What Happened?
Shares of healthcare distributor and services company McKesson (NYSE: MCK) jumped 2.6% in the morning session after the positive momentum continued as it raised its profit forecast for fiscal 2026 and boosted its long-term growth targets during its 2025 Investor Day.
The company increased its fiscal 2026 adjusted earnings per share guidance to a new range of $38.05 to $38.55, up from the previous forecast of $37.10 to $37.90. This updated outlook topped consensus estimates. McKesson also lifted its long-term adjusted earnings growth target to a range of 13% to 16%, an increase from the prior 12% to 14%. The positive revision was linked to the company's plans to focus on high-margin areas, such as cancer medicines.
Following the announcement, Morgan Stanley raised its price target on the shares to $857 from $810, citing the strong guidance.
After the initial pop the shares cooled down to $759.01, up 2.4% from previous close.
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What Is The Market Telling Us
McKesson’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 6.6% on the news that the company raised its profit forecast for fiscal 2026 and boosted its long-term growth targets during its 2025 Investor Day.
During the event, McKesson's leaders unveiled a higher forecast for Fiscal 2026 adjusted earnings per share, setting a new range of $38.05 to $38.55. This new target topped the prior range and also surpassed market estimates. The company also showed more confidence in its future, increasing its long-term adjusted earnings growth goal to a range of 13% to 16%, up from 12% to 14%.
Management pointed to the strength of its platforms in high-value areas like oncology and biopharma solutions as key drivers for this improved outlook. The move suggested a clear strategy to focus on more profitable parts of its business.
McKesson is up 34.1% since the beginning of the year, and at $759.01 per share, has set a new 52-week high. Investors who bought $1,000 worth of McKesson’s shares 5 years ago would now be looking at an investment worth $5,179.
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