McKesson Corporation

Schneider Electric SE agreed to acquire U.S.-based engineering software developer PTC Inc. for $22.6 billion, or €20.1 billion, paying $205 per share in an all-cash deal. The transaction was among a string of major deals reported across sectors this week. Viatris said it will acquire all outstanding shares of Pacira BioSciences for $36.50 per share in cash, an aggregate equity value of $1.65 billion, while CD&R and McKesson agreed to acquire Option Care Health for $32.05 per share, valuing it at approximately $5.8 billion including debt, sending its shares up 34% in early trading Tuesday. Energy Transfer agreed to acquire Vaquero Midstream in a $2.625 billion deal consisting of $1.95 billion in cash and about 33.3 million newly issued Energy Transfer common units, and Cenovus Energy agreed to acquire Athabasca Oil in a cash-and-stock deal valued at about C$5.7 billion, a 14% premium to Athabasca's 20-day volume-weighted average trading price. Canadian utilities Emera and Canadian Utilities agreed to an all-stock merger worth C$14.3 billion, or US$10 billion, creating a combined company with a C$72 billion enterprise value and a regulated rate base of C$45 billion serving roughly 6 million customers. Separately, TKO LLC proposed to acquire Service Properties Trust's entire hospitality portfolio for $2.0 billion, and CCC Intelligent Solutions soared 13% in after-hours trading on a report that GTCR and Elliott Investment Management are in advanced discussions to purchase the car-insurance software firm.

McKesson Corporation is partnering with private equity firm Clayton, Dubilier & Rice to acquire Option Care Health, Inc. for $5.8 billion including debt, taking the infusion-services provider private at $32.05 per share, a 37% premium to its previous closing price. Under the structure announced on October 6, CD&R will own 51% of the business while McKesson will hold 49% and retain the right to acquire its partner's stake in the future. The deal extends McKesson's push beyond traditional pharmaceutical distribution into higher-value specialty services, following its previously announced $2.25 billion agreement to acquire Precision Medicine Group. Option Care, which served more than 315,000 patients last year through home-based services and 184 care centers, reported second-quarter revenue up 1.9% to $1.44 billion and adjusted EBITDA up 3% to $117.5 million, and withdrew its 2026 guidance of $5.675 billion to $5.775 billion in revenue following the announcement. Analysts at Barrington and William Blair both downgraded Option Care to Market Perform, calling the $32.05-per-share offer attractive and a competing bid unlikely, while Morgan Stanley maintained an Overweight rating and a $977 price target on McKesson.

Option Care Health has agreed to a US$5.8 billion buyout from McKesson and Clayton Dubilier & Rice at US$32.05 per share in cash, sending the stock up 37.5% over the past week. The shares now trade near the deal level at about 22.2 times earnings, below the broader healthcare sector at roughly 24.7 times and the peer group average near 43.7 times. Community views on Option Care Health split between a bull case calling the stock 19% undervalued on home-infusion growth and a bear case calling it 9% overvalued after the company cut its 2026 revenue guidance to a range of US$5.675 billion to US$5.775 billion, citing a roughly 600 basis point revenue growth headwind from chronic inflammatory disease therapies.

CVS Health has extended its long-term pharmaceutical distribution agreements with Cardinal Health and McKesson through 2032. The renewed contracts keep CVS Health as a major customer for both wholesalers, supporting its nationwide pharmacy and retail operations. Management said the agreements cover prescription drug distribution across CVS Health's retail pharmacies and other dispensing channels. The company said the extension lines up with its focus on more predictable pharmacy and PBM economics, supporting its shift toward cost-based reimbursement models such as CVS CostVantage and its goal of earning a fair margin on every script. It also underpins newer pharmacy-focused outlets opening in 2026 by helping secure supply for those smaller locations. The unresolved piece, the company said, is how pharmacy volume and profitability will track against membership trends and 340B pressure, with the next few quarterly updates through 2027 serving as a checkpoint on script counts, Caremark client retention and management's commentary on 340B headwinds.

