.16B, up 1.2% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 9.93 | 9.63 | Beat +3.1% |
| Mar 2026This filing | 11.69 | 11.68 | Beat +0.1% |
| Dec 2025 | 9.34 | 9.31 | Beat +0.3% |
| Sep 2025 | 9.86 | 9.13 | Beat +8.0% |
Reported EPS of $11.69 versus the $11.68 analyst consensus — a +0.1% beat for Mar 2026.
Compiled by AI from this SEC filing
MCK's total revenue grew 12.4% year-over-year from $359.1B to $403.4B, reflecting continued expansion in pharmaceutical distribution volumes and strong demand across its core business segments.
Source: 10-K Income Statement
Operating income surged 40.5% to $6.21B despite gross margin compressing slightly from 3.71% to 3.61%, as SG&A expenses declined 4.8% from $8.51B to $8.10B, demonstrating meaningful operating leverage and cost discipline.
Source: 10-K Income Statement
MCK repurchased $4.75B in shares during FY2026, up 51.0% from $3.15B in the prior year, which significantly contributed to the 49.1% increase in basic EPS from $25.86 to $38.55.
Source: 10-K Cash Flow Statement
Investing cash outflows increased dramatically to -$3.43B from -$733M (a 368.2% increase), suggesting significant capital deployment into acquisitions or capital expenditures during the fiscal year.
Source: 10-K Cash Flow Statement
Current liabilities of $67.0B exceeded current assets of $57.2B, resulting in a current ratio of 0.85, while cash declined 30.2% to $3.98B, reflecting the capital-intensive nature of pharmaceutical distribution and aggressive capital returns.
Source: 10-K Balance Sheet
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
MCK carries a stockholders' equity deficit of -$2.17B, which deepened from -$2.07B in the prior year. This structural negative equity, driven by cumulative share buybacks exceeding retained earnings, could limit financial flexibility and raise concerns among lenders or counterparties.
Source: 10-K Balance Sheet
With a current ratio of only 0.85 and current liabilities of $67.0B far exceeding current assets of $57.2B, MCK operates with persistent negative working capital. While common in pharmaceutical distribution, a disruption in credit markets or supplier terms could create acute short-term liquidity stress.
Source: 10-K Balance Sheet
MCK's gross margin of 3.61% leaves virtually no buffer against pricing compression from drug manufacturers, generic drug deflation, or competitive pressures from rival distributors. Even a modest deterioration in pricing terms could materially impact profitability.
Source: 10-K Income Statement
Long-term debt increased 15.4% to $6.53B while the company simultaneously spent $4.75B on share buybacks and generated only $6.16B in operating cash flow, suggesting that capital returns are partly debt-financed and leaving less room for financial maneuvering.
Source: 10-K Balance Sheet & Cash Flow Statement
Investing cash outflows ballooned to -$3.43B from -$733M in the prior year, a 368.2% increase, indicating large acquisitions or capital expenditures whose returns and integration risks are not yet fully visible in the income statement.
Source: 10-K Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 403.43 $B | 359.05 $B | +12.36% |
Cost of Revenue $B | 388.88 $B | 345.73 $B | +12.48% |
Gross Profit $B | 14.55 $B | 13.32 $B | +9.21% |
Operating Income $B | 6.21 $B | 4.42 $B | +40.48% |
Net Income $B | 4.76 $B | 3.30 $B | +44.52% |
EPS (Basic) $ | 38.55 $ | 25.86 $ | +49.07% |
EPS (Diluted) $ | 38.38 $ | 25.72 $ | +49.22% |
SG&A Expense $B | 8.10 $B | 8.51 $B | -4.83% |
Answers draw on this SEC filing and the data on this page
McKesson's Q1 FY2027 revenue grew 8% due to pharmaceutical and specialty sales, but earnings per share fell 18% as a $293 million noncontrolling interest charge from the Medical-Surgical Solutions separation overshadowed operating gains.
MCK reported strong financial performance in Q3 FY2026, with significant increases in revenue, operating income, and net income, despite ongoing cost pressures.
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