Option Care Health has agreed to be acquired by CD&R and McKesson for $32.05 per share in cash, sending OPCH shares 32.7% higher to close at $31. The offer represents a roughly 37% premium to Option Care Health's October 5, 2026 closing price and values the company at approximately $5.8 billion in enterprise value. The deal underscores the strategic appeal of Option Care's home and alternate-site infusion care platform and reduces near-term uncertainty around its standalone outlook. Ahead of its upcoming report, Option Care is expected to post quarterly earnings of $0.48 per share, up 6.7% year over year, on revenues of $1.47 billion, up 2.4% from the year-ago quarter, with the consensus EPS estimate unchanged over the last 30 days. The stock currently carries a Zacks Rank #2 (Buy).

Google and Constellation Energy announced a 20-year deal to bring 890 MW of new nuclear capacity onto the PJM grid in Illinois, Pennsylvania and New Jersey, with Constellation spending more than $4.3 billion on the build-out. The deal follows Amazon's similar agreement with Constellation, as surging electricity demand from AI revives interest in nuclear power. Separately, Option Care Health shares jumped after the Financial Times reported that McKesson and private equity firm Clayton Dubilier & Rice are closing in on a deal to buy the medical infusion provider for $32.50 a share, or a total enterprise value of about $5.8 billion including debt, representing a 37% premium to the prior close. Under the deal, CD&R would hold a 51% majority interest and McKesson would invest $1.4 billion for a 49% stake, with Option Care remaining a separate company led by its own management. SpaceX shares were the most actively traded in the premarket as NASA nears announcing a bulk purchase of rocket launches to fuel its $30 billion drive to build a permanent base on the moon.

Google announced a major long-term power agreement with Constellation Energy, under which it will buy power tied to 890 megawatts of new nuclear capacity alongside a separate 2,700-megawatt supply agreement, supporting more than $4.3 billion in new Constellation investment. Constellation Energy shares jumped more than 6% premarket on the news, while Alphabet rose about 0.5%. Separately, Option Care Health shares surged more than 20% following a Financial Times report that McKesson and private equity firm Clayton Dubilier & Rice are in advanced talks to jointly acquire the infusion services provider in a transaction valued at more than $5 billion; McKesson stock is up 1.5%. Berkshire Hathaway disclosed in a regulatory filing that it purchased about 2.4 million shares of Lennar, sending Lennar up 1.5%. NeoGenomics rose 5% after announcing that current President and COO Warren Stone will take the helm from Tony Cook in January 2027, and reporting preliminary third-quarter total revenue of $209 million, topping the $205.9 million consensus estimate, per FactSet. Advanced Micro Devices rose nearly 2% after Citi raised its price target to $800, citing greater CPU demand driven by Meta's Muse AI agent, while Procter & Gamble rose 1.2% on an Evercore ISI upgrade to outperform and a price target increase to $166 from $161, and Corteva rose nearly 3% after JPMorgan upgraded the stock to overweight from neutral with a $19 price target.

Accenture plc reported fourth-quarter fiscal 2026 adjusted earnings of $3.29 per share, surpassing the Zacks Consensus Estimate of $3.19 per share, sending its shares up 15.8%. Acuity Inc. posted fourth-quarter fiscal 2026 revenues of $1,244.40 million, missing the Zacks Consensus Estimate of $1,251.87 million, and its shares fell 3.4%. McKesson Corp. shares surged 5.3% after the company reiterated its fiscal 2027 earnings per share guidance. Progress Software Corp. shares tumbled 8.5% after it reported third-quarter fiscal 2026 revenues of $246.01 million, lagging the Zacks Consensus Estimate of $247.16 million.

EPIC Pharmacies, Inc., known as EPIC Rx, announced on October 1, 2026 an expanded wholesale distribution model that gives its member pharmacies a choice of primary wholesale partners. Under the new approach, each member pharmacy can select between two primary wholesale distribution partners, McKesson and Morris & Dickson, along with three secondary partners: Anda, Masters, and EPIC Rx SelectFill. EPIC Rx CEO Brian Hose said broadening the wholesale network puts more decision-making power in the hands of members and gives them flexibility to choose what works best for their pharmacies. Todd Laser, Senior Vice President of Retail at Morris & Dickson, said the agreement gives independent pharmacy customers greater choice and a stronger path to compete by combining EPIC Rx's collective strength with Morris & Dickson's service and supply-chain capabilities. EPIC Rx is a nationwide, member-owned buying group that supports independent pharmacies with group purchasing value and compliance assistance.

McKesson Corporation announced it has signed an agreement in principle to extend its partnership with CVS Health to distribute pharmaceuticals to mail order and specialty pharmacies, retail pharmacies, and distribution centers through June 2032. The Irving, Texas-based company said the extension builds on a relationship of more than 25 years, according to chair and chief executive officer Brian Tyler. McKesson is reaffirming its fiscal year 2027 adjusted EPS guidance of $44.20 to $45.00 and its long-term adjusted EPS growth rate of 13% to 16%. Further updates will be provided during the company's second quarter fiscal 2027 earnings call on November 4, 2026. The company cautioned that the deal remains an agreement in principle and that risks include possible delays in signing a definitive contract, a failure to sign one, or not realizing all expected financial and operational benefits.

McKesson raised its fiscal 2027 adjusted EPS guidance to $44.20-$45.00, implying 15-17% growth at the midpoint, after first-quarter revenues rose 8% to $105.4 billion and adjusted EPS climbed 20% to $9.93. The oncology and multispecialty segment drove much of the momentum, with revenues up 33% to $14.2 billion and operating profit up 41%, or roughly 24% revenue growth excluding the Core Ventures acquisition, and management now expects 14.5-18.5% segment revenue growth for fiscal 2027. North American Pharmaceutical generated $15 billion of GLP-1 distribution revenues in the quarter, more than 14% of total revenues, up approximately 24% year over year and 13% sequentially. Offsetting those gains, the medical-surgical solutions segment posted just 4% revenue growth to $2.8 billion while operating profit fell 20% to $195 million, and management guided to only 1-6% revenue growth and flat-to-4% operating-profit growth for that unit in fiscal 2027. McKesson also flagged continued uncertainty from 340B reform and the IRA Part D framework, which is not scheduled to take effect until January 2028, while the Zacks Consensus Estimate for fiscal 2027 EPS has improved 3 cents to $44.64 over the past 30 days.

McKesson has raised its full-year adjusted earnings per share guidance, a move that comes as its share price slipped 1.2% and trailed the broader market. The stock has fallen 3.95% over the past 30 days, even after a 13.86% 90-day return and a 5.58% gain year to date, while total shareholder return stands at 18.50% over one year. The most followed narrative values McKesson at a fair value of $980.73 against a last close of $869.36, implying the stock is 11% undervalued, a view held by 61 investors. That story leans on the company's oncology ecosystem, including the US Oncology Network, PRISM and Precision Medicine Group, as a central driver of revenue mix and margin potential. Risks to the narrative include drug pricing pressure on already thin margins and higher costs and customer churn from a recent cyber incident.

McKesson is expected to post earnings of $10.72 per share for the current quarter, a year-over-year change of +8.7%, with the Zacks Consensus Estimate rising +1.4% over the last 30 days. The consensus earnings estimate of $44.64 for the current fiscal year indicates a year-over-year change of +14.1% and has remained unchanged over the last 30 days, while the next fiscal year's consensus estimate of $49.83 points to a change of +11.6%. The consensus sales estimate of $110.14 billion for the current quarter points to a year-over-year change of +6.8%, and the $429.09 billion and $459.25 billion estimates for the current and next fiscal years indicate changes of +6.4% and +7%, respectively. McKesson reported revenues of $105.38 billion in the last reported quarter, a year-over-year change of +7.7%, with EPS of $9.93 versus $8.26 a year ago, beating the Zacks Consensus Estimate of $104.39 billion by +0.95% on revenue and posting an EPS surprise of +5.19%. The stock carries a Zacks Rank #3 (Hold) and a Zacks Value Style Score of B, indicating it trades at a discount to its peers.

Alluvium Asset Management raised its stake in McKesson Corporation to 6.8% of the Conventum – Alluvium Global Fund, according to the fund's second-quarter 2026 investor letter. The fund said McKesson, the Irving, Texas-based drug distributor, fell 12.6% in the quarter even though its full-year results came in perfectly in line with expectations, and management gave strong guidance for next year's earnings while reiterating 13%-16% long-term growth expectations. After feeding those numbers through its model, Alluvium said its valuation rose 18%, and with the share price trading below that level it bought a little more. McKesson closed at $899.56 per share on September 15, 2026, returning 5.37% over the past month and 29.95% over the past 52 weeks, with a market capitalization of $106.21 billion and a trading range of $687.68 to $999.00. The fund itself declined 1.4% in EUR terms, 2.2% in USD terms and 3.9% in AUD terms in the quarter, a period it described as a sharp shift from geopolitical uncertainty and oil market volatility to an equity rally led by semiconductor companies.

McKesson raised its full-year EPS guidance, projecting approximately 13%–15% growth, or 15%–17% excluding certain prior-year items. The company also outlined plans to rebrand its Medical-Surgical unit as Wellverse, with a potential IPO targeted for the second half of 2027. Alongside that, McKesson has a pending acquisition of Precision Medicine Group to expand oncology and biopharma-services capabilities, subject to regulatory approval. The combination of upgraded earnings expectations, portfolio reshaping around higher-value oncology and biopharma services, and the potential separation of Wellverse marks a meaningful shift in how McKesson positions its future business mix and profit drivers.

McKesson is moving forward with its planned $2.25 billion acquisition of Precision Medicine Group, a deal that would expand its oncology and biopharma services. The company discussed the transaction during a presentation with Wells Fargo analyst Stephen Baxter, saying it would add clinical-trial capabilities, including biomarker-focused trials, and complement its existing assets like Sarah Cannon, Ontada, and the U.S. Oncology Network. Precision Medicine Group also brings a more established contract research organization, or CRO, capability focused on oncology, rare disease, immunology, and cell and gene therapy. McKesson's CFO, Kenny Cheung, said the company expects the deal to create incremental value for biopharma partners and will provide more details on earnings accretion as the transaction progresses. In the first quarter, McKesson's Oncology and Multi-Specialty segment saw revenue grow about 33% and adjusted operating profit rise about 41%, while the company reiterated plans to return roughly $5 billion to shareholders this year.

McKesson Corporation has agreed to acquire privately held Precision Medicine Group for approximately $2.25 billion, as the healthcare company continues shifting its portfolio toward higher-growth businesses. Precision Medicine provides clinical research, laboratory testing, and commercialization services to biotechnology and pharmaceutical companies developing and launching new medicines. McKesson plans to integrate the company into its Oncology & Multispecialty segment, which generated $14.2 billion in revenue in fiscal 2026's first quarter, a 33% year-over-year increase. The acquisition represents just over 2% of McKesson's market capitalization, according to an analyst cited by Reuters, making it meaningful but not large enough to fundamentally alter the company's financial profile. The deal strengthens McKesson's exposure to clinical research, oncology, specialty care, and biopharma services, though execution risks remain in integrating the business and realizing synergies.

McKesson Corporation opened fiscal 2027 with an earnings beat, double-digit adjusted operating profit growth and higher full-year earnings guidance. First-quarter adjusted earnings rose 20% to $9.93 per share, topping the Zacks Consensus Estimate of $9.44 by 5.2%, while revenues increased 8% to $105.38 billion. Adjusted operating profit advanced 16% to $1.65 billion, driven by growth in North American Pharmaceutical, Oncology & Multispecialty and Prescription Technology Solutions. Oncology & Multispecialty revenues climbed 33% to $14.22 billion and adjusted operating profit increased 41% to $405 million, with the U.S. Oncology Network reaching approximately 3,400 providers treating more than 2 million patients annually. GLP-1 distribution revenue reached $15 billion in the quarter, up 24% year over year and 13% sequentially. McKesson raised fiscal 2027 adjusted earnings guidance to $44.20-$45.00 per share from $43.80-$44.60, implying 13%-15% growth, and maintained free cash flow guidance of $4.5-$4.9 billion with about $5 billion of share repurchases expected for the year.

McKesson raised its fiscal 2027 adjusted earnings outlook after reporting first-quarter revenue of $105.4 billion, up 8%, and adjusted diluted earnings per share of $9.93, up 20%. The company now expects full-year adjusted EPS of $44.20 to $45.00, up from prior guidance of $43.80 to $44.60, implying growth of 13% to 15%. North American Pharmaceutical revenue rose 5% to $86.8 billion, with operating profit up 19% to $894 million, while GLP-1 distribution revenue surged 24% to $15 billion. Oncology & Multispecialty and Prescription Technology Solutions both posted double-digit operating-profit growth. McKesson also advanced the planned separation of its Medical-Surgical Solutions business under the Wellverse brand and returned $2.6 billion to shareholders through buybacks and dividends, including a 15% dividend increase.

McKesson Corporation has declared a regular quarterly dividend of 94 cents per share of common stock, a 15% increase from the prior quarter's 82 cents. The dividend will be payable on October 1, 2026, to shareholders of record on September 1, 2026. Chair and CEO Brian Tyler noted this marks the company's tenth consecutive year of dividend growth, reflecting business strength and disciplined capital allocation.

The global AI in revenue cycle management market is projected to grow from $24.43 billion in 2025 to $225.87 billion by 2035, a compound annual growth rate of 25.06 percent, according to a new report. North America held the largest share at 49.21 percent in 2025, with the U.S. market alone valued at $10.24 billion and expected to reach $90.71 billion by 2035. The software segment accounted for 70.21 percent of the market in 2025, while integrated solutions led by type with a 67 percent share. Hospitals were the dominant end-use segment at 48.12 percent, and the claims management application held 24 percent of the market. Key players include athenahealth, Experian Information Solutions, R1 RCM, McKesson, and Oracle.

McKesson stock has delivered a 337.6% total return over the past five years, yet the latest valuation checks suggest the shares still lean cheap rather than stretched. The stock trades at about 19.8 times earnings, a clear discount to the Healthcare sector average of roughly 24.9 times and a peer group average near 24.1 times. Simply Wall St's fair price-to-earnings model implies a multiple of 29.6 times, materially above the current level, indicating the market has not fully closed the valuation gap. On broader checks, McKesson screens as undervalued in five of six valuation tests, pointing to a stock that still looks attractively priced against several fundamental yardsticks. The discount appears tied to concerns about thin distribution margins and execution risk, leaving the key question of whether those risks justify the gap or if the stock merits a multiple closer to its healthcare peers.

StockStory identified McKesson as a healthcare stock with impressive fundamentals, citing 14.3% annual revenue growth over two years, a dominant market position with $403.4 billion in revenue, and 17.9% annual EPS growth boosted by share buybacks. In contrast, it recommended selling AMN Healthcare Services due to declining travelers on assignment, falling EPS over five years, and diminishing returns on capital, and avoiding Novavax because of 22.6% annual sales declines over two years, a projected 50.7% sales drop, and cash-burning tendencies.

McKesson Corporation highlighted artificial intelligence-powered solutions for independent pharmacies at its annual ideaShare conference held from June 18 to June 21 in Denver. The event gathered nearly 5,000 independent community pharmacy professionals and focused on integrating AI into pharmacy operations, expanding patient care services, and the role of community-based care. For the first time, McKesson hosted a Product Showcase where attendees evaluated new tools and voted on those they believed would most impact their businesses and patients. Separately, on June 2, McKesson closed a deal in which Apollo invested $1.25 billion in convertible preferred equity for an approximately 13% minority stake in McKesson's Medical-Surgical Solutions business, valuing the unit at roughly $13 billion in total enterprise value.

McKesson Corporation was added to several Russell 1000 defensive-style indexes in late June 2026, while TempraMed announced an expanded North American distribution partnership with McKesson Medical-Surgical to broaden access to its temperature-controlled medication solutions. These developments highlight McKesson's role as a key healthcare distribution infrastructure provider and reinforce its positioning in indices focused on defensive characteristics. The index inclusions may modestly increase index-related flows but do not materially change near-term catalysts around specialty growth and efficiency gains, nor reduce structural risks from regulation, consolidation, and pricing pressure. The TempraMed partnership connects to McKesson's opportunity in higher value-added services and complex logistics, as broader access to temperature-controlled solutions fits with rising supply chain complexity benefiting large distributors. McKesson's narrative projects $499.3 billion revenue and $6.1 billion earnings by 2029, with a fair value estimate of $941.40 per share, representing a 25% upside to its current price.

McKesson Medical-Surgical has expanded its partnership with TempraMed Technologies to distribute TempraMed's full portfolio of temperature-controlled medication solutions across North America. The agreement aims to strengthen McKesson's business-to-business offering to healthcare providers by addressing medication storage, handling, and compliance needs. The move supports TempraMed's shift toward a more diversified revenue model while leveraging McKesson's established medical-surgical distribution network. For McKesson, the expanded partnership reinforces its position as a one-stop supplier of clinical supplies and equipment, and aligns with its push into specialized logistics and value-added services around the drug supply chain.

A bullish thesis on McKesson Corporation argues the stock's decline from nearly $1,000 to around $740 creates an attractive opportunity, with intrinsic value estimated between $885 and $1,275 per share. The selloff followed a fiscal 2026 fourth-quarter revenue miss, but the core investment thesis remains intact due to McKesson's dominant position in the U.S. pharmaceutical distribution oligopoly alongside Cencora and Cardinal Health. The company generated $5.4 billion in free cash flow in fiscal 2026 and has reduced its share count by more than 60% over two decades through aggressive buybacks, including a newly authorized $5 billion repurchase program. McKesson is also shifting toward higher-margin businesses, with its Oncology and Multi-Specialty segment delivering 31% revenue growth and 53% operating profit growth in fiscal 2026. The thesis was shared on r/ValueInvesting by OnTheStreetwithLou.

McKesson’s shares have fallen 8.1% over the past six months to $763.33, underperforming the S&P 500’s 6.8% gain, but the company’s fundamentals remain strong. Revenue grew at an 11.1% compound annual rate over five years, slightly above the healthcare sector average, while EPS expanded at 17.9% annually, signaling improving profitability. With $403.4 billion in trailing 12-month revenue, McKesson’s massive scale provides negotiating leverage with suppliers in the low-margin pharmaceutical distribution business. The stock now trades at 17.2 times forward earnings.

McKesson Corporation has selected Moore, Oklahoma as the location for a highly automated regional distribution facility at the North Moore Industrial Park. The 330,000-square-foot facility represents a $179 million total capital investment and will create over 200 direct jobs, with 633 total jobs expected by 2029. The project will replace an existing distribution center, expanding capacity and modernizing capabilities to support the efficient distribution of pharmaceuticals and medical products across a multi-state region. The decision followed a rigorous evaluation of competing markets across the central United States and underscores McKesson's commitment to strengthening its digitally connected distribution network.

McKesson Corporation hosted its annual McKesson ideaShare 2026 event for independent community pharmacies last week in Denver, Colorado. The conference focused on education, networking, and collaboration to help independent pharmacies innovate and thrive, with sessions on emerging technologies including artificial intelligence and hands-on AI-powered solutions. Advocacy efforts were also highlighted, with McKesson continuing its support for state pharmacy associations through dedicated funding via McKesson Amplify, and applications for 2027 funding now open. Mace's Pharmacy of Barbour County, West Virginia, was awarded the 2026 Health Mart Pharmacy of the Year, chosen by a live onsite vote from attendees. Additional awards included the Trailblazer Award presented to Shahida Choudhry of Palms Pharmacy and the Going the Distance Award to CHCC Outpatient Pharmacy in Saipan. The event also featured a Product Showcase where attendees voted on solutions with the greatest potential impact, and McKesson ideaShare 2027 is scheduled for June 24-27, 2027, at Mandalay Bay in Las Vegas, Nevada.